SHL (Softlogic Holdings): Hidden Value

SHL (Softlogic) has hidden value.

NAV of SHL (approx Rs 9.5) does not reflect the capital gain they made on their Asiri investment. The accounting principles states that the shares they bought in Asiri must be shown at price of purchase and not the current price when calculating NAV. So the multi-billion ruppee gain made by Softlogic by buying Asiri (Asiri share value has doubled since SHL bought the stake) is not reflected in NAV of Softlogic Holdings. If SHL sold Asiri stake, they can make a huge profit and cover most of their loans.

SHL is a share worth 12 trading at 8. If they increase profits and reduce interest costs, this share can easily be at 16 in two years. They have got into some new ventures such as the Burger King, Movenpick projects and are opening a hospital in Kandy. This is a great share to collect at these levels.

Disclaimer: please do your own research

Little bit to add.. keep eye on Asiri as well. Asiri group of hospitals aiming global recognition standard, which still none of srilankan hospitals achieved. It's a standard like CMMI to IT companies. however not only Asiri is targeting this, there are one or two private hospitals also strategically trying to get in to that standard.

Asiri, SHL, ECL all these seems to be hot picks, but i will be keep cautious with ECL because currently it is over heated.

Yes but without Asiri SHL would be a f!@king nobody!

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

Rain, Fancy buying a Ford car in Sri Lanka? You wouldn’t wait long to get a slot for servicing or maintenance.!

SHL was a massively over priced IPO and currently trades at fair value.

econ wrote:SHL was a massively over priced IPO and currently trades at fair value.

If they are smart enough to reduce the debt burden, the group will be very attractive.

UKboy wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

Rain, Fancy buying a Ford car in Sri Lanka? You wouldn’t wait long to get a slot for servicing or maintenance.!

ehem ehem...

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

According to the last Q report,
Revenue from Information Technology 3.0 Billion
Revenue from Retail 3.6 Billion
Revenue from Financial Services 3.5 Billion
Revenue from Healthcare Services 3.7 Billion
Total Revenue for the quarter 14.1 Billion
Healthcare Services is only about 26% from total revenue.

Total operating profit 1.4 Billion
Operating profit from Healthcare services 986 million
Healthcare services have given 69% of total operating profit.

According to the current situation, I agree with rainmaker that ASIRI plays the major role in SHL profits. But if they can turn around other entities, then SHL will be the key in future.
There is a demand being created for SHL, I bought my second lot today.

Anyway, this is a good balanced view.

This might be the best time to average down if someone is still holding at IPO price as the counter seems to be bottomed up and on an upward trend.

seek wrote:This might be the best time to average down if someone is still holding at IPO price as the counter seems to be bottomed up and on an upward trend.

I agree - if ASPI is continuing to move, this will reach 11 at least

So might as well buy now

seek wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

According to the last Q report,
Revenue from Information Technology   3.0 Billion
Revenue from Retail 3.6 Billion
Revenue from Financial Services 3.5 Billion
Revenue from Healthcare Services 3.7 Billion
Total Revenue for the quarter 14.1 Billion
Healthcare Services is only about 26% from total revenue.

Total operating profit 1.4 Billion
Operating profit from Healthcare services 986 million
Healthcare services have given 69% of total operating profit.

According to the current situation, I agree with rainmaker that ASIRI plays the major role in SHL profits. But if they can turn around other entities, then SHL will be the key in future.
There is a demand being created for SHL, I bought my second lot today.

Anyway, this is a good balanced view.

Beaten down shares recover very fast than others.. already in 51% gain on COCR and 26% gain on SHL

seek wrote:

seek wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

According to the last Q report,
Revenue from Information Technology   3.0 Billion
Revenue from Retail 3.6 Billion
Revenue from Financial Services 3.5 Billion
Revenue from Healthcare Services 3.7 Billion
Total Revenue for the quarter 14.1 Billion
Healthcare Services is only about 26% from total revenue.

Total operating profit 1.4 Billion
Operating profit from Healthcare services 986 million
Healthcare services have given 69% of total operating profit.

According to the current situation, I agree with rainmaker that ASIRI plays the major role in SHL profits. But if they can turn around other entities, then SHL will be the key in future.
There is a demand being created for SHL, I bought my second lot today.

Anyway, this is a good balanced view.

Beaten down shares recover very fast than others.. already in 51% gain on COCR and  26% gain on SHL

Yes and Ashok Pathirage was also collecting at 10.30 levels. I think it'll reach 13 easily if they have good reports coming soon

Any special news?? Dividend???

Leon wrote:Any special news?? Dividend???

Highly geared companies like SHL will take another quarter or two to show improved results with the help of less finance cost. There will not be any surprise results or dividends in near future. But look at the demand for ASIR. It is doing pretty well. After consolidation their finance arm will start to do better.

Earlier I was more interested in VONE than SHL but when I see SHL is beaten down to the ground and the upward trend is forming I sold all my VONE shares and bought SHL.

So far, this has been a good decision.

At the moment, Mr. Pathirage is adding more value to SHL than what DP is doing to VONE.

Leon wrote:Any special news?? Dividend???

Have a look at their NAV after using the Asiri share price now! Asiri has surged and so should SHL. With interest rates coming down, their finance cost wont be as high

stumpy wrote:

UKboy wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

Rain, Fancy buying a Ford car in Sri Lanka? You wouldn’t wait long to get a slot for servicing or maintenance.!

ehem ehem...

Hey Stumpo, without just clearing your throat why don't you give us a tech update ? Its been a while since we have heard from the likes of you and Gann, even Trader bugger isnt posting these days. On another thread maybe as this is 'bout SHL.

Backstage wrote:

stumpy wrote:

UKboy wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

Rain, Fancy buying a Ford car in Sri Lanka? You wouldn’t wait long to get a slot for servicing or maintenance.!

ehem ehem...

Hey Stumpo, without just clearing your throat why don't you give us a tech update ? Its been a while since we have heard from the likes of you and Gann, even Trader bugger isnt posting these days. On another thread maybe as this is 'bout SHL.

Every passing day tech guys are understanding it's all about manipulation and sentiment.If not then they have a big problem.

This was in my future collection list. SHL is a sleeping giant . Due to its huge gearing it cannot show its real colours.
Now I feel it is getting attention earlier than we expected (very bad ! ) due to easing of interest rates.
At the moment it is at fair value. Sometimes, we may not get a chance in the future to collect it at fair prices if market appreciated as a whole.

dhanurrox wrote:

Backstage wrote:

stumpy wrote:

UKboy wrote:

rainmaker wrote:Yes but without Asiri SHL would be a f!@king nobody!

Rain, Fancy buying a Ford car in Sri Lanka? You wouldn’t wait long to get a slot for servicing or maintenance.!

ehem ehem...

Hey Stumpo, without just clearing your throat why don't you give us a tech update ? Its been a while since we have heard from the likes of you and Gann, even Trader bugger isnt posting these days. On another thread maybe as this is 'bout SHL.

Every passing day tech guys are understanding it's all about manipulation and sentiment.If not then they have a big problem.

lolz, that hurts dhanu

Mark I know you know these things and follow them.We are in same boat and it's the correct boat.Not appearing in FB these days know?

dhanurrox wrote:Mark I know you know these things and follow them.We are in same boat and it's the correct boat.Not appearing in FB these days know?

ah im having exmas ne so not much on fb.

your patience rewarded in ECL i sold that half of CIT and all CFI shit yesterday and today with tiny profits. But yet holding few CIT .

im into banking sector fully

seek wrote:

Leon wrote:Any special news?? Dividend???

Highly geared companies like SHL will take another quarter or two to show improved results with the help of less finance cost. There will not be any surprise results or dividends in near future. But look at the demand for ASIR. It is doing pretty well. After consolidation their finance arm will start to do better.

Earlier I was more interested in VONE than SHL but when I see SHL is beaten down to the ground and the upward trend is forming I sold all my VONE shares and bought SHL.

So far, this has been a good decision.

At the moment, Mr. Pathirage is adding more value to SHL than what DP is doing to VONE.

Mr. Pathirage is a fearless man in business.

@Chinwi, Can you remember in a PM I said I'm eyeing TKYO and SHL few months ago? Actually I couldn't buy TKYO due to lack of funds. You may be correct. It was the last chance to buy below 9 but this is still cheap to me. What do you think about maize and soybean prices? Will history repeat?.

Yes I can remember how you predicted about those shares.
Same here, i also couldnt buy. only little amt of shl i hv.
shl lolc high gear stocks. lolc gave opp from 50 now 75.
Sorry
im logn off. moving out of coverage area. far awy from cmb.

I heard SHL going in to restructuring so can see some action taken in coming months. I guess time to get things moving and streamlined than trying their hand in everything. SHL peaked at 12.70 in May last year.