Ceylon Tea Brokers PLC

EquityChamp · 1 Ceylon Tea Brokers PLC Fri May 27, 2016 8:11 pm

EquityChamp

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Q4 15/16 PAT has doubled YoY. First we saw HVA returning to profitability now CTBL. Looks like tea industry has been changing positively and these stocks will perform better in the coming quarters. I will post on these stocks later on in detail.

anjelo · 2 Re: Ceylon Tea Brokers PLC Fri May 27, 2016 8:26 pm

anjelo

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Hmmm mm completely forgot about CTBL
This share is also liquid as I remember,but very low action past year,but used to be a players share as well.this also should rise to a certain level I think.wasnt eyeing this share much,so hard to predict,but if profited ot should move.

EquityChamp · 3 Re: Ceylon Tea Brokers PLC Fri May 27, 2016 10:39 pm

EquityChamp

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According to my analysis company has earned lower commission income from tea brokering every quarter this year compared to the 4 quarters of the last year. This is understandable with lower activity in Sri Lankan tea industry.

Company has been able to maintain its GP margin around 80% in every quarter for the last 8 quarters which means their direct cost structure is highly revenue linked so any improvement in revenue should give them a proportionate improvement in GP.

The other important observation is their PBT margin has yet again came up to surpass 17% lastly were seen in the quarter ending Oct - Dec 2014. Their the distribution cost and finance cost has shown a considerable decline. If you look at their balance sheet you can see a considerable drop in interest bearing borrowings and that could have been the reason. So I think this PBT margin will likely to be replicated in the coming quarters together with the expected increase in commission income with the resurgence of tea auction. So in the final analysis it worked out to me a profit level as follows.
Q1 16/17 - 8mn
Q2 16/17 - 12mn
Q3 16/17 - 11mn
Q4 16/17 - 12mn

Overall PAT of 44mn in 16/17 vs 27mn in 15/16.

Lets see how it goes when quarters unfold as this is still very early stage.
Thanks