CHEVRON LUBRICANTS LANKA PLC (LLUB.N0000)

ErangaDS wrote:2019-
EPS 8.75
DPS 7.75
1) crude oil were traded above $60/per barrel troughout 2019
2) The company has managed to increase their market share by 6-8% during the year ( currently having 44% share of lubricant market in Sri Lanka )
“After two consecutive years of de-growth, the Retail channel demonstrated a growth of 4% over prior year by introducing low end cheaper products to the market (Annual report)
3)Increased Export volumes (Bangladesh) by 18%

2020- Covid 19 & going ahead-
1) Top line could be reduced due to Covid 19 impact on the economic activities but it will off set by the reduction Crude prices(almost 50% reduction).There for very little or no impact on the bottom line.

  “Sri Lanka generated 12,46,863 MWh of electricity in January, 1,228,279 MWh in February, 1,206,069 MWh in March and 964,043 MWh in April 2020.Coal has contributed 41 per cent for the total electricity generation in Jan – Apr 2020 while Major hydro has contributed 21 per cent, and thermal oil has contributed 38 per cent.
- since being a major contributor to the thermal oil energy generators , this will help the companies revenue generation during the hard hit first quarter due to lockdown.

2) Going forward the company will get strong competition mainly from CEPETCO & LIOC, but being the market leader they are in a good position by adopting good strategies to increase the local market as well as the foreign markets.

*Dividend policy would be the most attractive factor when it comes to LLUB*
The company known for paying earnings as dividends
I’m expecting them to do the same earnings as last year,RS 8.75 & to declare a Dividend of 8.5RS ( mainly due to cash flow issues facing by its parent company in the US , due to lockdown & lower oil prices)

Currently LLUB trading @ 68 (12.5% dividend yield) where as FD rates around 7-8% .
I’m expecting LLUB to come back to its glory days with 10+ earnings  when the economic activities started to picked up(post Covid)
*This is an another share similar to RCL , has the ability to trade above 100 in the medium term.
********I’d buy this as an investment for the long term*******

suku502 wrote:most probably there should be a dividend this month   lets see

Antonym wrote:

suku502 wrote:most probably there should be a dividend this month   lets see

If LLUB declares 3rd Interim Dividend of Rs 2.50 per share this month, that would justify price in excess of Rs 100.

suku502 wrote:Ended with 90.40 in last week End , volume was high than previous day. but still in the margin , let's see whether they declare the dividend this week , 3rd one.

Antonym wrote:

suku502 wrote:Ended with 90.40 in last week End , volume was high than previous day. but still in the margin , let's see whether they declare the dividend this week , 3rd one.

LLUB will probably declare Dividend this week. IF the company is able to sustain quarterly Dividends of Rs 2.50 per share (like they did in July-2020), that would make it Rs. 10 per annum.

Any company that can consistently declare annual Dividend of Rs 10 would justify share price well in excess of Rs 100.

The big question therefore is: How much will they declare as 3rd Interim Dividend?

suku502 wrote:

Antonym wrote:

suku502 wrote:most probably there should be a dividend this month   lets see

If LLUB declares 3rd Interim Dividend of Rs 2.50 per share this month, that would justify price in excess of Rs 100.

most likely that will pay , some times it would more than 2.50 .   . 3 to 4. let's see. but 2.5 is sure.

geeshanpradeep wrote:Can we expect the share price to run unnder the current situation?

geeshanpradeep wrote:Chevron Lubricants quarterly financials for 30.09.2020 released today. Net profit up by 29% (Quarterly EPS - Rs.3.35/-). Also there is a pending dividend announcement. Can we expect the share price to run unnder the current situation? Any expert ideas n target price in the short term???

geeshanpradeep wrote:What would be the target price range for LLUB.N  tomorrow ?? Can it hit Rs.98- 100/- p.s level.. any expert idea ??

Antonym wrote:

geeshanpradeep wrote:Chevron Lubricants quarterly financials for 30.09.2020 released today. Net profit up by 29% (Quarterly EPS - Rs.3.35/-). Also there is a pending dividend announcement. Can we expect the share price to run unnder the current situation? Any expert ideas n target price in the short term???

LLUB is a share that is priced based on its Dividend Yield. In the recent past, annual dividends have been hovering at around Rs 8 per share.

Based on improved operating results, future dividends could be around Rs 12 per share per year. In the prevailing low interest rate environment, the share price should rerate upwards to a figure well in excess of Rs 100 in the short term.

engineer wrote:XD date is on 10th Nov for 3rs div

suku502 wrote:THIS WEEK IT WILL TOUCH 97 . AS TARGET 

Antonym