TOKYO CEMENT COMPANY (LANKA) PLC

jaya wrote:https://www.cse.lk/pages/general-announcements/general-announcements.component.html?id=7277&type=CORPORATE%20DISCLOSURE

heroxhere wrote:

jaya wrote:https://www.cse.lk/pages/general-announcements/general-announcements.component.html?id=7277&type=CORPORATE%20DISCLOSURE

Great news! This indicates a possible surge in future earnings as well. They're growing to cater to the demands. Probably why price was controlled from going up any further.

RajapaksaDON wrote:

heroxhere wrote:

jaya wrote:https://www.cse.lk/pages/general-announcements/general-announcements.component.html?id=7277&type=CORPORATE%20DISCLOSURE

Great news! This indicates a possible surge in future earnings as well. They're growing to cater to the demands. Probably why price was controlled from going up any further.

 Will they go for a right issue? If yes, what would be the price? These are the questions to find answers.

heroxhere wrote:

RajapaksaDON wrote:

heroxhere wrote:

jaya wrote:https://www.cse.lk/pages/general-announcements/general-announcements.component.html?id=7277&type=CORPORATE%20DISCLOSURE

Great news! This indicates a possible surge in future earnings as well. They're growing to cater to the demands. Probably why price was controlled from going up any further.

 Will they go for a right issue? If yes, what would be the price? These are the questions to find answers.

Most likely not, the notification itself says it's going to be internally funded and banks . So it'll be on their own and bank loans.

RajapaksaDON wrote:

heroxhere wrote:

jaya wrote:https://www.cse.lk/pages/general-announcements/general-announcements.component.html?id=7277&type=CORPORATE%20DISCLOSURE

Great news! This indicates a possible surge in future earnings as well. They're growing to cater to the demands. Probably why price was controlled from going up any further.

 Will they go for a right issue? If yes, what would be the price? These are the questions to find answers.

Mr. X wrote:

Vishwanarth wrote:Cement import tax free to inspire construction industry???

Construction equipments will be exempted from import taxes.. not cement.

heroxhere wrote:

heroxhere wrote:

SUSPENS wrote:Agreed.. Remember three digit coming soon.........

Very strong fundamentals with extremely favourable environment at the moment. Eagerly waiting for it to join the Trés Numeros Club. Just a matter of time. All research lead to this.

Here are recent estimates by research teams:

ASIA SECURITIES	88 (+58%)	74 (+62%)
CAPITAL TRUST	96 (+52%)	(+52%)
SC SECURITIES	83 (+38%)	70 (+38%)

Also, You need to factor in the upcoming Dividend XD on 23-OCT (At current price of X being 54 and Div at 1.50; yield on that alone is 3%)

Bear in mind, we're awaiting the next quarterly report. And then there's Port City, Highways, Construction boom coupled with the import restriction and recent Cabinet decision to mandate minimum requirement of locally manufactured Cement usage that all bolster TKYO. We should easily surpass 100. We wait.

If you thought Gems can't be made with Cement.... think again.

Extremely impressive results were released today, here's my projection on the face of it:


EPS – 2020/21
1Q+2Q - 6.98 (Reported, 2Q alone is 5.28)
3Q – 4 (Minimum estimation)
4Q – 4 (Minimum estimation)
 
Therefore, Approx. Minimum Expected EPS for 2020/21 – 15
(This is very minimum, going forward Cement use and demand is only going to continuously grow with Port City and the construction boom)
 
Materials Sector PER – 14x (as of 16 Septemeber, Asha Securities)
But applying a lower 10x PER, share would be valued @ 150
Even lower, 6x to 8x brings it between 90 to 120.
 
So Tokyo should easily join the triple digits club soon. Collect and watch!

Detective wrote:Sense of the next run soon.

Value Pick wrote:TKYO is @ a big risk now. It’s prudent to wait for another couple of quarters to see the actual hit from the new cement bagging business from MELS & the outcome of the proposed largest cement manufacturing company in Hambantota. I have doubts about a run in TKYO but people will start selling it temporarily once any price improvement witness in the board.

Value Pick wrote:TKYO is @ a big risk now. It’s prudent to wait for another couple of quarters to see the actual hit from the new cement bagging business from MELS & the outcome of the proposed largest cement manufacturing company in Hambantota. I have doubts about a run in TKYO but people will start selling it temporarily once any price improvement witness in the board.

subash81 wrote:

Value Pick wrote:TKYO is @ a big risk now. It’s prudent to wait for another couple of quarters to see the actual hit from the new cement bagging business from MELS & the outcome of the proposed largest cement manufacturing company in Hambantota. I have doubts about a run in TKYO but people will start selling it temporarily once any price improvement witness in the board.

Local cement production is not enough to cater domestic demand, that's the reason in the budget too they gave provision to import cement.

TKYO has no issues with new players at least for next 3-5 years as more and more construction will pick up and demand will increase


Many broker firm recommended TKYO with target price 85-100