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Sri Lanka Equity Forum » Stock Market Talk » This is what I know about CFLB, what do you know & share

This is what I know about CFLB, what do you know & share

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opfdo

opfdo
Vice President - Equity Analytics
Vice President - Equity Analytics
EPS----------------5.85
NAVPS-------------31.04
PER as at Today----4.74


Current Ratio--------1.20
Quick Ratio----------0.84
GP Margin-----------21%
NP Margin-----------6.5%
Other Income % compare to the NP 57%
(Do not know about non-recurring income amount)
NP for equity holders----1,052,438
Net cash generated from operating activities---503,240
Cash & cash equivalent 142,041

% of the public holding-----43.03%
Last two days share volume
14/06--------83,440
15/06--------437,385

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
Thanks Osmand for the updates.

The Alchemist


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Most Companies in the CLFB Group have reported good earnings and appear low P/E primararily due to one off extra-ordinary income / gain by Colonial Motors. Since COLO booked a Rs 800 Million gain mainly due to transferring its group hotel shares to FORT Hotels in exchange for shares in FORT Hotels at Rs 1/= per share and revaluing at Private Placement / future IPO price of Rs 4 / = share. Thus, since CFLB owns approx 60 % COLO, This extra-ordinary non recurring items has a approx Rs 3/- impact on CFLB EPS.
Having said that, I still feel this group has good potential and is fairly cheap due to numerous profit centres in their business. Last year it was Rubber i.e. Kotagala that lead the way. This year it was COLO with a Rs 500 mill profit. since KIA is very popular (i hear 6 month waiting list on certain models still) and approx 70 % of sales to permit holders, it will have have a good year despite increase in duties / forex etc. I feel the best way to get exposure to this group is through CIT / CFI which together owns approx 25 % of CFLB which in turns owns 60 % of COLO, and 51 % of EB CREASY which owns LANKEM (which owns KOTA, CWM) and Darley Butler, LITE, MULL, MARA etc. Besides CIT/CFI stake in CFLB, its owns further 10 % in EB CREASY and 5 % in LANKEM CEYLON. also has other stakes in COMM BANK, CINV etc. I believe CIT/CFI are trading at a very significant discount to their underlying intrinsic share portfolio values, have a very significant exposure to the CFLB Group shares which are all things considered a very good low P/E group of companies with a diversified business portfolio.

Backstage

Backstage
Moderator
Moderator
The CFLB group diversity seems very interesting and strategically in very nitty gritty areas of economic activity. JKH on the other hand seems to be seems to be drifting towards more upmarket areas.
Is the low price due to illiquidity/family control factor ?
Does the current Chairman/board have the vision and capability to consolidate the synergies within the group and make it a giant ?

opfdo

opfdo
Vice President - Equity Analytics
Vice President - Equity Analytics
@The Alchemist wrote:Most Companies in the CLFB Group have reported good earnings and appear low P/E primararily due to one off extra-ordinary income / gain by Colonial Motors. Since COLO booked a Rs 800 Million gain mainly due to transferring its group hotel shares to FORT Hotels in exchange for shares in FORT Hotels at Rs 1/= per share and revaluing at Private Placement / future IPO price of Rs 4 / = share. Thus, since CFLB owns approx 60 % COLO, This extra-ordinary non recurring items has a approx Rs 3/- impact on CFLB EPS.
Having said that, I still feel this group has good potential and is fairly cheap due to numerous profit centres in their business. Last year it was Rubber i.e. Kotagala that lead the way. This year it was COLO with a Rs 500 mill profit. since KIA is very popular (i hear 6 month waiting list on certain models still) and approx 70 % of sales to permit holders, it will have have a good year despite increase in duties / forex etc. I feel the best way to get exposure to this group is through CIT / CFI which together owns approx 25 % of CFLB which in turns owns 60 % of COLO, and 51 % of EB CREASY which owns LANKEM (which owns KOTA, CWM) and Darley Butler, LITE, MULL, MARA etc. Besides CIT/CFI stake in CFLB, its owns further 10 % in EB CREASY and 5 % in LANKEM CEYLON. also has other stakes in COMM BANK, CINV etc. I believe CIT/CFI are trading at a very significant discount to their underlying intrinsic share portfolio values, have a very significant exposure to the CFLB Group shares which are all things considered a very good low P/E group of companies with a diversified business portfolio.

useful infos, thanks Investor

Monster

Monster
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@The Alchemist wrote:Most Companies in the CLFB Group have reported good earnings and appear low P/E primararily due to one off extra-ordinary income / gain by Colonial Motors. Since COLO booked a Rs 800 Million gain mainly due to transferring its group hotel shares to FORT Hotels in exchange for shares in FORT Hotels at Rs 1/= per share and revaluing at Private Placement / future IPO price of Rs 4 / = share. Thus, since CFLB owns approx 60 % COLO, This extra-ordinary non recurring items has a approx Rs 3/- impact on CFLB EPS.
Having said that, I still feel this group has good potential and is fairly cheap due to numerous profit centres in their business. Last year it was Rubber i.e. Kotagala that lead the way. This year it was COLO with a Rs 500 mill profit. since KIA is very popular (i hear 6 month waiting list on certain models still) and approx 70 % of sales to permit holders, it will have have a good year despite increase in duties / forex etc. I feel the best way to get exposure to this group is through CIT / CFI which together owns approx 25 % of CFLB which in turns owns 60 % of COLO, and 51 % of EB CREASY which owns LANKEM (which owns KOTA, CWM) and Darley Butler, LITE, MULL, MARA etc. Besides CIT/CFI stake in CFLB, its owns further 10 % in EB CREASY and 5 % in LANKEM CEYLON. also has other stakes in COMM BANK, CINV etc. I believe CIT/CFI are trading at a very significant discount to their underlying intrinsic share portfolio values, have a very significant exposure to the CFLB Group shares which are all things considered a very good low P/E group of companies with a diversified business portfolio.
Good analysis @The Alchemist.

I would prefer to enter CIT/CFI than directly investing on CFLB/LCEY. Both CIT and CFI are mostly invested on it's related companies, currently trading almost 50% discounted value to it's hidden value.

dineshfernando


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
I'm bit confused about CIT and CFI. Their 12 months EPS ended 31/03/12 is just over Rs. 2/= for both and there NAV is also very low. Then how this one can be attractive?

Sorry if I had missed something?

Monster

Monster
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@dineshfernando wrote:I'm bit confused about CIT and CFI. Their 12 months EPS ended 31/03/12 is just over Rs. 2/= for both and there NAV is also very low. Then how this one can be attractive?

Sorry if I had missed something?
@dineshfernando, CIT and CFI are listed under investment trusts sector. Their profit realize only once they dispose their portfolio (Probably they may not dispose the portfolio to realize the profit since they have heavily invested on related companies). Hence, companies listed under investment trusts sector should value based on it's NAV (including unrealized profits) regardless of it's EPS.

If you take CIT as an example, as of 31-03-2012,
Net Asset per share -> Rs 23.51

However, market value of it's portfolio is Rs 1,655,164,795/- (Read Notes)
Hence, portfolio value per share is Rs 300.94 ( Portfolio value/total number of shares)

Note: Portfolio value is based on 31-03-2012. Market value has declined considerably after 31-03-2012. As of latest market value, portfolio per share of CIT is Rs 222.50

dineshfernando


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Thanks Monster for the excellent explanation. I have never followed CIT & CFI before though I had a lot of CFLB and LCEY some years back. They were some of my favourites and brought me excellent returns.

I will have to monitor CFI / CIT for a while and see. My concern is the volume they trade. If I buy 5000 shares of CFI will I be able to sell it as only a few shares trade and this is little illiquid.

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