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  • #89
    is this heading to 10 to complete a deal or what? few rupees away, the company had performed well. on a different occasion, this will do very well.
    "The best values today are often found in the stocks that were once hot and have since gone cold"

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    • #90
      No deal.

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      • #91
        Despite they've done well last few quarters, price dropping. What is that we dont know in AEL that sellers onow
        "The best values today are often found in the stocks that were once hot and have since gone cold"

        Comment


        • #92
          If we discount the OTHER INCOME from last year Qtr, AEL has done better with very impressive TO. The cost has bitten but considering we heading low interest regime next Qtr should be further positive.

          https://cdn.cse.lk/cmt/upload_report...9185919513.pdf

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          • #93
            Yes prasa, we are just waiting for the most opportune time. Thinks it will do well from now on.
            "The best values today are often found in the stocks that were once hot and have since gone cold"

            Comment


            • #94
              Originally posted by Hawk Eye View Post
              Access Engineering is diversifying into real estate, building high-rises for rent income to bring a steady revenue stream and also to increase the group's net asset base. Following projects are underway adding to its diversification strategy.

              The projects that going to support the top line of business through the new strategy are
              • Capital Heights comprising 242 luxury apartments will be completed in 2020 with 40 percent of the apartments already sold. Access Engineering holds a 50 percent stake in the project.
              • Marina Square is a mixed development project comprising 1,068 condominium apartment units and around 150,000 square feet of commercial space, has recorded presales of 25 percent.
              • Marina Square is owned by Harbour Village Private Limited a joint venture between Access Engineering, China Harbour Engineering and Musthafa's Singapore and will overlook the Colombo Port.Access Engineering holds over 60 percent of Harbour Village.
              • Access also owns 21 acres of land though subsidiaries within the IT zone in Malabe which is proposing to build a private university Horizon Knowledge City offering tech, science, law, engineering and paramedical degrees.
              • Access Engineering is building 608 housing units for government employees at Borella for the Urban Development Authority costing 4.9 billion rupees.The company completed 941 low-cost housing units comprising two bed rooms, living area and kitchen, toilet and balcony for 3.3 billion rupees, which also for the UDA.

              Additionally, the Colombo Port City also could give lot of business opportunities for AEL
              • The construction of the Colombo Port City Phase I will shortly begin where the development potential is estimated to be USD 15 Bn. There are also long-term road development projects that will be initiated like the Ruwanpura Expressway, the Elevated Highways, and others. There are also plans underway to construct a new passenger terminal at the BIA. These national construction projects and the private-sector infrastructure projects will be a huge boost to the national economy as well as the construction industry


              The Diversification strategy is getting another dimension with Overseas business expansion
              • Access Engineering PLC is en route to secure its largest construction contract outside Sri Lanka worth of 14 million euros to design and construct substructures for a Spanish-funded steel overpass for vehicles in Nairobi, Kenya, as the firm eyes business expansion in East Africa.

              http://www.dailymirror.lk/article/Ac...ct-162297.html



              Quarterly Financial Report Dec 2018

              Revenue for quarter increased to 7.9bn from 6.9Bn previous quarter which is a 15% increase in Revenue. The cost of sale increased by 11% to achieve this 15% increment in Revenue which resulted in GP increasing by 38%. The 9 months cumulative results shows a similar trend. Therefore I believe that the average GP will be improved Q2Q which will show a tremendous net figure with a fairly good EPS value, thus increasing the value of share.

              Therefore the AEL strategy to increase the revenue base and better GP margins by adopting a new strategy showing signs that things are going to be better by 2020 and onwards.

              It is also to be noted that what impact would the VAT 15% on apartment sale going to have on AEL results.


              Other Income comprises mainly Dividends, rental income and a major portion through fair value change in investment property. The new strategy will increase the Rental Income portion thus the Other Income should increase Q2Q in coming Quarters. 2017 March quarter bottom line was significantly increased through the fair value change in Investment properties


              Share of results of equity-accounted investees, Current Quarter results recovered the cumulative losses up to last quarter. I am not sure whether this gives us the implication that the JVs and Partnerships have started turning in to profits. If the positive result going to continue in this area we can see improvements in Net profit and a leverage in value of share.

              The whole strategy change is going to be reflected through above areas.

              An interesting area to note is Its Automobile Business which contributed 29.6% of Revenue but deriving only 3% in Profit. Out of the Total Rs.21.6 Bn Revenue Rs.6.4bn came from Automobile Segments, which is 29.6% of Revenue. Balance 15.2 Bn Came from segments:, Construction Rs.12.5Bn, Construction Related Material Rs.2.2Bn and Property Segment Rs0.5Bn. All these segments contributed on average 10% in PAT. What I like to highlight here is when the Business and Economic condition for automobile segment looks favourable AEL profit and share value going to increase further.


              Finance Cost
              All these mega JV and partnership projects have to be financed in some way. Equity, Debt or mix of it. The net Finance cost is moving up as a percentage of Operating Profit. In 2017 9months Net Finance cost was Rs263Mn, which is 15% of Operating Income where after the strategy change initiation has put the cost to jump to Rs.516Mn, which is 19% of the operating income. For the December quarter the net finance cost is 24% . When the projects start generating Income the Net Finance cost % should drop Q2Q to atleast to 15% previous levels. That would give us a clear sign that AEL is on right track.


              If we look at the Balance sheet the Trade Receivables stands around 12.8Bn. It is the outcome of undertaking government contracts I guess. But it also has a close amount of Trade Payables 11.90 Bn, which reveals they are financing these through squeezing the creditors for long credit period.

              On the other hand if we compare KAPI, KAPI has a trade receivable amounting 18Bn, but theses are mainly financed through a Bank Borrowings amounting 22Bn. So obviously the Finance cost should eat up the Profit. KAPIs Administrative Expenses for the QTR is 197.9Mn , but the Finance Cost is 883.4Mn. Clear sign of Doom.

              While all others in the segment performing very badly and with negative figures AEL shines. So there is a greater chance for AEL share value to appreciate. ( Technical Charts should give a better projection)

              Therefore, I believe AEL has a good prospect in Medium to Long-term, and would like to have your views as inputs


              HE
              When I wrote this AEL was trading around 14.00. But kept on sliding and with the Easter Attack , came down to 11.90. I just kept on Collecting.
              I still believe the new Strategy, and the Port City related Business shift will boost AEL to new levels.

              There are lot of negative factors added after the Easter Attack to already ailing market which i thought would stifle the market further. But its bounced back

              Comment


              • #95
                Thanks Hawkie.
                TKYO, LIOC, SAMP I am watching these as well.
                Negative feeds having no effect as you said.
                Dont forget the Rate Cut, The Election Fever all adding good vibes lately.
                A tax cut should be very good.
                "The best values today are often found in the stocks that were once hot and have since gone cold"

                Comment


                • #96
                  CT is back and promoting AEL

                  Comment


                  • #97
                    Overall market sentiments changing for the better i guess. lots of shares having a demand recent days.
                    "The best values today are often found in the stocks that were once hot and have since gone cold"

                    Comment


                    • #98
                      I am very positive about AEL as a long term investment under my PF. Whatever the new strategy on real estate side going to change on AEL bottom line soon, I believe the second tier development in Port City going to fetch some projects to AEL

                      Lets look at what the Joint statement by MD & COO in Annual Report 2018
                      A glimpse into the future
                      Looking ahead, we see a number of opportunities in a challenging market environment and competitive industry which will allow us to capitalise on possibilities for growth and our bid to become the preferred employer. In the coming years, major infrastructure projects like the Central Expressway, Colombo Port City, and such others will gather momentum (Annual Report 2018)

                      Colombo Port City project is co-developed by the Government and China’s CHEC Port City Colombo Ltd. China Harbor Engineering Corporation (CHEC) is already in to a JV with AEL on Marina Square. This collaboration can open doors for AEL in to CHEC CPC. ( My Logic behind investing in AEL for long term)

                      Apart from Construction – Keep a tab on this statement as well
                      The Colombo Port City (CPC) will attract foreign banks to set up their operations in Sri Lanka, paving the way for the country’s banking sector’s asset base to more than double to Rs.30 trillion by 2025, former Central Bank Deputy Governor and newly appointed Deputy Secretary General of National Economic Council (NEC), C.J.P. Siriwardana said.

                      If Banking Sector Asset bases become 30 Trillion, then share prices of Big Banks ?

                      Comment


                      • #99
                        Thanks, HE. You always bring in good reads. And who is one bold to be different? A contrarian in my view. That's a good trait to have. I always value your articles and make it a point not to miss. Your new role will surely compliment and your efforts to give us insights into many facets of listed companies. Thank you, Brother.
                        "The best values today are often found in the stocks that were once hot and have since gone cold"

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