Equity Analysis /
Sri Lanka

Sri Lanka earnings preview 2Q 19

    Kavinda Perera
    Kavinda Perera

    Head of Research

    Contributors
    Isuri Munasinghe
    Naveed Majeed
    Mangalee Goonetilleke
    Lakshini Fernando
    Asia Securities
    23 July 2019
    Published by
    • Banking sector credit growth remains weak in the June quarter, NIMS to see short term upside, but impairment charges still high
    • Telecommunication data price competition picks-up
    • Exposure to the consumer and leisure sector across the board takes a toll on Conglomerate earnings
    • FMCG/R earnings to be subdued as consumers remain cautious on spending
    • Alcoholic beverage sector volumes down for the June quarter; beer benefits from price advantage
    • Construction June quarter earnings to remain challenged on the back of slow business activity following Easter Attacks
    • Net exporting Manufacturers to do well in the June quarter
    • Healthcare sector occupancy levels drop during the quarter amidst April events
    • Insurance sector earnings to reflect a slowdown in momentum on weakened spending power
    • A challenging year for the Energy Sector with elections on the cards; gradual impact to be expected through FY20E
    • Business as usual for Logistics; no impact from global trade tensions yet
    • Impact of slow economic growth start to materialize during the June quarter for NBFIs
    • Impact from a slowdown in Sri Lanka Leisure sector to be partially offset by robust growth in Maldives; city hotels to remain weak