Asia Securities

The IMF Executive Board approved the allocation of USD 650bn worth of Special Drawing Rights (SDR) last week, to help economies faced with difficulties amidst COVID-19. Sri Lanka’s foreign reserves position should benefit from this through the countr...

Data released by the Department of Census and Statistics shows that the Sri Lankan economy rebounded strongly in 1Q 2021, as reflected in leading indicators during the quarter. Looking ahead, we expect this trend to improve albeit gradually in 2H 202...

In-line with our expectations, the Central Bank (CB) maintained key policy rates at the current level, following its monetary policy meeting yesterday. This came amidst the CB reiterating its stance of maintaining a low stable interest rate environme...

The fiscal deficit for 4M CY21 amounted to LKR 520bn, approx. 3.1% of GDP (compared with 3.0% of GDP for 4M CY20), up 15.1% YoY for the period. Government revenue was approx. 6.1% of GDP (compared with 6.2% of GDP for 4M 2020). As such, government ex...

We maintain our sum-of-the-parts (SOTP) valuation-based target price at LKR 325/share. Revenues came in at LKR 30.0bn for the quarter, down 2.2% QoQ (+6.6% YoY). Looking ahead, we expect strong revenue growth in FY22E supported by 1) a normalising co...

We maintain our sum-of-the-parts (SOTP) valuation-based target price for HHL at LKR 140.00/share. In FY22E, we expect the local pharma distribution and FMCG business to drive earnings, albeit with some impact on margins due to FX depreciation. Segmen...