Tokyo Cement Co Lanka PLC

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As hyperinflationary dynamics subside, the residual effect has unveiled a large dislocation in valuations. The risk premium attached to overall market valuations to diminish with a potential IMF agreement imminent. With the expansion in bottom line t...

We value TKYO at 8.0x P/E FY21E (8.4x P/E previously) leading to a TP of LKR 88.00 (+33.3% to old; +58.8% upside; 63.4% TSR) for the TKYO.N and LKR 74.00 (+37.0% to old; +62.6% upside; 68.1% TSR) for TKYO.X on upgraded earnings estimates. For the Sep...

We value TKYO at 8.4x P/E FY21E which, leads to a TP of LKR 66.00 (+37.5% to old; +24.8% upside; 28.5% TSR) for the TKYO.N and LKR 54.00 (+35.0% to old; +27.1% upside; 31.8% TSR) for TKYO.X on our revised estimates. TKYO ran at full capacity at its 3...

Significant outflows from the government bond market in August saw LKR/USD (30-day spot avg.) YTD appreciation fall to 1.3% by September (vs. 3.5% June YTD). Brent prices reached US$60.78/bbl and WTI US$54.07 /bbl as of end-September 2019. Metal pric...