WATA Community

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Re: WATA Community

Postby Blue Whale » Wed Jul 05, 2017 2:23 pm

GB wrote:
Blue Whale wrote:
GB wrote:Interesting to enter for WATA and wating to collect at 30. But seem that it will come not coming to rs 30. Should I wait little more or jump to current price.?


Available @ 30.70 :-bd


තව පොඩ්ඩක් බලන් ඉන්න හිතෙනවා :-?? :-??


The sector index is going to turn upwards bro. Better be hurry.
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Re: WATA Community

Postby GB » Wed Jul 05, 2017 6:18 pm

That's true but decided to join when the crowd back in to this share. Seems that still not much attention.

Sometimes I may not able to catch at the correct time. Will see tomorrow as well. :-??

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Re: WATA Community

Postby PAT » Wed Jul 05, 2017 9:36 pm

GB wrote:That's true but decided to join when the crowd back in to this share. Seems that still not much attention.

Sometimes I may not able to catch at the correct time. Will see tomorrow as well. :-??


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Re: WATA Community

Postby Blue Whale » Wed Jul 05, 2017 9:38 pm

I am about to release my report on plantations. :!!
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Re: WATA Community

Postby GB » Wed Jul 05, 2017 9:41 pm

Blue Whale wrote:I am about to release my report on plantations. :!!

Please bring it BW. We are wating.. ^:)^

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Re: WATA Community

Postby newer1 » Wed Jul 05, 2017 9:48 pm

wow. that means we gets another analytic report. come on BW
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Re: WATA Community

Postby Blue Whale » Thu Jul 06, 2017 5:40 am

I expect WATA Q1 2017/18 result to be flat compared to the same period a year ago. Mainly palm oil profits impact from the import tax reduction and the tea production decline due to the bad whether will be two main factors to look at. I think the price can come down a further bit due to the premium it is trading over the sector PE.
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Re: WATA Community

Postby GB » Thu Jul 06, 2017 8:09 am

My view on WPL as follows.

I am expecting at least 30%+ profit increment over same quarter last year due to following.

1.profit impact from revision of import tax could be eliminate due to increase of Palm oil volume. ( continues planting in Oil Palm should improve the Palm oil volume compared to last year.)
2.Bad weather impact also could be eliminate due to improve of tea prices and Tea profit segment also should report at least 10% +
3. No more loss making segments ( Rubber)
4. Reduction of Admin and other cost due to effecincy of the management.

However I don't have a idea about the price trend. ~x( TA experts plz share your views on the price trend. :YMHUG: But me too feel that price of WPL will not climb with sector index in ST. But due to continues improvement of the company and resent corroparate announcement it should improve the price in MT (3-6Months)

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Re: WATA Community

Postby PAT » Tue Jul 11, 2017 9:37 pm

Tea spin off; an unprecedented yet smart move: BUY

"Watawala Plantations PLC is to segregate its operational Assets and Liabilities relating to the Tea business from the other assets and liabilities and be vested in a new company, which will subsequently be listed. We believe that the proposed segregation would end our discount to the stock as a tea plantation company as we are of the view, that tea weakened the overall profitability of the plantation. We also expect the counter to trade at a much higher multiple going forward; with an estimated ROE of 24% and an EBIT margin of 41%. Based on our DCF valuation the intrinsic value for post segregated WATA rises to LKR 41 from the current LKR 35, generating an upside of 28% on the CMP. We recommend BUY."

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Re: WATA Community

Postby Blue Whale » Wed Jul 12, 2017 7:40 am

Thanks PAT. However we should not jump into conclusions about the proposed restructure of the group. If the quarter ending June 17 results are flat then the share can be available to buy at a discount. Therefore be watchful about price changes and do not enter at 52W high levels.
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Re: WATA Community

Postby PAT » Wed Jul 12, 2017 7:50 am

Blue Whale wrote:Thanks PAT. However we should not jump into conclusions about the proposed restructure of the group. If the quarter ending June 17 results are flat then the share can be available to buy at a discount. Therefore be watchful about price changes and do not enter at 52W high levels.


Thanks BW for the advice...
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Re: WATA Community

Postby Blue Whale » Wed Jul 12, 2017 8:00 am

I have given some estimates for quarter ending 30th June plantation results at a fairly high level in the plantation sector thread. Better to refer those information as well.
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Re: WATA Community

Postby lukedesilva » Wed Jul 12, 2017 5:18 pm

Its highly unlikely that earnings this quarter will exceed the previous, its all in their last quarterly.

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Re: WATA Community

Postby SHARK » Fri Jul 14, 2017 8:52 am

palm.png


the data should be checked with previous quarterly reports... in order to assess them for our understanding.... and educational purposes.
if we calculate this will be a good exercise for the future quarters as well.
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Re: WATA Community

Postby SHARK » Fri Jul 14, 2017 9:15 am

palm.png


1st off the point i stress now should be not considered a buy/sell or hold.
it is for those who are yet to enter WATA or any companies into especially generating earnings through palmoil.

the price levels almost identical but slightly marginally higher Apr-Jun 2017 qtr compared to Jan-Mar 2015.

However WATA close FLAT (neg in 2015 Jan-Mar quarter) So those trying to enter new... must wait for Sep and Dec figures.

Also production may have given a boost in this quarter compared 2 and 1/2 year back. Therefore might see slightly better.

With already PALM is testing supports, chances would be lower prices in world market, therefore next couple of quarters should be watched more closely before taking any decision.... and this goes for ELPL and NAMU as well.

So again watch Jun, Sep and Dec.... before entering NEW on the shares.

Those into WATA do as you please since you may have got in with very good reasons.....
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Re: WATA Community

Postby Shadow walker » Thu Jul 20, 2017 5:54 pm

Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time .. ;)


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Re: WATA Community

Postby Blue Whale » Mon Jul 24, 2017 1:51 pm

Blue Whale wrote:
Blue Whale wrote:Here are some numbers for Watawala Plantations.

Watawala has exposure in Tea, Rubber and Palm Oil business. Tea accounts for the bulk of the revenue but profits are coming from Palm Oil business. Tea and Rubber sectors are making losses for the last few years because of low prices due to economic difficulties faced by many buyers of Sri Lankan tea and rubber. However Palm Oil prices in world market are soaring now and that has resulted Watawala to record good profits in the previous year as well as the current year. YTD Dec 17 over 1Bn profit has been due to that.

Apart from the Palm Oil prices the company has adopted a good strategy to reduce losses from tea sector by focusing on Quality over quantity. As a result they have selected market segments where they can charge a premium price for a quality, value added product. This has in fact helped the company to reduce losses from tea sector improving the Net Sales Average.

Further I have noted that the yield per hectare of rubber has been declining continuously with a gradual reduction of the area of rubber cultivation. At the same time the yield per hectare of palm oil is increasing notably with a gradual rise in the land area. This shows the clear picture of company strategy for the future where more focus is to be given to Palm Oil while maintain tea at least @ break even and reduce the exposure for rubber as much as possible. I think this is a wise strategy in terms of the company's future profitability.

I think the just concluded quarter has no material changes in the market conditions compared to the conditions prevailed in Q3 ended December 2016. Therefore I am of the view that company will be in a better position to record the highest profit in its history this year. The below is a summary snapshot for you.
WATA Financial Summary.jpg
Further you can definitely expect a higher dividend this year and expect at least a 85 cents final dividend in the coming May.

The share is trading at a foreword PE of 4.4x @ CMP with a PBV of 1.2. Historically the stock was trading at a PE range of 3.6x to 12x. And if we apply the same range the stock should be trading within a price band of Rs22 to Rs74. The share was trading in Rs20s during the last two years. If a good buying support comes this stock can move towards Rs40/- with the release of full year result.


Remember this analysis. New 52 week high was established. According to historical PE rates the indicative prices for current performances range in between 22 to 74.

Thanks
BW :D


With strong buying @ a new 52W high for WATA my target of 40/- seems to be achievable without much problem. ;)
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Re: WATA Community

Postby Shadow walker » Thu Aug 03, 2017 5:17 pm

Financial statements for quarter ending 30.06.2017

Wow.. impressive result..

Profit up by 58%... :-bd

Better than we expected .. :-bd

https://cdn.cse.lk/cmt/upload_report_file/728_1501755594313.pdf
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Re: WATA Community

Postby GB » Thu Aug 03, 2017 5:21 pm

GB wrote:My view on WPL as follows.

I am expecting at least 30%+ profit increment over same quarter last year due to following.

1.profit impact from revision of import tax could be eliminate due to increase of Palm oil volume. ( continues planting in Oil Palm should improve the Palm oil volume compared to last year.)
2.Bad weather impact also could be eliminate due to improve of tea prices and Tea profit segment also should report at least 10% +
3. No more loss making segments ( Rubber)
4. Reduction of Admin and other cost due to effecincy of the management.

However I don't have a idea about the price trend. ~x( TA experts plz share your views on the price trend. :YMHUG: But me too feel that price of WPL will not climb with sector index in ST. But due to continues improvement of the company and resent corroparate announcement it should improve the price in MT (3-6Months)


:D

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Re: WATA Community

Postby Shadow walker » Thu Aug 03, 2017 5:41 pm

Shadow walker wrote:Financial statements for quarter ending 30.06.2017

Wow.. impressive result..

Profit up by 58%... :-bd

Better than we expected .. :-bd

https://cdn.cse.lk/cmt/upload_report_file/728_1501755594313.pdf


It seems they managed palm oil import tax reduction.. :-bd

Palm oil segment profit ..

03.31 - 46 M
06.30 - 267 M

Tea segment profit..

03.31 - 81 M
06.30 - 89 M
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Re: WATA Community

Postby lukedesilva » Thu Aug 03, 2017 10:12 pm

WATA has basically avoided all calamities , natural and others.

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Re: WATA Community

Postby SHARK » Thu Aug 03, 2017 10:14 pm

Good performance
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Re: WATA Community

Postby PAT » Sat Aug 05, 2017 3:43 pm

Sri Lanka’s Watawala Plantations June net up helped by tea

ECONOMYNEXT - Sri Lanka’s Watawala Plantations said June 2017 quarter net profit rose 58% to Rs379 million from a year ago mainly because of a turnaround in the tea business and the sustained profitability in palm oil.

Sales of the group rose 20% to almost Rs2 billion, according to interim results. June quarter earnings per

share were Rs1.59 compared with EPS of Rs1.01 a year ago. The stock last traded at Rs34.40

Watawala Plantations Managing Director Vish Govindasamy said the increased profits were “mainly

attributable to turnaround in the tea segment and the sustained profitability in palm oil segment.”

Profitability of the palm oil segment continued despite a 9% reduction compared to the same period last year,

he said in a stateemnt.

The palm oil segment made a profit of Rs267 million, down from a profit of Rs294 million the previous year.

“ . . . the decline is primarily attributable to the lower Net Sale Average as a result of the import duty

reduction by the government in 4QFY16/17,” Govindasamy said.

The tea segment saw a turnaround with a profit of Rs90 million compared to a loss of Rs79 million in the

same period last year, he said.

“This was mainly attributable to the quality focus strategy, cost reduction measures, and continued favourable

market conditions. The company realised Net Sale Average ( NSA) above the market average, due to higher

quality standards maintained by all tea factories.”

The group’s export sector profitability dropped due to less orders received from overseas buyers compared

to the previous period, Govindasamy said.

Watawala Plantations has proposed separating its tea and palm oil businesses.
(COLOMBO, August 05, 2017)
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Re: WATA Community

Postby SHARK » Mon Aug 07, 2017 3:13 pm

Companies outshining during difficult period is a good indication.
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Re: WATA Community

Postby GB » Thu Aug 17, 2017 12:21 pm

Hi

Can any one clear the followings ?

Once the SH approval received to segregate the assets of the company in to two companies,Will they suspend the trading of WATA till other plantation company ( Hattaon Plantation company) listed. If so how many months will take a company to get listed.


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