SUN Community

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Re: SUN Community

Postby Hawk Eye » Sun May 14, 2017 9:37 am

Just before the deal I bought a small qty 30000 shares.. :)

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Re: SUN Community

Postby Value » Sun May 14, 2017 10:41 am

When the liquidity is reduced significantly and the no of shareholders are limited to few smart investors, there is a high chance of super capital gains in the mid to long term.

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Re: SUN Community

Postby future123 » Sun May 14, 2017 12:38 pm

Their plantations are doing well. WATA performs superb.

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Re: SUN Community

Postby Hawk Eye » Sun May 14, 2017 5:42 pm

I actually analysed it few quarters back..and made a report to publish in previous place..then here at LE before writing about REGNIS,,but i was hesitant to publish due to little doubt on the pharmaceutical segment performance and profitability...But i went ahead adding it to my portfolio

:-bd

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Re: SUN Community

Postby Blue Whale » Sun May 14, 2017 9:25 pm

The problem with SUN is their heavy dependency of plantation sector. To add salt to their wounds the pharmaceutical sector got a hammering through drug price control. Due to these two reasons SUN"s profitability can fluctuate considerable\y. One of the attributes to attract any long term investor is a consistent growth. Long term investors doesn't prefer companies who have volatile performances.

if we take HHL as an example, they report steady results, even with small growth %, therefore investors are ready to pay even a higher price.

The below are the Sunshine Holdings revenue and PAT composition for the year ending 31st Marc 16 without adjusting for intercompany adjustments.

SUN Revenue composition.png

SUN PAT Composition.png


Thanks
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Re: SUN Community

Postby PAT » Sun May 14, 2017 10:43 pm

Thanks BW for the analysis.......
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Re: SUN Community

Postby Blue Whale » Sun May 14, 2017 10:47 pm

That is why probably the share price stagnates.
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Re: SUN Community

Postby PAT » Thu Jun 01, 2017 6:01 pm

Sunshine Holdings revenue up 10.3% YoY to Rs. 19.2 bn

Sunshine Holdings PLC posted consolidated revenues of Rs. 19.2 billion for the 2016/17 financial year (FY16/17), up 10.3% Year-on-Year (YoY) leading to an improved Profit After Tax (PAT) of Rs. 1.6 billion, reflecting a 33.1% YoY improvement over the previous financial year.

Profitability was bolstered by drastic improvements in the Group’s Agri-business which recorded a 3.2% YoY increase in revenue up to Rs. 6.5 billion despite a 5.1% YoY contraction in Tea revenue in the wake of unfavorable weather conditions during the year.

The sector’s Tea Crop was affected by bad weather, even as the company continues to focus on a concerted strategy to grow quality teas to offset reductions in volumes.

“It has been a year of notable challenges in key sectors however we are pleased to note that the Sunshine Group continues to display a resilient and entrepreneurial spirit in the face of such difficulties.

During the year, our subsidiaries were able to generate significant growth, particularly as a result of some of our more recent innovations as seen in the performance of our palm oil business and our popular Healthguard franchise,” Sunshine Holdings Group Managing Director Vish Govindasamy stated.

Notably, the Palm Oil sub sector reported an increase of 43.8% YoY for FY16/17 with Palm Oil volumes rising 18.2% YoY. The company managed to obtain a higher price for its CPO during FY16/17, which positively contributed to both top line and bottom line of the Agri sector.

While escalating tea prices helped support a notable recovery in the Group’s tea sub-sector, they also resulted in increased pressure on FMCG margins during the second half of the year. Nevertheless, FMCG revenue increased by 22.5% YoY on the back of both volume and price growth, closing the year with PAT of Rs. 275 million, down 34.9% YoY.

Meanwhile, the imposition of pharmaceutical drug price controls on 48 separate molecules by the Ministry of Health over the last year continued to generate negative ramifications for Sunshine’s Healthcare segment.

However the Pharma sub-segment which represents 64% of Healthcare revenue grew at only 6% YoY, due to the impact of reduced prices leading to a sharp 36.9% YoY contraction in PAT down to Rs. 198 million. The company’s Pharma segment is the 2nd largest player in the country with 11.3% share of the market.
http://www.dailynews.lk/2017/06/01/busi ... -rs-192-bn
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Re: SUN Community

Postby Blue Whale » Thu Jun 01, 2017 7:42 pm

Thanks PAT. SUN announced a cash as well as scrip dividend today and for that price responded positively.
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Re: SUN Community

Postby PAT » Sat Jun 03, 2017 2:16 am

Sunshine Holdings to continue “phenomenal” success


Marking 50 successful years of responsible entrepreneurship, diversified conglomerate Sunshine Holdings PLC pledged to continue to look at opportunities to further diversify, while elevating its stature in current core businesses.

“We will continue to look at opportunities to further diversify and strengthen our current core business interest, especially in healthcare, FMCG, consumer and energy products. We are in for the long term with a clear vision and to move ahead by becoming leaders and experts in what we do best,” Sunshine Holdings PLC Managing Director Vish Govindasamy told Daily FT on the sidelines of a bell ringing ceremony organised by the Colombo Stock Exchange (CSE) to celebrate the company’s 50th anniversary.

“Over the past five decades, Sunshine Group has expanded from being a modest pharmacy in Gampola town in 1967 to the well respected diversified conglomerate that it is today,” Govindasamy said outlining the humble beginnings of the company.

Pointing out that Sunshine Holding PLC has enjoyed a close relationship with the CSE over the past 15 years, he asserted that its involvement with the CSE has greatly supported the group in elevating its stature to attract substantial local and foreign investments, which in turn supported greater liquidity and enhanced brand value.

“Over the recent years, we were able to participate in the international road shows organised by the CSE in London, New York and Singapore. Particularly, at the last CSE roadshow in Singapore we were very fortunate to connect with a company called Duxton Asset management with whom we were able to enter into a groundbreaking partnership which created Sunshine’s first commercial dairy operations with an investment of over $12 million,” he added.

Govindasamy stressed that it was through this kind of engagement Sri Lankan listed companies tend to unleash and make a new wave of growth in the domestic economy, while serving as a vital platform into international exposure and investment and growth.

“We have increased interest in foreign holdings of our company and today 31% of the group is held by international institutions,” he said.

He also said the listing of Sunshine Holdings was instrumental in driving concerted refinements to the company’s governance structures, reporting and disclosure procedures. “We worked hard in maintaining Sunshine’s shares attractive to its shareholders both by way of sincere focus on transparency to investor relations and also by increasing shareholder value.”

While acknowledging that every business has challenges, Govindasamy said weather patterns, currency devaluation and policy inconsistency were always big challenges they had to face in terms of their business model.

CSE Chairman Ray Abeywardena commended the successful journey of Sunshine Holdings from a modest entrepreneur in 1967 to what it has transformed into over the past 50 years, terming it “phenomenal.”

He said the company has created a value addition in the CSE with stature, credibility and corporate governance.

Noting that Sunshine Holdings has a number of companies that are in diversified sectors, Abeywardena said he look forward for few more listings in the CSE.

“From CSE’s perspective we would like to see couple of more listings in the future,” he added.
- See more at: http://www.ft.lk/article/619724/Sunshin ... fKA8K.dpuf
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Re: SUN Community

Postby sashimaal » Sun Aug 06, 2017 6:58 pm

"Knowledge is being aware of what you can do. Wisdom is knowing when not to do it" - Brian Tracy

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Re: SUN Community

Postby NC+ » Thu Dec 28, 2017 5:48 pm

"Letting your emotions over-ride your plan or system is the biggest cause of failure."

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Re: SUN Community

Postby NC+ » Thu Dec 28, 2017 5:51 pm

SUN Monthly chart
Acsending triangle and a consolidation pattern can be identified ...

SUN.PNG
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Re: SUN Community

Postby SHARK » Sat Feb 10, 2018 8:14 am

9MFY18 Highlights
• Consolidated revenue of Rs.15.6 billion, an increase of 12.4% YoY
• PAT amounted to Rs. 1.6 billion, up 23.0% YoY, due to strong Agri and Consumer Goods sector results
• Healthcare revenue up 3.3% YoY to Rs. 6.0 billion
• Strong growth in Consumer Goods, revenue up 27.4% YoY to Rs 3.8 billion
• Agri revenue grew 13.3% YoY to Rs 5.4 billion
• EPS grew 63.8% YoY to Rs 5.29

3QFY18 Highlights
• Consolidated revenue of Rs.5.2 billion, an increase of 19.9% YoY
• PAT amounted to Rs.489 million, increase 20.2% YoY
• Healthcare revenue up 15.2% YoY to Rs. 2 billion
• Strong growth in Consumer Goods, revenue up 28.1% YoY to Rs.1.4 billion
• Agri revenue grew 12.0% YoY to Rs.1.6 billion
• EPS for 3QFY18 stood at LKR 1.39

Fueled by strong growth in its health, consumer and agri-business sectors, diversified Sri Lankan conglomerate Sunshine Holdings (CSE: SUN) reported impressive growth in top and bottom line performances during the first nine months of the current financial year (9MFY18). During this period, the Group posted consolidated revenue of Rs. 15.6 billion, delivering a 23% Year-on-Year (YoY) increase in Profits After Tax (PAT).

Group’s healthcare business emerged as the largest contributor to Sunshine’s top-line performance, accounting for 39% of total revenue, while agribusiness and consumer sectors of the Group contributed 34% and 25% respectively of the total revenue.

Profit after tax (PAT) for the period in review rose to Rs. 1.6 billion, on the back of strong performance in the agri sector, with strong positive results also being carried through to the Group’s Profit After Tax & Minority Interest (PATMI) which grew by 63.8% YoY to Rs 722 million. Watawala Plantation PLC (CSE: WATA) and Hatton Plantations PLC (CSE: HPL), Group’s agribusiness subsidiaries together were the largest contributor to PATMI, accounting for 38% of the total and healthcare accounting for 27%.

“Our continuous focus on improving quality and internal efficiency through well-placed strategies has yielded strong results for the group yet again, transforming another quarter into a successful, highly dynamic one,” Sunshine Holdings Group Managing Director, Vish Govindsamy stated. “It is noteworthy to mention that Group’s healthcare arm has been able to post strong results over the last nine months and become the largest contributor to Group revenue, after it grappled significantly due to the implementation of the price controls over 48 molecules during last year. Agri and Consumer sectors have also been able to continue their momentum and contribute significantly as both sectors have reported impressive revenue growth during this period.”

“We commend our dynamic team of employees, and our network of business partners and valued customers for their role in driving outstanding performance over the last nine months. Moving forward, we will continue to consolidate our operations with a view to further strengthening overall profitability while also exploring opportunities to expand growth within our current business segments,” stated Govindasamy further.

As the largest contributor to Group revenue, Sunshine Healthcare grew its revenue by 3.3% YoY to Rs. 6 billion. The revenue growth was propelled due to higher sales volume, despite the negative impact of the price control imposed by the National Medical Regulatory Authority (NMRA). The pharma sub-segment, which represents 65% of healthcare revenue, was also up by 4.4% YoY. Reported PAT for healthcare amounted to Rs.201 million in 9MFY18, up 121.6% YoY.

Sunshine’s Consumer brands – spearheaded by premium brands like ‘Zesta’ and ‘Watawala Tea’ – recorded impressive growth in revenue, with stronger domestic business growth enabling a sharp 27.4% YoY growth to Rs. 3.8 billion on the back of both volume and price increases. The domestic branded tea business sold 3.2 million kilos of branded tea, up 16% YoY. However, due to higher Ceylon Tea prices eroding the gross profit margins and increased finance cost, the Consumer Goods segment saw a decrease of their PAT by 17.4% YoY to Rs. 206 million for the nine months.

The Group’s agribusiness sector, led by Watawala Plantations PLC (WATA) and Hatton Plantations PLC (HPL), recorded 13.3% YoY growth up to Rs. 5.3 billion on the back of a 21% YoY growth in tea revenue driven by improvement in price. During 9MFY18, Palm oil sub sector reported a slight decrease in revenue of 8% YoY due to the decrease in market price of crude palm oil (CPO).

Tea volumes were constant for the period in review while palm oil volumes were 1% higher than same period last year. Reported PAT for Agribusiness to Rs 1 billion up 2.5% YoY. Palm oil segment, which made Rs. 833 million PAT for 9MFY18 against Rs.1.057 million same period last year, continued to be the largest contributor to Agri business profits. The growth in profits can be attributed to profitability in the tea sub-sector compared to losses last year, despite a slight dip in profits in the palm oil sub sector coming from an increase in operational expenses and crude palm oil price decrease.

Vish Govindasamy expressed strong confidence over the outlook of the group over the coming year where he noted that the Group will focus on increasing sales volume as far as their healthcare business is concerned, despite the depreciation of the LKR against the USD continues to impact the margins of the entire healthcare industry. He also said that greater attention will be given to its growing surgical and medical devices sub sector, which had displayed impressive growth potential over the recent past.

Similarly, the Group’s consumer business would continue investments into its brands to scale both domestic and international businesses while the continuing success of its Palm Oil segment was also expected to continue to yield higher returns, brought about by superior agronomic practices. Govindasamy expects the palm oil prices to remain at the current levels and their tea business to perform strongly during 4QFY18 where tea prices are forecasted to remain at the high level.

The dairy sub sector has reached a total of 487 milking cows and 10,000 liters of milk per day. The total number of animals has also grown to 1,073 with the new 500 in-calf heifers from Australia and the Group expects the next heard of animals from Australia to reach the farm by next quarter. However, Govindasamy noted that the interim cost of feeding the whole herd would have a slightly negative impact on Agri profitability.

About Sunshine Holdings: Sunshine Holdings PLC is a diversified holding company contributing to ‘nation building’ by creating value in vital sectors of the Sri Lankan economy – including healthcare, agribusiness, fast moving consumer goods and renewable energy. Many of its business units are leaders in their respective sectors, have secured partnerships with multiple top global brands and have won prestigious awards at the national as well as the regional level. The leading brands of the group include Zesta, Healthguard, Watawala Tea, Pedia Plus and Diabeta Plus.

Sunshine Holdings’ jointly-owned plantation company is Sri Lanka’s largest palm oil producer and has also been the country’s largest tea producer for several consecutive years. The company’s healthcare marketing unit is the second largest in its sector nationally. Its tea sector also consists of Sri Lanka’s best-selling tea brand locally. The group, which provides employment to approximately 10,000, generates over US$ 120 million in revenue. Sunshine Holdings is consistently ranked among the LMD Top 50 companies in Sri Lanka.
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Re: SUN Community

Postby Blue Whale » Sat Feb 10, 2018 8:41 am

Thanks SHARK. Actually a very good result when others falling apart.
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Re: SUN Community

Postby nuwandwo » Sun Feb 18, 2018 10:19 pm

Nearly 1 Mn shares were traded on Friday, where 3 Month Avg Day Volume is only around 20K.

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Re: SUN Community

Postby IOSirisena » Fri May 18, 2018 3:43 pm

Japan’s SBI to invest Rs. 775m more in Sunshine Holdings
Friday, 18 May 2018, DailyFT

Sunshine Holdings PLC (SUN) has announced that it is to issue Rs. 11.9 million ordinary shares, or nearly 9%, by a way of a private placement to SBI Ven Holdings Ltd. at a consideration of Rs. 65 per share in order to raise Rs. 775 million.

SBI Ven Holdings, at present, owns 11% stake in Sunshine Holdings PLC.

The purpose of the private placement is to reduce exposure of Sunshine Holdings to bank borrowings by repaying debt and/or placing fixed deposit which would result in the net debt and net finance cost being reduced and the FD being utilised to pay interest and capital arising from the bank borrowings.

The move is subject to approval.

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Re: SUN Community

Postby IOSirisena » Wed May 23, 2018 12:52 pm

Fitch says Sunshine Holdings new equity issue not enough for ratings upgrade
May 22, 2018, The Island

Fitch Ratings says current ratings of Sunshine Holdings will remain unchanged as the projected fall in net leverage from the proposed private placement will be insufficient to trigger an upgrade.


Fitch, however, says Sunshine Holdings (A-(lka)/Stable) plan to bring in new equity of 775 million rupees from a private placement of shares should help the company deleverage and strengthen its balance sheet.


Sunshine used mostly debt in 2017 to fund a 2.9 billion rupees purchase of an additional stake in its plantation business, which drove up leverage substantially.


"We estimate that a successful private placement would see the company’s net leverage improve to 2.0x in the financial year ending March 2019, from our 2.4x forecast," Fitch said.


According to Fitch, Sunshine’s net leverage is defined as lease-adjusted debt net of cash/operating EBITDAR, including proportionate consolidation of Estate Management Services (Private) Limited.


Estate Management Services (Private) Limited is the holding company for the agriculture and consumer goods segments.


"The estimate is still higher than the 1.5x threshold below which we may upgrade the company’s rating."


On 17 May 2018, Sunshine, through a stock-exchange filling, announced an issue of 11.9 million ordinary shares by way of a private placement to SBI Ven Holdings Pte Limited (SVH).


According to the public announcement, the proceeds will be used to reduce the company’s net debt by partly repaying debt at the holding company, while maintaining any balance in term deposits.


Following this transaction, SVH will increase its stake in Sunshine to 18 percent, from 11 percent.


Sunshine expects the share issue to be completed by end-June 2018 subject to regulatory and shareholder approval.


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