Earnings Review - Q4 FY 14

65, Braybrooke Place, Colombo 2, Sri Lanka

research@bartleetreligare.com, +94 11 5220200

16 April 2015

BRS Research

Chevron Lubricants Lanka PLC (LLUB: LKR 395.00)

Lower volumes and super gains tax may slow down payout SELL
LLUBs bottom line dropped 5.9% YoY to LKR 555mn in Q4 FY 14 resulting in an EPS of LKR
4.63 (BRS forecast LKR 5.86) caused by lower volumes and 41% reduction in finance income. EBIT margin dropped marginally to 24.5% compared to 26% YoY mainly due to a
8.8% rise in SG & A expenses whilst the GP margin remained flat at 35%. Net revenue
dipped 2.9% YoY to LKR 2.74bn. The company completed the plant relocation to Saupugaskanda in November 14 with ~20% additional capacity and we believe the cash position
would strengthen eventually. However, with the company being hit by the one-off super
gains tax imposed by the interim budget, we expect a minor impact on FY 2015E dividends.
Since the last review the MPS has increased by ~14% and the risk free rate by >1%. Hence,
our DCF based target price is reduced to LKR 290 with a total return (including FY 2015E
DPS) of LKR 308 (-22% on CMP). We downgrade to SELL.
All figures in LKR mn
Revenue
Revenue growth (%)
Gross profit
Gross profit margin (%)
EBIT recurring
EBIT margin (%)
Profit attributable to equity holders
BRS EPS As Adjusted (LKR)
BRS EPS growth (%)
NAV per share (LKR)
DPS (LKR)
Dividend yield (%)
P/E (x)
P/BV (x)
ROE %

2011
11,040
16.6%
3,474
31.5%
2,713
24.6%
1,988
16.57
32.4%
26.32
9.00
5.3%
10.3 x
6.5 x
73.7%

2012
11,754
6.5%
3,804
32.4%
2,913
24.8%
2,261
18.84
13.7%
34.45
11.00
5.4%
10.7 x
5.9 x
62.0%

2013
11,197
-4.7%
4,120
36.8%
3,174
28.3%
2,531
21.10
11.9%
40.33
15.00
5.6%
12.7 x
6.6 x
56.4%

2014
11,520
2.9%
4,603
40.0%
3,566
31.0%
2,742
22.85
8.3%
43.33
20.00
5.0%
17.5 x
9.2 x
54.6%

2015E
11,774
2.2%
4,823
41.0%
3,748
31.8%
2,779
23.16
1.3%
41.29
18.00
4.6%
17.1 x
9.6 x
54.7%

2016E
12,339
4.8%
5,041
40.9%
3,915
31.7%
2,875
23.96
3.5%
44.25
21.00
5.3%
16.5 x
8.9 x
56.0%

Head of Research - Nikita Tissera

Senior Research Analyst - Jennita Fernando

Trading Snapshot
Market cap (LKR mn)

47,400

Market cap (USD mn)

352

Outstanding equity shares (mn)

49.00%

52-week High/Low (LKR)

456.50/267.00

YTD ASPI return (%)

-4.4%

YTD Stock return (%)

-1.2%

Beta

0.45

Valuation Summary
CMP (LKR)

395.00

Intrinsic value (LKR)

290.14

DPS (LKR)

18.00

Target price based on total return (LKR)

Valuation method

308.14
DCF valuation

Total return %

-22.0%

Rating

Source: Company data and BRS Equity Research

Bottom line down 5.9% YoY in Q4 FY 14; however margins maintained

LLUB recorded a 5.9% earnings decline in Q4 FY 14 to LKR 555mn with a NP margin of 20.2%
(Q4 FY 13 20.9%). Lower overall volumes, finance income (-41% YoY to LKR 39mn), higher SG
& A expenses contributed to the drop. However, for FY 2014 LLUB recorded an 8.3% YoY growth
in earnings to LKR 2.74bn aided by lower base oil prices in the latter part, stable exchange rate
and improved volumes from the premium brands despite overall volumes shrinking. The company has however been successful in maintaining healthy margins through their focus on marketing premium brands. We expect GP margins to hover at ~41% and EBIT margins at ~32% in
the forecast period.

120

Public Holding (%) -Dec'14

Sell

LLUB Price Vs ASPI Movement

ASPI

LLUB

ASPI
LLUB

8000

500
450

7000
400
6000

350
300

5000
250
4000

Super gains tax likely to hinder short term dividend payout; long term positive
As LLUB would be impacted by the 25% super gains tax imposed in the interim budget, we have
factored in a LKR 863mn cash outflow in FY 2015E. Hence, we forecast a reduction in FY 2015E
payout to ~78% from ~88% in the last FY. However, with the completion of the plant relocation
in November 2014, LLUB would regain their strong cash position enabling to distribute higher
dividends as in the past from FY 2016E onwards.
Valuation 22% downside to CMP on total return: SELL
The DCF based target price is downgraded to LKR 290 with the increase in risk free rate by 119
basis points since the last review and the slow growth in the industry. The total return, inclusive
of the FY 2015E DPS of LKR 18.00 is at LKR 308.00 and we recommend SELL. On relative valuation terms, the stock is trading at a forward PER of 17.1x (FY 2015E EPS LKR 23.16) and 16.5x
(FY 2016E EPS LKR 23.96) based on CMP. The sector PER stood at 20.9x as at 15.04.2015.
For analyst certification and other important disclosures, please refer to the Disclosure and
Disclaimer section at the end of this report.

200

Mar-13

Nov-13

Jul-14

Apr-15

DPS and Payout Ratio

DPS

%
DPS

24.00

Payout ratio

120%

20.00

100%

16.00

80%

12.00

60%

8.00

40%

4.00

20%
2011

2012

2013

2014

2015E 2016E

Page 1

Company Information Note

65, Braybrooke Place, Colombo 2, Sri Lanka
research@bartleetreligare.com, +94 11 5220200

16 April 2015

Chevron Lubricants Lanka PLC (LLUB)

Company profile
Chevron is in the business of importing, manufacturing and marketing of lubricants, greases,
brake fluid and specialty products. It is the market leader with ~52% market share in a very
competitive industry with 13 licensed players. It
also exports finished goods to Maldives and
Bangladesh, though on a relatively smaller scale.
The company relocated its blending plant to
Sapugaskande in November 2014 with an additional capacity of ~20%.

Revenue LKR 'mn % Growth (2011-16E)

6%

5%

12,339

2016E

2016E

2%

-5%
3%

11,040

2011

2012

2013

2014

2015E

Revenue breakdown
Local sales
Export sales

8%
6%

FY 2014

FY 2013
92%
94%

Trend in EPS and DPS

EPS (LKR)

DPS (LKR)
24.00

33.00
EPS

28.00

DPS
20.00

23.00
16.00
18.00
12.00
13.00
8.00

8.00
3.00

4.00
2011

2012

2013

2014

2015E

2016E

Source: LLUB Annual Reports and BRS Research

Year Ending 31st December

Summary Information
BRS EPS As Adjusted (LKR)
BRS EPS growth (%)
P/E (x)
Reported EPS adjusted for split (LKR)
Sector PE (x)
P/E on reported EPS (x)
NAV per share (LKR)
P/BV (x)
Sector PBV (x)
DPS (LKR)
Dividend yield (%)
FCFF (LKR 000)
FCFE (LKR 000)
CFPS (LKR)
P/CFPS (x)
Mkt price adjusted for splits
Weighted average shares (000)
Average mkt cap (LKR 000)
Enterprise value (LKR 000)
EV/Sales
EV/EBITDA
Income Statement (LKR 000)
Revenue
Gross profit
EBITDA recurring
Depreciation and amortisation
EBIT recurring
Interest income
Interest expense
Share of associates
Exceptionals/non-recurrings
Tax expense
Net income
Minorities & preference dividends
Profit attributable to equity holders
Statement of Financial Position (LKR 000)
Cash and cash equivalents
Inventories
Trade receivables
Fixed assets
Shortterm investments
Total assets
Trade payables
Interest bearing debt -short term
Interest bearing debt -long term
Total liabilities
Shareholders equity
Minorities
Total equity
Net debt (cash)
Total capital employed
Casf flow (LKR 000)
Cash flow from operations
Net working capital
Capital expenditure
Free cash flow
Investing cash flows
Equity capital
Dividends paid
Net borrowings
Other financing cash flows
Net cash flow
Key ratios
Revenue growth (%)
EBIT growth (%)
Gross profit margin (%)
EBITDA margin (%)
EBIT margin (%)
Net profit margin
ROCE %
ROE %
Payout ratio (%)
Debt/equity (%)
Net debt/equity (%)
Gearing (%)
Interest cover (x)

2011

2012

2013

2014

2015E

2016E

16.57
32.4%
10.3 x
16.67
15.8x
10.2 x
26.32
6.5 x
2.2x
9.00
5.3%
1,364,308
1,365,360
2.97
57.3 x
170.00
120,000
20,400,000
19,387,939
1.8 x
7.0 x

18.84
13.7%
10.7 x
18.88
9.9x
10.7 x
34.45
5.9 x
1.6x
11.00
5.4%
2,846,205
2,846,427
12.25
16.5 x
202.00
120,000
24,240,000
21,722,756
1.8 x
7.3 x

21.10
11.9%
12.7 x
21.10
13.0X
12.7 x
40.33
6.6 x
1.8x
15.00
5.6%
1,587,596
1,587,680
(0.27)
nm
267.80
120,000
32,136,000
29,650,826
2.6 x
9.2 x

22.85
8.3%
17.5 x
22.89
22.1x
17.5 x
43.33
9.2 x
2.7x
20.00
5.0%
1,740,841
1,741,166
(9.96)
nm
399.60
120,000
47,952,000
46,661,470
4.1 x
12.9 x

23.16
1.3%
17.1 x
na
na
na
41.29
9.6 x
na
18.00
4.6%
843,820
844,108
(3.97)
nm
395.00
120,000
47,400,000
46,585,938
4.0 x
12.2 x

23.96
3.5%
16.5 x
na
na
na
44.25
8.9 x
na
21.00
5.3%
2,820,043
2,820,475
2.50
158.2 x
395.00
120,000
47,400,000
46,286,327
3.8 x
11.6 x

11,039,945
3,474,497
2,760,084
(47,307)
2,712,777
61,507
(1,461)
12,455
(767,163)
1,988,162
1,988,162

11,754,046
3,804,084
2,956,746
(43,836)
2,912,910
34,638
(309)
4,563
(845,630)
2,261,263
2,261,263

11,197,152
4,120,303
3,220,484
(46,234)
3,174,250
279,044
(117)
421
(921,697)
2,531,480
2,531,480

11,519,891
4,602,816
3,613,771
(48,009)
3,565,762
91,810
(451)
4,839
(952,800)
2,741,995

11,773,598
4,822,989
3,812,176
(64,209)
3,747,967
59,092
(400)
(1,027,798)
2,778,861

12,339,012
5,041,357
3,981,266
(65,805)
3,915,461
50,649
(600)
(1,090,515)
2,874,995

2,741,995

2,778,861

2,874,995

1,012,061
1,870,032
1,199,131
193,113
4,353,919
301,439
1,195,773
3,158,146

2,517,244
2,132,118
986,882
215,813
5,947,508
897,497
1,813,195
4,134,313

2,485,174
1,928,704
1,252,068
1,296,651
7,052,472
1,059,802
2,212,451
4,840,021

1,290,530
1,746,241
1,130,140
2,243,616
6,476,801
652,962
1,277,590
5,199,210

814,062
2,094,251
1,372,898
2,297,143
6,659,797
90,778
1,705,020
4,954,777

1,113,673
2,232,704
1,386,627
2,354,728
7,181,741
194,095
1,871,969
5,309,772

3,158,146
(1,012,061)
3,158,146

4,134,313
(2,517,244)
4,134,313

4,840,021
(2,485,174)
4,840,021

5,199,210
(1,290,530)
5,199,210

4,954,777
(814,062)
4,954,777

5,309,772
(1,113,673)
5,309,772

1,384,049
(656,249)
(20,793)
1,363,256
(8,139)
(1,020,000)
355,910

2,913,609
494,835
(67,627)
2,845,982
(63,064)
(1,380,000)
1,470,545

2,715,618
72,850
(1,128,106)
1,587,512
(1,127,685)
(1,620,000)
(32,067)

2,735,614
(120,785)
(995,097)
1,740,517
(990,258)
(2,940,000)

961,268
(1,168,121)
(117,736)
843,532
(117,736)
(1,320,000)

2,943,001
(61,431)
(123,390)
2,819,611
(123,390)
(2,520,000)

(1,194,644)

(476,468)

299,611

16.6%
19.6%
31.5%
25.0%
24.6%
18.0%
100.6%
73.7%
54.3%
0.0%
-32.0%
0.0%
nm

6.5%
7.4%
32.4%
25.2%
24.8%
19.2%
79.9%
62.0%
58.4%
0.0%
-60.9%
0.0%
nm

-4.7%
9.0%
36.8%
28.8%
28.3%
22.6%
70.7%
56.4%
71.1%
0.0%
-51.3%
0.0%
nm

2.9%
12.3%
40.0%
31.4%
31.0%
23.8%
71.0%
54.6%
87.5%
0.0%
-24.8%
0.0%
nm

2.2%
5.1%
41.0%
32.4%
31.8%
23.6%
73.8%
54.7%
77.7%
0.0%
-16.4%
Page0.0%
2
nm

4.8%
4.5%
40.9%
32.3%
31.7%
23.3%
76.3%
56.0%
87.7%
0.0%
-21.0%
0.0%
nm

BRS Equity Research

Q4 FY 14 Performance
Q4 FY 14

All figures in LKR 'mn

Revenue

Q4 FY 13

2,743

Q3 FY 14

2,824

3,083

YoY growth %

-2.9%

-1.3%

10.8%

QoQ growth%

-11.0%

16.3%

3.1%

Cost of sales

(1,797)

(1,838)

(1,821)

Gross Profit
Gross Profit margin %
Recurring Net Profit
BRS EPS as adjusted (LKR)

946

986

1,261

34.5%

34.9%

40.9%

555

590

748

4.63

4.92

6.23

YoY growth %

-5.9%

8.2%

22.7%

QoQ growth%

-25.8%

-3.2%

10.8%

NAV per share (LKR)

43.33

40.33

49.57

ROCE %

71.0%

70.7%

64.2%

ROE %

54.6%

56.4%

49.2%

EV/Sales (x)

2.7

2.6

3.3

EV/EBITDA (x)

8.5

9.2

10.4

Valuations assumptions
Based on a free cash flow valuation we have arrived at a target price of LKR 290.14 . Our valuations are based
on the following assumptions:
WACC 10.6%
Terminal growth rate - 3%
Risk free rate 8.79% (previous - 7.6%)
Beta - 0.45 (based on LLUB share price vs. ASPI movement)
Equity risk premium - 4%

Sensitivity of target price to risk free rate & growth rate

Risk free rate (Five year bond rate)

290.14
Growth rate

7.0%

8.0%

8.8%

9.0%

10.0%

11.0%

2%

341.25

297.13

269.59

263.11

236.09

214.13

3%

379.34

323.69

290.14

282.37

250.48

225.14

4%

433.31

359.41

316.92

307.29

268.57

238.66

www.bartleetreligare.com

Page 3

BRS Equity Research

Financial Analysis
Income statement - Chevron Lubricants Lanka PLC
Year Ending 31st December

2011

2012

2013

2014

2015E

2016E

Net turnover

11,039,945

11,754,046

11,197,152

11,519,891

11,773,598

YoY growth %

16.6%

6.5%

-4.7%

2.9%

2.2%

4.8%

(7,565,448)

(7,949,962)

(7,076,850)

(6,917,075)

(6,950,608)

(7,297,654)

17.7%

5.1%

-11.0%

-2.3%

0.5%

5.0%
5,041,357

Cost of Sales
YoY growth %
Gross Profit

12,339,012

3,474,497

3,804,084

4,120,303

4,602,816

4,822,989

YoY growth %

14.1%

9.5%

8.3%

11.7%

4.8%

4.5%

Gross profit margin

31.5%

32.4%

36.8%

40.0%

41.0%

40.9%

31,176

12,294

7,061

13,140

6,000

6,000

(780,441)

(898,904)

Other operating Income

Total SG & A expenses

YoY growth %
Total depreciation
EBIT including non-recurring items
Non-recurring items
EBIT excluding non-recurring items

(952,694)

(1,045,356)

(1,081,023)

(1,131,897)

0.1%

15.2%

6.0%

9.7%

3.4%

4.7%

(47,307)

(43,836)

(46,234)

(48,009)

(64,209)

(65,805)

2,725,232

2,917,473

3,174,670

3,570,601

12,455

4,563

421

4,839

2,712,777

2,912,910

3,174,250

3,565,762

3,747,967

3,915,461

3,747,967

3,915,461

YoY growth %

19.6%

7.4%

9.0%

12.3%

5.1%

4.5%

EBIT margin

24.6%

24.8%

28.3%

31.0%

31.8%

31.7%

2,760,084

2,956,746

3,220,484

3,613,771

3,812,176

3,981,266

EBITDA excluding non-recurring items

YoY growth %

18.4%

7.1%

8.9%

12.2%

5.5%

4.4%

EBITDA margin

25.0%

25.2%

28.8%

31.4%

32.4%

32.3%

42,548

193,983

278,927

129,033

58,692

50,049

2,755,325

3,106,893

3,453,177

3,694,795

3,806,659

3,965,510

Finance Income / Cost

Recurring profit before tax

YoY growth %
Income tax expense

Profit after taxation

18.1%

12.8%

11.1%

7.0%

3.0%

4.2%

(767,163)

(845,630)

(921,697)

(952,800)

(1,027,798)

(1,090,515)

1,988,162

2,261,263

2,531,480

2,741,995

2,778,861

2,874,995

YoY growth %

32.4%

13.7%

11.9%

8.3%

1.3%

3.5%

Super gains tax

Profit after Super gains tax

(863,294)

1,988,162

2,261,263

2,531,480

2,741,995

1,915,567

2,874,995

Earnings per share - unadjusted (1)

16.67

18.88

21.10

22.89

15.96

23.96

Earnings per share - BRS adjusted (2)

16.57

18.84

21.10

22.85

23.16

23.96

Source: Company Financial Reports and BRS Equity Research

Note 1: Based on earnings as reported (unadjusted for non-recurring) share data adjusted for splits and super gains tax
Note 2: EPS adjusted for share split, consolidations and non recurring information

www.bartleetreligare.com

Page 4

BRS Equity Research

Financial Analysis
Statement of Financial Position - Chevron Lubricants Lanka PLC
As at 31st December

2011

2012

2013

2014

2015E

2016E

193,113

215,813

1,296,651

2,243,616

2,297,143

2,354,728

74,377

94,109

81,152

66,274

81,443

94,009

5,205

1,341

8,723

272,695

311,263

1,386,526

Non Current Assets

Property Plant & Equipment
Non Current Receivables
Deffered Tax Asset

2,309,890

2,378,586

2,448,736

2,232,704

Current Assets
Inventories

1,870,032

2,132,118

1,928,704

1,746,241

2,094,251

Receivables and Prepayments

1,199,131

986,882

1,252,068

1,130,140

1,372,898

1,386,627

Cash and Cash Equivalents

1,012,061

2,517,244

2,485,174

1,290,530

814,062

1,113,673

4,081,224

5,636,245

5,665,946

4,166,911

4,281,211

4,733,004

4,353,919

5,947,508

7,052,472

6,476,801

6,659,797

7,181,741

Total Assets
Equity and Reserves
Stated Capital

600,000

600,000

600,000

600,000

600,000

600,000

Retained Earnings

2,558,146

3,534,313

4,240,021

4,599,210

4,354,777

4,709,772

Shareholders funds

3,158,146

4,134,313

4,840,021

5,199,210

4,954,777

5,309,772

101,769
-

87,328
-

122,060
-

119,902
101,596

133,417
101,596

145,883
101,596

101,769

87,328

122,060

221,498

235,013

247,479

Trade and Other payables

301,439

897,497

1,059,802

652,962

90,778

194,095

Current Tax

372,565

468,370

490,590

403,131

539,228

590,394

Dividends payable

420,000

360,000

540,000

840,000

840,000

Non Current Liabilities

Defined Benefit Obligation
Deffered Tax

Current Liabilities

Bank Borrowings

1,094,004

1,725,867

2,090,392

1,056,093

1,470,007

1,624,489

Total Liabilities

1,195,773

1,813,195

2,212,451

1,277,590

1,705,020

1,871,969

Total Equity and Liabilities

4,353,919

5,947,508

7,052,472

6,476,801

6,659,797

7,181,741

Source: Company Financial Reports and BRS Equity Research

www.bartleetreligare.com

Page 5

BRS Equity Research

Financial Analysis

Cash flow - Chevron Lubricants Lanka PLC

Year Ending 31st December

2011

2012

2013

2014

2015E

2016E

2,725,232

2,917,473

3,174,670

3,570,601

3,747,967

3,915,461

47,307

43,836

46,234

48,009

64,209

65,805

Cash flow from operating activity

EBIT
Depreciation
Property, plant & equipment written off
(Profit)/loss on disposal of PPE
Provision for bad and doubtful debt
Finance income/expense adjustment
Defined benefit obligation
Operating cash flow before changes in working capital
Changes in Working Capital
Cash generated from Operations

513

1,090

1,034

123

(12,455)

(4,563)

(420)

(4,839)

(1,902)

11,102

(2,506)

8,324

159,654

43,356

37,674

17,830

16,600

19,813

22,477

24,000

24,000

2,784,849

3,165,745

3,325,328

3,700,630

3,836,176

4,005,266

(656,249)

494,835

72,850

(120,785)

(1,168,121)

(61,431)

2,128,600

3,660,580

3,398,178

3,579,845

2,668,055

3,943,835
50,649

Interest received

35,685

235,690

97,834

59,092

Interest paid

(1,461)

(309)

(117)

(451)

(400)

(600)

(25,006)

(701)

(9,662)

(7,473)

(10,484)

(11,534)

(753,769)

(745,961)

(908,471)

(934,141)

(891,700)

(1,039,349)

Denfined benefit obligation paid

Tax paid
Super gains tax paid
Net Cash from Operating Activities

(863,294)

1,384,049

2,913,609

2,715,618

2,735,614

961,268

2,943,001

Purchase of property, plant & equipment

(20,793)

(67,627)

(1,128,106)

(995,097)

(117,736)

(123,390)

Proceeds from disposal of PPE

421

Investing Activities
12,654

4,563

4,839

Short term investments uplifted & maturity

ST Investments made during the year

Net cash used in investing activities

(8,139)

(63,064)

(1,127,685)

(990,258)

(117,736)

(123,390)

Financing Activities
Short term loans obtained / (settled) to related parties

Dividends paid

(1,020,000)

(1,380,000)

(1,620,000)

(2,940,000)

(1,320,000)

(2,520,000)

Net Cash in financing activities

(1,020,000)

(1,380,000)

(1,620,000)

(2,940,000)

(1,320,000)

(2,520,000)

355,910

1,470,545

(32,067)

(1,194,644)

(476,468)

299,611

Increase Decrease In Cash and Cash Equivalents

Source: Company Financial Reports and BRS Equity Research

www.bartleetreligare.com

Page 6

BRS Equity Research

Top 20 shareholders as at 31 December 2014

Name of the shareholder

No of shares

1 Chevron Ceylon Limited

61,200,000

51.00

2 HSBC INTL NOM LTD-SSBT WASATCH FRONTIER EMERGING SMALL Countries Fund

6,300,185

5.25

3 Caceis Bank Luxembourg S/A BARCA GLOBAL MASTER FUND LPOGIER

2,716,306

2.26

4 Cigroup Global Markets Limited Agency Trading Prop Securies A/C

2,403,670

2.00

5 HSBC Internaonal Nominees Ltd-BPSS Lux Aberdeen Global- Asian smaller companies fund

2,234,700

1.86

6 RBC Investor services Bank- COELI SCAV I- Froner Markets Funds

2,223,027

1.85

7 BNYM SA/NV-Blackrock Froners Investment Trust PLC

2,107,175

1.76

8 HSBC Internaonal Nominees Ltd-SSBT Aberdeen Instuonal Commingled Funds LLC

1,880,000

1.57

9 HSBC INTL NOM LTD-BP2S LUXEMBOURG-ABERDEEN GLOBAL FRONTIER MARKETS EQUITY FUND

1,830,800

1.53

10 Northern Trust CO S/A - Northern Trust Fiduciary Services (Ireland) Ltd AS TRUSTEE TO BARING ASEAN FRO

1,825,368

1.52

11 HSBC Internaonal Nominees Ltd-BP2S London- Aberdeen Asia SmallerCompanies Investment Trust

1,490,800

1.24

12 Renuka Hotels Limited

1,400,000

1.17

13 Cargo Boat Development Company Limited

1,400,000

1.17

14 HSBC INTL NOM LTD-JPMCB-INVESTERINGSFORENINGEN BANKINVEST,AFD NEW EMERGING MARKETS AKTIER

1,206,844

1.01

15 Nothern Trust Global Services London S/A VERDIPAPIRONDET ODIN EMERGING MARKETS

1,191,184

0.99

16 Mellon Bank N.A.- Florida Rerement system

1,100,000

0.92

17 Employees Provident Fund

1,007,958

0.84

18 HSBC Internaonal Nominees Ltd-BPSS Lux Aberdeen Global- Emerging markets smaller companies fund

1,000,000

0.83

19 Crescent Launderers & Dry Cleaners (Pvt) Ltd

1,000,000

0.83

950,060

0.79

20 CB NY S/A WASATCH FRONTIER EMERGING SMALL COUNTRIES CIT FUND

Source: Q4 FY 14 interim financial statements

www.bartleetreligare.com

Page 7

BRS Equity Research

DISCLAIMER
Important Disclosures
This report was prepared by Strategic Research Limited for clients of Bartleet Religare Securities.
Special Disclosures
Special Disclosures for certain additional disclosure statements (if applicable).
Intended Recipients
This report is intended only for the use of the individual or entity named above and may contain information that is confidential and privileged. It is intended only
for the perusal of the individual or entity to whom it is addressed and others who are authorized to receive it. If you are not the intended recipient of this report,
you are hereby on notice that any disclosure, dissemination, distribution, copying or taking action relying on the contents of this information is strictly prohibited
and illegal.
BRS, is not liable for the accurate and complete transmission of the information contained herein nor any delay in its receipt. If you have received this email in
error, please notify us immediately by return email and please destroy the original message
This report is not intended for citizens (individual or corporate) based in the United States of America.
Analyst Certification
Each of the analysts identified in this report certifies, with respect to the companies or securities that the individual analyses, that the views expressed in this report
reflect his or her personal views about all of the subject companies and all of the securities and No part of his or her compensation was, is or will be directly or
indirectly dependent on the specific recommendations or views expressed in this report. If the lead analyst holds shares of the coverage; that will be listed here.
Stock Ratings
Recommendation
Expected absolute returns (%) over 12 months
Buy
More than 10%
Hold
Between 10% and 0
Sell
Less than 0%
Expected absolute returns are based on the share price at market close unless otherwise stated. Stock recommendations are based on absolute upside (downside)
and have a 12-month horizon. Our target price represents the fair value of the stock based upon the analysts discretion. We note that future price fluctuations
could lead to a temporary mismatch between upside/downside for a stock and our recommendation.
General Disclaimers

This report is strictly confidential and is being furnished to you solely for your information purposes.
The information, tools and material presented in this report are not to be used or considered as an offer or solicitation of an offer to sell or to purchase
or subscribe for securities.
SRL has not taken any measures to guarantee in any way that the securities referred to herein are suitable investments for any particular investor. SRL
will not under any circumstance, consider recipients as its customers by virtue of them receiving the report. The investments or services contained or
referred to in this report may not be suitable for you and it is highly recommended that you consult an independent investment advisor if you are in
any doubt about such investments or related services.
Further, nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or
appropriate to your individual circumstances, investment needs or otherwise construes a personal recommendation to you.
Information and opinions presented herein were obtained or derived from sources that SRL believes to be relied upon, but SRL makes no representations or warranty, express or implied, as to their accuracy or completeness or correctness.
SRL accepts no liability whatsoever for any loss arising from the use of the material presented in this report.
This report is not to be relied upon as a substitute for the exercise of independent judgment. SRL may have issued, and may in the future issue, a
trading call regarding this security. Trading calls are short term trading opportunities based on market events and catalysts, while stock ratings reflect
investment recommendations based on expected absolute return over a 12-month period as defined in the disclosure section. Because trading calls
and stock ratings reflect different assumptions and analytical methods, trading calls may differ directionally from the stock rating.
Past performance should not be taken as any indication or guarantee of future performance, and no representation or warranty, express or implied, is
made regarding future performance.
Information, opinions and estimates contained in this report reflect a judgment of its original date of publication by SRL and are subject to change
without notice. The price, value of and income from any of the securities or financial instruments mentioned in this report can fall as well as rise. The
value of securities and financial instruments is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of
such securities.
SRL may or may not seek to do business with companies covered in our research report. As a result, investors should be aware that the firm may have
a conflict of interest that could affect the objectivity of research produced by SRL. Investors should consider our research as only a single factor in
making their investment decision.

Any reference to a third party research material or any other report contained in this report represents the respective research organization's estimates and views
and does not represent the views and opinions of SRL. SRL, its officers and employees do not accept any liability or responsibility whatsoever with respect to the
accuracy or correctness of such information. Further, SRL has included such reports or made reference to such reports in good faith (bona fide).

www.bartleetreligare.com

Page 8

Bartleet Religare Securities (Pvt) Ltd

www.bartleetreligare.com

BRS Equity Research - research@bartleetreligare.com

Page 9