You are on page 1of 18

PEOPLES LEASING CO.

LTD
INITIAL PUBLIC OFFERING
Issue of 390,000,040 shares at a price of LKR18.00 to be listed on the Main Board

Analyst: Minoli Mallawaarachchi: minoli@asiacapital.lk

PEOPLES LEASING CO. LTD


Peoples Leasing Company limited (PLC) was incorporated in 1995 and registered as a Specialized Leasing Company (SLC) under section 34 of the Finance Leasing Act No.56 of 2000. The principal business activity of the PLC is the provision of finance leasing, operating leasing, HP facilities, asset financing, and term loans. The company has registered a Compound annual growth rate (CAGR) of 28% in overall interest income, over a period of 5 years, compared with a CAGR growth of 38% in interest earning assets. The interest expenses for a period of 5 years have grown at CAGR of 38%, and according to the latest available data for 1QFY11/12 the YoY growth had been 67%. Net profits had accounts for a CAGR growth of 37% over a period of 5 years. Simultaneously, as per the year ended FY11/10, the YoY growth in net profit was an impressive 126%. Taking into consideration of aforesaid conditions we forecast a net profit of LKR3.9bn for FY11/12 achieving a growth of 50% YoY and yet a 4% decline in FY12/13 (due to reversal of LKR1.6bn provisions being included in FY11/12 profits) delivering a net profit of LKR3.7 bn. In terms of earnings to price multiple; the ordinary share is attractively valued at 9.3x (based on normalized profits adjusted for the LKR1.6 bn reversal of reserves) and 7.8x on FY11/12E and FY12/13E earnings respectively (based on the issue price of LKR18.0)

1|Page

The issue
The issuance of Three Hundred and Ninety Million and Forty (390,000,040) new Ordinary Voting shares at the issue price of LKR18.00, to raise a total capital of LKR7,020,000,720 (LKR7 bn). Subsequent to the issue, company will be listed on the Main Board of the CSE. The objectives of the issue The primary objective of the issue is to obtain a listing for the Ordinary Voting shares of the company on the CSE to comply with the regulatory requirements of the Monetary Board of CBSL as communicated by the Department of supervision of Non- Bank Financial institutions. It is expected that the company will meet the minimum public holdings requirement of the CSE on the completion of the issue. The proceeds from the IPO, after meeting expenses to the issue, would be utilized to grant more leasing, HP and loan facilities to the customers. Apart from the above, the increase in stated capital of the company subsequent to the issue would improve its debt to equity position and would enable the company to leverage on its balance sheet and raise the requisite debt financing in a comfortable manner. Following is the allocation of shares to identified categories, and the issue price of LKR18.00 is applicable to all categories. Key milestones of PLCL
2008/2008- formed two subsidiaries; People's Leasing Property Development Limited and People's Leasing Fleet Management Limited

By 30th June 2011, the company capitalized a sum of LKR4.1bn (28mn shares)

Incorporation-1995

2009/10, the Company acquired 84.50% stake of Seylan Merchant Leasing PLC

Share split of 1:15 after the bonus issue

IPO-2011

The People's Insurance Limited was incorporated as a fully owned subsidiary of PLC

2|Page

Company Overview
Peoples Leasing Company limited (PLCL) was incorporated in 1995 and registered as a Specialized Leasing Company (SLC) under section 34 of the Finance Leasing Act No.56 of 2000. Company was formed by Peoples Bank; a leading state owned Licensed Commercial bank (LCB) in Sri Lanka. The majority of the share holding of the parent- Peoples Bank (92.27%) is held by the state whilst a stake of 7.73% is held by co- operative societies. The asset base of the Peoples Bank amounts to approximately LKR619 bn as at end of June 2011, whilst the bank continued to maintain its position as the second largest LCB in Sri Lanka. The principal business activity of the PLCL is the provision of finance leasing, operating leasing, HP facilities, asset financing, and term loans. The company offers an array of leasing facilities and loans to cater to the needs of different customer segments, including mortgage loans, vehicle loans, and short term loans for working capital. PLCL also operates as a margin provider under a license received from the SEC. The company is renowned to be the market leader in the leasing and HP industry of Sri Lanka having secured a market share of over 20%, measured in terms of annual disbursements. The company bears a long-term rating of A (lka) stable from Fitch Ratings Lanka Limited, signifying its strong credit profile and excellent track record of performance. Company has an unprecedented presence throughout the country compared with other peers engaged in similar business as of PLCL. This has been achieved through 37 branches and 121 window offices which are located at Peoples Bank branches throughout the country. Peoples Leasing Company Limited functioning as the holding company of the PLC group, operates with six subsidiaries, maintaining its presence in the spheres of leasing and HP financing, motor and general insurance, fleet management, property development and Micro finance. Subsidiary operations Peoples Finance PLC (ticker; SMLL) - PLCL holds 88.51% of the company. SMLL is a Registered finance company in Sri Lanka delivering core products including, leasing, HP, loans. And also company has the capacity to accept deposits from the public. Peoples Insurance Limited- A company carrying on general insurance business and registered with the IBSL, was incorporated on July 22, 2009 as a public limited liability company, and is a fully owned subsidiary of PLCL. 3|Page

Peoples Leasing Fleet Management Limited- A fully owned subsidiary of PLCL and engages in the provision of operating leases and vehicle hire facilities and operates a service station, PLC auto care. Also the company commenced the vehicle valuation unit during FY10/11, which is expected to make a significant contribution for the PLC group with the expansion of the operating lease business and vehicle servicing. Peoples leasing Property Development Limited- A fully owned subsidiary of PLCL was incorporated on August 15, 2008 as a public limited company. The company engages in facilitating the development of office buildings and productivity stimulating workspace required for Peoples Bank and PLC group. Peoples Leasing Havelock Properties Limited- A fully owned subsidiary of PLCL, mainly involved in undertaking a BOI approved project which is to construct an office complex at Havelock Road, to house subsidiaries of PLC. Peoples Micro Finance Limited- A fully owned subsidiary of PLC, operating with the primary objective of providing financial services to the low income segment of the society and capacity building of the identified segment and micro enterprises.

Industry Overview
Sri Lankas gross domestic product expanded by 8% in 2010 (2009; 3.5%) , the highest annual growth rate recorded for the last 30 years. This has been achieved on the shoulder of attractive macroeconomic fundamentals after the cessation of war prevailed over three decades. The current inflation (as measured by the Colombo Consumer Price Index) and interest rates which peaked in 2008 have eased to relatively low levels. As per end 2010, Specialized Leasing Companies have contributed a 2.30% to the asset base of the domestic financial system. Particularly, the SLC industrys lending increased by a circa 32% YoY to reach a LKR105.40 bn by the end of December 2010. Further, Industry Net Interest Margins also has improved from 5.4% to 8.52% YoY, primarily due to lowered borrowing cost. Leasing was originally popularized by SLCs and Registered Finance Companies (RFCs) in Sri Lanka, but it has now become an equally popular product amongst Licensed Commercial Banks and Licensed Specialized Banks. This has been mainly due to the higher interest margin available in leasing industry.

4|Page

In terms of regulatory implications, SLCs registered in Sri Lanka are not permitted to mobilize deposits from the general public as a source of funding; amendments made to the regulations in 2007 allow SLCs to issue debt securities to the public.

Financial performance
Interest income The overall interest income of the PLC group is a combination of interest earned by the company PLCL and its subsidiaries. However, more than 92% (as at FY10/11) of the revenue is delivered by the PLCL (the company) itself. Interest income of the PLC group is derived through varied sources such as Leasing and Hire purchase (HP), loans and advances, interest earned from deposits in banks and financial institutions and dealing in government securities. Being resultant from the specialization in leasing industry, a substantial portion of interest income is comprised of interest earned over leasing and HP. This contribution was approximately 87% as per year ended FY10/11.

The company has registered a Compound annual growth rate (CAGR) of 28% in overall interest income, over a period of 5 years, compared with a CAGR growth of 38% in interest earning assets. With reference to the latest 1QFY11/12, the individual growth in overall interest income was a significant 57% YoY (2QFY09/10-2QFY10/11). Whereas the growth had been supported by a combination of escalated credit demand posed through declining lending rates in the economy and increase in demand for leasing facilities resulted from the reduction in import tax rates on vehicles.

5|Page

Interest expenses The interest expenses of the PLC group are comprised of interest paid on borrowings and deposits. Borrowings include funds obtained through promissory notes, Securitizations and other long-term loans. Similarly, PLC group as a whole has access to public deposits through its subsidiary Peoples Finance PLC. The interest expenses for a period of 5 years have grown at CAGR of 38%, and according to the latest available data for 1QFY11/12, the YoY growth had been 67%. This can be explained through a CAGR growth rate of 41% in interest bearing liabilities over a period of 5 years.

Net interest income The net interest margin of PLC currently stands at 11.43%, significantly above the SLC sector average of 5.83%. When compared with the overall banking sector, leasing establishments are earning higher margins. Companys interest income/ average earnings assets was 20% as at end FY10/11, down from 25% in FY09/10, but was par with sector ratios. The decline in the ratio was due to lower interest rates prevailing in the economy compared with very high rates especially in year 2008-2009. However going forward the margins are expected to narrow somewhat in the future due to intense competition from Licensed commercial banks and other Registered finance companies. Net interest spread As per the year ended FY11/1 the Company has realized a net interest spread of 9%, as oppose to a rate of 8% recorded year before. A higher spread has been achieved due to the nature of the assets and liabilities of PLCL. Where the borrowings are more short term with maturities extended from 0-12 months. Therefore ,in the prevailing low interest rate economy, the borrowings get adjusted more frequently and faster than more longer term assets (loans) operating with fixed interest rates getting adjusted, ultimately leading to higher spreads.

6|Page

Operating income Net interest income gives a contribution of circa 82% to the operating income whilst the rest being income generated through sale of vehicles (gains on imported Ashok Leyland and TATA busses), fee and commission income, net income from Islamic finance and other operating income which includes dividends, bad debt recoveries, income on operating leases etc... Historically the Non interest income as a percentage of operating income has stood at 20% on average. Operating expenses Operating expenses (excluding provisions for loan losses) have taken a CAGR growth of 29% over a period of 5 years, falling in line with the growth in the overall business volume. Also the company has maintained a relatively low level of cost to income ratios over the years, where currently it hovers around 29% as per year ended FY10/11, significantly below the SLC industry. However, With reference to the latest available data as at end of 1QFY11/12, the operating expenses have increased by a 48% YoY, resulting in a cost to income ratio of 32%, mainly on the account of accelerated expenditure on employee benefits. Provision for credit losses Company is maintaining adequate levels of provisions in order to cover unanticipated losses which can arise from the lending portfolio. Provision for credit losses charged from the P&L during FY10/11 decreased by above LKR 400 mn (compared with a previous allocation of LKR539 mn) to LKR52 mn reflecting improving delinquencies and collections and fewer bankruptcies as a result of improving economic conditions and lower average loans. Further, during 1QFY11/12, the company has reversed a portion of LKR1.6 bn from its general provisioning in the light of improving quality of its lending portfolio. This reversal has also resulted in boosting the profitability of the company. Effective tax rate The effective tax rate has come down to 38% as per year ended FY10/11 from a previous rate of 51%. Similarly, it has further come down to 35% based on the latest 1QFY11/12 performance. The lower rate was due to the reduction in tax rates. Particularly, VAT on financial services came down from 20% to 12% and income tax rate from 35% to 28%. Net profit (Profit attributable to equity holders) Net profits had taken a CAGR growth of 37% over a period of 5 years. Simultaneously, as per the year ended FY11/10, the YoY growth in net profit was an impressive 126%. This has been achieved through a significant growth 7|Page

of 45% in net interest income, 48% growth in operating income and a lower growth of 4% in total operating expenses. And the other positives are the decline in tax rates. Based on the latest available quarterly results, the net profit growth is 494% YoY, where the growth includes a one-off reversal of LKR1.6 bn in general provisioning during the quarter. However, based on a normalized net profit of LKR670.7 mn for 1QFY11/12 as opposed to a net profit of LKR291.0 mn in 1QFY10/11, the growth in net profit is a substantial 130%, a growth stemmed through a growth of above 57% in interest income, 30% growth in other income, while expenses side growing by relatively slow pace.

Asset quality
The asset base of the company is largely dominated by loan and lease rental receivable. As per the year ended FY10/11 the contribution of loans and lease rentals to the overall asset base was 87% whilst cash and deposits accounting for a 5%. However, during 1QFY11/12, it has shown a tilt towards more liquidity, by increasing the cash and short term funds by 205% within a period of 3 months, particularly; the increase was led by cash at bank and reverse repos. Therefore, due to the higher weight of loans and lease rentals over the asset base of the company, addressing the asset quality of the loan portfolio are vital.

The quality of the loan portfolio of the company is deemed healthy due to the companys stringent credit standards which has resulted in a lower than industry NPL ratios. As per the FY10/11 the gross NPL ratio has stood at 1.20%, which is relatively below the SLC sector average of 5.8%. The non performing loans of the company has reached to an LKR852.8 mn by the end of 1QFY11/12 whilst the overall loan book achieving a LKR65.4 bn. Total available provisions in order to guard any losses have come down during 1QFY11/12 to a total of LKR889.8 mn from a previous level of LKR2, 277.7mn as at end of financial year FY10/11, inclusive of both specific and general provisions. This was majorly due to the reversal took 8|Page

place in 1QFY12/11 from the general provision by LKR1.6bn. However, bringing down the provisions have resulted in depleting the provisioning cover to 1.04 for 1QFY11/12 from a previously high of 3.35, but still the provisioning is adequate to cover the total outstanding non performing loans. PLCs loan portfolio grew by a massive 95% during financial year ended FY10/11 in comparison to the previous year FY09/10. And also with respect to the latest available data for 1QFY11/12, the loan book has grown by an 18% within a time span of 3 months reaching a total loan book value of LKR65.4bn (including loans and advances and lease rentals receivable). The growth had been immensely supported by the loan facilities granted under leasing and HP and this can be explained through the sudden boom in importation of vehicles consequent to the removal of VAT on leased vehicles and drop in import taxes. Apart from the above, one of the convincing factor in the PLC loan portfolio is that the 75% of leasing advances and 73% of HP advances as at 31 st March 2011 have been extended to income generating vehicles, including lorries, busses, dual purpose vehicles. This is an indication that the risk of default in these loans is very much less compared with leasing granted for consumption purposes.

Funding and liquidity


The funding base of the company is dominated by borrowings which are followed by share holders funds. The composition had been somewhat constant prior to 2010 where borrowings contribute by 50%- 60% whilst rest is being funded through shareholders equity (including both ordinary and preference shares). However, with the acquisition of Peoples Leasing Finance PLC formerly known as Seylan Merchant Leasing Ltd (SMLL), the PLC group was placed with deposits as a source of funding to fuel the overall growth in the group lending portfolio. This has led to the funding base of the group to deviate from its historical trend. Particularly, the current overall funding base of the group is comprised of 55% borrowings, 29% equity and 16% by deposits.

9|Page

The borrowings of the company are mainly through issuance of promissory notes, long term loans, and securitizations contributing 39%, 37% and 18% respectively, to total borrowings as per 31st March 2011. Consequently, this funding diversity is a strength that PLC has leveraged. In addition, PLC complemented its funding with extensive securitization loans (fixed rate medium term loans secured by mortgaging lease receivables). As per 31st March 2011, securitization accounted for above 18% in total borrowings. Debt to equity ratio of the company is currently at 5: 1 as at end FY10/11 from a previous ratio of 3:1, indicating that company is mobilizing more external funds to owners funds. However with the proceeds coming from the IPO, the debt to income ratio would ease down back to 3:1(based on total debt as at end 1QFY11/12). However, resorting to more borrowing with a high debt to equity ratio would be beneficial in a declining interest rate environment. Based on the asset liability mismatch the company has negative gaps in the short term, largely due to other liabilities evidenced by paper and borrowings. Therefore in the short term the liabilities get reprised before assets get adjusted for rate changes, indicating that company can reap benefits in the declining interest rates regime and invariably increasing spread.

Capital adequacy
As per 30th June 2011, the PLC group is strongly capitalized with LKR10 bn of share holders funds, and this accounted for a growth of 19% of its total assets as at the same date. Consequently, the total capital adequacy ratio as at 30th June 2011 is 14.3%, which is sufficiently above the regulatory minimum of 10%. Consequently, the higher capital adequacy is a result of PLCLs lower risk of risk weighted assets which occurs through loans and leases being pegged with income generating activities. However, the capital adequacy ratio is further expected to improve with the new capital infusion of LKR7 bn through the IPO.

DuPont Analysis
DuPont Analysis is a methodology by which the ROE of a company can be broken down in to its constituent parts. ROE is a measure of how successfully

10 | P a g e

the management of a company has deployed the equity to generate a return for its shareholders. The ROE can be shown as a product of Earnings on assets and equity multiplier. The ratio of assets as a percentage of equity is known as equity multiplier. Therefore, when the company is making profits, then a high equity multiplier will multiply earnings as a percentage of equity and will invariably enhance the ROE. With respect to PLC, the ROE for FY10/11 is 41%, which is being derived through Earnings on assets of 5.01% and an equity multiplier of 8.16. When compared with a ROE of 22% in FY09/10, the current ROE has improved because of increase in both Earnings on assets and Equity Multiplier.

Consequently, the equity multiplier has increased due to the rate of increase in assets being overtaken the rate of increase in equity. Where, the growth in total assets being 94% during FY10/11 whilst equity taking a growth of only 36% on the back of escalated retained earnings. The high growth in assets being financed through the extended borrowings of the company which, the growth in borrowings for the FY10/11 was 108%. Accordingly, the Earnings on assets can also be further disaggregated in to key elements, which are driving Earnings on assets. With reference to the table, we can see an improvement of Earnings on assets in FY10/11 to 5.01% from a previous level of 3.29%. However, the improvement has been driven by lowered operating expenses, loan loss charges, Tax and preference dividends over average total assets. However, it is noteworthy to mention that during FY10/11, net interest income and noninterest income over

11 | P a g e

average total assets have decline to 10.36% and 2.21% from a previous level of 11.82% and 2.23% respectively. The key driver of ROA for a leading finance company is the interest income. The net interest income as a percentage of assets can be disaggregated further. Net Interest Income / Average Assets = Net Interest margin* Earnings Asset Ratio As mentioned above, there are two possible ways to improve the Earnings on Assets, firstly, it is by improving net interest margin, and secondly it is through increasing the ratio of interest earning assets (Earnings Asset Ratio). During FY10/11, the net interest margin has come down from a previously high of 13%. This has been due to the 46% growth in net interest income being overtaken by a growth of 63% in average interest earning assets. Similarly, the ratio of Net Interest Income / Average Assets has also been curtailed by a slight reduction in the earnings asset ratio. In summing up, the ROE for FY10/11 has improved on the back of a significant increase in equity multiplier (average total assets/ average total equity), whilst reductions in loan loss charges, operating expenses and tax charges over total average assets further strengthening the improvement.

Risk Management
Interest rate risk Profitability of companies operating in the financial services industry is significantly linked with volatility of the interest rates. And the volatility of interest rates may affect the spread between lending and borrowing rates. A maturity miss match may exist between the lending portfolio and corresponding funding that could affect the interest rate spreads due to interest rate volatility. With reference to the PLC, the lending is mainly on fixed rates where as borrowings have a significant presence of floating rate financing. This can lead to deterioration of spreads and profits in a rising interest rate scenario. As mentioned in the Liquidity and funding section to this report, PLCLs Asset Maturity mismatch has negative gaps in the short term, indicating that if the interest rates take an upward trend then the borrowings would become more expensive due to liabilities are getting readjusted to new rates prior to reprising of assets. Competition with other institutions PLCL and its subsidiaries operate in a highly competitive industries facing competition from various institutions. PLCL and Peoples Finance PLC (PF) may face competition from LCBs, RFCs LSBs. These institutions may offer 12 | P a g e

products and services similar to those offered by PLCL and PF. This competition may reduce or limit their lending, borrowing capacity and interest spreads. However, the unique positioning of PLC group as a total financial solutions provider may enable PLCL and its subsidiaries to stay ahead of its competition. Furthermore, the backing of Parent Peoples Bank, together with the financial strength of PLCL, would equip the companys subsidiaries with a competitive advantage. Liquidity Risk Liquidity risk for a company in the financial services sector is the risk that it will be unable to meet its obligations as they become due. This risk could arise due to several factors including an over reliance on a particular source of funding, changes in credit rating or market wide phenomena. Furthermore, the lack of liquidity may pose solvency issues for PLC group. However the company currently manages a diversified funding portfolio consisting of equity and borrowings from banks and other financial sector institutions, whilst Peoples Finance PLC utilize public deposits as a source of funding. Therefore, the PLC group and its subsidiaries are not overly reliant on any particular source of financing, thereby limiting the liquidity risk. Credit Risk The customers of PLCL and PM may not repay their borrowing in due course. And the collaterals for these loans may be insufficient to recover the outstanding amount in the event of default. In such a scenario the PLC group would face with high nonperforming assets and this would require for high levels of provisions which can curtail the profitability. However, company is maintaining adequate levels of provisioning, where NPL cover ratio exceeding 100%. And also company is adapting a more comprehensive analysis of credit worthiness before granting the loan facilities. Therefore the credit risk is addressed effectively.

Future Outlook
Expansion of branch network PLCL intends to expand its existing branch network by increasing its presence in areas which would directly benefit from the burgeoning rural economy in Sri Lanka. Also emphasis would be placed on increasing the companys foot print in the North and East. This would enable the group to collect more deposits as well as expand the loan book.

13 | P a g e

Expansion of Margin Trading Business PLCL commenced its margin trading operations in March 2011 after receiving approval from the SEC. the company expects to achieve significant growth in the future on the strong performance recorded by the CSE in the two preceding years. This new segment of operations has been well augmented by a customized automated ICT system developed in house. Sourcing Requisite funds for portfolio growth The surge in demand for lease and HP financing experienced by PLCL is expected to continue in line with the future prospects of the industry. Therefore, PLCL intends to aggressively pursue multiple channels of funding, both local and foreign, in addition to its existing sources, to raise adequate debt and equity capital to support the growth. Peoples Insurance limited (PI) PLCLs position as the market leader in leasing and HP segment continue to give PI a key advantage as it tries to further establish itself in the general insurance sector. Furthermore, the backing of the ultimate parent Peoples Bank also serves as a significant advantage for PI. Peoples Micro Finance Limited (PM) PM is expected to grow its micro financing products by utilizing the existing rural presence enjoyed by PLCL whilst further engaging with communities of Sri Lanka that have little or no access to financial services.

Valuation
Valuations & Recommendation With the falling interest rates and favorable macroeconomic fundamentals prevailing in the economy, strengthened with new capital infusion of LKR7 bn, we believe that PLC would achieve an earnings asset growth of 22% for the FY11/12. However, due to tense competition posed through other finance institutions including LCBs RFCs, LSBs, the market share of PLC would deplete but would remain as a key player in SLCs sector. Therefore, we believe the interest spreads would squeeze in medium to long term, from a current level of 9% to a long term average of 6%-7%. Similarly, PLC group together with its subsidiary Peoples Finance PLC would be in a favorable position in terms of attracting funds to fuel its lending. Peoples Finance PLC is expected to play a key role in attracting funds to the group, while PLCL with its support from the Parent company and improved credit A (lka) stable would attract more debt in terms of funding.

14 | P a g e

Taking into consideration of aforesaid conditions we forecast a net profit of LKR3.9bn for FY11/12 achieving a growth of 50% YoY and yet a 4% decline in FY12/13 (due to reversal of LKR1.6bn provisions being included in FY11/12 profits) delivering a net profit of LKR3.7 bn. In terms of earnings to price multiple; the ordinary share is attractively valued at 9.3x (based on normalized profits adjusted for the LKR1.6 bn reversal of reserves) and 7.8x on FY11/12E and FY12/13E earnings respectively (based on the issue price of LKR18.0). Further, on a Dividend discount (DDM) based valuation, we arrived at an intrinsic value of LKR23.47 per share. Although we do not expect a significant shift in cost of equity as the firm wishes to gradually shift towards its optimal capital structure, the changing macro economic conditions would affect the terminal growth rate. Hence we have assumed a cost of equity variation of 11.50%- 13.50% and a long run growth rate variation of 4%-2% resulting in a price variation of LKR19.39 LKR29.73. Furthermore, based on a Residual Income Valuation Methodology we arrived at an intrinsic value of LKR27.00. Based on the above mentioned valuation methods, the ordinary share would generate good value at its offer price of LKR18.0. Hence, the investor appetite for PLC would remain strong. Therefore, strong upside could be expected in the short to medium to long term. SUBSCRIBE.

15 | P a g e

Sensitivity Analysis (Based on dividend valuation methodology) PLC would have a potential target price of LKR23.47 within a low of LKR19.39 and a high of LKR29.73.

16 | P a g e

Research
Senior Analyst
Amali Perera (94-11)5320256 amali@asiacapital.lk

Corporates
Minoli Mallwaarachchi Nirmala Samarawickrama Dilan Wijekoon Thilina Ukwatta Shan Silva (94-11)5320259 (94-11)5320253 (94-11)5320253 (94-11)5320253 (94-11)5320251

Economy
Dhanusha Pathirana Travis Gomez (94-11)5320254 (94-11)5320000

Statistician
Nuwan Pradeep (94-11)5320257

Sales
Institutional Sales
Sabri Marikar Niroshan Wijayakoon Niyaz Aboobucker Anura Hedigallage Chelaka Hapugoda Chaminda Mahanama Hiran Bibile Arshwin Amarasekara (94-11) 5320224 (94-11) 5320208 (94-11) 5320213 (94-11) 5320211 (94-11) 5320240 (94-11) 5320223 (94-11) 5320238 (94-11) 5320215 077 3-576868 0777-713645 0777-727352 0777 -713663 0777 -256740 0777 -556582 0777 -352032 0773 -717220 sabri@asiacapital.lk niroshan@asiacapital.lk niyaz@asiacapital.lk anura@asiacapital.lk chelaka@asiacapital.lk mahanama@asiacapital.lk hiran@asiacapital.lk arshwin@asiacapital.lk

Retail Sales
Shiyam Subaulla Gagani Jayawardhana Priyantha Hingurage Neluka Rodrigo Subeeth Perera (011)- 5320218 (011)- 5320236 (011)- 5320217 (011)- 5320214 (011)- 5320227 0773-502016 0714-084953 0773-502015 0777-366280 0714-042683 shiyam@asiacapital.lk gagani@asiacapital.lk priyantha@asiacapital.lk neluka@asiacapital.lk subeeth@asiacapital.lk

Branches Branches
CSE Floor Kiribathgoda Kurunegala CSE,01-04, World Trade Centre, Colombo 1. Level 2-6,Udeshi City Shopping complex, No 94,Makola Rd,Kiribathgoda Union Assurance Building, No.6,1st Floor, Rajapilla Rd, Kurunagala. Thushara Adhikari M G Suranjana Danushka Boteju Suranga Harshana Asanka Samarakoon Gayan Nishsanka Bandula Lansakkara Sumeda Jayawardena Lalinda Liyanapathirana Ruchira Hasantha Ushan Sachith Uthpala Karunatilake Uthpala Karunatilake Nilupul Hettiarachchi Gayan Perera Radhika Hettiarachchi Gayan Sanjeewa Anusha Muthumali Shermin Ranasinghe Ravi De Mel Madushanka Rathnayaka Gratian Nirmalan S.Puviraj Sajith Iroshan Sandun Athulathmudali Hashan Lalantha Charith Perera Ranganath Wijetunga Asanka Chaminda (011)-5735122 (011)-5763539 (011)-5634803 (011)-5734773 (037)-5628844 (037)-5642717 (037)-5643580 (041)-5677525 (041)-5677526 (091)-5629998 (091)-5676767 (031)-5676881 (031)-5676881 (081)-5628500 (031)-5676880 (081)-5625577 (047)-5679240 (047)-5679241 0773-688202 0773-954994 0716-270527 0783-452500 0773-690749 0777-105356 0773-925852 0773-687027 0778-628798 0773-687027 0778-628798 0773-691685 0773-691685 adhikari@asiacapital.lk boteju@asiacapital.lk harshana@asiacapital.lk asanka@asiacapital.lk nishshanka@asiacapital.lk sumeda@asiacapital.lk rishan@asiacapital.lk ruchira@asiacapital.lk ushan@asiacapital.lk uthpala@asiacapital.lk uthpala@asiacapital.lk nilupul@asiacapital.lk gayan@asiacapital.lk radhika@asiacapital.lk sanjeewa@asiacapital.lk muthu@asiacapital.lk shermin@asiacapital.lk ravide@asiacapital.lk shanka@asiacapital.lk nirmal@asiacapital.lk puviraj@asiacapital.lk sajith@asiacapital.lk sranga@asiacapital.lk lalantha@asiacapital.lk charithn@asiacapital.lk ranganath@asiacapital.lk chaminda@asiacapital.lk

Matara Galle Negombo

E.H.Cooray Building, Mezzanine Floor, No:24, Anagarika Darmapala Mw, Matara Peoples Leasing Building, 2nd Floor, No.118,Matara Road, Galle Asia Asset Finance, 171/1, Station Road, Negombo.

Service Centers Finance, 171/1, Station Road, Negombo. Negombo Asia Asset Service Centers
Kandy Hambantota k3-L1,Level 01,kcc, No 5 ,Dalda Veediya, Kandy. Hambanthota Chamber of Commerce, Thangalle Road, Hambantota.

Ampara Jaffna Wennappuwa Moratuwa Panadura

2nd Floor, T.K.S. Building, D.S. Senanayake Street, Ampara. 11-8, First Floor, Stanley Road, Jaffna Asia Asset Finance, No.176, Negombo Road, Katuneriya. Asia Asset Finance, No.18, New De Zoysa Rd, Moratuwa. Asian Alliance Building, 293, Galle Road, Panadura

0773-691816 0772-544044 0777-810694 0715-536309 0772-351716 0772-378352 (063)-5679071 0772-681995 (063)-5679070 0779-036577 (021)-5671800 0777-567933 (021)-5671801 0775-096969 (032)- 5673881 0773-740208 (032)- 5673882 0772-533331 (011)-5238662 (011)-5238663 (038)-5670400 0715-120723 (038)-5670407 0713-559552

The report has been prepared by Asia Wealth (Private) Limited. The information and opinions contained herein has been compiled or arrived at based upon information obtained from sources believed to be reliable and in good faith. Such information The report has been prepared by Asia Wealth (Private) Limited. The information and opinions contained herein has its accuracy, or arrived at based upon information or suitability. All such information reliable and are subject to change without has not been independently verified and no guaranty, representation or warranty, express or implied is made as to been compiledcompleteness or correctness, reliabilityobtained from sources believed to be and opinionsin good faith. Such information has notThis document is for information purposes only,representation or warranty, express or implied is made as to mentioned herein are not intended to be complete and this document is suchand should not be opinions are subject toor solicitation of notice. been independently verified and no guaranty, descriptions of any company or companies or their securities its accuracy, completeness or correctness, reliability or suitability. All not, information and construed as, an offer, change without notice. This document is for information purposes only, descriptions of any company or companies be liable for any loss or damage including without limitation, indirect or this document is not, and should any loss or damage an offer, or solicitation of an offer, to buy or sell any securities or other financial instruments. In no event will Asia Securities or their securities mentioned herein are not intended to be complete and consequential loss or damage, or not be construed as,whatsoever arising out of, an offer, to buy with any securities or other financial instruments. In no event will Asia Securities be strictly at your own damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising out of, or in connectionor sellthe use of this report and any reliance you place on such information is thereforeliable for any loss or risk. or in connection with the use of this report and any reliance you place on such information is therefore strictly at your own risk. Asia Securities may, to the extent permissible by applicable law or regulation, use the above material, conclusions, research or analysis in which they are based before the material is disseminated to their customers. Not all customers will receive the Asia Securities same time. extent permissible by applicable law or officers, representatives, material, related persons and/or analysis in which they are based before the material is disseminated to their customers. instruments mentioned or issuers material at the may, to theAsia Securities, their respective directors,regulation, use the aboveemployees,conclusions, research or Asia Securities, may have a long or short position in any of the securities or other financial Not all customers will receive the material at the same time. Asia Securities, their purchase and/or sale, or offer to make a purchase and/or sale of any such securitiesSecurities, may have a long or short position in anyin the open market other financial instrumentseither as principal or described herein at any time and may make a respective directors, officers, representatives, employees, related persons and/or Asia or other financial instruments from time to time of the securities or or otherwise, in each case mentioned or issuers described herein at any time and may make securities and/or financial instruments described and/or sale of any in securities of issuers financial herein or in securities to time in or related to such otherwise, in each case either have recently agent. Asia Securities may make markets in a purchaseor other sale, or offer to make a purchase in this publication, such securities or otherdescribed instruments from time underlyingthe open market or securities. Asia Securities mayas principal or agent. Asia Securities may of an markets in securities or The information contained described in this publication, in securities of issuers This report and or in securities underlying or Securities such securities. Asia Securities may have recently underwritten the securities make issuer mentioned herein. other financial instrumentsin this report is for general information purposes only.described herein its content is copyright of Asia related to and all rights reserved. This report- in whole or in underwritten the securitiesthe an issuer mentioned herein. of Asia Securities contained in this report is foror commercially exploited in any material form by any means whether graphic,Asia Securities and all rights reserved. Nor may you in whole or or part- may not, except with of express written permission The information be reproduced or distributed general information purposes only. This report and its content is copyright of electronic, mechanical or any means. This report- transmit it in part- may not, except with the express written permission of Asia Securities unauthorised use distributed or commercially exploited in any material form by any means whether graphic, electronic, mechanical or any means. Nor may you transmit it or store it in any other website or other form of electronic retrieval system. Any be reproduced or of this report will result in immediate proceedings. store it in any other website or other form of electronic retrieval system. Any unauthorised use of this report will result in immediate proceedings.

17 | P a g e