Access Engineering PLC BUY. Equity Research. Interim Update Q3 FY 2016/17

Transcription

1 LKR Access Engineering PLC Interim Update Q3 FY 216/17 Equity Research 9 Months revenue and earnings increased by 16.7% and 2.4% YoY respectively while quarterly results also giving a strong growth. This topline growth was mainly backed by strong performance in construction segment with 1 revenue growth for last 9 months. 9 Months income tax also has been doubled due to increase in differed tax provisions resulting PAT to remain flat while common equity holders to gain on marginal increase in profit and declining profits attributable to non-controlling shareholders. Investment Consideration Construction sector regaining its growth momentum: After a dip in 215 due to challenging political landscape impacting construction, it has now been regaining its pace with 1.4% real growth for 9M216 amid real GDP growth of the country being 4%. Sector contribution towards total economic growth is also reaching to its usual historical figures with 7.1% for 9M216. This improved sector growth has also spilled over to AEL with an improved order book of LKR 3.8 bn compared to LKR 28.2 bn in our previous update. Accordingly we expect AEL's 'construction' and 'material' segments to perform fairly well in coming years and considering the strong growth than expected, we revise revenue growth estimates of 'construction' sector to 17% from 1 while maintaining 'material' segment avg. at 11%. Access Realties: Sector continued to maintain a revenue growth with 1 for 9MFY216/17 while "Access Tower 2" will be in operation from April 217. We expect ~8% occupancy of Tower 2 in first year and reach to ~9 by 219 due shortage of 'A Grade' office space in Colombo. Sathosa Motors: 9M revenue of SMOT has increased by 31% while Gross and Operational profits have been down by 1 and 3% respectively. Cost has increased due to excessive import duties and rupee depreciation resulting this profit decline. However SMOT sales are mainly linked to Commercial vehicles (Isuzu trucks) which will not see a significant decline for external shocks and will be benefited on 9% LTV limit. Further SMOT is looking to expand Jaguar and Land Rover dealership through SML Frontier Ltd which will seek listing in CSE during 217. Amid negative outlook of Sri Lankan motor sector, we continue to maintain our forecasts with a mixed outlook for SMOT for next 3 years due to its strategic direction to cope up with external volatilities. Investment "Harbour Village": AEL has made LKR Bn strategic investment for 51% stake of Hotel 1 pvt. ltd in Jan 217 which will set up a mixed development project titled "Harbour Village". Accordingly AEL has been very aggressive in building up its real estate portfolio and we expect company to have a sound mix of construction and real estate businesses by 22. However we have not factored recent real estate investments in our valuations. Negative tax impact: The concessionary tax rate on construction activities was removed from the recent budget to be effective from 1 April 217 and accordingly we have factored 28% corporate tax rate in our valuation. Valuation AEL has been gradually building its asset base with a more focus on developing its real estate operations while diversifying away from short-term constructions. Further with diversified interests with declining exposure to Gvt projects, AEL has now becoming more resilient to political volatilities. While we upgrade AEL growth estimates of construction, we expect company NAV to reach LKR 23. by FY18/19. Our FCFE model values the counter at LKR 27.8, providing 1.3% upside to current market price. Thus we maintain our recommendation "BUY". At the current value, the share is trading at a forward PE of 1.5X and a forward PBV 1.3X. BUY LOLC SEC Valuation LKR M Tgt Price (excl.dividend) LKR Share Price LKR 25.2 Upside/(Downside) 1.31% Risk Level Medium (refer page 8 for recommendation guidance) Share Details Bloomberg Ticker CSE Sector GICS Sector AEL SL Construction and Engineering Industrials Market Cap (LKR Mn) 25,2 Issued Quantity (Mn) 1, 3-day avg T/O (LKR Mn) 16.1 Beta (6 months) 1.41 Quarter Financial Summary LKR Bn FY16 Q4 FY17 Q1 FY17 Q2 FY17 Q3 Revenue Net Profit S/H's Equity Total Assets ROA (%) ROE (%) Price Multiples PE (X) 1.2 PBV (X) 1.37 Price to Sales (X) 1.27 Divdend Yield (%) 3.97 Price Behavior Feb-16 2-May-16 2-Aug-16 2-Nov-16 2-Feb-17 Per Share Details as at (LKR) Earnings per share (trailing 12m) 2.52 Net Asset Value per share Sales per share (trailing 12m) Dividend Per Share (trailing 12m) 1. Shareholder Details as at Mr. S J S Perera 2 Mr. R J S Gomez 12% Mr. J C Joshua 1% Mrs. R M N Joshua 7% Shareholders below 46% Analyst (s) AEL Share Price Gayan Rajakaruna gayanraj@lolcsecurities.com ASI movement (adjusted to AEL base price), LOLC SEC Research 21 February 17 Recommendation Guidance, Important Disclosures and Analyst Certification: Page 8

2 FY13/14 Q1 FY13/14 Q2 FY13/14 Q3 FY13/14 Q4 FY14/15 Q1 FY14/15 Q2 FY14/15 Q3 FY14/15 Q4 FY15/16 Q1 FY15/16 Q2 FY15/16 Q3 FY15/16 Q4 FY16/17 Q1 FY16/17 Q2 FY16/17 Q3 FY13/14 Q1 FY13/14 Q2 FY13/14 Q3 FY13/14 Q4 FY14/15 Q1 FY14/15 Q2 FY14/15 Q3 FY14/15 Q4 FY15/16 Q1 FY15/16 Q2 FY15/16 Q3 FY15/16 Q4 FY16/17 Q1 FY16/17 Q2 FY16/17 Q3 FY14/15 Q1 FY14/15 Q2 FY14/15 Q3 FY14/15 Q4 FY15/16 Q1 FY15/16 Q2 FY15/16 Q3 FY15/16 Q4 FY16/17 Q1 FY16/17 Q2 FY16/17 Q3 FY13/14 Q1 FY13/14 Q2 FY13/14 Q3 FY13/14 Q4 FY14/15 Q1 FY14/15 Q2 FY14/15 Q3 FY14/15 Q4 FY15/16 Q1 FY15/16 Q2 FY15/16 Q3 FY15/16 Q4 FY16/17 Q1 FY16/17 Q2 FY16/17 Q3 LKR Mn Interim Update: Access Engineering PLC 21 February 17 Graph 1: Quarterly Revenue and Profit Graph 2: Quarterly EBITDA margin 6, 5, 4, 3, 2, 1, LKR Mn 3% 2 2% 1 1% % Revenue (LHS) Net Profit (RHS) EBITDA margin Graph 3: ROA and ROE Source: Bloomberg Graph 4: Gearing Ratio Source: Bloomberg 2 2% 1 1% % 4% 3 3% 2 2% 1 1% % Increased gearing with LKR 5 Bn debenture issue ROE ROA Source: Bloomberg Source: Bloomberg Graph 5: Segmental Revenue Breakdown Graph 6: Segmental Operating Margins 5, 4, 3, 2, 1, 216Q1 216Q2 216Q3 216Q4 217Q1 217Q2 217Q3 Construction Vehicle sales Construction material Access Realties Access Projects Source: Interim reports 4 4% 3 3% 2 2% 1 1% % 216Q1 216Q2 216Q3 216Q4 217Q1 217Q2 217Q3 Construction Vehicle sales Construction material Access Projects Source: Interim reports 2 LOLC Securities Limited

3 Terminal Growth Rate Interim Update: Access Engineering PLC 21 February 17 Valuation We have taken into account a cost of equity of 17%, which is a 5. risk premium to 3 year Gvt T-Bond rate and a free cash flow terminal growth of. We slightly reduce the risk premium from our previous valuation due to gradual stability of the industry. We maintain our risk free rate at 11.. Our FCFE model values the counter at LKR At the current share price, AEL is trading at forward PE of 1.5X and a forward PBV of 1.3X. AEL has recorded high ROE values compared to local and international peers. Table 1: Valuation Sensitivity Matrix Share price in LKR Cost of Equity 15.% 16.% 17.% 18.% 19.% 3% % % % Table 2: Peer Comparison, LOLC SEC Research Name Market Cap (USD Mn) PE (x) PBV (X) Dividend ROE % Access Engineering Plc (Sri Lanka) Mtd Walkers Plc (Sri Lanka) 44 n.a 1.16 n.a Baoye Group Co Ltd -H (China) Chien Kuo Construction Co (Taiwan) 97 n.a Daiichi Kensetsu Corp (Japan) China Dredging Environment P (China) 82 n.a.23 n.a -1.5, LOLC SEC Research Table 3: AEL's 2-3 years Project Pipeline Sector Projects in progress Project Size LKR Mn Project Completion Water and Rehabilitation of Labugama & Kalatuwawa water treatment plants 2,224 Oct 21,216 Waste water Town east of Colombo district water supply project - Package I 5,1 Apr 3,217 Roads Colombo Kandy road section from Kadawatha to Nittambuwa 6,956 Nov 12,216 Telecom Sri Lanka Telecom Osp Construction Project - Dec 31, 216 Dialog optical fiber backbonenetwork project phase V 96 Jul 3, 216 Marine work Design and Construction of Jetty at Kappratota 47 Jul 27, 216 Stabilisation of cuts slopes at Nugagahapura 57 May 1,217 Piling work at Mount Lavinia 23 Mar 4, 217 Piling work for proposed city hotel and Damro showroom building at Colombo 3 11 Feb 14, 217 Piling Building Bridges and Flyovers Irrigation & Construction of Diaphram Wall and Basement Car Parks - ITC Colombo One Development 1,395 Jun 25,216 Piling Works for ITC Colombo One - Hotel and Luxury Apartment at Galle Face - Colombo 1 39 Jun 25,216 Piling work for proposed office building at Colombo 3 24 Oct 3, 216 Piling work for proposed office building of Ministry of Health 114 Jan 2,217 Piling work for extension of Sourthern Expressway 177 Jan 27, 217 Construction of 941 housing units at Henamulla 3,426 Mar 12,217 Subcontractor for temporary works at Waterfront Integrated Resort 23 Oct 31,216 Urban Regenaration Project - City of Colombo, Construction of 68 Housing Units 4,499 Dec 23,218 Watrefront Integrated resort project, Colombo 2 1,8 Sep 23,218 Design & Construction of Rajagiriya Flyover 868 Dec 19, 218 Design & Construction of Polgahawela Flyover 597 Aug 19, 217 Design & Construction of Ganemulla Flyover 389 Jun 19, 217 Construction of 3 Bridges - Wakachiku Construction Co.Ltd/RDA 341 Oct 15, 216 Reconstruction of Kochchikade Bridge 652 Jan 24, 219 Rehabilitation of downstream & upstream dam embankments of Iranamadu 488 Sep 23,217 Rehabilitation of Iranamadu Reservoir 398 Oct 1,216 Land Total 3,823 Source:Company Website 3 LOLC Securities Limited

4 Volume Rs Interim Update: Access Engineering PLC 21 February 17 Table 4: Return comparison Graph 7: Share Price Movement 5,, 4,, 3,, 2,, 1,, - % AEL ASI Index S&P SL 2 Index KAPI 3 months months YTD year Volume Price SMAVG (5) SMAVG (1) RSI (14) /2/14 8/2/14 2/2/15 8/2/15 2/2/16 8/2/16 2/2/17 Graph 8: PE Chart /2/14 8/2/14 2/2/15 8/2/15 2/2/16 8/2/16 2/2/ PE ratio Highest Average Lowest Graph 1: Price per Sales /2/14 8/2/14 2/2/15 8/2/15 2/2/16 8/2/16 2/2/1 Price to Sales ratio Highest Average Lowest Graph 12: CSE PE Chart /2/14 8/2/14 2/2/15 8/2/15 2/2/16 8/2/16 2/2/17 ASI PE ratio Highest Average Lowest Graph 9: PBV Chart /2/14 8/2/14 2/2/15 8/2/15 2/2/16 8/2/16 2/2 PBV ratio Highest Average Lowest Graph 11: Dividend Yield Graph 13: CSE PBV Chart 2/2/14 8/2/14 2/2/15 8/2/15 2/2/16 8/2/16 2/2/17 AEL dividend yield Highest Average Lowest /2/14 8/2/14 2/2/15 8/2/15 2/2/16 8/2/16 2/2/17 ASI PBV ratio Highest Average Lowest 4 LOLC Securities Limited

5 Interim Update: Access Engineering PLC 21 February 17 Table 5: Revised Financial Summary Forecast Figures in LKR Mn (31st March) FY 14/15 FY 15/16 FY 16/17 (9M) FY 16/17 (E) FY 17/18 (F) FY 18/19 (F) Income Statement Revenue 16,514 17,658 15,279 2,372 23,425 26,596 Cost of Revenue -12,699-13,692-11,549-15,39-17,696-19,826 Gross Profit 3,815 3,965 3,73 4,982 5,729 6,77 Operating Expenses -1,363-1,314-1,196-1,516-1,743-1,979 Operating Income 2,469 2,911 2,637 3,674 4,214 5,43 Net non operating gains/(losses) Pretax Income 2,762 3,18 2,554 3,45 3,819 4,718 Net Profit att. to shareholders 2,346 2,471 1,873 2,355 2,638 3,35 Balance Sheet Cash & Near Cash Items 4,36 7,336 4,658 3,141 2,556 3,315 Accounts & Notes Receivable 6,84 6,479 9,3 7,495 8,618 9,785 Inventories 2,184 2,348 2,266 2,646 3,42 3,48 Total Current Assets 13,173 17,945 17,589 16,312 17,247 19,539 Total Long-Term Assets 9,155 12,417 14,719 16,47 17,381 17,358 Total Assets 22,328 3,363 32,39 32,719 34,628 36,896 Accounts Payable 4,45 5,278 6,664 5,948 6,839 7,662 Other Short-Term Liabilities 1,267 1, Total Current Liabilities 5,119 6,786 7,578 7,126 8,17 8,84 Total Long-Term Liabilities 515 5,563 5,849 6,167 5,62 5,37 Total Liabilities 5,633 12,349 13,427 13,293 13,619 13,877 Share Capital 9, 9, 9, 9, 9, 9, Retained Earnings & Other Equity 7,27 8,463 9,339 9,876 11,459 13,469 Total Equity 16,695 18,13 18,882 19,426 21,9 23,19 Total Liabilities & Equity 22,328 3,363 32,39 32,719 34,628 36,896 Cash Flow Statement Net Income 2,346 2,471 1,873 2,355 2,638 3,35 Depreciation and Amortisation ,26 1,24 Changes in Non-Cash Capital , Cash From Operations 3,365 3,377 1,46 2,648 3,36 3,664 Capital Expenditures , , -2, -1, Increase in Investments ,15-2,934 Cash From Investing Activities -2,484-9, , -2, -1, Dividends Paid -1, -75-1, ,55-1,34 Change in Short-Term Borrowings -1,171 Change in Long-Term Borrowings 143 5, Cash from Financing Activities -2,33 4,367-1,428-1,57-1,621-1,95 Net Changes in Cash -1,152-1, , LOLC SEC Research 5 LOLC Securities Limited

6 Interim Update: Access Engineering PLC 21 February 17 Table 6: Forecast Ratios FY 14/15 FY 15/16 FY 16/17 (9M) FY 16/17 (F) FY 17/18 (F) FY 18/19 (F) Profitability Ratios GP Margin (%) 23% 22% 24% 24% 24% 2 NP Margin (%) 14% 14% 12% 12% 11% 13% ROE (%) 14% 14% 1% 12% 13% 1 ROA (%) 11% 8% 6% 7% 8% 9% Earnings per share (LKR) Dividend per Share (LKR) Credit Ratios Debt/Equity Ratio (%) 14% 39% 36% 38% 32% 27% Interest Coverage (X) Total Assets/Equity (X) Net Debt/EBIT (X) Liquidity Ratios Current Ratio (X) Quick Ratio (X) Asset Turnover Ratio (X) Net Asset Value per share (LKR) Growth Ratios Revenue Growth YOY% 1% 7% 17% % Earnings growth YOY% -17% 2% - 12% 27% Total Assets YOY% 11% 36% 9% 8% 6% 7% Total Debt YOY% -46% 366% -4% 4% -9% -9% Investment Ratios PE Ratio (X) Price to Book Value (X) Dividend Yield (%) 3.9% 3.4% 3.9% 3.4% 3.8% 4.8%, LOLC SEC Research 6 LOLC Securities Limited

7 Company Overview Commencing operations in 21 as a Public Limited Liability Company, AEL obtained stock listing in March 212. Having obtained many certifications and accreditations locally and internationally over years, AEL pioneered the industry by being the leading construction and engineering firm in Sri lanka. AEL is engaged in areas such as roads and highway construction, water and drainage construction and bridge construction. They have expanded operations to building constructions, piling as well as the sale of construction related material such as ready mix concrete, asphalt, etc. In addition, AEL has operations in property management through Access Realties while motor sector representation is achieved through its subsidiary Sathosa Motors. Graph 14: Shareholder Structure - I AEL is recognized as a major and specialized contractor by the National Contractors Association of Sri Lanka and ICTAD (Institute of Construction Training and Development) with Cl grading for six engineering sectors. Local 9 Foreign Source: Interim Financials Graph 15: Shareholder Structure - II History 21- Incorporated as a public limited liability company 211- Recoeded the second largest private placement in the country 212- Acqired 6% equity stake in sathosa Motors 213- Invested in stake in SMLF Commenced work in Papua New Guinea 214- Launched Acess Tower II development Acquires a 8% stake of Access Projects (Pvt.) Ltd (A leading contractor in the leisure related building industry) 19% 81% Table 7: Subsidiaries & Associates Individual Institutional Company Line of Business % Holding Access Realities (PVT) LTD Owner and managing agent 1% Source: Interim Financials of Access Towers Sathosa Motors Importing Isuzu branded 84% trucks and Range Rover/Land over SUVs Access Projects (PVT) LTD Importer, Distributor and 8% Installer of Ceilings, Raised Access Floors, Toilet Cubicles and Other Interior and Exterior Building Products Horizon Holdings Ventures (PVT) LTD Real Estate 1% Graph 16: Dividend Payout Rs XD Date Horizon Holdings (PVT) LTD Real Estate Horizon Knowledge City (PVT) LTD Education services 92% DPS/Share Source: AEL Dividend Announcements Blue Star Construction (PVT) LTD Construction Hotel 1 (PVT) LTD Real Estate - mixed 51% development 7 LOLC Securities Limited

8 Interim Update: Access Engineering PLC 21 February 17 Recommendation Guidance LOLC SEC Valuation BUY expected return > 1% in excess of benchmark return SELL expected return less than benchmark return HOLD expected return between % and 1% in excess of benchmark return Investment Horizon: 3 years 12 months target price (12M Tgt Price) is based on the expected capital appreciation of the share excluding dividend. Benchmark Interest Rate: Average Weighted Fixed Deposit Rate (AWFDR) published by Central Bank of Sri Lanka. Risk Level Evaluation High: Maximum price volatility to be up or down more than monthly Medium: Maximum price volatility to be up or down between 2 - monthly. Low: Maximum price volatility to be up or down less than 2 monthly. Risk Level is calculated taking the historical standard deviation measures. Financial Glossary EPS = Earnings per Share ROA = Return on Assets (adjusted net profit/average total assets) ROE = Return on Equity (adjusted net profit/average total equity) CAGR = Compound Annual Growth Rate ((End Value/Start Value) ^ (1/number of years) -1) GP= Gross Profit EBITDA= Earnings before interest, tax, depreciation and amortization PBT= Profit before tax PAT= Profit after tax NP= Net Profit PBV= Price to book value ratio PE= Price to earnings ratio Analyst certification: The Analyst(s) who is/are responsible for compiling or co-compiling this research and whose names appear as the analyst(s) of the research certify that the views expressed in this research accurately reflect the personal view of the analyst(s) about the subject securities and issuers and/or other subject matter as appropriate and has taken reasonable care to achieve and maintain independence and objectivity in making any recommendations. No part of the compensation received by the analyst(s) was, is or will be directly or indirectly related to specific inclusion of specific recommendation or views in this research. On a general basis analyst s performance appraisal may be influenced by quality of the content and efficacy of the research. The analyst(s) who is/are responsible for compiling or cocompiling this research and whose names appear as the analyst(s) receive compensation based on overall revenues of LOLC Securities Limited and its holding company (Lanka ORIX Company PLC LOLC Group), which may include brokerage revenue from transactions involved with the securities mentioned in this research. General Disclaimer: LOLC Securities Limited is a company incorporated in Sri Lanka and licensed by the Securities and Exchange Commission of Sri Lanka to operate as a stockbroker/stock dealer in Sri Lanka. LOLC Securities Limited is a trading member of Colombo Stock Exchange. This research is based on information from sources that LOLC Securities Limited believes to be reliable. Whilst reasonable care has been taken to ensure accuracy of the information presented in the research, LOLC Securities Limited does not give a guarantee on the accuracy of the information presented in the paper nor will take the responsibility on investment decisions taken based on the information provided by the research and hence LOLC Securities Limited nor its employees accepts any liability whatsoever for any loss arising from investments decisions taken using the information provided in this paper. The reader also should note this paper does not give recommendations to any particular category of investors and investor should consult investment advisors for further clarifications regarding risks involved in investing in equity market. Investing in securities has inherent risks with no guaranteed return and price may be subjected to significant volatilities. No part of this report should be considered as a solicitation to buy or sell any security or product or to engage in or refrain from engaging in any transaction. LOLC Securities Limited or its employees may or may not hold positions in the securities discussed in the research and the information provided in the research should not be construed as a buy or sell instruction for any securities mentioned in the research, Unless otherwise specifically mentioned. This research is intended for general use for clients of LOLC Securities Limited and must not be copied in whole or in part or distributed to any third party for commercial use without permission from LOLC Securities Limited. If the reader is not the intended recipient please inform LOLC Securities Limited immediately by return to research@lolcsecurities.com. LOLC Securities Limited s other staff including sales people, traders and other professionals may provide oral or written market commentaries or trading strategies to our clients which reflect opinions which are contrary to the opinions expressed in this research which may be influenced by different circumstances. 8 LOLC Securities Limited

9 Interim Update: Access Engineering PLC 21 February 17 LOLC Securities Limited LOLC Securities Limited, a trading member of the Colombo Stock Exchange (CSE), is engaged in facilitating stock trading transactions at Colombo Stock Exchange, providing investment research on Sri Lankan equity, providing investment planning advices with services such as portfolio construction & formulation of IPS (Investment Policy Statement) and facilitating other investment opportunities in the country including private equity. General Line: General info@ lolcsecurities.com Research research@ lolcsecurities.com Website: SALES Head Office Sriyan Gurusinghe Managing Director / CEO / sriyang@ lolcsecurities.com Manjula Kumarainghe COO - Sales & Marketing / manjulak@lolcsecurities.com Maniesh Rodrigo Assistant General Manager / manieshr@ lolcsecurities.com Samadhi Jayasinghe Manager Institutional Sales / samadhij@ lolcsecurities.com Imesh Fernando Assistant Manager Sales / imeshf@ lolcsecurities.com Naleen Sadeesh Investment Advisor / naleensa@ lolcsecurities.com Damith Chaminda Investment Advisor / damithc@ lolcsecurities.com Dushan Rajaguru Investment Advisor / dushanr@ lolcsecurities.com Dinuka Niwantha Investment Advisor / dinukan@ lolcsecurities.com Niraj Jayamanne Investment Advisor / nirajj@ lolcsecurities.com Ushan De Silva Investment Advisor / ushand@lolcsecurities.com John Ravindu Trainee Investment Advisor / johnr@lolcsecurities.com Isuri Ruwanka Business Development Associate / isurisab@lolcsecurities.com Kurunegala Branch Rohana Chandrasiri Assistant General Manager / rohanac@ lolcsecurities.com Anurudda Rajakaruna Investment Advisor / anuruddhar@ lolcsecurities.com Nuwan Fernando Investment Advisor / nuwanfe@ lolcsecurities.com Bandula Senarathne Investment Advisor / bandulase@lolcsecurities.com Matara Branch Bimal Malinda Branch Head / bimalm@ lolcsecurities.com Ahamed Aadil Investment Advisor / aadila@ lolcsecurities.com Thilina Sameera Investment Advisor / thilinawa@lolcsecurities.com RESEARCH Shehan Bartholomeuz Head of Research / shehanb@ lolcsecurities.com Gayan Rajakaruna Senior Research Analyst / gayanraj@ lolcsecurities.com Hiruni Perera Associate Research Analyst / hirunipe@ lolcsecurities.com Head Office Kurunegala Branch Matara Branch LOLC Securities Limited No 6, 1st Floor, 1st floor, No. 481, Union Assurance Building, E.H. Cooray Towers, T.B Jaya Mawatha Rajapilla Mawatha No 24, Anagarika Dharmapala Mawatha, Colombo 1 Kurunegala, Matara Sri Lanka Sri Lanka Sri Lanka Tel: Tel: Tel: Fax: Fax: LOLC SEC Research Reports are also available at Bloomberg LOLC <GO> 9 LOLC Securities Limited