DIAL Share Information

Transcription

1 Index Volume Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 ASPI Index S&P SL Index DIAL Index Volume - Figure 1: Share Volumes & Relative Performance Vs. Market THE DIAL SHARE The Colombo Stock Exchange (CSE) recorded a growth in 17 ending a two-year continuous decline in indices. The ASPI and S&P SL gained 2.3% and 5.0% respectively. The growth in indices was predominantly driven by increased foreign participation. The first half of the year benefited from multiple tailwinds. The market was perceived as trading at cheap valuations which drew in foreign interest resulting in net foreign inflows exceeding Rs. 17.6Bn during the year. Pakistan being upgraded to MSCI Emerging Market Index led to passive funds reallocating its positions in Pakistani stocks across the remaining frontier market countries including Sri Lanka which also assisted foreign inflows. However, second half of the year witnessed a slowdown in the market driven by factors that in combination dampened overall earnings expectations. Unfavourable weather conditions impacted GDP growth whilst increased focus on fiscal consolidation by the government led to tax increases and rationalisation of government expenditure. The resulting high inflation, constrained consumer consumption and decline in aggregate demand led to pressure on CSE indices. The DIAL share outperformed the market during 17 and traded between a high of Rs and a low of Rs to close the year at Rs The share gained 23.8% on the back of improved financial performance making it one of the best performing stocks and to be among the top ten companies in terms of total market turnover in 17. MARKET CAPITALISATION The total market capitalisation of the Company increased by 23.8% to Rs Bn during the year compared to Rs. 85.5Bn in 16. Consequently, DIAL s contribution to overall market capitalisation on CSE improved 0.6 percentage points to record 3.7% by end 17. DIAL further consolidated its position as a premier stock on the CSE as it improved to number 4 position on the list of companies with highest market capitalisation. 50

2 17 Q4 Q3 Q2 Q1 16 Share Information Highest Price (Rs.) Lowest Price (Rs.) Closing Price (Rs.) Trading Statistics of DIAL Number of Transactions 5,717 1,634 1,112 1,642 1,329 6,331 Number of Shares Traded (Mn) Total Shares Traded (%) Public Float (%) (Note1) Turnover (Rs. Mn) 5,899 2, ,476 1,233 4,491 Avg. Daily Turnover (Rs. Mn) Total Market Turnover (%) Market Capitalisation (Rs. Mn) 105, ,869 98,540 97,725 92,025 85,510 Total Market Capitalisation (%) Table 1: Market Information on DIAL Share Note 1: The total number of shares traded as a percentage of the public float DIVIDENDS Dialog has maintained a progressive dividend over the years, after taking into consideration the Group performance and forward investment requirements to maintain leadership position in the market. The Board of Directors has resolved to propose for consideration by the of the Company, a cash dividend to ordinary shareholders amounting to Forty Six cents (Rs. 0.46) per share for FY 17. The said dividend, if approved by shareholders, would translate to a payout of 35% of consolidated Group Net Profit After Tax for FY 17. The total dividend proposed in FY 17 is Rs. 3.7Bn compared to Rs. 3.2Bn declared and paid out for the FY 16, representing an increase of 18%. Rs. Bn Rs Total Dividend Dividend per Share Figure 2: Distribution to and Dividend per Share Annual Report 17 51

3 TOTAL SHAREHOLDER RETURN The Total Shareholder Return (TSR) for the share was 27.5% in 17 due to the share price appreciation of 23.8% and Dividend per Share of 0.39 cents paid during the year. The TSR for the DIAL share outperformed the Market TSR (based on ASPI) and TSR based on S&P SL which recorded growth of 2.7% and 8.6% respectively in % -18.6% 27.5% TSR % Figure 3: Total Shareholder Return (%) EARNINGS PER SHARE The basic Earnings per Share (EPS) for the year was Rs compared to the EPS of Rs recorded in FY 16, an increase of 19.3% YoY. EPS is calculated by dividing the net profit attributable to shareholders by the number of ordinary shares in issue during the year. PRICE EARNINGS RATIO DIAL share was trading at 9.8x earnings as at 31 December 17 compared to 9.5x as at 31st December 16 as the share price grew at a higher rate than EPS reflecting the growing interest of investors on the share. However, DIAL share was trading at a lower earnings multiple to the market, which was recorded at 10.6x as at 31 December Market Cap (Rs. Bn) Market Value Added Positive / (Negative) - (Rs. Bn).3 (1.6) (21.2) Enterprise Value (Rs. Bn) EV/EBITDA (x) Basic EPS (Rs.) PER (x) Price to Book (x) Dividend Yield (%) Table 2: Trading Multiples RETURN ON EQUITY AND RETURN ON INVESTED CAPITAL The Return on Equity (ROE) for the Group increased to 18.6% in 17 from 17.8% in 16. Return on Invested Capital (ROIC) for the Group remained stable at 15.4% in % 17.8% 11.3% 10 ROE 15.4% 18.6% 15.4% ROIC Figure 4: Return on Equity and Return on Invested Capital PRICE TO BOOK RATIO The Price to Book ratio of the Group as at 31 December 17 was 1.7 times, compared to 1.6 times last year. 52

4 LIQUIDITY The liquidity level of the share improved in terms of both turnover and volume during the year. Total turnover was recorded at Rs. 5.9Bn for FY 17 representing an increase of 31.3% YoY with DIAL s turnover accounting for 2.7% of total market turnover, higher than 2.5% recorded in the previous year. The average daily turnover for the share was Rs. 24.5Mn during 17 which represented a 30.8% increase from previous year. On volume basis, liquidity improved with million shares being traded in FY 17, up 16.5% YoY. The free float of the share, being the number of shares of the issued capital freely available for trading, calculated by excluding all strategic holdings and shares held by Directors of the Company was 16.68%, remaining unchanged from previous year s close. COMPOSITION OF SHAREHOLDERS The total number of of DIAL decreased to,082 as at 31 December 17 compared to the,793 during the previous year. The public float of DIAL was at 16.68% as at 31 December 17. In terms of composition of the public float, foreign investors held 67% of the float, 29% was held by local institutional investors and 4% by local retail investors. 17 witnessed an increase in foreign investor interest in DIAL, accordingly foreign investor composition increased to 67% in 17 compared to 63% in the previous year. Composition of % Local Retail Investors Local institutional Investors Foreign Investors Figure 5: Trend in Composition of DISTRIBUTION OF SHAREHOLDERS No. of 31 December December 16 Shares Held Shares Held 1 to 1,000 10, ,179, , ,372, ,001 to 10,000 8, ,394, , ,842, ,001 to, ,369, ,260, ,001 to 1,000, ,316, ,1, Over 1,000, ,066,518, ,054,122, Total, ,143,778,405.00, ,143,778, * The issued Ordinary Shares of are listed on the Colombo Stock Exchange. * Stock exchange ticker symbol for Dialog Axiata shares : DIAL * Newswire codes Bloomberg : DIAL.SL Dow Jones : DIAL.SL Reuters : DIAL.CM % Table 3: Distribution of Annual Report 17 53

5 TWENTY LARGEST SHAREHOLDERS OF THE COMPANY No Name of Shareholder No. of Shares as at 31-Dec-17 % of Holding No. of Shares as at 31-Dec-16 % of Holding 1 Axiata Investments (Labuan) Limited 6,785,252, ,785,252, Employees Provident Fund 1,787, ,787, Citibank New York S/A Norges Bank Account 2 132,214, ,608, BNYM RE - UT Saga Tree LLC 118,595, HSBC Intl Nom Ltd - JPMCB-Scottish ORL SML TR GTI ,426, ,063, Pershing LLC S/A Auerbach Grayson & Co 63,039, HSBC Intl Nom Ltd - MSIP - Saga Tree Asia Master Fund 60,862, ,471, BNYMSANV RE - CF Ruffer Investment Funds : CF Ruffer Pacific Fund 57,314, ,314, HSBC Intl Nom Ltd - MSIP - Vittoria Fund - ST, L.P. 54,512, ,257, HSBC Intl Nom Ltd - JPMLU - T Rowe Price Funds SICAV 43,947, Northern Trust Company S/A Hosking Global Fund PLC 43,931, ,489, CB NY S/A International Finance Corporation 40,253, ,086, HSBC Intl Nom Ltd - State Street Luxembourg C/O SSBT - Alliancebernstein Next 50 Emerging Markets (Master) Fund Sicav - Sif S.C.SP. 38,024, Rubber Investment Trust Limited A/C # 01 32,168, ,168, Mellon Bank N.A. - UPS Group Trust 18,8, ,8, The Ceylon Investment PLC A/C # 02 18,797, ,797, HSBC Intl Nom Ltd - BBH - Prusik Asian Smaller Companies Fund Public Limited Company 18,0, HSBC Intl Nom Ltd - SSBT - Parametric Emerging Markets Fund 17,294, ,848, The Ceylon Guardian Investment Trust PLC A/C # 02 16,470, ,470, HSBC Intl Nom Ltd - SSBT - Parametric Tax - Managed Emerging Markets Fund 15,786, ,786, Table 4: Twenty Largest 54