(If there is any contrary information please communicate with DSE through Brief Overview of the Company

Transcription

1 Shinepukur Ceramics Limited (SCL) Disclaimer: The contents of this presentation are entirely based on disclosures made by the company. Therefore, DSE does not assume any responsibility on the authenticity of the facts and figures presented thereof. (If there is any contrary information please communicate with DSE through Brief Overview of the Company 1. Date of Incorporation : January 26, 1997 as a private Company, Converted into Public Ltd. Co. on Commencement of Business : Porcelain on and Bone China on Authorised Capital : Tk mn 3. Paid up Capital : Tk mn 4. Nature of Business : Manufacturing and Marketing of high quality porcelain and high value added Bone China Tableware. 5. Offloading of 3,50,11,800 Ordinary shares of Tk. 10 each (Total Tk mn Face Value). History of Paid up Capital Year Issued, Subscribed and Paid-up Capital (million Tk.) (Capital in Million) Sources of Capital Sponsor Do Do Do Do Bonus Issue Manager: AB Bank (Merchant Banking Wing) Auditor: M. J. Abedin & CO.

2 Shinepukur Ceramics Limited (SCL) At a glance Shinepukur Ceramics Limited (SCL) was incorporated in Bangladesh on 26 th January 1997 under the Companies Act 1994 as a private Company. SCL launched its production of Porcelain on 1 st April, 1999 and Bone China on 1 st November, It was converted into a public Company on 7 May It is engaged in manufacturing and marketing of high quality Porcelain and high value added Bone China Tableware, which it sells in the local as well as international markets. Its exports stands at 80-85%; whereas local sales amount to 15-20%. Porcelain products represent around 60% of SCL s sales, whereas Bone China products account for 40%. SCL is a subsidiary company of Bangladesh Export Import Company (BEXIMCO) Ltd. that holds 100% shares of SCL. SCL was fully acquired by Beximco Ltd. in Board of Directors: Name of Director Designation Association with Other Concerns Mr. Nazmul Hassan Chairman CEO, Beximco Pharmaceuticals Ltd. General Secretary, Bangladesh Aushad Shilpa Samity. Mr. Ahmed Shahryar Director None Mr. Ahmed Shayan F. Do None * Mr. Ahmed Shahryar and Mr. Ahmed Shayan F. are son of Mr. A S F and Mr. Salman F respectively. Ownership Of the Company s Securities: Name of Owners of Position in the Co. No. of Shares Securities Mr. Nazmul Hassan Chairman 2 Mr. Ahmed Shahryar Director 1 Mr. Ahmed Shayan F. Do 1 Bangladesh Export Shareholder 70,023,593 Import Company Limited (BEXIMCO) Mr. A S F Do 1 Mr. Salman F Do 1 Mr. O K Chowdhury Do 1 Total 70,023,600 However, the company did not report affiliation with other companies for three shareholders namely Mr. A S F, Mr. Salman F and Mr. O K Chowdhury.

3 Performance at a Glance: (Tk. In million) Particulars for 6 months Revenue from net sales Growth 12.61% 29.37% 3.70% -0.04% Cost of Goods Sold Growth 12.56% 29.22% 3.51% -0.05% Gross Profit Growth 12.72% 29.69% 4.09% 0.00% Operating Expenses Growth 15.00% -1.61% 4.77% -8.60% Operating Profit Growth 11.97% 40.21% 3.93% 2.05% Net Profit Before Tax Growth % % -9.50% 8.44% Net Profit after Tax Growth % % % 10.01% Total Assets Growth 14.95% 6.89% 0.97% -1.22% 0.71% Total Liabilities Growth 5.88% -2.44% -1.84% -3.25% -2.50% Net Assets Growth 58.23% 36.65% 7.36% 3.00% 6.98% NAV per share Growth 58.23% 36.65% 7.36% 3.00% 0.93% NAV per share (excluding revaluation reserve) Growth 13.75% 50.97% 9.26% 3.71% 2.43% EPS Growth % % % 10.01% Shareholders Equity No. of Shares 66,060,000 66,060,000 66,060,000 66,060,000 66,060,000 70,023,600 ROE 2.40% 8.69% 14.55% 11.78% 12.59% 6.53% ROA 0.42% 2.07% 4.44% 3.82% 4.26% 2.34% Net Profit Margin 1.13% 5.76% 10.18% 8.54% 9.40% 9.89% Asset Utilization 36.77% 36.02% 43.60% 44.78% 45.32% 23.72% Equity Multiplier Short-term Debt Long-term Debt Total Debt Total Debt to Total Asset 82.66% 76.14% 69.49% 67.56% 66.17% 64.07% STD to Total Capital 37.41% 31.93% 31.61% 34.96% 37.34% 38.09% LTD to Total Capital 45.25% 44.21% 37.88% 32.60% 28.84% 25.98% Interest Expense EBIT Time Interest Earned Ratio

4 Dividend Information Cash Dividend Stock Dividend for 6 months % 15% - (interim) (interim) % RISK FACTORS AND MANAGEMENT PERCEPTIONS: Risk is always associated with any kind of investment. So before taking decision on investing in the shares of Shinepukur Ceramics Limited the investors should carefully analyze the following risks in addition to the information contained in the information Document: (A) Interest Rate Risk: Interest rate risk is concerned with borrowed funds of short term and long term maturity. Volatility in money market and increased demand for loans/investments funds raise the rate of interest. High rate of interest enhances the cost of fund of a Company and squeezes the profit. SCL is not affected by this type of risk as the Company has not borrowed fund at flexible rate. Management Perception : Since the SCL has not borrowed fund at flexible rate, hence, the interest rate risk does not arise. (B) Exchange Rate Risk: Exchange rare risk relates to the core business of SCL, since it mostly exports abroad in foreign currency and imports materials from abroad in foreign currency also. Sometimes, the Company imports machineries from abroad where foreign currency is involved and exchange rate can impact the matter. The Company is also exposed to foreign currency loans. Management Perception: As SCL earns I foreign currencies, it can also meet its foreign currency liabilities and costs out of its foreign currency earnings. (C) Industry Risk: Like other companies, SCL also suffers from industry risks arising out of changes in customer choices, fashion and design. Management Perception: SCL continuously carries out research and development (R & D) to keep pace with the customer choices, fashion and design. (D) Market & Technology Related Risk: Technology for a ceramics manufacturing Company is being upgraded in the developed countries as well as other developing countries in the world. Emergence of new technology may cause obsolescence of existing technology/equipment. So embracing with new technology is essential for ensuring better services and cost efficiency.

5 Management Perception: The Management of SCL is aware of technological changes and has adopted new technology gradually according to a well designed strategy. The gradual adoption of new technology helps to mitigate the risk of obsolescence or other uncertainties. Further routine and proper maintenance of the plants and equipment carried out by the SCL ensures longer service life for the existing equipment and facilities. (E) Potential or Existing Government regulations: Like other Companies, SCL operations are also affected by potential or existing Government regulations relating to import, export, foreign exchange, monetary and fiscal regimes. Management Perception: Since SCL is an export oriented Company the Government regulations are mostly investment friendly including lower taxes and duties, duty drawback and easier access to credits. (F) Potential Changes in global or national policies: The performance of the Company may be affected due to unavoidable circumstances both in Bangladesh and worldwide, such as war, terrorism, political unrest in the country or customer/ supplier countries. Changes in global or national policies may also adversely affect the economy in general. Management Perception: The risk due to changes in global or national policies is beyond control of any Company. Yet SCL has spreaded its import and export operations in various countries of the world to reduce the risk. Further, it adopted policies to meet the challenges from potential changes in global or national policies. (G) Non-operating History: There is no history of non-operation in the case of SCL. Management Perception: To overcome these uncertainties, the Company has its own power backup, scientific inventory management and continuous market promotion systems, which may reduce the non-operating risk. (H) Operational Risk: Non-availability of imported materials may affect the smooth operational activities of SCL. On the other hand, the plants and equipment may face operational and mechanical faults due to various disasters, lack of supervision, unforeseen events and negligence leading to severe accidents and losses. Management Perception: The Company is equipped with power generation and demand management system, which reduces operational risk. Besides, the plants and equipment are under insurance coverage in order to get reasonable compensation for any damages. Apart from those, routine check and proper maintenance of the plants and equipment also reduce and eliminate the operational risk.