New Risk • Aug 21
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 5.1% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (5.1% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (LK₨9.44b market cap, or US$28.6m). Upcoming Dividend • Jun 24
Upcoming dividend of LK₨0.40 per share Eligible shareholders must have bought the stock before 01 July 2026. Payment date: 20 July 2026. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Sri Lankan dividend payers (4.3%). Higher than average of industry peers (2.0%). Anuncio • Jun 10
Swisstek (Ceylon) PLC, Annual General Meeting, Jun 30, 2026 Swisstek (Ceylon) PLC, Annual General Meeting, Jun 30, 2026, at 10:45 Sri Lanka Standard Time. Location: at no 20, r a de mel mawatha, colombo 3 Sri Lanka Reported Earnings • Jun 02
Full year 2026 earnings released: EPS: LK₨7.32 (vs LK₨6.32 in FY 2025) Full year 2026 results: EPS: LK₨7.32 (up from LK₨6.32 in FY 2025). Revenue: LK₨16.9b (up 11% from FY 2025). Net income: LK₨1.00b (up 16% from FY 2025). Profit margin: 5.9% (up from 5.7% in FY 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 105% per year but the company’s share price has only increased by 77% per year, which means it is significantly lagging earnings growth. Declared Dividend • May 23
Dividend of LK₨0.40 announced Shareholders will receive a dividend of LK₨0.40. Ex-date: 1st July 2026 Payment date: 20th July 2026 Dividend yield will be 2.8%, which is lower than the industry average of 4.8%. Sustainability & Growth Dividend is covered by both earnings (5% earnings payout ratio) and cash flows (55% cash payout ratio). The dividend has increased by an average of 31% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 25% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Declared Dividend • Mar 05
First half dividend increased to LK₨1.70 Dividend of LK₨1.70 is 48% higher than last year. Ex-date: 12th March 2026 Payment date: 31st March 2026 Dividend yield will be 2.5%, which is lower than the industry average of 4.8%. Sustainability & Growth Dividend is covered by earnings (5% earnings payout ratio) but not covered by cash flows (113% cash payout ratio). The dividend has increased by an average of 31% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 33% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Board Change • Feb 27
Less than half of directors are independent Following the recent departure of a director, there are only 5 independent directors on the board. The company's board is composed of: 5 independent directors. 6 non-independent directors. Independent Non-Executive Director Ratnayake Mudiyanselage Joseph Ratnayake was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to LK₨105, the stock trades at a trailing P/E ratio of 16.6x. Average trailing P/E is 21x in the Metals and Mining industry in Asia. Total returns to shareholders of 777% over the past three years. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to LK₨77.90, the stock trades at a trailing P/E ratio of 12.3x. Average trailing P/E is 20x in the Metals and Mining industry in Asia. Total returns to shareholders of 594% over the past three years. Upcoming Dividend • Jun 24
Upcoming dividend of LK₨0.35 per share Eligible shareholders must have bought the stock before 01 July 2025. Payment date: 21 July 2025. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 2.0%. Lower than top quartile of Sri Lankan dividend payers (5.4%). Lower than average of industry peers (2.9%). New Risk • Jun 05
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Sri Lankan stocks, typically moving 7.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (0.06% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (7.8% average weekly change). Earnings have declined by 12% per year over the past 5 years. Minor Risk Market cap is less than US$100m (LK₨9.87b market cap, or US$33.0m). Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 39% After last week's 39% share price gain to LK₨76.50, the stock trades at a trailing P/E ratio of 12.1x. Average trailing P/E is 19x in the Metals and Mining industry in Asia. Total returns to shareholders of 525% over the past three years. Reported Earnings • May 31
Full year 2025 earnings released: EPS: LK₨6.32 (vs LK₨0.51 loss in FY 2024) Full year 2025 results: EPS: LK₨6.32 (up from LK₨0.51 loss in FY 2024). Revenue: LK₨15.3b (up 52% from FY 2024). Net income: LK₨865.2m (up LK₨935.0m from FY 2024). Profit margin: 5.7% (up from net loss in FY 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 59% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • May 29
Dividend increased to LK₨0.35 Dividend of LK₨0.35 is 17% higher than last year. Ex-date: 1st July 2025 Payment date: 21st July 2025 Dividend yield will be 2.7%, which is lower than the industry average of 4.8%. Sustainability & Growth Dividend is covered by earnings (29% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 31% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 37% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Anuncio • May 29
Swisstek (Ceylon) PLC, Annual General Meeting, Jun 30, 2025 Swisstek (Ceylon) PLC, Annual General Meeting, Jun 30, 2025. New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.4x net interest cover). Earnings have declined by 19% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Market cap is less than US$100m (LK₨5.83b market cap, or US$19.6m). Valuation Update With 7 Day Price Move • Mar 25
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to LK₨47.50, the stock trades at a trailing P/E ratio of 9.5x. Average trailing P/E is 18x in the Metals and Mining industry in Asia. Total returns to shareholders of 132% over the past three years. Declared Dividend • Mar 06
Dividend increased to LK₨1.15 Dividend of LK₨1.15 is 130% higher than last year. Ex-date: 14th March 2025 Payment date: 3rd April 2025 Dividend yield will be 3.2%, which is lower than the industry average of 4.8%. Sustainability & Growth Dividend is covered by earnings (6% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 23% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 37% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 31
Third quarter 2025 earnings released: EPS: LK₨1.77 (vs LK₨0.43 loss in 3Q 2024) Third quarter 2025 results: EPS: LK₨1.77 (up from LK₨0.43 loss in 3Q 2024). Revenue: LK₨4.09b (up 43% from 3Q 2024). Net income: LK₨241.7m (up LK₨300.9m from 3Q 2024). Profit margin: 5.9% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to LK₨39.90, the stock trades at a trailing P/E ratio of 13.2x. Average trailing P/E is 20x in the Metals and Mining industry in Asia. Total returns to shareholders of 9.9% over the past three years. Recent Insider Transactions • Dec 03
MD & Executive Director recently bought LK₨2.5m worth of stock On the 28th of November, Jayasekera Arachchige Panduka Jayasekera bought around 80k shares on-market at roughly LK₨31.55 per share. This transaction amounted to 21% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Jayasekera Arachchige Panduka has been a buyer over the last 12 months, purchasing a net total of LK₨7.7m worth in shares. Valuation Update With 7 Day Price Move • Dec 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to LK₨32.60, the stock trades at a trailing P/E ratio of 10.8x. Average trailing P/E is 20x in the Metals and Mining industry in Asia. Total loss to shareholders of 5.5% over the past three years. Reported Earnings • Nov 02
Second quarter 2025 earnings released: EPS: LK₨1.63 (vs LK₨0.055 in 2Q 2024) Second quarter 2025 results: EPS: LK₨1.63 (up from LK₨0.055 in 2Q 2024). Revenue: LK₨4.04b (up 70% from 2Q 2024). Net income: LK₨223.2m (up LK₨215.8m from 2Q 2024). Profit margin: 5.5% (up from 0.3% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 64 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to LK₨28.20, the stock trades at a trailing P/E ratio of 22.9x. Average trailing P/E is 20x in the Metals and Mining industry in Asia. Total returns to shareholders of 17% over the past three years. Recent Insider Transactions • Sep 26
MD & Executive Director recently bought LK₨2.0m worth of stock On the 20th of September, Jayasekera Arachchige Panduka Jayasekera bought around 100k shares on-market at roughly LK₨19.92 per share. This transaction amounted to 36% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Jayasekera Arachchige Panduka has been a buyer over the last 12 months, purchasing a net total of LK₨5.2m worth in shares. Valuation Update With 7 Day Price Move • Sep 25
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to LK₨22.40, the stock trades at a trailing P/E ratio of 18.2x. Average trailing P/E is 20x in the Metals and Mining industry in Asia. Total returns to shareholders of 6.7% over the past three years. Reported Earnings • Aug 01
First quarter 2025 earnings released: EPS: LK₨0.58 (vs LK₨1.16 loss in 1Q 2024) First quarter 2025 results: EPS: LK₨0.58 (up from LK₨1.16 loss in 1Q 2024). Revenue: LK₨2.89b (up 74% from 1Q 2024). Net income: LK₨79.9m (up LK₨238.1m from 1Q 2024). Profit margin: 2.8% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 72 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Jun 24
Upcoming dividend of LK₨0.30 per share Eligible shareholders must have bought the stock before 01 July 2024. Payment date: 18 July 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 3.6%. Lower than top quartile of Sri Lankan dividend payers (7.8%). Higher than average of industry peers (2.7%). Reported Earnings • Jun 04
Full year 2024 earnings released: LK₨0.51 loss per share (vs LK₨4.15 loss in FY 2023) Full year 2024 results: LK₨0.51 loss per share (improved from LK₨4.15 loss in FY 2023). Revenue: LK₨10.1b (up 12% from FY 2023). Net loss: LK₨69.8m (loss narrowed 88% from FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 80 percentage points per year, which is a significant difference in performance. Declared Dividend • May 30
Dividend of LK₨0.30 announced Shareholders will receive a dividend of LK₨0.30. Ex-date: 1st July 2024 Payment date: 18th July 2024 Dividend yield will be 3.7%, which is lower than the industry average of 4.8%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is well covered by cash flows (10% cash payout ratio). The dividend has increased by an average of 21% per year over the past 10 years. However, payments have been volatile during that time. New Risk • Apr 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Sri Lankan stocks, typically moving 5.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.7x net interest cover). Earnings have declined by 21% per year over the past 5 years. Market cap is less than US$10m (LK₨2.97b market cap, or US$9.95m). Minor Risks Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (5.4% average weekly change). Upcoming Dividend • Mar 07
Upcoming dividend of LK₨0.50 per share Eligible shareholders must have bought the stock before 14 March 2024. Payment date: 04 April 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 7.4%. Lower than top quartile of Sri Lankan dividend payers (8.2%). Higher than average of industry peers (3.3%). Declared Dividend • Mar 06
Dividend reduced to LK₨0.50 Dividend of LK₨0.50 is 55% lower than last year. Ex-date: 14th March 2024 Payment date: 4th April 2024 Dividend yield will be 4.1%, which is lower than the industry average of 4.8%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is well covered by cash flows (19% cash payout ratio). The dividend has increased by an average of 33% per year over the past 9 years. However, payments have been volatile during that time. Reported Earnings • Jan 25
Third quarter 2024 earnings released: LK₨0.43 loss per share (vs LK₨1.99 loss in 3Q 2023) Third quarter 2024 results: LK₨0.43 loss per share (improved from LK₨1.99 loss in 3Q 2023). Revenue: LK₨2.86b (up 92% from 3Q 2023). Net loss: LK₨59.3m (loss narrowed 78% from 3Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. Reported Earnings • Nov 04
Second quarter 2024 earnings released: LK₨0.16 loss per share (vs LK₨0.12 profit in 2Q 2023) Second quarter 2024 results: LK₨0.16 loss per share (down from LK₨0.12 profit in 2Q 2023). Revenue: LK₨2.38b (down 21% from 2Q 2023). Net loss: LK₨22.0m (down 232% from profit in 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 75 percentage points per year, which is a significant difference in performance. New Risk • Aug 04
New major risk - Revenue and earnings growth Earnings have declined by 0.3% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.6x net interest cover). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 0.3% per year over the past 5 years. Market cap is less than US$10m (LK₨2.30b market cap, or US$7.20m). Reported Earnings • Aug 04
First quarter 2024 earnings released: LK₨1.16 loss per share (vs LK₨0.28 loss in 1Q 2023) First quarter 2024 results: LK₨1.16 loss per share (further deteriorated from LK₨0.28 loss in 1Q 2023). Revenue: LK₨1.66b (down 28% from 1Q 2023). Net loss: LK₨158.2m (loss widened 312% from 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has increased by 27% per year, which means it is well ahead of earnings. Upcoming Dividend • Jun 27
Upcoming dividend of LK₨0.20 per share at 7.7% yield Eligible shareholders must have bought the stock before 04 July 2023. Payment date: 24 July 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 7.7%. Lower than top quartile of Sri Lankan dividend payers (8.4%). Higher than average of industry peers (3.9%). Anuncio • Jun 09
Swisstek (Ceylon) PLC, Annual General Meeting, Jun 30, 2023 Swisstek (Ceylon) PLC, Annual General Meeting, Jun 30, 2023, at 13:30 Indian Standard Time. Agenda: To declare a final divided of Twenty Cents per share as recommended by the Board of Directors; to re-elect Dr. S Selliah who retires in terms of Articles 103 and 104 of the Articles of Association, as a Director; to re-elect Mr. A M Weerasinghe who retires in terms of Articles 103 and 104 of the Articles of Association, as a Director; to authorize the Directors to determine donations for the ensuing year; to re-appoint Messrs. KPMG Chartered Accountants as Auditors of the company and authorize the Directors to determine their remuneration. Anuncio • Jun 08
Swisstek (Ceylon) plc Proposes Final Dividend Swisstek (Ceylon) PLC proposes final dividend of Twenty Cents (LKR 0.20) per share at its AGM to be held on 30th June 2023. Reported Earnings • May 26
Full year 2023 earnings released: LK₨4.15 loss per share (vs LK₨6.16 profit in FY 2022) Full year 2023 results: LK₨4.15 loss per share (down from LK₨6.16 profit in FY 2022). Revenue: LK₨8.97b (down 5.9% from FY 2022). Net loss: LK₨567.8m (down 167% from profit in FY 2022). Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 27% per year, which means it is well ahead of earnings. Recent Insider Transactions • Apr 06
MD & Executive Director recently bought LK₨463k worth of stock On the 3rd of April, Jayasekera Arachchige Panduka Jayasekera bought around 33k shares on-market at roughly LK₨13.99 per share. This transaction amounted to 44% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Jayasekera Arachchige Panduka has been a buyer over the last 12 months, purchasing a net total of LK₨2.2m worth in shares. Reported Earnings • Jan 28
Third quarter 2023 earnings released: LK₨1.99 loss per share (vs LK₨2.41 profit in 3Q 2022) Third quarter 2023 results: LK₨1.99 loss per share (down from LK₨2.41 profit in 3Q 2022). Revenue: LK₨1.49b (down 44% from 3Q 2022). Net loss: LK₨272.5m (down 183% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 1 highly experienced director. Director of Group Marketing & Director Anthonyge Mahendra was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Nov 05
Second quarter 2023 earnings released: EPS: LK₨0.12 (vs LK₨1.40 in 2Q 2022) Second quarter 2023 results: EPS: LK₨0.12 (down from LK₨1.40 in 2Q 2022). Revenue: LK₨3.00b (up 43% from 2Q 2022). Net income: LK₨16.7m (down 91% from 2Q 2022). Profit margin: 0.6% (down from 9.2% in 2Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment improved over the past week After last week's 17% share price gain to LK₨24.60, the stock trades at a trailing P/E ratio of 4.6x. Average trailing P/E is 11x in the Metals and Mining industry in Asia. Total returns to shareholders of 330% over the past three years. Valuation Update With 7 Day Price Move • Sep 07
Investor sentiment improved over the past week After last week's 22% share price gain to LK₨20.20, the stock trades at a trailing P/E ratio of 3.7x. Average trailing P/E is 11x in the Metals and Mining industry in Asia. Total returns to shareholders of 245% over the past three years. Recent Insider Transactions • Aug 27
Director recently bought LK₨4.3m worth of stock On the 23rd of August, Amarakone Weerasinghe bought around 263k shares on-market at roughly LK₨16.28 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold LK₨4.7m more in shares than they bought in the last 12 months. Reported Earnings • Aug 14
First quarter 2023 earnings released: LK₨0.28 loss per share (vs LK₨0.49 profit in 1Q 2022) First quarter 2023 results: LK₨0.28 loss per share (down from LK₨0.49 profit in 1Q 2022). Revenue: LK₨2.31b (up 71% from 1Q 2022). Net loss: LK₨38.4m (down 158% from profit in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improved over the past week After last week's 17% share price gain to LK₨16.40, the stock trades at a trailing P/E ratio of 2.7x. Average forward P/E is 9x in the Metals and Mining industry in Asia. Total returns to shareholders of 177% over the past three years. Recent Insider Transactions • Jul 08
MD & Executive Director recently bought LK₨274k worth of stock On the 5th of July, Jayasekera Arachchige Panduka Jayasekera bought around 22k shares on-market at roughly LK₨12.50 per share. In the last 3 months, they made an even bigger purchase worth LK₨1.2m. Jayasekera Arachchige Panduka has been a buyer over the last 12 months, purchasing a net total of LK₨3.2m worth in shares. Valuation Update With 7 Day Price Move • Jun 14
Investor sentiment improved over the past week After last week's 25% share price gain to LK₨15.10, the stock trades at a trailing P/E ratio of 2.5x. Average forward P/E is 9x in the Metals and Mining industry in Asia. Total returns to shareholders of 232% over the past three years. Anuncio • Jun 09
Swisstek (Ceylon) PLC, Annual General Meeting, Jun 29, 2022 Swisstek (Ceylon) PLC, Annual General Meeting, Jun 29, 2022, at 08:30 Sri Lanka Standard Time. Agenda: To re-elect Mr. S H Amarasekera who retires in terms of Article No.103 and 104 of the Articles of Association, as a Director To re-elect Mr. C U Weerawardena who retires in terms of Article No.103 and 104 of the Articles of Association, as a Director; to authorize the Directors to determine donations for the ensuing year; to re-appoint Messrs. KPMG Chartered Accountants as Auditors of the Company and authorize the Directors to determine their remuneration. Upcoming Dividend • May 30
Upcoming dividend of LK₨0.90 per share Eligible shareholders must have bought the stock before 06 June 2022. Payment date: 27 June 2022. Trailing yield: 20%. Within top quartile of Sri Lankan dividend payers (8.3%). Higher than average of industry peers (4.2%). Reported Earnings • May 25
Full year 2022 earnings released: EPS: LK₨6.16 (vs LK₨4.37 in FY 2021) Full year 2022 results: EPS: LK₨6.16 (up from LK₨4.37 in FY 2021). Revenue: LK₨9.53b (up 77% from FY 2021). Net income: LK₨842.6m (up 41% from FY 2021). Profit margin: 8.8% (down from 11% in FY 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is expected to shrink by 13% compared to a 20% growth forecast for the mining industry in Sri Lanka. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 20% share price gain to LK₨16.60, the stock trades at a trailing P/E ratio of 2.5x. Average forward P/E is 9x in the Metals and Mining industry in Asia. Total returns to shareholders of 226% over the past three years. Recent Insider Transactions • May 03
MD & Executive Director recently bought LK₨150k worth of stock On the 28th of April, Jayasekera Arachchige Panduka Jayasekera bought around 10k shares on-market at roughly LK₨15.00 per share. This was the largest purchase by an insider in the last 3 months. Jayasekera Arachchige Panduka has been a buyer over the last 12 months, purchasing a net total of LK₨1.7m worth in shares. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment deteriorated over the past week After last week's 19% share price decline to LK₨14.10, the stock trades at a trailing P/E ratio of 2.1x. Average forward P/E is 9x in the Metals and Mining industry in Asia. Total returns to shareholders of 159% over the past three years. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 1 highly experienced director. GM of Marketing & Director Anthonyge Mahendra was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Board Change • Apr 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 1 highly experienced director. GM of Marketing & Director Anthonyge Mahendra was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 29
Investor sentiment deteriorated over the past week After last week's 17% share price decline to LK₨25.50, the stock trades at a trailing P/E ratio of 3.9x. Average forward P/E is 10x in the Metals and Mining industry in Asia. Total returns to shareholders of 350% over the past three years. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment deteriorated over the past week After last week's 19% share price decline to LK₨30.20, the stock trades at a trailing P/E ratio of 4.6x. Average forward P/E is 10x in the Metals and Mining industry in Asia. Total returns to shareholders of 459% over the past three years. Upcoming Dividend • Mar 03
Upcoming dividend of LK₨1.00 per share Eligible shareholders must have bought the stock before 10 March 2022. Payment date: 31 March 2022. Payout ratio is a comfortable 28% but the company is paying out more than the cash it is generating. Trailing yield: 6.8%. Within top quartile of Sri Lankan dividend payers (5.6%). Higher than average of industry peers (2.6%). Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment deteriorated over the past week After last week's 20% share price decline to LK₨35.00, the stock trades at a trailing P/E ratio of 5.3x. Average forward P/E is 11x in the Metals and Mining industry in Asia. Total returns to shareholders of 489% over the past three years. Reported Earnings • Feb 11
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: LK₨2.41 (up from LK₨1.21 in 3Q 2021). Revenue: LK₨2.66b (up 90% from 3Q 2021). Net income: LK₨330.4m (up 100% from 3Q 2021). Profit margin: 12% (in line with 3Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 87% per year and the company’s share price has also increased by 87% per year. Recent Insider Transactions • Jan 20
MD & Executive Director recently bought LK₨232k worth of stock On the 13th of January, Jayasekera Arachchige Panduka Jayasekera bought around 5k shares on-market at roughly LK₨46.31 per share. In the last 3 months, there was an even bigger purchase from another insider worth LK₨4.0m. Jayasekera Arachchige Panduka has been a buyer over the last 12 months, purchasing a net total of LK₨1.5m worth in shares. Recent Insider Transactions • Dec 24
Director recently sold LK₨16m worth of stock On the 17th of December, Amarakone Weerasinghe sold around 350k shares on-market at roughly LK₨46.20 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of LK₨17m more than they bought in the last 12 months. Recent Insider Transactions • Dec 24
Director recently sold LK₨16m worth of stock On the 17th of December, Amarakone Weerasinghe sold around 350k shares on-market at roughly LK₨46.20 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of LK₨17m more than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Nov 25
Investor sentiment improved over the past week After last week's 18% share price gain to LK₨35.00, the stock trades at a trailing P/E ratio of 6.5x. Average trailing P/E is 13x in the Metals and Mining industry in Asia. Total returns to shareholders of 423% over the past three years. Reported Earnings • Nov 07
Second quarter 2022 earnings released The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2022 results: Revenue: LK₨2.05b (up 39% from 2Q 2021). Net income: LK₨192.0m (up 27% from 2Q 2021). Profit margin: 9.4% (in line with 2Q 2021). Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 53% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Nov 02
Upcoming dividend of LK₨0.80 per share Eligible shareholders must have bought the stock before 09 November 2021. Payment date: 30 November 2021. Trailing yield: 8.7%. Within top quartile of Sri Lankan dividend payers (5.6%). Higher than average of industry peers (2.3%). Recent Insider Transactions • Sep 03
Director recently bought LK₨7.0m worth of stock On the 26th of August, Amarakone Weerasinghe bought around 250k shares on-market at roughly LK₨27.98 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold LK₨18m more in shares than they bought in the last 12 months. Reported Earnings • Aug 10
First quarter 2022 earnings released: EPS LK₨0.49 (vs LK₨0.21 loss in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: LK₨1.34b (up 137% from 1Q 2021). Net income: LK₨66.4m (up LK₨95.3m from 1Q 2021). Profit margin: 5.0% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 56% per year whereas the company’s share price has increased by 53% per year. Reported Earnings • May 28
Full year 2021 earnings released: EPS LK₨4.37 (vs LK₨1.26 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: LK₨5.39b (up 16% from FY 2020). Net income: LK₨597.4m (up 246% from FY 2020). Profit margin: 11% (up from 3.7% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 02
Investor sentiment deteriorated over the past week After last week's 77% share price decline to LK₨23.90, the stock trades at a trailing P/E ratio of 10x. Average trailing P/E is 21x in the Metals and Mining industry in Asia. Total loss to shareholders of 54% over the past three years. Recent Insider Transactions • Mar 12
Director recently sold LK₨12m worth of stock On the 5th of March, Amarakone Weerasinghe sold around 120k shares on-market at roughly LK₨100 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of LK₨25m more than they bought in the last 12 months. Upcoming Dividend • Feb 17
Upcoming Dividend of LK₨4.10 Per Share Will be paid on the 17th of March to those who are registered shareholders by the 23rd of February. The trailing yield of 2.2% is below the top quartile of Sri Lankan dividend payers (4.1%), but it is higher than industry peers (1.9%). Reported Earnings • Feb 11
Third quarter 2021 earnings released: EPS LK₨6.04 (vs LK₨2.28 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: LK₨1.40b (up 13% from 3Q 2020). Net income: LK₨165.4m (up 164% from 3Q 2020). Profit margin: 12% (up from 5.1% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improved over the past week After last week's 38% share price gain to LK₨141, the stock is trading at a trailing P/E ratio of 17.2x, up from the previous P/E ratio of 12.5x. This compares to an average P/E of 22x in the Metals and Mining industry in Asia. Total returns to shareholders over the past three years are 156%. Is New 90 Day High Low • Jan 21
New 90-day high: LK₨141 The company is up 181% from its price of LK₨50.30 on 23 October 2020. The Sri Lankan market is up 37% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 26% over the same period. Is New 90 Day High Low • Jan 04
New 90-day high: LK₨101 The company is up 125% from its price of LK₨44.80 on 06 October 2020. The Sri Lankan market is up 21% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 25% over the same period. Is New 90 Day High Low • Dec 08
New 90-day high: LK₨85.20 The company is up 97% from its price of LK₨43.20 on 09 September 2020. The Sri Lankan market is up 22% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 14% over the same period. Recent Insider Transactions • Dec 04
Director recently sold LK₨8.0m worth of stock On the 26th of November, Amarakone Weerasinghe sold around 100k shares on-market at roughly LK₨80.00 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of LK₨8.6m more than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Nov 27
Market bids up stock over the past week After last week's 19% share price gain to LK₨83.90, the stock is trading at a trailing P/E ratio of 10.2x, up from the previous P/E ratio of 8.6x. This compares to an average P/E of 21x in the Metals and Mining industry in Asia. Total returns to shareholders over the past three years are 52%. Reported Earnings • Nov 07
Second quarter 2021 earnings released: EPS LK₨5.51 The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: LK₨1.47b (up 14% from 2Q 2020). Net income: LK₨150.8m (up 380% from 2Q 2020). Profit margin: 10% (up from 2.4% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Nov 06
New 90-day high: LK₨68.20 The company is up 66% from its price of LK₨41.00 on 07 August 2020. The Sri Lankan market is up 17% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is down 3.0% over the same period. Valuation Update With 7 Day Price Move • Nov 06
Market bids up stock over the past week After last week's 39% share price gain to LK₨68.20, the stock is trading at a trailing P/E ratio of 17.8x, up from the previous P/E ratio of 12.8x. This compares to an average P/E of 19x in the Metals and Mining industry in Asia. Total returns to shareholders over the past three years are 26%. Recent Insider Transactions • Oct 18
MD & Executive Director recently bought LK₨817k worth of stock On the 14th of October, Jayasekera Arachchige Panduka Jayasekera bought around 15k shares on-market at roughly LK₨54.48 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, Jayasekera Arachchige Panduka has been a net seller over the last 12 months, reducing personal holdings by LK₨588k. Valuation Update With 7 Day Price Move • Oct 14
Market bids up stock over the past week After last week's 23% share price gain to LK₨54.70, the stock is trading at a trailing P/E ratio of 14.3x, up from the previous P/E ratio of 11.6x. This compares to an average P/E of 19x in the Metals and Mining industry in Asia. Total return to shareholders over the past three years is a loss of 7.7%. Is New 90 Day High Low • Oct 09
New 90-day high: LK₨51.10 The company is up 38% from its price of LK₨37.10 on 10 July 2020. The Sri Lankan market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is down 1.0% over the same period. 
