New Risk • May 21
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: LK₨33.8b (US$99.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 10% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (LK₨33.8b market cap, or US$99.0m). Reported Earnings • May 20
Full year 2026 earnings released: EPS: LK₨5.88 (vs LK₨6.47 in FY 2025) Full year 2026 results: EPS: LK₨5.88 (down from LK₨6.47 in FY 2025). Revenue: LK₨82.0b (up 3.5% from FY 2025). Net income: LK₨3.52b (down 9.1% from FY 2025). Profit margin: 4.3% (down from 4.9% in FY 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Declared Dividend • Apr 02
Second quarter dividend of LK₨0.76 announced Shareholders will receive a dividend of LK₨0.76. Ex-date: 15th April 2026 Payment date: 28th April 2026 Dividend yield will be 4.3%, which is lower than the industry average of 8.6%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but not covered by cash flows (119% cash payout ratio). The dividend has increased by an average of 9.0% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 12% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Recent Insider Transactions • Mar 26
Non-Executive Director recently bought LK₨355k worth of stock On the 18th of March, Sarath Ganegoda bought around 7k shares on-market at roughly LK₨51.31 per share. This transaction amounted to 2.5% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought LK₨521k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Mar 18
Non-Executive Director recently bought LK₨166k worth of stock On the 10th of March, Sarath Ganegoda bought around 3k shares on-market at roughly LK₨53.90 per share. This transaction amounted to 1.1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. New Risk • Mar 16
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: LK₨31.1b (US$99.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 3.5% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (119% cash payout ratio). Market cap is less than US$100m (LK₨31.1b market cap, or US$99.8m). Declared Dividend • Jan 02
Second quarter dividend of LK₨0.51 announced Shareholders will receive a dividend of LK₨0.51. Ex-date: 12th January 2026 Payment date: 26th January 2026 Dividend yield will be 3.4%, which is lower than the industry average of 8.6%. Sustainability & Growth Dividend is covered by earnings (0.8779% earnings payout ratio) but not covered by cash flows (125% cash payout ratio). The dividend has increased by an average of 9.6% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 12% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • Nov 15
New major risk - Revenue and earnings growth Earnings have declined by 3.5% 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 Risk Earnings have declined by 3.5% per year over the past 5 years. Minor Risk Dividend is not well covered by cash flows (120% cash payout ratio). Declared Dividend • Oct 02
First quarter dividend of LK₨0.61 announced Shareholders will receive a dividend of LK₨0.61. Ex-date: 10th October 2025 Payment date: 24th October 2025 Dividend yield will be 3.1%, which is lower than the industry average of 8.6%. Sustainability & Growth The dividend has increased by an average of 9.6% per year over the past 10 years. However, payments have been volatile during that time. New Risk • Aug 20
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 0% Cash payout ratio: 295% Dividend yield: 3.4% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Declared Dividend • Jul 03
Fourth quarter dividend of LK₨0.25 announced Shareholders will receive a dividend of LK₨0.25. Ex-date: 11th July 2025 Payment date: 25th July 2025 Dividend yield will be 3.2%, which is lower than the industry average of 8.6%. Sustainability & Growth Dividend is covered by both earnings (23% earnings payout ratio) and cash flows (64% cash payout ratio). The dividend has increased by an average of 9.6% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 39% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Duyuru • Jul 02
Dipped Products PLC Announces First Interim Cash Dividend for the Financial Year 2025-2026, Payable on 25 Jul 2025 Dipped Products PLC announced a first interim dividend of LKR 0.25 for the financial year 2025-2026. The ex date is on 11 July 2025 and payment date is on 25 Jul 2025. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to LK₨59.90, the stock trades at a trailing P/E ratio of 9.3x. Average forward P/E is 17x in the Chemicals industry in Sri Lanka. Total returns to shareholders of 191% over the past three years. Duyuru • Jun 05
Dipped Products PLC, Annual General Meeting, Jun 26, 2025 Dipped Products PLC, Annual General Meeting, Jun 26, 2025, at 11:00 Sri Lanka Standard Time. Location: chas p hayleys lounge, hayleys plc, Sri Lanka Reported Earnings • May 15
Full year 2025 earnings released: EPS: LK₨6.47 (vs LK₨7.47 in FY 2024) Full year 2025 results: EPS: LK₨6.47 (down from LK₨7.47 in FY 2024). Revenue: LK₨79.3b (up 7.2% from FY 2024). Net income: LK₨3.88b (down 13% from FY 2024). Profit margin: 4.9% (down from 6.0% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to LK₨46.70, the stock trades at a trailing P/E ratio of 5.7x. Average trailing P/E is 7x in the Chemicals industry in Sri Lanka. Total returns to shareholders of 93% over the past three years. 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 6.3% 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: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.3% average weekly change). Market cap is less than US$100m (LK₨28.4b market cap, or US$95.3m). Declared Dividend • Mar 30
Third quarter dividend of LK₨0.85 announced Shareholders will receive a dividend of LK₨0.85. Ex-date: 8th April 2025 Payment date: 24th April 2025 Dividend yield will be 3.5%, which is lower than the industry average of 8.6%. Sustainability & Growth Dividend is covered by earnings (3% 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 14% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 46% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 11
Third quarter 2025 earnings released: EPS: LK₨1.70 (vs LK₨1.18 in 3Q 2024) Third quarter 2025 results: EPS: LK₨1.70 (up from LK₨1.18 in 3Q 2024). Revenue: LK₨19.3b (up 7.2% from 3Q 2024). Net income: LK₨1.01b (up 43% from 3Q 2024). Profit margin: 5.2% (up from 3.9% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Declared Dividend • Jan 02
Second quarter dividend of LK₨0.35 announced Shareholders will receive a dividend of LK₨0.35. Ex-date: 10th January 2025 Payment date: 24th January 2025 Dividend yield will be 2.4%, which is lower than the industry average of 8.6%. 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 15% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 41% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 12
Second quarter 2025 earnings released: EPS: LK₨1.54 (vs LK₨1.46 in 2Q 2024) Second quarter 2025 results: EPS: LK₨1.54 (up from LK₨1.46 in 2Q 2024). Revenue: LK₨21.3b (up 16% from 2Q 2024). Net income: LK₨920.3m (up 5.4% from 2Q 2024). Profit margin: 4.3% (down from 4.8% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Declared Dividend • Oct 02
First quarter dividend reduced to LK₨0.45 Dividend of LK₨0.45 is 55% lower than last year. Ex-date: 9th October 2024 Payment date: 23rd October 2024 Dividend yield will be 3.8%, which is lower than the industry average of 8.6%. Sustainability & Growth Dividend is well covered by both earnings (16% earnings payout ratio) and cash flows (43% cash payout ratio). The dividend has increased by an average of 15% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 43% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 09
First quarter 2025 earnings released: EPS: LK₨1.11 (vs LK₨0.96 in 1Q 2024) First quarter 2025 results: EPS: LK₨1.11 (up from LK₨0.96 in 1Q 2024). Revenue: LK₨19.2b (up 3.4% from 1Q 2024). Net income: LK₨662.9m (up 16% from 1Q 2024). Profit margin: 3.5% (up from 3.1% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year and the company’s share price has also fallen by 15% per year. New Risk • Jul 27
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 4.5% 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (4.5% average weekly change). Market cap is less than US$100m (LK₨21.0b market cap, or US$69.1m). Declared Dividend • Jul 01
Fourth quarter dividend of LK₨0.25 announced Shareholders will receive a dividend of LK₨0.25. Ex-date: 9th July 2024 Payment date: 18th July 2024 Dividend yield will be 5.3%, which is lower than the industry average of 8.6%. Sustainability & Growth Dividend is covered by earnings (46% earnings payout ratio) but not covered by cash flows (102% 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. Earnings per share has grown by 39% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Duyuru • Jun 06
Dipped Products PLC, Annual General Meeting, Jun 27, 2024 Dipped Products PLC, Annual General Meeting, Jun 27, 2024, at 11:00 Sri Lanka Standard Time. Location: chas p. hayley lounge of hayleys plc, no. 400, deans road, colombo 10, Sri Lanka Reported Earnings • May 18
Full year 2024 earnings released: EPS: LK₨7.40 (vs LK₨10.87 in FY 2023) Full year 2024 results: EPS: LK₨7.40 (down from LK₨10.87 in FY 2023). Revenue: LK₨73.9b (down 7.7% from FY 2023). Net income: LK₨4.43b (down 32% from FY 2023). Profit margin: 6.0% (down from 8.1% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 14% per year. Upcoming Dividend • Apr 02
Upcoming dividend of LK₨0.25 per share Eligible shareholders must have bought the stock before 09 April 2024. Payment date: 25 April 2024. Payout ratio is a comfortable 10% and this is well supported by cash flows. Trailing yield: 11%. Within top quartile of Sri Lankan dividend payers (8.2%). Higher than average of industry peers (8.4%). Reported Earnings • Feb 13
Third quarter 2024 earnings released: EPS: LK₨1.18 (vs LK₨1.38 in 3Q 2023) Third quarter 2024 results: EPS: LK₨1.18 (down from LK₨1.38 in 3Q 2023). Revenue: LK₨18.0b (down 7.9% from 3Q 2023). Net income: LK₨708.4m (down 14% from 3Q 2023). Profit margin: 3.9% (down from 4.2% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Reported Earnings • Nov 11
Second quarter 2024 earnings released: EPS: LK₨1.46 (vs LK₨1.96 in 2Q 2023) Second quarter 2024 results: EPS: LK₨1.46 (down from LK₨1.96 in 2Q 2023). Revenue: LK₨18.3b (down 14% from 2Q 2023). Net income: LK₨873.0m (down 26% from 2Q 2023). Profit margin: 4.8% (down from 5.5% in 2Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. New Risk • Aug 11
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.3% Last year net profit margin: 13% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (4.3% net profit margin). Market cap is less than US$100m (LK₨19.9b market cap, or US$62.1m). Reported Earnings • Aug 11
First quarter 2024 earnings released: EPS: LK₨0.96 (vs LK₨6.19 in 1Q 2023) First quarter 2024 results: EPS: LK₨0.96 (down from LK₨6.19 in 1Q 2023). Revenue: LK₨18.6b (down 11% from 1Q 2023). Net income: LK₨573.9m (down 85% from 1Q 2023). Profit margin: 3.1% (down from 18% in 1Q 2023). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 27% per year whereas the company’s share price has increased by 26% per year. Valuation Update With 7 Day Price Move • Jul 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to LK₨32.30, the stock trades at a trailing P/E ratio of 3x. Average trailing P/E is 5x in the Chemicals industry in Sri Lanka. Total returns to shareholders of 252% over the past three years. Upcoming Dividend • Jun 21
Upcoming dividend of LK₨0.50 per share at 12% yield Eligible shareholders must have bought the stock before 28 June 2023. Payment date: 12 July 2023. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 12%. Within top quartile of Sri Lankan dividend payers (8.7%). Higher than average of industry peers (8.5%). Recent Insider Transactions • Jun 08
Deputy MD & Executive Director recently bought LK₨2.3m worth of stock On the 2nd of June, Rathgama Handalage Janadheera bought around 90k shares on-market at roughly LK₨25.27 per share. This transaction amounted to 26% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought LK₨15m more in shares than they have sold in the last 12 months. Reported Earnings • May 20
Full year 2023 earnings released: EPS: LK₨10.87 (vs LK₨8.99 in FY 2022) Full year 2023 results: EPS: LK₨10.87 (up from LK₨8.99 in FY 2022). Revenue: LK₨80.1b (up 45% from FY 2022). Net income: LK₨6.51b (up 21% from FY 2022). Profit margin: 8.1% (down from 9.7% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 46% per year whereas the company’s share price has increased by 49% per year. Reported Earnings • Feb 15
Third quarter 2023 earnings released: EPS: LK₨1.38 (vs LK₨1.36 in 3Q 2022) Third quarter 2023 results: EPS: LK₨1.38 (up from LK₨1.36 in 3Q 2022). Revenue: LK₨19.6b (up 54% from 3Q 2022). Net income: LK₨827.4m (up 2.0% from 3Q 2022). Profit margin: 4.2% (down from 6.4% in 3Q 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 51% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jan 04
Upcoming dividend of LK₨1.00 per share Eligible shareholders must have bought the stock before 11 January 2023. Payment date: 20 January 2023. Payout ratio is a comfortable 4.8% and this is well supported by cash flows. Trailing yield: 7.1%. Lower than top quartile of Sri Lankan dividend payers (8.5%). Higher than average of industry peers (5.9%). Recent Insider Transactions • Dec 02
Non-Executive Director recently bought LK₨280k worth of stock On the 29th of November, Sarath Ganegoda bought around 10k shares on-market at roughly LK₨28.00 per share. This transaction amounted to 3.8% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought LK₨36m more in shares than they have sold in the last 12 months. Duyuru • Oct 20
Dipped Products PLC Appoints Donna Brindhini Perera as Non-Executive Director Dhammika Perera's eldest daughter Donna Brindhini Perera has been appointed as a Non-Executive Director of several companies of her father's business empire. She has been appointed to the board of Dipped Products PLC, with effect from October 9, 2022. Brindhini Perera holds a Masters in Mechanical Engineering from the Imperial College London, covering Manufacturing Technology and Management, Entrepreneurship, Corporate Finance, Statistics and Mathematics. Upcoming Dividend • Oct 04
Upcoming dividend of LK₨1.25 per share Eligible shareholders must have bought the stock before 11 October 2022. Payment date: 21 October 2022. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 5.2%. Lower than top quartile of Sri Lankan dividend payers (7.8%). In line with average of industry peers (5.5%). Reported Earnings • Aug 11
First quarter 2023 earnings released: EPS: LK₨6.18 (vs LK₨2.08 in 1Q 2022) First quarter 2023 results: EPS: LK₨6.18 (up from LK₨2.08 in 1Q 2022). Revenue: LK₨20.7b (up 24% from 1Q 2022). Net income: LK₨3.70b (up 197% from 1Q 2022). Profit margin: 18% (up from 7.4% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 69% per year whereas the company’s share price has increased by 73% per year. Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment improved over the past week After last week's 22% share price gain to LK₨36.60, the stock trades at a trailing P/E ratio of 4.1x. Average trailing P/E is 5x in the Chemicals industry in Sri Lanka. Total returns to shareholders of 462% over the past three years. Valuation Update With 7 Day Price Move • Jul 20
Investor sentiment improved over the past week After last week's 15% share price gain to LK₨29.30, the stock trades at a trailing P/E ratio of 3.3x. Average trailing P/E is 5x in the Chemicals industry in Sri Lanka. Total returns to shareholders of 313% over the past three years. Recent Insider Transactions • Jul 10
Deputy MD & Executive Director recently bought LK₨241k worth of stock On the 5th of July, Rathgama Handalage Janadheera bought around 10k shares on-market at roughly LK₨24.10 per share. In the last 3 months, there was an even bigger purchase from another insider worth LK₨14m. Insiders have collectively bought LK₨38m more in shares than they have sold in the last 12 months. Upcoming Dividend • Jun 22
Upcoming dividend of LK₨0.15 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 11 July 2022. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 7.5%. Lower than top quartile of Sri Lankan dividend payers (9.5%). In line with average of industry peers (7.9%). Valuation Update With 7 Day Price Move • Jun 14
Investor sentiment improved over the past week After last week's 17% share price gain to LK₨31.50, the stock trades at a trailing P/E ratio of 3.5x. Average trailing P/E is 5x in the Chemicals industry in Sri Lanka. Total returns to shareholders of 375% over the past three years. Recent Insider Transactions • May 29
Executive Deputy Chairman recently bought LK₨14m worth of stock On the 27th of May, Hegodagamage Senarath Kariyawasan bought around 475k shares on-market at roughly LK₨30.49 per share. This was the largest purchase by an insider in the last 3 months. This was Hegodagamage Senarath's only on-market trade for the last 12 months. Reported Earnings • May 20
Full year 2022 earnings released: EPS: LK₨8.99 (vs LK₨8.63 in FY 2021) Full year 2022 results: EPS: LK₨8.99 (up from LK₨8.63 in FY 2021). Revenue: LK₨55.3b (up 19% from FY 2021). Net income: LK₨5.38b (up 4.2% from FY 2021). Profit margin: 9.7% (down from 11% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 58% 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 21% share price gain to LK₨33.50, the stock trades at a trailing P/E ratio of 4.3x. Average trailing P/E is 7x in the Chemicals industry in Sri Lanka. Total returns to shareholders of 412% over the past three years. Board Change • Apr 27
Less than half of directors are independent 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. 5 highly experienced directors. 4 independent directors (8 non-independent directors). Independent Non-Executive Director Kalupathiranalage Don Gunaratne was the last independent director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment deteriorated over the past week After last week's 19% share price decline to LK₨32.50, the stock trades at a trailing P/E ratio of 4.2x. Average trailing P/E is 7x in the Chemicals industry in Sri Lanka. Total returns to shareholders of 376% over the past three years. Reported Earnings • Feb 11
Third quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2022 results: EPS: LK₨1.35 (down from LK₨2.65 in 3Q 2021). Revenue: LK₨12.7b (up 3.4% from 3Q 2021). Net income: LK₨811.0m (down 49% from 3Q 2021). Profit margin: 6.4% (down from 13% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.7%. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 67% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jan 03
Upcoming dividend of LK₨0.45 per share Eligible shareholders must have bought the stock before 10 January 2022. Payment date: 28 January 2022. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 5.7%. Within top quartile of Sri Lankan dividend payers (5.2%). In line with average of industry peers (5.2%). Reported Earnings • Nov 10
Second quarter 2022 earnings released: EPS LK₨1.61 (vs LK₨2.19 in 2Q 2021) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2022 results: Revenue: LK₨13.2b (up 21% from 2Q 2021). Net income: LK₨961.6m (down 27% from 2Q 2021). Profit margin: 7.3% (down from 12% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 78% per year whereas the company’s share price has increased by 76% per year. Valuation Update With 7 Day Price Move • Aug 27
Investor sentiment improved over the past week After last week's 19% share price gain to LK₨65.80, the stock trades at a trailing P/E ratio of 6.8x. Average forward P/E is 16x in the Chemicals industry in Sri Lanka. Total returns to shareholders of 886% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at LK₨30.87 per share. Reported Earnings • Aug 13
First quarter 2022 earnings released: EPS LK₨2.08 (vs LK₨1.02 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: LK₨16.8b (up 80% from 1Q 2021). Net income: LK₨1.25b (up 104% from 1Q 2021). Profit margin: 7.4% (up from 6.5% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has increased by 90% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Jul 21
Key Executive recently bought LK₨3.0m worth of stock On the 16th of July, N. A. R. R. Nanayakkara bought around 55k shares on-market at roughly LK₨54.69 per share. This was the largest purchase by an insider in the last 3 months. N. A. R. R. has been a buyer over the last 12 months, purchasing a net total of LK₨5.8m worth in shares. Upcoming Dividend • Jun 23
Upcoming dividend of LK₨0.60 per share Eligible shareholders must have bought the stock before 30 June 2021. Payment date: 09 July 2021. Trailing yield: 5.6%. Within top quartile of Sri Lankan dividend payers (5.6%). Higher than average of industry peers (5.0%). Duyuru • May 20
Dipped Products PLC Proposes the Payment of Dividend for the Year Ended 31 March 2021 The directors of Dipped Products PLC have proposed the payment of dividend of LKR 0.60 per share on 18th May 2021, for the year ended 31st March 2021, which will be declared on the Annual General Meeting held on 29th June, 2021. Reported Earnings • May 19
Full year 2021 earnings released: EPS LK₨8.63 (vs LK₨1.25 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: LK₨46.4b (up 52% from FY 2020). Net income: LK₨5.16b (up LK₨4.42b from FY 2020). Profit margin: 11% (up from 2.4% 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 72% per year but the company’s share price has increased by 88% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 06
Investor sentiment improved over the past week After last week's 15% share price gain to LK₨53.40, the stock trades at a trailing P/E ratio of 8.8x. Average forward P/E is 18x in the Chemicals industry in Sri Lanka. Total returns to shareholders of 670% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at LK₨24.40 per share. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improved over the past week After last week's 18% share price gain to LK₨51.00, the stock is trading at a trailing P/E ratio of 8.5x, up from the previous P/E ratio of 7.2x. This compares to an average P/E of 9x in the Chemicals industry in Sri Lanka. Total returns to shareholders over the past three years are 572%. Upcoming Dividend • Mar 10
Upcoming Dividend of LK₨1.00 Per Share Will be paid on the 25th of March to those who are registered shareholders by the 17th of March. The trailing yield of 2.6% is below the top quartile of Sri Lankan dividend payers (4.4%), and is lower than industry peers (3.3%). Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment deteriorated over the past week After last week's 16% share price decline to LK₨50.30, the stock is trading at a trailing P/E ratio of 8.3x, down from the previous P/E ratio of 10x. This compares to an average P/E of 8x in the Chemicals industry in Sri Lanka. Total returns to shareholders over the past three years are 618%. Reported Earnings • Feb 12
Third quarter 2021 earnings released: EPS LK₨26.50 (vs LK₨5.15 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: LK₨12.3b (up 55% from 3Q 2020). Net income: LK₨1.59b (up 414% from 3Q 2020). Profit margin: 13% (up from 3.9% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has increased by 97% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improved over the past week After last week's 17% share price gain to LK₨719, the stock is trading at a trailing P/E ratio of 18.4x, up from the previous P/E ratio of 15.7x. This compares to an average P/E of 13x in the Chemicals industry in Sri Lanka. Total returns to shareholders over the past three years are 912%. Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improved over the past week After last week's 16% share price gain to LK₨441, the stock is trading at a trailing P/E ratio of 11.3x, up from the previous P/E ratio of 9.8x. This compares to an average P/E of 11x in the Chemicals industry in Sri Lanka. Total returns to shareholders over the past three years are 530%. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improved over the past week After last week's 18% share price gain to LK₨401, the stock is trading at a trailing P/E ratio of 10.3x, up from the previous P/E ratio of 8.7x. This compares to an average P/E of 11x in the Chemicals industry in Sri Lanka. Total returns to shareholders over the past three years are 477%. Is New 90 Day High Low • Jan 15
New 90-day high: LK₨401 The company is up 21% from its price of LK₨331 on 16 October 2020. The Sri Lankan market is up 26% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 47% over the same period. Upcoming Dividend • Dec 01
Upcoming Dividend of LK₨9.00 Per Share Will be paid on the 21st of December to those who are registered shareholders by the 8th of December. The trailing yield of 1.2% is below the top quartile of Sri Lankan dividend payers (4.6%), and is lower than industry peers (3.8%). Recent Insider Transactions • Nov 25
Executive Deputy Chairman recently bought LK₨46m worth of stock On the 17th of November, Hegodagamage Senarath Kariyawasan bought around 140k shares on-market at roughly LK₨327 per share. This was the largest purchase by an insider in the last 3 months. Hegodagamage Senarath has been a buyer over the last 12 months, purchasing a net total of LK₨73m worth in shares. Valuation Update With 7 Day Price Move • Nov 12
Market pulls back on stock over the past week After last week's 16% share price decline to LK₨328, the stock is trading at a trailing P/E ratio of 8.4x, down from the previous P/E ratio of 10x. This compares to an average P/E of 7x in the Chemicals industry in Sri Lanka. Total returns to shareholders over the past three years are 355%. Is New 90 Day High Low • Nov 05
New 90-day high: LK₨391 The company is up 174% from its price of LK₨142 on 07 August 2020. The Sri Lankan market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 54% over the same period. Reported Earnings • Nov 05
Second quarter 2021 earnings released: EPS LK₨21.88 The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: LK₨11.0b (up 47% from 2Q 2020). Net income: LK₨1.31b (up 467% from 2Q 2020). Profit margin: 12% (up from 3.1% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has increased by 63% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Oct 19
New 90-day high: LK₨335 The company is up 166% from its price of LK₨126 on 21 July 2020. The Sri Lankan market is up 19% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 76% over the same period. Valuation Update With 7 Day Price Move • Oct 12
Market bids up stock over the past week After last week's 20% share price gain to LK₨241, the stock is trading at a trailing P/E ratio of 11.5x, up from the previous P/E ratio of 9.6x. This compares to an average P/E of 7x in the Chemicals industry in Sri Lanka. Total returns to shareholders over the past three years are 202%. Upcoming Dividend • Oct 02
Upcoming Dividend of LK₨3.00 Per Share Will be paid on the 20th of October to those who are registered shareholders by the 9th of October. The trailing yield of 1.8% is below the top quartile of Sri Lankan dividend payers (5.5%), and is lower than industry peers (5.2%). Duyuru • Oct 02
Dipped Products PLC Appoints Hegodagamage Senarath Rajitha kariyawasan as Deputy Chairman Dipped Products PLC appointed Hegodagamage Senarath Rajitha kariyawasan as Deputy Chairman of the company in the executive capacity with effect from October 01, 2020. He joined the company in January 2010. He was appointed to the Group Management Committee in February 2010 and the Board of the Hayleys PLC as an Executive Director in June 2010. Is New 90 Day High Low • Sep 28
New 90-day high: LK₨225 The company is up 120% from its price of LK₨102 on 30 June 2020. The Sri Lankan market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 50% over the same period. Recent Insider Transactions • Sep 24
Non-Executive Director recently bought LK₨1.2m worth of stock On the 15th of September, Hegodagamage Senarath Kariyawasan bought around 6k shares on-market at roughly LK₨198 per share. In the last 3 months, they made an even bigger purchase worth LK₨17m. Insiders have collectively bought LK₨29m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Sep 18
Key Executive recently bought LK₨2.8m worth of stock On the 10th of September, N. A. R. R. Nanayakkara bought around 15k shares on-market at roughly LK₨187 per share. In the last 3 months, there was an even bigger purchase from another insider worth LK₨7.4m. This was N. A. R. R.'s only on-market trade for the last 12 months. 
