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SMB Securities (Pvt) Ltd

SMB Research


Recommendation Price Price Target Price Target (12M) Stock Code Sector FY Ends May 13, 2011 Major Shareholders as of Dec 31, 2010
Name of Shareholder Engineering Serv. (Pvt) Ltd. Mason's Mixture Ltd. Lanka Orix Leasing Co. PLC Mutugala Estates (Pvt) Ltd. Mr. S.V. Somasunderam Pathregalla Estates (Pvt) Ltd. ACE Bonus Investments Ltd. Vyjayanthi & Company Ltd. Mr. A.L. Devasurendra Bank Of Ceylon A/C No.1 No of Shares 16,588,962 13,732,632 4,519,200 2,986,524 2,310,800 1,961,658 1,755,000 1,155,897 1,098,900 716,000 46,825,573 % 23 19 6 4 3 3 2 2 2 1 66

BUY LKR 385.50 LKR 648.58 LKR 684.37 BRWN.N0000 Trading March 31

We recommend a strong buy rating based on companys strong future performance. Browns is expected to enjoy improved profit margins owning to expanding market shares whilst dominating its key revenue generating sectors and innovating strategic investments. We anticipate a YoY Net Income increment of 42.20% for FY2011/12E owning to growth prospects of Browns supported by a 46.35% of YoY increase in GP margins followed by substantial reductions in finance costs and high contributions from associates results. Based on our forecasts we have arrived to an intrinsic value of share of LKR 684.37 a price increase of 77.53% in next twelve months period. A considerable development can be expected in the industries where Browns has its presence as a result of high growth potentials in the economy. We expect the company to capitalize largely on this enhancement in industry volume due to its market expansion. The company is currently associated with world leading brands in its product portfolio which are holding strong presence in the country over a long period of time. Browns have the benefit of its strong distribution network. Service centers, regional and mini regional centers, dealer network are currently strengthening its product distribution and these are anticipated to expand.

1M BRWN TRD ASPI 10% 6% 3%

3M 48% 26% 4%

12M 295% 215% 73%

Figure 1 : Share Performance of Browns

Volume 400% 350% 2.0 300% 250% 200% 150% 0.5 100% 50% 0.0 1.5 ASPI Trading BRWN.N0000 Volume Mn 2.5

Market Profile
52W Price Range Avg Daily Volume Avg Daily Turnover Market Capitalization Mkt Cap/Total Mkt Cap Shares Issued Free Float Foreign Holding Market Beta EPS NAPS D/E Ratio LKR 95.00 391.90 182,473 LKR 38,607,974 LKR 27,322Mn 1.10% 70,875,000 51.51% 10.04% 1.21 LKR 49.66 LKR 289.80 16.28%


Source: CSE Data & SMB Research

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Business Description More than 136 years operations in the country of business Brown & Company PLC is a diversified business conglomerate in Sri Lanka mainly dominating in the trading sector whilst keeping its interest open for developing industries. Browns history counts back to 1875 where it commenced its business operations mainly focusing on importing and manufacturing of farming and agricultural machinery. Today the company carries out its business in various segments broadening its horizons not only to trading and manufacturing but also to travel and tours, finance and plantations. As a strategic move Browns has invested in new business ventures gaining advantage of a more expanded business portfolio. The company currently holds the market leadership in seven key sectors which it operates. The Browns group comprise of nineteen subsidiaries, three associates and one joint venture company.

A trading/manufacturing entity branched out to new areas of business

Figure 2 : Segmental Revenue 3Q FY10/11

Segmental Overview Browns group has identified its main revenue generating areas under five segments namely Trading, Manufacturing, Travels & tours, Finance and Plantations. These key business segments of the company are further classified according to the industries they are operating in. The trading segment is the largest contributor to the groups revenue whilst the plantations sector became the second highest contributor being the latest addition to the group.

Plantation 29% Finance 1% Manufactu ring 10% Trading 60%

Travel & Tours 0%

Figure 3 : Segmental Profit from Operations 3Q FY10/11

Trading & Manufacturing Segments The trading and manufacturing arm of the Browns group caters to different business sectors namely Engineering and Hardware, Power Generation, Agriculture, Pharmaceuticals, Business Solutions and Electronics & Home Appliances.

Trading 21%

Manufactu ring 3%

Plantation 44%

Travel & Tours 0% Finance 32%

Source: Browns Quarterly Report, 3Q FY10/11

Engineering and Hardware Sector This sector carries out the businesses of importing and distributing of hardware, industrial tools & machinery and electrical accessories through general trading division, marketing of consumer home appliances, domestic water pumps & automobile batteries through consumer division and marketing of FG Wilson generators through power systems division of the company. In addition its subsidiaries Browns Group Industries engages in importing & distributing of Yanmar marine engines & marine accessories whilst Browns Radiators (formerly known as Browns Dimo Industrial) manufactures automotive, locomotive & nonauto radiators and oil & air coolers under Radco brand. Currently this sector consumes stakes of 51%, 65%, 42% and 15% in power tools & accessories, marine engines, radiators and power systems respectively.

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Figure 4 : Revenue Breakdown of Trading/Manufacturing Segment FY09/10

Business Solutions 6% Pharmace uticals 3% Electronics & Home Appliances 9% Engineerin g& Hardware 16%

Agriculture 32%

Power Generatio n 34%

Power Generation Sector The battery division of Brown & Company PLC along with its subsidiary Klevenberg (Pvt) Ltd and its associate Associated Battery Manufactures (Cey) Ltd engage in the business of manufacturing and trading of automotive, non automotive and motorcycle batteries and trading of battery acid and battery water. Browns battery division is the most successful individual unit which generates over 20% to the total revenue over the past years depicting impressive results. Browns dominates the automotive battery segment with a 64% of stake through Exide brand with 53% and Lucas brand with 10%. The company intends to increase Lucass share further to 21%. Agriculture Sector Agriculture division of the company imports and distributes four wheel tractors and markets agriculture implements & tractor implements where Browns subsidiary Sifang Lanka is importing, assembling & distributing two wheel tractors. Moreover as a latest addition, a separate division provides plantation support services & energy efficient solution for plantation industry and markets plantation machinery & equipments. Browns is the market leader in the total tractors market with a share of 73% whilst in four wheels segment it holds 65% and in two wheels segment it holds 38%. Pharmaceuticals Sector Under this sector Vet Pharma division of the company markets animal healthcare products & animal feed components and provide healthcare products for poultry industry. Browns currently dominates the veterinary pharmaceuticals industry with a market share of 33%. Business Solutions Sector The integrated business solutions division provides a total office automation solution for the corporate entities as per their requirements. Accordingly this division markets computers, copiers, faxes, projectors and LCD televisions. Browns is the market leader of this industry with a stake of 30%. Electronics and Home Appliances Sector The retail channel of the company is represented by this sector which trades the products under all above sectors. Apart from that electronic & home appliances are marketed in this division. Sugar & Ethanol Production Moreover the company has ventured jointly into Galoya Plantations with Lanka Orix Leasing Company Ltd for a stake of 49% whilst the rest is owned by the government. By 2011 the operations of the company is scheduled to commence and sugar has been identified as the main product and ethanol will also be produced as a biproduct.

Source: Browns Annual Report, FY 09/10

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Travel & Tours Segment Browns Tours operates as general sales agent for three major air lines & BG Air services provides inbound & outbound package tours and all travel related services. Finance Segment Under this segment Browns fully owned subsidiary standard finance carries out an investment portfolio which generates dividend and interest income as their main revenue. It has a 27% stake in Browns Rubber Industries & 39% stake in Associated Battery Manufacturers. Plantations Segment Browns has ventured into Maturata Plantations Ltd & Pussellawa Plantations Ltd through Browns Investments. These two companies own 31 tea estates, 9 rubber estates & 4 tea cum rubber estates for a total capacity of 12.6 Mn Kgs of tea, 3.7 Mn Kgs of rubber & o.4 Mn coconut nuts. The existing mini hydro projects located in these estates currently supply 3.2 MW for the national grid and they are in expansion for further power production by 16.8 MW.

Figure 5 : Economic Indicators

Per Capita Income 10% 8% 6% 4% 2% 0% 2006 2007 2008 2009 2010 GDP Growth 3,000 2,500 2,000 1,500 1,000 500 0

Overview of the Industries The economy is reaching new heights driven by the post war optimism and upturned global climate. The projected GDP growth of the country is expected to bring high dividends to all the sectors of the economy enhancing the living standards of the people. A new market has emerged due to the opening of North and East regions bringing new opportunities. The demand for hardware, industrial and electrical tools & accessories is highly dependable on the economic climate prevailing. Expected developments in construction industry and economy will bring a boosting factor to improve the sales volumes. However the high import costs affected by global row materiel prices of these products are directly affecting the sales prices. The boat building business is now witnessing an upturn considering the reentering to a previously inaccessible market of North & East which covers a major part of the coastal line for the fisheries industry. However this industry is heavily exposed to cheap used marine engines and duplicate spare parts. The prices of diesel could create an indirect affect on the demand for marine engines. The demand for power generators is being moving up with the improvement of new projects in the construction, telecommunications and power & energy sectors. High value generators are now experiencing a high demand over the other segments.

10% 8% 6% 4% 2% 0% 2006 2007





Fishing 60% 50% 40% 30% 20% 10% 0% 2006 2007 2008

Diesel Prices 80 60 40 20 0 2009 2010

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Vehicle Polulation
New Vehicle Reg (Mn)

New Vehicle Registrations

Vehicle Population (Mn)

0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 2006 2007 2008 2009 2010

4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

The radiator industry consists only two local manufactures and other importers. The demand for radiators is expected to enhance along with the growth of the vehicle population. The industry is suffering from flood of used aluminum & plastic radiator imports and unawareness amongst the customers. The battery industry is projected to enjoy the opportunities arose by the improved economic conditions and opening up of new markets of North and East. The increase in per capita income is expected to improve the demand for non automotive batteries and increase in new vehicle registration is expected to improve the demand for automotive batteries. However the fluctuations in the global lead prices; the main raw material in producing batteries affects both the cost of production and the selling price. The battery industry is highly affected by low priced products with inferior quality. The developments in the production of agricultural products will impact the tractor population to increase. This market broadly segmented as four wheel tractors and two wheel tractors. The industry was however further supported by the government with the introduction of the AAIB Act. Moreover the plantation support services business is also experiencing an uptrend due to improvements in tea and rubber plantations. The market for veterinary pharmaceuticals & animal feed has been showing a moderate growth as the standard of living of people has been considerably improving. The demand for organic foods in this market is emerging creating new opportunities for vendors. The market for corporate business solutions and electronics & home appliances is also predicted to grow supported by the upgrading of the standards of both the corporate and household sector with the economic growth. Travel related services are now anticipated for a positive move despite of the adverse outcomes over past periods of time. Apart from positive economic environment, government promotions on tourism, positive travel advisory on Sri Lanka have made the projections on the tourist arrivals to a higher note. Being one of the largest tea exporters to the global market Sri Lankas tea production is estimated for a moderate growth owning to favorable weather conditions, efficient use of fertilizer & other inputs. However tea prices on average is not expected to rise. Rubber is now experiencing very high price levels due to global short supply, rising crude oil prices & higher global demand whilst the rubber production also predicted to increase with favorable weather & rising productivity levels.

Tourist Arrivals 80000 60000 40000 20000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2010 2011 Tea Production Prod (kg Mn) 340 330 320 310 300 290 280 270 2006 2007 2008 2009 2010 Avg Tea Prices Price LKR 400 300 200 100 0 Rubber Production Prod (kg Mn) 150 140 130 120 110 100 2006 2007 2008 2009 2010 Avg Rubber Prices Price LKR 500 400 300 200 100 0

Source : Central Bank of Sri Lanka

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Competitive Positioning Gain advantages economy from improving Browns has impressively positioned themselves in the industry through intense focusing of the business portfolio. The company has already taken measures to enjoy the benefits of increasing industry volumes. Browns consumes the market leadership in seven key sectors which it operates. In power tools, marine engines, automotive batteries and four wheel tractors it covers more than half of the market whereas in two wheel tractors, radiators, veterinary pharmaceuticals and integrated business solutions it occupies more than one third of the market. In other product sectors Browns at least holds second or third position in their respective markets. The company is focusing further into these market segments for the continual improvements in their stakes. World renowned brands are in association with Browns group registering its continuous growth in the market share. Under most of its product lines Browns act as the sole distributor for such brands. The Browns corporate brand has received the Superbrand status two years back. The long presence of Browns brand portfolio has built the confidence of end users. They are in continual to position the key brands whilst keeping other brands above the line through several brand building & awareness campaigns to end users. Moreover the strong distribution network of products has further assured the growing market shares of the company. The delivery channel of the company comprises of more than 200 service centers including power marts, regional centers, mini regional centers and franchise service centers and well established dealer network for each product line. Company keeps widening its customer access points. A new regional centre was opened in Jaffna and next would be located in Ampara. North & East region currently contains over 170 dealers. For general trading segment company intends to improve the dealer network by 25% in all operational areas. Batteries sector is in the process of expanding their current network of 500 Exide dealers, 300 Lucas dealers, 30 battmobile services to 50, Lucas premium service centers and power marts. Browns provide its products specializing in different market segments whilst maintaining the quality of them. Their product portfolio reaches to both economic & premium range. However the company does not seek to gain advantages on low costs through price leadership, in spite they maintain a high quality in their products specially to meet the vulnerability brought by the low quality cheap imports.

Market leadership in seven key sectors

Strong brand presence

Wider access to products for customers

Not to compete on price but to differentiate

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Strategic marketing campaigns & more value adding services

Strategized marketing moves like initializing Power Marts, Lucas Premium Service Centers, Battmobile services & Auto Rescue services, effective product support services through staff training & communications, product promotions, service campaigns, sponsorships and dealer motivations have also contributed largely on gaining a higher portion. The company is considering in providing a complete solution for their end users by offering related accessories and support services along with the products in order to confirm brand loyalty & assure the market share. Further the company is maintaining a good relationship with their suppliers, customers and intermediaries and had taken proactive measures to build new channels & strengthen current channels of these networks. Browns is aggressively and strategically penetrating into identified market segment especially North & East area. The company caters to individuals and institutional customers including the government. Dealers as end users come under their retail channel. In certain sectors the company has made agreements on supplying products. Arrangements are made with projects initiated under Ministry of Fisheries, fisheries organizations and Sri Lanka Navy. Power systems division has agreed upon to supply generators to Central Hospitals. Browns is the sole automotive battery supplier to all government requirements as specified by the MOU signed with State Trading Corporation. However the company is in a belief that they do not face a threat of losing their major institutional customers due to strong relationship their maintaining with high quality, branded products and value added services. Browns is diversifying its product portfolio through continuous product innovations and product upgrades. BG Water pumps, Lucas premium MF are some of latest additions to their product range. Two new products are to introduce under each product line in the hardware & power tools. Commercial manufacturing of tractor trailers is to commence from current year onwards. Automotive batteries, radiators are in the process of introducing novel products. Fertilizer products are to be introduced under agricultural division. Browns intends to offer a complete package comprise of products, related products & accessories for their customers.

Diverse clientele

Continuous product innovations

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Figure 6 : YoY Price Appreciation of BRWN.N0000

78% 684

Investment Summary We initiated a buy rating as we foresee the companys ability to generate high cash inflows through healthy revenue and profit margins, strategic investment activities and equity financing activities. In our opinion Browns will have increases in its key revenue sources mainly on increasing volumes due to improved industry prospects and growing market shares. Being dominated its key market segments company will not face difficulties in price escalations of products whereas the increases in cost of sales would not impact GP margins on largely as they are capable of surpassing the cost increments to end users. The increasing operational cost elements; distribution costs emerge as a result of increasing volumes and administration costs on high staff investments is expected to bring down gross profits moderately. We arrived at a one year price target of LKR 684.37 Which reflects a 77.53% upturn from the current price level. Browns future strategies are focused on continuous investments into new business ventures. Accordingly they have planned to enter areas of forestry, hotels & ecotourism and real estate development. The accurate timing of entry and exit of such venturing is expected to bring high inflow of funds to the company. Apart from that the investment made on Galoya Plantations is expected to generate cash inflows after 2011 with the commencement of production of sugar and ethanol. Browns Investments has raised LKR 4,150 Mn of funds issuing ordinary shares through a private placement. These cash flows have also taken into account in the valuation. Further this company intends to list its ordinary shares in CSE through an initial public offer.

33% 230% 388% 41%



Figure 7 : Financial Highlights

25,000 20,000 15,000 10,000 5,000 0 GP Margin 30% NP Margin 0% 40% Revenue Revenue Growth 60%





5,000 4,000 3,000 2,000 1,000 0

Net Income





Financial Analysis We have arrived our forecasts on the financial performance and position of the company evaluating each subsector of its business. Revenue is expected to witness favorable increases in the coming years providing high GP margins of 27.63% on average. Bottom line is expected to increase impressively registering a growth of 42% in FY2011/12E. However we do not anticipate an improvement in the net income to such an extent in the following years. The high operational performance is projected to deliver excess cash to the company. Yet we believe that initiatives on market share developments will incur a considerable amount of capital expenditure and investments on working capital would improve moderately. The asset base of the company will expand along with the enhancement in the business lines. We expect Browns to keep their leverage on existing levels as they will enjoy increased reserves and cash surplus.


800 600 400 200 0 Borrowings 5,000 4,000 3,000 2,000 1,000 0
FY FY FY FY FY FY FY 06/07 07/08 08/09 09/10 10/11E 11/12E 12/13E



0 D/E Ratio 30% 25% 20% 15% 10% 5% 0%

Source : Company Data & SMB Research

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SM Securitie (Pvt) Ltd MB es

SMB Research R

Ke Financials (LKR Mn) & Key Ratios ey K

FY 06/07 Y 5,085 1,021 532 524 8,532 2,477 254 5,298 1,501 13.71% 20.07% 5.14% 10.46% 10.30% 74.90% 7.43 7.43 13.48% 13.60% 17.28% 89.47% 28.33% 1.10x 74.53 22.93 3.09x 0.31x FY 07/08 Y 5,797 1,244 602 410 10,786 3,267 366 7,088 1,846 13.99% 21.47% 13.14% 10.38% 7.08% 21.69% 5.92 5.92 6.62% 6.78% 11.04% 26.42% 26.04% 1.13x 99.93 30.74 5.20x 0.31x FY 08/09 6,816 1,390 861 413 15,706 5,983 (895) 9,331 2,664 17.58% 20.40% 43.20% 12.64% 6.06% 0.75% 6.00 6.00 5.03% 6.48% 9.78% 45.62% 28.55% 0.79x 85.37 18.00 3.00x 0.21x FY 09/10 F 8,953 1,491 1,644 1,148 18,591 7,041 371 13,458 1,918 31.35% 16.65% 90.85% 18.36% 12.82% 177.80% 14.30 14.30 10.07% 12.95% 19.30% 18.37% 14.25% 1.13x 135.51 87.75 6.14x 0.65x FY F 10/11E 13,345 3,668 4,593* 4,345* 23,312 7,227 2,098 16,319 2,657 49.07% 27.49% 106.41% 25.43% 23.57% 173.99% 49.66* 35.95 21.13% 28.21% 33.17% 25.39% 16.28% 1.43x 179.14 289.80 8.06x 1.62x F 11/12E FY 19,077 5,368 4,867 4,473 29,131 9,613 2,622 19,809 3,496 42.95% 28.14% 43.43% 25.51% 23.44% 42.20% 51.00 51.00 24.76% 25.03% 34.03% 24.96% 17.65% 1.45x 228.39 684.37*** 13.42x 3.00x FY 12/13E F 23,436 6,386 5,144 4,566 34,862 11,156 4,183 23,358 4,122 22.85% 27.25% 5.69% 21.95% 19.48% 2.10% 52.07 52.07 21.16% 20.55% 28.88% 19.67% 17.65% 1.63x 278.46 716.07*** 13.75x 2.57x

Revenue Gross Prof fit Operating Profit g Net Incom me Total Asse ets PPE Working C Capital Total Equi ity Borrowing gs Revenue G Growth GP Margin n EBIT Grow wth OP Margin n NP Margin n Earnings G Growth EPS** Adjusted E EPS** ROE ROSF ROA Assets Gro owth D/E Ratio Current Assets NAPS** MPS P/E PBV

*This includ the LKR 1.2 B gain on selling HNB Voting Shar des Bn res.(This has adju usted in further ca alculations to bet reflect the da tter ata) ** Adjusted for the existing Issued Capital. d ***Intrinsic value has taken as a p * e proxy for market price.

Figure 8 : ROE Breakdown of Browns

21% 13% 7% 5% 10% 25% 21%

FY 06/07

FY 07/08

FY 08/09

FY FY FY FY 09/10 10/11E 11/12E 12/13E

NP Margin
24 4% 13% 7% 7 6% 23% 19% 10% 78% 60%

Asset Turnover
1.68 51% 52% 64% 73% 7 73% 1.56

Equity Multiplier y
1.61 1.51 1.41 1.45 1.48

FY 06/07

FY 07 7/08

FY 08/09

FY F FY FY FY 09/10 10/ /11E 11/12E 12/13E

FY 06/07

FY 07/08

FY 08/09

FY FY FY FY 09/10 10/11E 11/12E 12/13E

FY 06/07

FY 07/08

FY 08/09

FY FY FY FY 09/10 10/11E 11/12E 12/13E

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Figure 11 : Market PE & Sector PE

ASPI 45 40 35 30 25 20 15 Jun10 Jul10 Aug10 Dec10 May10 Sep10 Nov10 Feb11 Mar11 Apr11 Oct10 Jan11 May11 Trading

Valuation Summary We have reached our valuation taking industry growth potentials & Browns performance into consideration and using Free Cash flow method. Allowing for a terminal growth rate of 5.25% and an equity risk premium of 4.71% we have maintained a cost of equity of 12.01% to comprise 85% of the target capital structure. Cost of debt estimated to a 14% considering the companys borrowing costs and prevailing & expected interest rates. Accordingly the stock currently carries a future value of LKR 648.58 at a WACC of 12.31%. We estimated an EPS of LKR 51.00 for FY2011/12E and a one year forward P/E of 13.42x considering intrinsic value as a proxy for the market price. Our projected NVPS for the same period is LKR 228.39 which trades at a one year forward PBV of 3.00x. We carried out a sensitivity analysis to identify the impact changes in terminal growth rate and WACC to both the target price and the twelve months target price of Browns.

Source : CSE Data

Figure 9 : Sensitivity of Browns Target Price to Growth Rate and Cost of Capital
Growth Rate 5% 6% 945.21 1107.87 787.54 894.07 648.58 716.53 594.28 649.73 530.78 573.38

Cost of Capital

648.58 10% 11% 12% 13% 14%

3% 666.38 587.81 510.43 477.82 437.83

4% 764.49 660.73 562.59 522.39 473.98

7% 1451.24 1098.24 836.97 745.23 644.37

Figure 10 : Sensitivity of Browns Twelve Months Target Price to Growth Rate and Cost of Capital
Growth Rate 5% 6% 996.59 1175.51 830.64 948.88 684.37 760.68 627.21 689.87 560.37 608.93

Cost of Capital

684.37 10% 11% 12% 13% 14%

3% 689.87 608.93 529.21 495.62 454.41

4% 797.79 689.87 587.80 545.98 495.62

7% 1553.22 1175.51 895.96 797.79 689.87

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Figure 12 : Interest Rates & Inflation

AWPR 25% 20% 15% 10% 5% 0% 2006 2007 2008 2009 2010 Inflation

Investment Risks The volatile economic climate may have adverse and unpredictable impact on all the sectors. Unexpected slow growth in economy can drive industry volumes to pace down which will affect to top line figures. The increases in vehicle importing taxes and duties structure can have an effect on new vehicle registrations. High inflation numbers could affect consumer demand to decline by diminished purchasing power. In a situation where interest rates to move upwards on compensating inflation it will have negative effects on the borrowing costs. Company is vulnerable to volatile exchange rates as the products being imported from overseas. Especially fluctuations in the Japanese Yen will have impact on the hardware, electrical goods and home appliances. As the company is engaged in different business lines and segments an intense competition in its key areas of business could bring adverse effects to the company.

Source : Central Bank of Sri Lanka

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Subhashi Jayasumana

Milindha Rathnayaka Ashna Hassim

Dhanushka Sammandapperuma

Tel: +94 11 5733862

Sales & Marketing

Nadun Jayatilleke (CEO) Tel: +94 11 5539593 Mob: +94 712 769090

Sales Tel: +94 11 5733860

Lalith Sepalage Mob: +94 722 421003 Janak Dadallage Mob: +94 715 329612

Nuwan Perera Mob: +94 715 329609 Sampath Indike Mob: +94 715 329605

Vino Ramasamy Mob: +94 718 733725 Kapila Weerasinghe Mob: +94 715 329615

The information contained in this document has been compiled from sources that we believe to be reliable; however we do not hold ourselves responsible for its completeness or accuracy. All opinions and estimates included in this report constitute of our judgment to this date and are subject to change without notice. Information contained in this document is not and should not be construed as an offer, or a solicitation of an offer, to buy or sell any security or other financial instruments, and cannot be relied upon as a representation for any particular transaction. SMB Securities (Pvt) Ltd or its affiliates and / or its directors, officers and employees shall not be in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the content of this document.

SMB Securities (Pvt) Ltd

No: 47, Dharmapala Mawatha, Colombo 03. smbsecurities@gmail.com www.smbsecurities.lk Tel:+ 94 11 5539593