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year to date was TTD1,005 million, a 7.2% increase over
same period last year, mainly due to solid contributions
from the retail banking and insurance business lines that
increased by 1.1% and 19.75% respectively.
Total assets ended the period at TTD18.7 billion,
representing growth of TTD1.5 billion over the
comparative period in 2012.
The largest components of expenses were salaries and
employee benefits costs due to market driven salary
increases. For the nine months to July 2013, non-interest
expenses increased by a marginal 0.9% compared to
same period last year.
Dividends per share for the three months ending July
2013 amounted to TTD0.40 representing a payout ratio
of 56%.
SBTT’s share price is up 9.92% year-to-date as at 19
Nov 2013 trading at a 52-week high of TTD72.05 with 1.1
million shares trading.
SBTT remains one of the more demanded stocks on the
exchange with widening bid-ask spreads and limited supply
available on the market contributing to a strong price
appreciation. SBTT has a sustainable growth rate of 9%
in 2012 and a 5-year rate of 13%, further supported by an
expected overall increase in interest rates in the medium
term. The stock is trading at a P/E of 23.3, well above the
industry average of 14.04, with a steady increase in dividends
every year.
Neal & Massy Holdings Limited (NML):
Trailing P/E: 11.0
Trailing EPS: TTD3.99
52-Week High: TTD61.50
Trailing Dividend: TTD1.55
Dividend Yield:2.67%
52-Week Low: TTD45.39
Year Ending 30 June 2013
• For the nine months to June 2013, reported net profits
increased 18% to TTD387 million from the same period
a year ago
• The operating cash flow to EBIT ratios have decreased
from 2010 to 2011 from 1.16 to 1.07 but moved upward
again in 2013 to 1.10. EPS at TTD7.27 marks an increase
of 21 cents over the 12 months ending September 2012.
• Liquidity levels are satisfactory but using an indicator of
the company’s ability to meet its short-term obligation,
a quick ratio, of 1 and below over the last 3 years, the
company needs to reduce its proportion of inventories
in relation to other current assets to be able to meet any
short-term debt that may arise unexpectedly. (The quick
ratio measures a company’s ability to meet its short-term
obligations with its most liquid assets).
• In June, the Energy & Industrial Gas Business Unit
completed the purchase of Caribbean Insulation Services
Limited (CISL) and a full integration process is currently
underway. The methanol to Dimethyl-Ether (DME)
project with Mitsubishi Corporation, Mitsubishi Gas
Chemicals Company and the Government of Trinidad
and Tobago is proceeding as planned.
With strategic plans for expansion of the retail, automotive
and industrial equipment business in Trinidad & Tobago,
NML is expected to maintain substantial growth in the
short‑term.
ANSA McAL Limited (AMCL)
Trailing P/E: 17.31
Trailing EPS: TTD3.69
52-Week High: TTD67.22
Trailing Dividend: TTD1.10
Dividend Yield: 1.66%
52-Week Low: TTD65.27
Six Months Ending 30 June 2013
• As at June 2013, the company’s asset base was TTD11.5
billion a 5% increase to a year ago and a 2% increase
asset as at the end of December 2012.
• A deeper look at the quality of ANSA’s reported
earnings shows that growth in profits is mainly from its
operations. Return on equity is driven mainly by steady,
positive return on assets, which averaged 5.6% over the
last 3 years, versus leverage which has steadily decreased
over the 3-year period.
• Operating cash flows are positive and have consistently
exceeded operating earnings. The ratio of operating cash
flow to operating earnings increased from 0.86 to 1.23
over the last 3 years suggesting
• The capital structure as at year ended 2012 was funded
mainly by equity which accounts for 97% of total capital
following the repayment of TTD786 million bond in June
2012, reducing gearing to 3% and overall financing costs
by TTD49 million.
• One area of concern for ANSA is its cost of production,
which increased 13% for financial year 2012 over 2011
and accounts for approximately 60% of revenues. This
was reflected in the slightly lower gross profit and
operating profit margins in 2012.
Ansa McAL has consistently paid a dividend of TTD1.10 in
the past 3-5 years. Considering the company’s operational
strength, its adequate cash flow to support earnings, liquidity
and capital structure, ANSA’s performance appears to be
sustainable. Currently trading at TTD66.30, AMCL’s dividend
yield is 1.66%.
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