Risk of new entrant (larger developed ctr) ex Paksitan, India, China -> excess

production capacity low operational and production cost + FTA

Any regulatory change on import tax?
High capital requirement, small mkt size, price regulated environemtn
Any companies signed agreement to commission a cement grinding plant?
Who is the second largest player?
How about supplier? It depends on port availability?
What are the COGS contract? Where do they import clinker from? Hows clinker
price like and whats the driver of clinker price demand? Exchange rate?
Cliner is made of global limestone. What is global limestone price?
Tax holiday? When does the tax holiday end?
How many capex spent?
Net debt to equity? Interest rate environment like?
Dividend payout (0.4-1.5/share)
Adverse weather?
Tax any pattern?
PE EV/EBITDA
Headwind: slowdown in construction, regulated pricing reduction (more
competition),
(+) brand equity from 3 decades; (ii) market positioning); (iii) gov ramp up p
Sri lanka ->importer
Manufacturers, grinders, importers
Why holcim and larfarge merger wont affect?
Cement consumption SL
Larfarge -> own bulk storage facility
Bulk vs bagged (bulk cheaper) bulk vs bag 40: 60 -> lots of large scale projects
more bulk
Bulk:retail 25:75
Cement controlled price goes dwon
Clinker price=limestone+energy (energy turun)
Raw material:40-50% freight

Will depreciation stop?

Operating income: biomass (no clear sustainability)c
Cash conversiosn cycle
Flagship megapolis
Cement: local vs improtg
Vat, port authority tax, general corportat eax
Expansoin process: funding
Lafarge-holcim exit? -> why market not incorporate it?
KKS -> not operating factory -> why regulation so stacked?
50mn plan -> margin and econ of scale
Retail demand drives growth despite price cut, infra slowdown
We highlight that this year 1) the maximum retail price of cement was cut by ~6%, and 2)
there was a general slowdown in infrastructure led cement demand. In this backdrop
growing revenue by 1.4% is a significant positive to us. Our discussions with the company
indicated that this was driven by retail demand while the commercial side also played a part.
Towards 2H FY16 the company showcased a solid growth of 6.2% YoY.

Margin: limestone+energy+depreciation