IPO Note on Sea Pearl Beach Resort & Spa Ltd (SEAPEARL) Date: July 15, 2019

IPO Issue Size (BDT mn): 150.00

Offer Price (BDT): 10.00 IPO Issue Size (No. of Shares) (mn): 15.00
IPO Information Company Overview
Face Value 10.0 Sea Pearl Beach Resort & Spa Limited is a Five Star Resort &
Offer Price 10.0 hotel in Bangladesh operating businesses in Cox’s Bazar. The
business activities of this Company are carried out through a
Authorized Capital (BDT mn) 2,000.0
Franchise Agreement between Sea Pearl Beach Resort & Spa
Pre IPO Paid up Capital (BDT mn) 1,000.0 Limited (Franchisee) and GT Investments BV (the Franchisor), a
Post IPO Paid up Capital (BDT mn) 1,150.0 limited liability company structured under the laws of the
IPO Issue Size (No. of shares) (mn) 15.0 Netherlands. Franchisor is knowledgeable and experienced in
IPO Issue Size (BDT mn) 150.0 managing and promoting five star hotels and resorts and has
Banco Finance & Investment Ltd; (and/or its Affiliates have) performed such services throughout
Issue managers the world.
Prime Bank Investment Ltd.
Registrar to the Issue LankaBangla Investments Ltd Company Profile:
Auditor Mahfel Huq & Co.  Incorporation: May 26, 2009
2018-19  Commercial Operation: September 17, 2015
2015-16 2016-17 2017-18
6m An’  Number of Employees: 334
Financial Information (BDT mn):  Resort Location: Inani, Ukhiya, Cox’s Bazar.
Net Sales 75 332 469 572  Key Personnel:
Gross Profit 48 264 367 455 Name Designation Shareholding
Operating Profit (6) 143 186 279 Lucy Akhtary Mahal Chairman 2.04%
Financial Expenses 38 96 98 176 MD. Aminul Haque Man. Director 2.30%
Profit After Tax (29) 30 46 67 Ekramul Haque Director 2.09%
Assets 3,904 4,129 4,787 4,902 Mohammed Ali Deen Director 2.22%
Debt 3,249 3,487 3,621 3,687 Shamim Enterprise Director 40.40%
Equity 34 87 1,048 1,081 (Pvt) Ltd
Retained Earnings -29 2 48 81 **Shareholding has been calculated based on Post IPO number of Shares.

Cash & Cash Eqiv. 13 11 231 88 Business Strategy:

Margin:
 493 rooms in total
Gross Profit 64.7% 79.6% 78.2% 79.6%  241 rooms available for guests
Operating Profit -8.1% 43.1% 39.6% 48.8%  157 rooms will be made usable
Pretax Profit -59.2% 14.0% 17.9% 18.5%  7 Restaurants, 1 Bar, 2 Conference rooms & other
Net Profit -38.5% 9.1% 9.8% 11.7% amenities
Growth (YoY):
Coverage of local & international
Sales - 344.5% 41.4% 22.0%
corporate & embassies
Gross Profit - 446.9% 39.0% 24.1%
Operating Profit - -2459.8% 29.9% 50.3%
Net Profit - -205.5% 52.3% 45.4% Engaged with tour operators
Profitability:
ROA -0.7% 0.7% 1.0% 1.4%
Business Strategy

ROE -84.9% 35.0% 4.4% 6.2% Promoting resort as Destination meeting,

Res. EPS (Post IPO) (0.29) 0.30 0.46 0.67 conference & wedding
NAVPS (Basic) 5.41 10.18 10.48 10.81
Leverage: Package offers with leading airlines
Debt Ratio 83.2% 84.5% 75.6% 75.2%
Restated (x)
Debt-Equity 96.1 40.3 3.5 3.4
Interest Coverage -15.9% 148.3% 189.8% 158.6% Sponsorship at key events to promote
sales
Post IPO Securities Holding:
Shareholder Type No. of Shares- mn % Holding Lock In Advertisement on Radio, TV, Newspaper,
Sponsors/Directors 53.86 46.83% 3 Years Magazines and Social media

Other than Revenue Composition

46.14 40.12% 1 Year
Sponsors/Directors Revenue Segments 2016-17 2017-18
Mutual Funds (EIs) 1.50 1.30% 0M, 6M & Room Revenue 52.96% 51.22%
Other EIs 6.00 5.22% 9M Food & Beverage 42.62% 41.29%
Public 6.00 5.22% Lock-in Minor Operating Dept. 2.31% 5.25%
NRBs 1.50 1.30% Free
Total 115.00 100.00% Space Rent & Others 2.11% 2.24%
Total 100.0% 100.0%

1 EBL Securities Limited Research

 IPO Note on Sea Pearl Beach Resort & Spa Ltd (SEAPEARL) Date: July 15, 2019
IPO Issue Size (BDT mn): 150.00
Offer Price (BDT): 10.00 IPO Issue Size (No. of Shares) (mn): 15.00
Key Products Total 157 rooms will be usable after the room decoration with
 Rooms & Suits interior, finishing, furniture & fixtures. The furnishing project
 Food & Beverages will be completed within June 2020 (considering 12 months
Capacity Utilization from the share credit date). The commercial operation will be
Particular Available Utilized Utilization started within 3 months of the completion of the project.
Rooms Rooms ratio Besides, the acquisition of land will be completed within 6
months of receiving IPO funds. The expansion project includes
Guest Rooms 81,249 49,660 61.12%
the decoration of 65 studio rooms, second wing corridor, 28
This utilization ratio was counted from 1 July 2017 to 30 June deluxe rooms, 64 superior rooms, and first wing corridor. In
2018. addition, BDT 26.66 mn will be utilized for the land and
The Company has neither any associates/subsidiary nor it development of Water Park which will be a good source of
operates under any holding company. revenue as well.
Competitors Industry Overview
Listed: Travel & Tourism industry is becoming one of the most
The Peninsula Chittagong Ltd. & Unique Hotel & Resorts Ltd. potential industries of Bangladesh. Direct contribution of
Non-Listed: Travel and Tourism industry to GDP of Bangladesh was BDT
Long Beach Hotel, Hotel Praasad Paradise, Sayeman Beach 987.1 bn, 4.4% of total GDP in 2018. Besides, 2.41 mn people
Resort, Seagull Hotel, Hotel The Cox Today, Ocean Paradise are directly employed in this sector which is 3.9% of total
Hotel & Resort. All non-listed competitors are operating their employment. WTTC (World Travel and Tourism Council) has
hotel business in Cox’s Bazar. forecasted that the total contribution to GDP by this industry
Raw Material Sources will rise by 6.8% per annum and will be 4.6% (BDT 1,753.1bn)
Sea Pearl Beach Resort & Spa Limited is a service oriented of total GDP within 2028.
Company. The Company collects the raw materials for Total contribution of Travel and Leisure Industry
restaurant purpose from various suppliers mainly from Cox’s to GDP (USD bn) in South Asian Countries (2018)
Bazar, Chittagong and Dhaka.
Capital Raising History: Nepal 2.2
The Company has raised its paid up capital in following phases- Myanmar 5.0
Allotment Date of Allotment No. of Shares BDT Sri Lanka 11.1
1st Initial 250,000 2,500,000 Bangladesh 11.8
2nd Apr 27, 2014 6,000,000 60,000,000 Pakistan 20.1
3rd Jun 29, 2017 2,250,000 22,500,000 Vietnam 22.4
4th Aug 23, 2017 48,699,949 486,999,490 Indonesia 62.6
5th Mar 22, 2018 42,800,051 428,400,510 India 247.3
Total 100,000,000 1,000,000,000 0.0 50. 0 100 .0 150 .0 200 .0 250 .0

* All allotments were in Cash. Face Value was BDT 10 in all Allotments. Source: WTTC and EBLSL Research
Bangladesh has been ranked 7th in the Lonely Planet's (the
Distribution of IPO:
world's largest travel guidebook publisher) top 10 “Best value”
Eligible Investors General Public
travel destinations for 20191.
Particulars Mutual Funds Other NRB Others
(in mn) (10%) EIs (10%) (40%)
(40%) Expected International Arrivals in 2019 (mn)
Amount BDT 15.00 60.00 15.00 60.00 17.8
Shares 1.50 6.00 1.50 6.00 17. 5
15.0 14.5
15

12. 5

Lock-In Free Share (Trading Date: July 16, 2019):

10

3.7 2.5 1.4

7.5

5 1.2 0.2
2.5

Trading Day Lock-In Free Tradable Lock-In for 0

Vietnam
Indonesia

Sri Lanka

Bangladesh
India

Myanmar

Nepal
Pakistan

Shares (mn) Shares (mn)

Jul 16, 2019 3.750 11.250 1st day
Jan 16, 2020 1.875 13.125 6 Months
Apr 16, 2020 1.875 15.000 9 Months
Jul 16, 2020 46.140 61.140 1 Year
Investment: Total investment of this industry was BDT 83.0bn
Jul 16, 2022 53.860 115.000 3 Years
in 2017 and it is expected to increase up to BDT 161.0bn by
IPO Fund Utilization Plan: 2028.
Particulars Amount (mn) % Visitor exports: Visitors are one of the key components of
Interior, Finishing, Furniture & direct contribution in Travel and Tourism industry. In 2016,
106.83 71.22% total visitor exports were 620,000 and Govt. has set a target to
Fixtures
Land Acquisition 26.66 17.77% attract 1mn tourists yearly. Bangladesh Ranked 150 in the
IPO Expenses 16.51 11.01% world during 2017 considering total visitors export.
TOTAL 150.00 100.00% Direct Components of earnings: The earnings generated in this
industry sourced from two major components- leisure

1
https://www.thedailystar.net/editorial/news/bangladeshs-ranking-tourism-appreciable-
1652317

2 EBL Securities Limited Research

 IPO Note on Sea Pearl Beach Resort & Spa Ltd (SEAPEARL) Date: July 15, 2019
IPO Issue Size (BDT mn): 150.00
Offer Price (BDT): 10.00 IPO Issue Size (No. of Shares) (mn): 15.00
spending & business spending. In 2018, around 87.0% earnings Bazar by road. Most of the foreign delegates working for
generated from leisure spending of visitors and 13.0% earnings Rohingya crisis are staying at Sea Pearl.
generated from business spending of visitors. According to  3-year CAGR of the Company has been recorded at 97.19%
WTTC, it is expected that the earnings sourced from leisure in topline up to FY ’19 (6m An’) while 2-year CAGR in
spending will increase by 6.8% per annum and the earnings bottom line was 48.78% up to FY ‘19. Besides, Post IPO
sourced from business travel spending will increase by 5.4% per Restated EPS was recorded BDT 0.67 in FY ’19 compared
annum up to 2028. to BDT 0.46 in FY ’18.
Domestic travel spending generated 97.0% of direct Travel &  The Company has achieved significant operating efficiency
Tourism GDP in 2018 compared to 3.0% for visitor exports (i.e. in FY ’19 (6m An’). Average Collection period has dropped
foreign visitor spending or international tourism receipts). Both considerably and stood at 40 days in FY ’19 compared to
are expected to grow by 6.1% and 6.2% per annum up to 2028. 54 days which ultimately resulted negative Cash
conversion cycle in FY ’19 (negative 74 days from negative
Listed Peer Companies in the Capital Market 104 days in FY ’18). The Company receives cash payments
Some basic overview of the listed peer companies are as from its clients before paying to its creditors.
follows:  Return on Equity & Return on Assets has increased in FY
Company Paid up Rev (mn) NPAT EPS P/E ’19 (6m An’). ROE stood at 6.20% from 4.40% in FY ’18 and
(mn) (mn)
ROA stood at 1.37% from 0.96% in FY ’18.
UNIQUEHRL 2,944.00 2,228 704 2.39 21.28
Investment Concern
PENINSULA 1,186.67 338 133 1.12 22.23
SEAPEARL 1,150.00 572 67 0.67 n/a  The business of Sea Pearl is highly seasonal. Most of the
**Revenue, NPAT & EPS of UNIQUEHRL & PENINSULA are 9 month annualized revenues are generated in peak season (September to
data of 2018-19 while SEAPEARL’s data are 6 month annualized. Moreover, Post April).
IPO EPS of SEAPEARL is BDT 0.71 (9m An’).
 The Company has raised BDT 3,250 mn capital from ICB
Comparison among Recently listed Companies: issuing ‘SPBRSL 20% Convertible Bond’ in 2017. The
Post IPO Issue Re EPS 1st Day P/E Current
Company have to pay BDT 433 mn biannually from Apr ‘20
Paid Up Size While Closing (listing Price* to Oct ‘25 which may turn a great business threat.
Scrips
(mn) (mn Listing Price day) Besides, SPBRSL 20% Convertible Bond will be converted
Shares) into equity which will expand the Capital base and shrink
NURANI 830 43 0.76 19.7 25.6 14.4 investors’ profit. Sea Pearl may need to pay approximately
BBSCABLES 1,200 20 2.34 90.3 38.6 93.9 BDT 1,356 mn in 6-year tenure of Bond as interest.
AAMRANET 530 53 2.50 138.4 55.4 50.7  The company has started its commercial operation in 2015
OIMEX 459 15 1.41 114.2 81.0 28.8 which indicates they have very little experience in hotel
NAHEEACP 528 15 1.88 81.6 47.3 business. Besides, Political instability & any kind of natural
39.2
disaster can have a significant adverse effect on the
QUEENSOUTH 1,000 15 1.51 32.5 18.3 31.8
tourism and hotel business.
INTRACO 750 30 0.57 43.6 76.1 19.3
BPML 1,738 26 2.46 130.8 53.2 65.6 Recent Financial Performance
SKTRIMS 700 30 0.83 40.9 41.8 The Company has reported Net profit after tax BDT 27.56 mn,
49.5
Pre IPO EPS was BDT 0.28 & Post IPO EPS was BDT 0.24 for the
ACFL 1,008 21 2.66 55.0 20.7 33.0
3 (three) months period ended on 31 March 2019. For the 9
VFSTDL 847 22 1.48 30.7 20.7 48.0 (nine) Months period (July 2018- March 2019) ended on 31
MLDYEING 1,604 20 1.39 24.2 17.5 31.7 March 2019, Net profit after tax was BDT 61.06 mn and Pre IPO
SILVAPHL 1,300 30 0.72 29.0 40.3 19.9 EPS was BDT 0.61 & Post IPO EPS was BDT 0.53. Net Asset Value
IBP 930 20 1.07 32.4 41.4 21.8 per share was BDT 11.09 as on March 31, 2019.
KTL 890 34 1.18 24.4 12.5 19.6
SSSTEEL 2,450 25 1.3 50.1 39.1 23.3 Five Year's Restated Post IPO EPS (BDT)
0.71
GENEXIL 816 20 1.4 56.5 38.7 49.9 0.70

ESQUIRENIT 1,349 35 3.0 45.9 40.8 0.46

15.2 0.50

0.30
RUNNERAUTO 1,081 14 4.3 99.8 23.2 89.3 0.30

NEWLINE 699 30 1.12 19.8 17.7 21.3 0.10

(0.29)
SEAPEARL 1,150 15 0.71 - - - (0 .10)

*Current Prices are as on 15th July, 2019.

2015-16 2016-17 2017-18 2018-19 An
(0 .30)

Investment Insight
Investment Positive
Profitability Margins
GP Margin OP Margin PBT Margin NPAT Margin
 With the IPO proceeds, the Company has planned to 80%
spend BDT 133.49 mn in business expansion project in 60%
Inani. The expansion project will positively affect the
40%
topline once the newly completed & furnished 157 rooms
20%
& suits will be available by Sep ’20. Besides, the
completion of Water Park (from the IPO proceeds) will 0%

also contribute the topline as well. -20% 2014-15 2015-16 2016-17 2017-18 An
 Sea Pearl is located in Inani Beach which is a popular -40%
tourist destination and takes only 40 minutes from Cox’s -60%

3 EBL Securities Limited Research

 IPO Note on Sea Pearl Beach Resort & Spa Ltd (SEAPEARL) Date: July 15, 2019
IPO Issue Size (BDT mn): 150.00
Offer Price (BDT): 10.00 IPO Issue Size (No. of Shares) (mn): 15.00

Key Performance Indicators: Comparison with peers

Particulars UNIQUEHRL SEAPEARL PENINSULA INDUSTRY AVG.
Current Ratio 1.69 2.90 4.73 3.11
Quick Ratio 1.69 2.66 4.58 2.98
Operating Cycle (days) 73.62 56.68 98.20 76.17
Cash Conversion Cycle (days) 39.43 (73.18) 9.30 -8.15
Total Asset Turnover 6.79% 11.67% 8.36% 8.94%
Fixed Asset Turnover 11.92% 20.31% 14.32% 15.52%
Gross profit margin 77.47% 79.61% 48.05% 68.38%
Operating profit margin 45.10% 48.83% 30.49% 41.47%
Pretax profit margin 43.59% 18.45% 52.40% 38.15%
Net profit margin 31.74% 11.71% 39.40% 27.62%
Return on Assets 2.16% 1.37% 3.29% 2.27%
Return on Equity 2.71% 6.20% 3.60% 4.17%
Debt to Equity 12.72% 340.98% 4.60% 119.33%
Sales growth 9.44% 21.99% 27.79% 19.74%
Gross profit growth 11.73% 24.13% 115.94% 50.60%
Net Income growth 19.28% 45.37% 79.47% 48.04%
NAVPS 88.40 10.81 31.15 43.45
EPS 2.40 0.67 1.12 1.40
Current Price 50.30 n/a 24.20 -/-
** The performance indicating ratios have been calculated using 9-month annualized data of FY 2018-19 and yearly data of FY 2017-18 for UNIQUEHRL & PENINSULA.
SEAPEARL’s data used here is 6-month annualized data of FY 2018-19 and yearly data of FY 2017-18. Current Prices are as on 15th July 2019.

Relative Valuation and Pricing:

Pricing Based on Relative Valuation
Particulars EPS Multiple Value
Market Forward P/E 0.71 13.2 9.4
Sector Forward P/E 0.71 23.6 16.8
Sensitivity Analysis
Price @12(x)PE 0.71 12.0 8.5
Price @15(x)PE 0.71 15.0 10.7
Price @20(x)PE 0.71 20.0 14.2
Price @25(x)PE 0.71 25.0 17.8
Price @30(x)PE 0.71 30.0 21.3
NAV Based Pricing
NAVPS Multiple Value
NAVPS (basic) 11.09 1.58 17.5
Median 1st Day P/E of Latest Listed Companies
Price @28.0 PE 0.71 28.0 18.8

*EPS has been considered BDT 0.71 while calculating valuation (9m An’ of FY 2018-19). Besides, NAVPS are as on March 2019 and Multiple is P/NAV of the Market as on 15th
July 2019.

4 EBL Securities Limited Research

IPO Note on Sea Pearl Beach Resort & Spa Ltd (SEAPEARL) Date: July 15, 2019
IPO Issue Size (BDT mn): 150.00
Offer Price (BDT): 10.00 IPO Issue Size (No. of Shares) (mn): 15.00

STATEMENT OF COMPREHENSIVE INCOME (In BDT)

Particulars 2015-16 2016-17 2017-18 2018-19 6M An’

Net Turnover 74,597,418 331,565,052 468,895,376 572,015,660
Cost of Goods Sold 26,352,768 67,712,481 102,054,551 116,646,530
GROSS PROFIT 48,244,650 263,852,571 366,840,825 455,369,130
Total Operating Income 48,244,650 263,852,571 366,840,825 455,369,130
Operating Expenses: 54,305,979 120,819,558 180,979,598 176,060,216
Administrative Expenses 52,531,537 117,591,372 176,765,201 167,845,486
Selling & Distribution 1,774,442 3,228,186 4,214,397 8,214,730
PROFIT FROM OPERATIONS (6,061,329) 143,033,013 185,861,227 279,308,914
Financial Expenses 38,098,942 96,464,826 97,940,475 176,122,538
Other Income - - - 7,638,846
PROFIT BEFORE WPPF (44,160,271) 46,568,187 87,920,752 7,638,846
110,825,222
Allocation for WPPF - - 4,186,702 5,277,392
PROFIT BEFORE TAX -44,160,271 46,568,187 83,734,050 105,547,830
Deferred Tax - - - -
Current Tax 15,456,095 16,298,866 37,642,100 38,543,498
PROFIT AFTER TAX FOR THE YEAR (28,704,176) 30,269,321 46,091,950 67,004,332
EPS (Restated, Post IPO) (0.29) 0.30 0.46 0.67

5
EBL Securities Limited Research
IPO Note on Sea Pearl Beach Resort & Spa Ltd (SEAPEARL) Date: July 15, 2019
IPO Issue Size (BDT mn): 150.00
Offer Price (BDT): 10.00 IPO Issue Size (No. of Shares) (mn): 15.00

STATEMENT OF FINANCIAL POSITION (In BDT)

Particulars 2014-15 2015-16 2016-17 2017-18 2018-19

Non-Current Assets: 2,824,222,059 3,746,684,951 4,043,249,321 4,331,010,753 4,580,122,533
PPE-Carrying Value - 985,360,383 1,829,024,264 2,825,715,149 2,815,975,193
Cap. Work-in-Progress 2,823,933,453 2,745,579,867 2,214,225,057 1,505,295,604 1,764,147,340
Preliminary Expense 92,000 92,000 - - -
Pre Operating Expend. 196,606 196,606 - - -
Current Assets: 554,517,493 157,353,469 85,927,027 456,269,528 322,186,860
Stock of Materials 21,380,536 15,380,536 19,580,024 25,417,104 23,638,887
Inventories - 1,177,014 4,250,966 20,502,060 26,867,989
Trade Debtors - 2,977,846 7,163,467 69,711,187 63,200,375
Advance & Deposits 384,589,249 125,245,355 44,014,405 109,674,605 119,485,147
Cash and Cash Equiv. 148,547,708 12,572,718 10,918,165 230,964,572 87,944,175
Investment - - - - 1,050,287
TOTAL ASSETS 3,378,739,552 3,904,038,420 4,129,176,348 4,787,280,281 4,902,309,393
SHAREHOLDERS' EQUITY AND LIABILITIES:
Shareholders' Equity: 62,500,000 33,795,824 86,565,145 1,047,657,095 1,081,159,261
Share Capital 62,500,000 62,500,000 85,000,000 1,000,000,000 1,000,000,000
Retained Earnings - (28,704,176) 1,565,145 47,657,095 81,159,261
Non-Current Liabilities: 3,275,781,869 2,974,828,495 3,690,713,031 3,523,101,485 3,710,095,971
LT Loans - Secured 2,848,451,869 2,465,329,000 3,202,870,765 22,362,448 14,742,189
SPBRSL Convertible Bond - - - 3,472,159,066 3,649,624,974
Deferred Tax Liability - - 842,771 28,579,971 45,728,808
Share Money Deposit 427,330,000 509,499,495 486,999,495 - -
Current Liabilities: 40,457,683 895,414,102 351,898,172 216,521,699 111,054,161
Short Term Bank Loans - 130,123,928 136,714,545 113,385,751 8,286,381
LT Loans – Cur. Portion - 653,781,767 147,543,985 12,819,436 13,877,982
Trade Creditors 39,438,044 95,500,329 58,203,186 49,108,173 42,079,882
Provision & Accruals 1,019,639 16,008,078 9,436,456 41,208,339 46,809,916
TOTAL SHAREHOLDERS'
3,378,739,552 3,904,038,421 4,129,176,348 4,787,280,279 4,902,309,393
EQUITY AND LIABILITIES
NAVPS (Basic) 10.00 5.41 10.18 10.48 10.81
No. of Share Outstanding 6,250,000 6,250,000 8,500,000 100,000,000 100,000,000

6
EBL Securities Limited Research
IPO Note on Sea Pearl Beach Resort & Spa Ltd (SEAPEARL) Date: July 15, 2019
IPO Issue Size (BDT mn): 150.00
Offer Price (BDT): 10.00 IPO Issue Size (No. of Shares) (mn): 15.00

RATIO ANALYSIS
Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 6M An’
Liquidity Ratios:
Current Ratio 13.71 0.18 0.24 2.11 2.90
Quick Ratio 13.71 0.17 0.23 2.01 2.66
Cash Ratio 3.67 0.01 0.03 1.07 0.79
Operating Efficiency Ratios:
Inventory Turnover Ratio - 63.38 78.00 22.87 21.29
Receivable Turnover Ratio - 25.05 46.29 6.73 9.05
Avg. Collection Period (Days) - 14.37 7.78 53.52 39.78
Inventory Conversion - 5.68 4.62 15.74 16.91
Period(Days)
Operating Cycle (Days) - 20.05 12.39 69.26 56.68
A/C Payable Turnover Ratio - 0.28 1.16 2.08 2.77
Payables Paym. Period (Days) - 1,304.61 309.44 173.23 129.87
Cash Conversion Cycle - (1,284.56) (297.05) (103.97) (73.18)
Total Asset Turnover - 1.91% 8.03% 9.79% 11.67%
Fixed Asset Turnover - 7.57% 18.13% 16.59% 20.31%
Operating Profitability Ratios:
Gross Profit Margin (GPM) - 64.67% 79.58% 78.24% 79.61%
Op. Profit Margin (OPM) - -8.13% 43.14% 39.64% 48.83%
Pre Tax Profit Margin - -59.20% 14.04% 17.86% 18.45%
Net Profit Margin (NPM) - -38.48% 9.13% 9.83% 11.71%
Leverage Ratios:
Total Debt to Equity 4557.52% 9614.31% 4028.33% 345.60% 340.98%
Debt to Total Assets 84.31% 83.23% 84.45% 75.63% 75.20%
Coverage Ratios:
Times Interest Earned (TIE) - (0.16) 1.48 1.90 1.59
Valuation Ratios:
NAVPS (Basic) 10.00 5.41 10.18 10.48 10.81
EPS (Restated, Post IPO) - (0.29) 0.30 0.46 0.67
Growth Rates:
EPS Growth Rate - - -205.45% 52.27% 45.37%
Sales Growth Rate - - 344.47% 41.42% 21.99%
Gross Profit Growth Rate - - 446.91% 39.03% 24.13%
EBIT Growth Rate - - -2459.76% 29.94% 50.28%
Net Income Growth Rate - - -205.45% 52.27% 45.37%
Other Data:
Number of shares outstanding 6,250,000 6,250,000 8,500,000 100,000,000 100,000,000
DUPONT ANALYSIS:
Net Profit AT/Sales - -38.48% 9.13% 9.83% 11.71%
Sales/Total Assets - 1.91% 8.03% 9.79% 11.67%
ROA - -0.74% 0.73% 0.96% 1.37%
Net Profit AT/Total Assets - -0.74% 0.73% 0.96% 1.37%
Total Asset/ Total Equity 54.06 115.52 47.70 4.57 4.53
ROE - -84.93% 34.97% 4.40% 6.20%
Extended DUPONT ANALYSIS:
Net Profit/Pretax Profit - 65.00% 65.00% 55.05% 63.48%
Pretax Profit/EBIT - 728.56% 32.56% 45.05% 37.79%
EBIT/Sales - -8.13% 43.14% 39.64% 48.83%
Sales/Assets - 1.91% 8.03% 9.79% 11.67%
Assets/Equity 54.06 115.52 47.70 4.57 4.53
ROE - -84.93% 34.97% 4.40% 6.20%

7
EBL Securities Limited Research
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EBLSL Rating Interpretation

Overweight : Stock is expected to provide positive returns at a rate greater than its required rate of return
Accumulate : Stock is expected to provide positive inflation adjusted returns at a rate less than its required rate of return
Market weight : Current market price of the stock reasonably reflect its fundamental value
Underweight : Stock expected to fall by more than 10% in one year
Not Rated : Currently the analyst does not have adequate conviction about the stock's expected total return
About EBL Securities Ltd.: EBL Securities Ltd. (EBLSL) is one of the fastest growing full-service brokerage companies in Bangladesh
and a fully owned subsidiary of Eastern Bank Limited. EBLSL is also one of the top ten leading stock brokerage houses of the
country. EBL Securities Limited is the TREC-holder of both exchanges of the country; DSE (TREC# 026) and CSE (TREC# 021). EBLSL
takes pride in its strong commitment towards excellent client services and the development of the Bangladesh capital markets.
EBLSL has developed a disciplined approach towards providing capital market services, including securities trading, margin loan
facilities, depository services, foreign trading facilities, Bloomberg Terminal, online trading facilities, research services, panel
brokerage services, trading through NITA for foreign investors & NRBs etc.

EBLSL Key Management

Md. Sayadur Rahman Managing Director sayadur@eblsecurities.com
Md. Humayan Kabir SVP & Chief Operating Officer (COO) humayan@eblsecurities.com

EBLSL Research Team

M. Shahryar Faiz FAVP & Head of Research shahryar@eblsecurities.com
Mohammad Asrarul Haque Research Analyst asrarul@eblsecurities.com
Mohammad Rehan Kabir Senior Research Associate kabir@eblsecurities.com
Asaduzzaman Ashik Research Associate ashik@eblsecurities.com
Md. Abdullah Al Faisal Research Associate faisal@eblsecurities.com
Arif Abdullah Research Associate arif@eblsecurities.com
Farzana Hossain Laizu Junior Research Associate farzana@eblsecurities.com

EBLSL Institutional & Foreign Trade Team

Asif Islam Associate Manager asif@eblsecurities.com
Khairul Alam Probationary Officer khairul@eblsecurities.com

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