Q2 2018-19 Earning Disclosure on...Q2 2018-19 Earning Disclosure on Bank Asia Securities Ltd....

Q2 2018-19

Earning Disclosure on

Bank Asia Securities Ltd. Olympic Industries Limited Analyst: Tanzin Naher

[email protected]

7.2% Topline growth in Q2, higher selling & distribution

expenses resulted in 2.8% YOY degrowth in NPAT.

Olympic‘s consolidated revenue in Q2, 2018 was BDT 3.4

billion as against BDT 3.2 billion witnessing 7.2% topline

growth. Amid growing demand for its products, the

company enhanced its production capacity of cartoon,

noodles and bakery manufacturing lines last year. However,

selling and distribution expenses was the major factor

behind the degrowth in NPAT in comparison to revenue

growth.

Gross margin slightly declines, higher selling & distribution

expenses resulted in lower operating profit margin

Gross profit margin declines by 1% compared to that of

same period of last year mainly due to inefficiency in using

its raw materials, labor and manufacturing related fixed

assets to generate profits over the years. Whereas selling

and administrative expenses increased by 11%, as a result,

operating profit margin declines by 1% and stood at 18% in

Q2 2018-19 from 19% in Q1 2017-18.

Bottom line registered 2.82% in Q2 compared to 4.9% in

the same period in the last year

Olympic Industries reported NPAT BDT 428.7 mn in Q2 2017-

18 as against of BDT 422.8 mn for the same period in last

year. We expect that, Olympic will be able to sustain the

operating profitability with the favorable business condition

in coming years

Olympic Posted 7.2% Topline growth, NPAT lower by higher selling & distribution expenses.

Fundamental Insights

Particulars BDT USD

Current Market Price (31.03.2019) 232.10 2.76

Paid Up Capital (mn) 1999.4 23.76

Market Capitalization(mn) 46,385.8 551.2

No. of share outstanding (mn) 199.94

Free Float (mn) 144.42

52 Week's Moving Range (BDT) 185.00-282.90

Market weight (%) 1.1%

Beta .39

Category Year End Sector

A June

Food & Allied

Financial Highlights FY15 FY16 FY17 FY18

Revenue 8853 4,426 4,454 4,841 Revenue Growth 24% 3% 15% NPAT 1089 1623 1643 1791 NPAT Growth 49% 1% 9% Total Asset 5763 7640 9120 10816 Long-Term Debt 299 156 191 42 Short-Term Debt 346 447 1,017 1,755 Dividend (C/B) % 30/20 40/5 45/0 48/0

Source: DSE Website & BASL research.

Source: Olympic annual report & BASL research.

Source: Olympic annual report & BASL research

50.060.070.080.090.0

100.0110.0120.0

22

-Mar-18

22

-Ap

r-18

22

-May-18

22

-Jun

-18

22

-Jul-1

8

22

-Au

g-18

22

-Sep-1

8

22

-Oct-1

8

22

-No

v-18

22

-Dec-1

8

22

-Jan-19

22

-Feb-1

9

22

-Mar-19

Price Graph with DSEX (Rebased)

OLYMPIC DSEX

Q2 2018-19



[email protected]

Particulars Q2 2018-19 Q2 2017-18 Change HY 2018-19 HY 2017-18 Change

Revenue 3449.3 3217.5 7.2% 6968.1 6487.6 7.4%

Gross Profit 1067.7 1026.6 4.0% 2215.4 2093.6 5.8%

Operating Profit 620.6 607.2 2.2% 1297.7 1251 3.7%

NPAT 440.7 428.7 2.8% 920 877.4 4.9%

Gross Profit Margin 31% 32% -3.0% 32% 32% -1.5%

Operating Profit Margin 18% 19% -4.7% 19% 19% -3.4%

Net Profit Margin 13% 13% -4.1% 13% 14% -2.4%

Restated EPS (BDT) 3449.3 3217.5 7.2% 6968.1 6487.6 7.4%

Source: Olympic Financial Statements & BASL Research

Source: Olympic Financial Statements & BASL Research Source: Olympic Financial Statements & BASL Research


20.5%

1.9%4.3%

-18.2%

8.3%

1.5%2.8%

26.6%

6.8%

2.8%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

FY2016-17 FY2017-18 FY2018-19

YOY NPAT Growth (%)

34.5%36.5%

10.0% 9.9%

1%

-3.3%

11%

4%

18%

13%12%

15%

8% 7%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

FY2015-16 FY2016-17 FY2017-18 FY2018-19

YOY Revenue Growth (%)

34

4 414

.8

432

.7

434

.1

414

.4

422

.5

451.

2

355

.1 448

.8

428

.7

464

449

.6

479

.2

440

.7

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

FY2015-16 FY2016-17 FY2017-18 FY2018-19

NPAT (BDT in mn)

2,7

38

2,9

42

2,5

89

2,6

96

2,7

64

2,8

45

2,8

84

2,7

96 3,2

70

3,21

7

3,2

17

3,2

24

3,5

18

3,4

49

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

FY2015-16 FY2016-17 FY2017-18 FY2018-19

Revenue (BDT in mn)

Q2 2018-19



[email protected]


20.6%

4.3%

0.3%

-4.5%

2.0%

6.8%

-21.3%

26.4%

-4.5%

8.2%

-3.1%

6.6%

-8.0%Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

FY2015-16 FY2016-17 FY2017-18 FY2018-19

QOQ NPAT Growth (%)

12%

7.5%

-12.0%

4.1%2.5% 2.9%

1.4%

-3.1%

17.0%

-1.6%-0.03% 0.2%

9.2%

-2.0%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

FY2015-16 FY2016-17 FY2017-18 FY2018-19

QOQ Revenue Growth (%)

Q2 2018-19



[email protected]

Disclaimer

This document has been prepared by Bank Asia Securities ltd (BASL) based on publicly available data for information purpose only and does not solicit any action based on the material contained herein and should not be construed as an offer or solicitation to buy or sell or subscribe to any security. Neither BASL nor any of its directors, shareholders, member of the management or employee represents or warrants expressly or impliedly that the information or data of the sources used in the documents are genuine, accurate, complete, authentic and correct. However, all reasonable care has been taken to ensure the accuracy of the contents of this document. BASL or Research & Development Department will not take any responsibility for any decisions made based on the information herein. As this document has been made for the Traders of BASL and strongly prohibited for circulation to any clients, investors or any other persons from outside of BASL.

Analyst Certification The analyst(s) of this report hereby certify that all of the comments and views expressed in this document are the personal view of the author (S) about the subject matter discussed. No part of this document is directly or indirectly related to the specific recommendations or views expressed by the analyst (S) in the research report.

About Bank Asia Securities Ltd

Bank Asia Securities Limited (BASL) is one of the leading full-service brokerage companies in Bangladesh. The company was formed in 2009 and running its operation as a majority owned subsidiary of Bank Asia Limited. BASL offers full-fledged standard brokerage services for retail, institutional and foreign clients with a dedicated team of skilled professionals. The company is currently providing the brokerage services under the membership of Dhaka Stock Exchange Limited (DSE).

BASL Research Team

Mr. Shariful Alam Chowdhury Head of Research & Investments

[email protected], [email protected]

Mr. Shohidul Islam Research Analyst

[email protected], [email protected]

Tanzin Naher Research Associate

[email protected]

BASL Networks

For International Trade & Sales, please contact Mr. Sumon Das, Chief Executive Officer. Please call at +8801993111666, +880 02 9515826, Ext: 101

at Business hour.

For further query, write to us at [email protected].

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158-160 Modhumita Building (5th Floor)

Motijheel C/A, Dhaka-1000

Phone: +88-01819118893

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Q2 2018-19 Earning Disclosure on...Q2 2018-19 Earning Disclosure on Bank Asia Securities Ltd....

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