Louth Online http://louthonline.com/ Thu, 24 Nov 2022 05:44:22 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 http://louthonline.com/wp-content/uploads/2021/03/louthonline-icon-70x70.png Louth Online http://louthonline.com/ 32 32 Prima in association with Sri Lanka Cricket nurtures young cricket talent in Sri Lanka – The Island http://louthonline.com/prima-in-association-with-sri-lanka-cricket-nurtures-young-cricket-talent-in-sri-lanka-the-island/ Thu, 24 Nov 2022 02:48:40 +0000 http://louthonline.com/prima-in-association-with-sri-lanka-cricket-nurtures-young-cricket-talent-in-sri-lanka-the-island/

The increased capacity allows the company to explore new markets beyond the 50 countries it currently serves

Nestlé Lanka invested more rupees. 6.6 billion in Sri Lanka over the past five years

by Sanath Nanayakkare

Nestlé Lanka yesterday reaffirmed its commitment to Sri Lanka by investing more than Rs. 2 billion in its state-of-the-art factory in Kurunegala by constructing a new vacuum belt dryer (VBD).

Aimed at increasing the capacity of its malted foods manufacturing plant, this investment would further strengthen the company’s efforts to have a positive impact on Sri Lanka and its people.

The new VBD will increase the production capacity of two of its biggest brands – Nestlé Nestomalt and Milo, allowing the Company to explore the possibility of expanding its exports to several new markets, beyond the 50 countries it serves. currently.

Nestlé Lanka’s Kurunegala factory manufactures over 90% of Nestlé products sold in the country, using strict quality controls. The 115-year-old business ‘Good food, Good life’ has become an integral part of the lives of Sri Lankans and contributes to the livelihoods of over 25,000 Sri Lankan milk and coconut farmers and producers and provides direct employment to over 800 people. Over the past five years, the company has consistently invested in the country, amounting to over Rs. 6.6 billion.

The first of its kind in the local food and beverage industry, the Swiss-designed vacuum belt dryer adopts the latest technology and helps the company offer more of its popular brands – Nestlé Nestomalt and Nestlé Milo enriched with iron and vitamin D.

An event was held yesterday at the Nestlé Lanka factory in Kurunegala to mark the inauguration of this project, by laying the first stone of the building which will house the new VBD.

The event was attended by the Minister of Industries and Plantations, Dr. Ramesh Pathirana; the Swiss Ambassador to Sri Lanka and the Maldives, Dominik Furgler; MP Anura Priyadarshanayapa and Board of Investments Chief Executive Renuka Weerakone, as well as officials from Nestlé Lanka.

Addressing the gathering, the chief guest, Minister of Industries and Plantations, Dr. Ramesh Pathirana said, “Economic prosperity is driven by investments that not only improve the capacity but also improve the quality of people’s lives. Therefore, I consider it an honor to be present at this event today as one of Sri Lanka’s leading companies announces an investment worth over Rs. 2 billion. I am also happy to note that this investment would ultimately increase the company’s export potential, as foreign exchange is currently essential for economic growth.

MP Anura Priyadarshanayapa said, “As a company with deep roots in the country for 115 long years, Nestlé Lanka has always invested in Sri Lanka with determination. The confidence the company has placed in the potential of the country is truly inspiring. I look forward to seeing the positive ripple effect this investment will bring to our communities and the economy in the years to come.

“We are currently facing several economic volatilities, both short and long term, and the role played by capital investments is essential in supporting economic recovery and growth. Therefore, we appreciate Nestlé Lanka’s efforts to strengthen its investments in Sri Lanka, as they echo a positive message about the country’s potential, encouraging new investments,” said Renuka Weerakone, Managing Director, Board of Investments Sri Lanka. Lanka.

Jason Avanceña, Chief Executive of Nestlé Lanka, said: “Although this is a difficult time for all of us in Sri Lanka, we wholeheartedly believe in the country’s resilience, potential and future. We reaffirm our commitment to Sri Lanka, and we will continue to invest in our facilities and bring state-of-the-art technology designed in Switzerland to meet the different needs of our consumers in Sri Lanka. On behalf of Nestlé Lanka, it gives me great pride to announce this investment and the expansion of our malt foods category. This investment demonstrates our unwavering commitment to the country and cements our deep roots with Sri Lankans for over 115 years. We hope to make a positive contribution to our consumers and communities through this investment, by increasing the production capacity of two of our biggest brands – Nestlé Nestomalt and Milo. We are also happy to share with you that this investment would also allow us to explore the possibility of expanding our exports to several new markets, beyond the 50 countries we currently serve, helping us to contribute to the generation of inflows. currencies.

Just Eat Takeaway: Need first aid with sustained money consumption http://louthonline.com/just-eat-takeaway-need-first-aid-with-sustained-money-consumption/ Fri, 18 Nov 2022 20:40:00 +0000 http://louthonline.com/just-eat-takeaway-need-first-aid-with-sustained-money-consumption/

petekarici/iStock Unreleased via Getty Images

Investment thesis

Just eat takeout (OTCPK:JTKWY) (OTCPK: TKAYF) Q1-3 FY 2012/2022 results highlighted slowing customer activity with lower orders and pressure on cost inflation. With cash burn and a leveraged balance sheet, management seeks cash with asset sales, demonstrating that the business model cannot sustainably generate shareholder value. We have a sell rating on the stock.

quick primer

Just Eat Takeaway is an online food ordering and delivery service headquartered in Amsterdam, operating in 22 countries and serving 94 million customers. The company was formed from a merger between Takeaway and Just Eat in January 2020, and the acquisition of GrubHub for $7.3 billion in June 2021. Its primary geographic markets are North America, Western Europe North, UK and Ireland.

Key peers include Delivery Hero (OTCPK: DLVHF), Deliveroo (OTCPK: DROOF), DoorDash(DASH), and Uber Eat (UBER).

Key financial data with consensus forecasts

Key financial data with consensus forecasts

Key financial data with consensus forecasts (Enterprise, Refinitiv)

Our goals

Shares of Just Eat Takeaway have corrected 58% year-to-date, in line with its peer group, as it saw accelerating year-over-year losses and overspending on acquisition by Grubhub. After a profile of cash consumption during the 2012/2021 financial year and a consensus expecting this situation to continue during the 2012/2023 financial year, we wish to assess whether there are fundamental reasons for investing in stocks.

Data by Y-Charts

A return on investment?

From the company Q3 FY12/2022 The business update highlights that the company’s Adjusted EBITDA is turning profitable sooner than expected, following a period of significant investment in the business. This led the company to update its guidance for H2 FY12/2022 for positive adjusted EBITDA, compared to the previous guidance range of minus 0.5% to minus 0.7% of gross transaction value. . A positive margin is better than a negative margin, but overall it conveys very little good news given its non-GAAP adjusted status. Underlying trends are negative, with third quarter orders down 11% YoY and gross deal value down 5% YoY at constant exchange rates – geographically only Northern Europe recorded growth, with the key North American market down 8% year-on-year, and the UK and Ireland down. by 5%.

The first half of FY 2012/2022 demonstrated cost inflation pressures, with operating costs visibly increasing year-over-year in courier costs (+32%), personnel costs (+86% ) and other operating expenses (+53% year-on-year). Although year-over-year comparisons are skewed by the acquisition of GrubHub, it nevertheless highlights that increased sales volume does not generate positive returns. We expect trading conditions to deteriorate in the second half of the 2012/2022 financial year, with the cost of living crisis having a major impact on the UK economy, as well as southern Europe.

Management is now steering a slowdown in gross deal value to low-single-digit year-on-year growth. This deterioration in fundamentals is a concern for the solvency of the company, and the asset sale activities highlight this problem. The balance sheet looks quite strong with a leverage ratio of 0.2x in FY12/2021. However, a closer look shows that more than 50% of equity is made up of intangible Grubhub assets that have questionable value – this has already been reduced from €8.3 billion to €5.5 billion. in the first half of the 2012/2022 financial year – clearly the acquisition was overvalued. The sale of iFood to raise €1.8 billion in cash shows the underlying weakness of the business, and further exploration of a partial or full sale of Grubhub will be a double-edged sword. as further intangible impairments will be crystallized, further reducing equity.

It would appear that the generation of positive free cash flow in fiscal year 2012/2020 was ad hoc. Accounting profit is a fiction, but money is money, and no amount of restatement of the numbers will hide the fact that the company remains in a very bad state.

A decelerating growth profile

Management talks about being well capitalized and positioned to capture profitable future growth. The consensus does not seem to share this view, estimating a decelerating sales growth profile (which will be exacerbated by any sale of assets to maintain liquidity), and a continuation of operating losses for the next two years. A positive free cash flow is estimated for the financial year 2012/2024, but hardly makes a noticeable difference in the indebtedness.

The €2.1 billion bonds currently outstanding will have their first maturity in 2024 of €250 million, followed by €600 million in 2025. These could be covered by the sale of iFood which is preferable to refinancing as borrowing costs have increased. However, debt servicing will need to be balanced against the company’s cash depleted state – and given the company’s poor track record, we expect to see minimal cash generation over the medium term.

To focus on survival, we believe the company will start to pull out of the markets – this has already started with discontinued operations in Norway, Portugal and Romania. We expect to see more releases in southern European markets, and continued loss of market share in key markets such as the UK where “super-apps” such as Uber continue to grow.

If a cash burn pattern persists, the business will face going concern questions as many of its restaurant partners face difficulties – a recent survey found that more than a third of businesses UK hotel businesses, including pubs, restaurants and hotels, could go bankrupt early next year.


Without earnings, free cash flow and dividends, stocks are not undervalued. A PBR of 0.4x seems to show strong value, but we noted that equity is at risk due to future impairment of Grubhub’s intangible assets.


The upside risk comes from the Grubhub divestment which raises sufficient cash to provide sufficient runway to rebuild the business. The company could eventually put itself up for sale if business conditions deteriorate.

Downside risk arises from a significant deterioration in trading conditions in the UK, Southern Europe and parts of North America, resulting in lower gross transaction values ​​and commissions. An inflationary increase in operating expenses will lower profitability or result in long-lasting losses and cash burn.


Just Eat Takeaway operates a low return business, with scale being the only way to gain competitive advantage. Acquiring scale with Grubhub has been too costly, the business environment is about to deteriorate from both a demand and cost perspective, and the company is set back to access liquidity. We price stocks as a sell.

Editor’s Note: This article discusses one or more securities that do not trade on a major US exchange. Please be aware of the risks associated with these actions.

Can their stock price continue? http://louthonline.com/can-their-stock-price-continue/ Thu, 17 Nov 2022 23:30:00 +0000 http://louthonline.com/can-their-stock-price-continue/

Farm – Airbnb

Growth stocks have been hit hard this year by soaring inflation and rising interest rates, but there seems to be a silver lining.

Investor pessimism bottomed out a few months ago and seems to be reversing.

And US inflation data for October, at 7.7%, was also lower than analysts had expected.

This data has bolstered confidence that the US central bank will slow its rate hikes and that inflation can be brought under control next year.

For Temasek Holdings, its portfolio of growth stocks is also experiencing a breath of fresh air.

The investment firm has seen several of its growth companies rebound strongly from their lows and post encouraging financial numbers.

Here are five that could see their stock prices rise further.

Tencent Holdings Ltd (HKSE: 0700)

Tencent is a Chinese technology company founded in 1998 that provides games, digital content, advertising and other financial technology (fintech) services to its customers.

Shares of the fintech company rebounded nearly 50% from their 52-week low of HK$198.60.

Tencent has just announced its latest results for the third quarter of fiscal 2022 (3Q2022).

Total revenue fell 2% year-on-year to RMB 140.1 billion, while operating profit fell 3% year-on-year to RMB 51.6 billion.

However, net profit edged up 1% year-on-year to RMB 39.9 billion.

International games revenue increased 3% year-on-year to RMB 11.7 billion since the launch of Tower of Fantasy, helped by an expanded games portfolio at Miniclip, but was offset by lower revenue from its flagship PUBG Mobile.

Domestic gaming revenue, however, fell 7% year-on-year due to fewer paying users.

The company also saw a slight 2.8% year-over-year decline in value-added services subscriptions to 228.7 million.

In addition, Tencent will also distribute most of its stake in a food delivery business. Meituan (HKSE: 3690) as a cash dividend.

Visa (NYSE:V)

Visa is a financial services company that facilitates the electronic transfer of funds through its network of co-branded debit and credit cards.

Shares of the financial company rebounded 20% from their low of US$174.60.

Visa announced a strong earnings package for its fiscal year 2022 (fiscal year 2022) ending September 30, 2022.

Revenue jumped 22% year-on-year to $29.3 billion, driven by continued strength in consumer payments coupled with a recovery in travel spending as borders reopened.

Net income climbed 21% year-on-year to $15 billion.

Total payment volume jumped 15% year-on-year, with transactions processed growing 17% year-on-year for fiscal 2022.

The company continued to generate strong free cash flow of $17.9 billion, up 23.1% year-on-year from $14.5 billion a year ago.

Visa ended the third quarter of fiscal 2022 with four billion credit and debit cards in circulation.


PayPal is also a fintech company that operates a platform to support online money transfers between merchants and customers.

Shares of PayPal have rebounded 28.8% to US$87.04 since hitting a 52-week low of US$67.58.

The company released a satisfying set of results for 3Q2022.

Revenue rose 11% year-on-year to $6.85 billion, with earnings per share rising to $1.15 from $0.92 a year ago.

Total payment volume also increased 9% year-on-year to $337 billion.

More importantly, free cash flow climbed 37% year-over-year to $1.8 billion.

PayPal plans to add a total of eight to 10 million new net active accounts in fiscal 2022 and is working with Apple (NASDAQ: AAPL) to improve its offerings.


Airbnb operates a platform for guests to book short-term stays and acts as a broker between host and guest, charging a fee for each transaction.

Its platform currently has over four million hosts.

Airbnb’s stock price rebounded from its 52-week low at US$86.71 and is trading around 20% higher.

The accommodation booking platform saw its revenue increase 29% year-on-year to $2.9 billion, boosted by strong travel demand.

Net income jumped 46% year-on-year to $1.2 billion.

The number of reservations increased 25% year-on-year to 99.7 million, with the gross value of reservations improving 31% year-on-year to $15.6 billion.

Management plans to introduce a new, easy way for millions of people to host their homes on the Airbnb platform this week and will announce more details soon.

Meituan (HKSE: 3690)

Meituan is a food delivery and shopping platform that offers a range of products and services, including entertainment and travel.

Shares of the company have jumped 56.8% since hitting a 52-week low at HK$103.50.

Meituan reported a 16.4% year-on-year increase in revenue to RMB 50.9 billion for the second quarter of 2022.

However, it incurred a net loss of RMB 1.1 billion, which was 66.7% less than the previous year’s 3.3 billion RMB.

How do you decide if a growth stock is worth your money? There’s no shortage of stock ideas today, but is one stock in particular right for you? Learn more in our latest FREE report, How to find the best US growth stocks for your portfolio. Click HERE to download the report for free now!

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Disclaimer: Royston Yang owns shares of Apple, Visa and PayPal.

The post These 5 growth stocks held by Temasek have rebounded: can their stock price continue? appeared first on The Smart Investor.

bne IntelliNews – PANNIER: Russia will be the elephant in the box for re-elected Tokayev of Kazakhstan http://louthonline.com/bne-intellinews-pannier-russia-will-be-the-elephant-in-the-box-for-re-elected-tokayev-of-kazakhstan/ Thu, 17 Nov 2022 13:46:59 +0000 http://louthonline.com/bne-intellinews-pannier-russia-will-be-the-elephant-in-the-box-for-re-elected-tokayev-of-kazakhstan/

It goes without saying that President Kassym-Jomart Tokayev will be re-elected in the November 20 snap presidential election in Kazakhstan this weekend. So let’s move on to the many challenges he will face as he begins a new term. A pressing issue that cannot be put away for another day is the readjustment of Kazakhstan’s foreign policy to respond to the changing realities caused by Russia’s war against Ukraine. You could say it’s the elephant in the input tray.

For more than three decades, Kazakhstan has proven adept at balancing relations between its giant neighbors – Russia, with which Kazakhstan shares a border of 7,000 kilometers, and China, with which Kazakhstan shares a border of 1 780 kilometers. The country has also managed to maintain good relations with Western countries. The European Union, for example, is Kazakhstan’s biggest trading partner and the biggest foreign investor in the country.

As Russia’s fortunes wane, Kazakhstan needs to make some changes in its foreign relations while keeping in mind that Russia is down, but not out.

Dealing with Russia will be Tokayev’s main issue in overhauling Kazakhstan’s foreign policy. Kazakh-Russian relations are already strained.

In January, the Russian-led Collective Security Treaty Organization (CSTO) sent some 2,500 troops, mostly Russian soldiers, to Kazakhstan at Tokayev’s request when the biggest protests the country had ever seen turned violent in several major cities, while there was simultaneously an apparent coup attempt against Tokayev. Many believed that Tokayev and Kazakhstan were indebted to Russia.

This did not turn out to be the case.

Russian President Vladimir Putin announced on February 21 that Moscow recognized the independence of the Russian-occupied eastern regions of Ukraine, Donetsk and Lugansk. The next day, Kazakh Foreign Minister Mukhtar Tleuberdi said, in response to a question from the press, that Kazakhstan would not even consider recognizing the independence of the two regions.

This has been Kazakhstan’s position and has been repeated by Tokayev on several occasions, including at the St. Petersburg Economic Forum in June when, with Putin seated next to him, Tokayev called the Donetsk and Luhansk administrations ” quasi-governments”.

Officially neutral

Officially, Kazakhstan is neutral regarding Russia’s invasion of Ukraine, but threatening comments by Russian officials and media representatives regarding the seizure of Kazakh territory have worried many in post-Soviet Kazakhstan. .

Russian TV producer Tigran Keosayan called Kazakhstan “ingrateful” in April and warned Kazakhstan to “watch Ukraine carefully, think seriously.”

Following Tokayev’s comments in St. Petersburg, State Duma Deputy Konstantin Zatulin said: “If we have friendship, cooperation and partnership, then there are no territorial issues. Otherwise, anything is possible. As in the case of Ukraine.

As relations between Kazakhstan and Russia are strained, Tokayev realizes that the two countries are linked in many ways. The power grid in northern Kazakhstan, for example, is connected to the power grid across the border in southern Siberia, and the Russian military, weakened and less intimidating than it once was, remains a valued ally for Kazakhstan in a neighborhood where Afghanistan and dozens of Islamic militant groups lie to the south, and books in China routinely include maps showing part or all of Kazakhstan (and other parts of Central Asia and Russia) as part of the historical Chinese lands.

There is also the Russian Black Sea port of Novorossiysk. Around 80% of Kazakhstan’s oil exports pass through the Caspian Pipeline Consortium (CPC) infrastructure to Novorossiysk where it is loaded onto tankers, many of which then transport the oil to European countries. The CCP began operations in 2001 and operations continued smoothly until the Kazakh authorities showed that they did not support Russia’s war in Ukraine.

In late March, Novorossiysk port authorities announced the suspension of loading Kazakh oil onto tankers due to apparent storm damage to two of the port’s three loading docks. Operations have been halted twice since then.

Kazakhstan is looking for new export routes for its oil, but it will take time – one of the main difficulties is the lack of tankers available to cross the Caspian Sea – and a lot of work to find other ways to export the amount of Kazakh oil that usually shipped through Novorossiysk. This is another issue that obliges Kazakhstan to keep its relations with Russia as friendly as possible.

While Tokayev said that Kazakhstan respects the sovereignty and territorial integrity of all countries in accordance with the positions of the United Nations, a thinly veiled reference to the situation in Ukraine, and that Kazakhstan has sent humanitarian aid to Ukraine, Tokayev also kept close contact with the Russian government.

Tokayev met Putin in May at a CSTO summit in Moscow, in June in St. Petersburg, in August in Sochi, when Tokayev said there was no reason to be pessimistic about relations Kazakh-Russians, in Samarkand, Uzbekistan, in September on the sidelines of a Shanghai Cooperation Organization (SCO) Summit, and again during a series of summits in Kazakhstan (VI Conference on Interaction and confidence-building measures in Asia, the Council of Heads of the Commonwealth of Independent States (CIS) and the Russia-Central Asia summit) in October.

Kazakhstan has existed for more than 30 years with concerns about Russian irredentist sentiment, but now it appears that Russia will emerge from its Ukrainian debacle a weakened country and that Kazakhstan will deal with its northern neighbor on an equal footing in a near future.

Support from China

This is also partly due to support from China. After several months of Kazakh concerns over Russia’s comments on reclaiming part or all of Kazakhstan, Chinese President Xi Jinping has made his first foreign visit since the COVID pandemic began in Kazakhstan, in September, en route to the SCO summit in Uzbekistan. Xi commented on the need for respect for sovereignty and territorial integrity, which was interpreted as a message to Russia that China would not look kindly on any attempt to claim land from Kazakhstan.

China has invested billions of dollars in infrastructure development in Kazakhstan, which Beijing now sees as part of the multicontinental Belt and Road Initiative (BRI). Overland routes from China to Europe and the Middle East begin with entering Kazakh territory. New railway routes crossing Kazakhstan from China to Mannheim, Germany and another linking China to Azerbaijan have started operating since April.

Kazakh-Chinese trade turnover in the first half of 2022 was around $11.26 billion, up 36% year-on-year.

Thus, Xi’s apparent assurances of Kazakhstan’s territorial integrity when he arrived in Astana in September also reflects Beijing’s own interests in retaining a valuable partner and important link for the BRI.

As promising as relations with China are for the Tokayev administration, some Kazakh citizens feel growing resentment of China’s role and influence in Kazakhstan. There were protests in 2019-20 against plans to build 55 new factories by Chinese companies in Kazakhstan, and numerous protests took place in May 2016 when rumors spread that proposed land reforms included the possibility for Chinese citizens to buy Kazakh land.

Some in Kazakhstan are also unhappy with the government’s refusal to take a stand against Beijing’s harsh crackdown on Muslims in China’s western Xinjiang Uyghur Autonomous Region (XUAR), which borders Kazakhstan. Some of the earliest stories of China’s abuse of Muslims in Xinjiang were told by ethnic Kazakhs who fled China to Kazakhstan and these stories also fueled resentment over China’s growing economic influence in Kazakhstan.

Very active EU

The European Union has been very active in Central Asia in the second half of 2022. The High Representative of the EU for Foreign Affairs and Security Policy, Josep Borrell, was in Kazakhstan on 17 November and the President of the European Council, Charles Michel, went to Kazakhstan at the end of October. .

Kazakh officials have worked with Azerbaijan, Georgia and Turkey to expand trade corridors to Europe through the Caucasus, as well as Iran. China and the EU have supported these efforts.

But Russia, currently under EU sanctions, reluctantly accepts this development of new routes between Europe and China that avoid Russian territory. The Kremlin can’t do much about it, as much of its attention is fixed on Ukraine, but it will be a sore point in Kazakh-Russian relations.

Moreover, the EU cannot provide the kind of funding that China can provide and will not provide the kind of military and security support that Russia has long given to Kazakhstan. And the EU raises the issues of respect for human rights and commitment to democratic reform that Moscow and Beijing never raise in their relations with Kazakhstan.

There are also other countries with which Kazakhstan is rapidly developing stronger ties to compensate for the vacuums created by Russia’s diminishing role in the country, and in Central Asia in general. Many of these countries are in the Islamic world; Turkey, Iran and several Arab states. They will require a form of diplomacy different from the approaches used in relations with Russia, China and the EU, or more broadly the West.

Global rubber market to surpass $65.73 billion valuation http://louthonline.com/global-rubber-market-to-surpass-65-73-billion-valuation/ Thu, 17 Nov 2022 12:36:03 +0000 http://louthonline.com/global-rubber-market-to-surpass-65-73-billion-valuation/

Westford, USA, Nov. 17, 2022 (GLOBE NEWSWIRE) — Global rubber demand will stabilize over the medium to long term as the macroeconomic environment improves, according to a SkyQuest report. Global natural rubber market demand is forecast to grow at a CAGR of over 1.5%, reaching 18 million metric tons by 2028. However, this growth rate is lower than that seen from 2010 to 2018 due to technological advances in alternative materials and the substitution of some grades of rubber for others.

Growth in the global rubber market is held back by price volatility and the substitution of rubber-2 (natural) for certain grades of synthetic rubber. However, over time we are seeing renewed interest in synthetic rubbers as usage increases for lubricating elements in machinery and automotive parts. Demand for natural rubber is expected to remain strong due to its many applications such as roofing membranes and automotive gaskets. Alternative materials such as silicone nitrile are also appreciated as they have better weather resistance and temperature tolerance characteristics than synthetic rubbers.

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Major factors driving the synthetic rubber market growth include increasing usage in automotive and consumer product applications, as well as increasing R&D investments in new technologies such as biopolymers. The increase in the use of renewable energy is also expected to drive the demand for environmentally friendly synthetic rubber products.


Tire manufacturers are facing a number of challenges in the rubber market, such as lack of raw materials and rising costs. These challenges are likely to impact the tire industry globally and therefore companies operating in this market must be prepared to deal with them. Lack of raw materials is a major challenge for tire manufacturers as it has driven up rubber stock prices.

Global production in the rubber market exceeded 27.4 million metric tons in 2021. However, growing demand from the automotive and construction industries will put pressure on the availability of rubber supplies. This situation is expected to continue until at least 2027 due to increased investment in synthetic alternatives and the expansion of natural resources such as Brazil and Indonesia. Thailand produces around 35% of the world’s natural rubber. On the other hand, China is the largest producer of synthetic rubber.

Cheaper synthetic substitutes have emerged in recent years as an option for tire manufacturers looking for ways to cut costs. However, these products are not always reliable and may eventually wear out faster than natural rubber products. Additionally, artificial rubbers often require different manufacturing processes which can add cost and time to the overall process.

As a result, OEMs in the global rubber market are increasingly turning to natural rubbers as an option for next-generation tires due to their durability and low emission levels. Rising labor costs are also a major challenge for tire manufacturers. According to Forrester Research’s Global Manufacturing Competitiveness Report (GMC), labor costs have risen faster than product costs or non-labour input prices over the past five years in most of the countries studied (including China).

Synthetic Rubber to Generate $45 Billion in Global Rubber Market Revenue

The synthetic rubber market is expected to generate over USD 45 billion in revenue by 2028. In fact, the market is expected to grow at a CAGR of over 6% during the forecast period. Key drivers of this growth include growing demand from the automotive and construction industries, as well as growing demand for rubber products from downstream industries such as adhesives and sealants. The growth in the production of synthetic rubbers is attributed to the growing demand for fuel efficient and environmentally friendly vehicles.

Browse the report summary and full table of contents (ToC):


Although natural rubber has some advantages such as high elasticity, low coefficient of friction and fatigue resistance, it has several disadvantages such as shortages and environmental concerns. In recent years, sensors and controllers in the automotive rubber market have been made with plastics containing recycled materials such as polypropylene and acrylics (synthetic rubbers). This has led to an increase in demand for these types of plastics, which are mostly made up of water and oil. As a result, the production of synthetic rubbers is expected to grow at a CAGR of 6% during the period 2022-2028.

Some of the prominent players in the synthetic rubber market include BASF SE (Germany), ChemChina Co Ltd (China), DowDuPont Inc (US), Exxon Mobil Corporation (US), Genuine Corp (Japan), Interscience Associates LLC (USA), LG Chem Ltd (South Korea), Mitsubishi Tanabe Plastics Group, Ltd. (Japan), Nexans NV (Belgium/France) and PTT Shinawatra Plastics Industry.

Despite this growth, the industry faces several challenges. These include environmental concerns related to manufacturing polymers from petroleum, rising raw material costs and rising labor costs. Additionally, new materials such as carbon fiber composites and nanocomposites are competing with synthetic rubbers in some markets. SkyQuest believes these challenges can be overcome through innovation and strong execution.

Thailand, Indonesia, China and South Korea produce over 43% of rubber market revenue

World rubber production is set at 27.3 million tonnes. Of which 35% of natural rubber is produced by Thailand, followed by Indonesia. On the other hand, South Korea accounts for more than 12% of natural rubber production. Our study suggests that more than 90% of the rubber produced in Thailand and Indonesia is exported to various countries around the world.

Thailand is the world’s largest producer of natural rubber in the global rubber market with an output of 4.3 million tonnes in 2021. Indonesia is third with an output of 11,000 metric tonnes while China ranks fourth with a production of 3.09 million tons. The main production areas for Thailand are central and southern Thailand, while for Indonesia it is mainly Sulawesi and Java. For China, it is mainly Hebei province while for South Korea, it is mainly Jeolla province. The main production areas in each country vary according to climatic and soil conditions.

In China, crude rubber oil is extracted from bubbling raw materials including latex and other impurities left after refining crude oil products like gasoline or diesel fuel. China is the world’s largest producer of synthetic rubber and manufactures about two-thirds of the world’s rubber products. In 2021, the country produced 6.3 million tons of synthetic rubber and its production capacity is growing at a CAGR of over 9.7%. The strong demand for synthetic rubber reflects growing concerns about the reliability and sustainability of natural rubber resources.

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Key players in the global rubber market

  • ARLANXEO (Netherlands)
  • Kumho Petrochemical Co., Ltd. (South Korea)
  • PetroChina (China)
  • TSRC Corporation (Taiwan)
  • LG Chem (South Korea)
  • Versalis (Italy)
  • Dow Chemicals (USA)
  • Von Bundit (Thailand)
  • Agribusiness in Sri Trang (Thailand)
  • Southland Holding Lonza (Thailand)
  • Vietnam Rubber Group (Vietnam)
  • Tradewinds Plantation Berhad (Malaysia)
  • Tong Thai Rubber Group (Thailand)
  • Ravasco (India)
  • Halcyon Agri (Singapore)

Related Reports in the SkyQuest Library:

Global Dash Cam Market

Global gas engine market

Global automotive lithium-ion battery market

Global Automotive Biometrics Market

Global Automotive Terminal Authentication Market

About Us:

SkyQuest Technology is a leading growth consulting firm providing market intelligence, marketing and technology services. It has more than 450 satisfied customers worldwide.


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]]> Dubai takes the top spot as a location for branded residences in S… http://louthonline.com/dubai-takes-the-top-spot-as-a-location-for-branded-residences-in-s/ Wed, 16 Nov 2022 20:21:10 +0000 http://louthonline.com/dubai-takes-the-top-spot-as-a-location-for-branded-residences-in-s/ (MENAFN– Middle East.Info)

  • Global growth in the branded residences sector is expected to continue, with the Middle East leading the charge thanks to pipeline growth

  • By scale of increase in the current offering of branded residency programs, Egypt, Saudi Arabia, Cyprus, Qatar and Costa Rica each saw growth of over 300%

Dubai: South Florida and New York are the top three locations for branded residences globally, based on their supply of completed and ongoing projects, says real estate adviser Savills in its latest Spotlight on Branded Residences . These areas have well-established luxury real estate markets and attract a range of domestic and international buyers for both commercial and cultural activities.

Top hotspots for branded residency programs

Completed and current pipeline

Branded residences, as a real estate industry, have proven incredibly resilient in the face of global uncertainty and change. Over the past 10 years, the sector has grown by more than 150% and the pipeline of future branded residences remains strong. Today, there are 640 systems, representing nearly 100,000 units, operating on every continent except Antarctica. Supply levels are expected to exceed 1,100 systems by 2027, nearly doubling current levels.

Riyan Itani, Head of Global Residential Development Consulting, Savills , said: “After several years of evolution, the branded residences sector has proven to be resilient and adaptable to adverse market conditions, offering security and reliable quality to buyers and attractive returns to developers and brands. With a strong and geographically diverse pipeline, as well as the continued commitment of developers and brands to the sector, the sector should continue to grow in the short term.

In the Middle East and Asia-Pacific, growth hotspots, both in terms of pure economic growth and wealth creation, are attracting more interest and development from global brands. Regions have seen respective increases of 400% and 216% in their plan supply levels over the past decade. Global growth in the branded residences sector is expected to continue, with the Middle East leading the charge thanks to pipeline growth. Across the region, current supply is expected to increase by 86% by the end of the forecast period. Central and South America (71%) ranks second in terms of supply growth and Europe (55%) rounds out the top three fastest growing locations.

By pipeline volume, the United States, United Arab Emirates, Vietnam and Mexico are expected to add the most systems – over 30 systems in each country over the forecast period, with the United States expected to add more than 70 systems. By scale of current supply increase, Egypt, Saudi Arabia, Cyprus, Qatar and Costa Rica lead the way, each with over 300% growth, further illustrating the increasing trend investments in brands in the Middle East and Central and South America. .

Swapnil Pillai, Associate Director – Research, Savills Middle East said, “Brands around the world are looking for new locations to expand their portfolios and globally mobile, affluent people will continue to drive demand for branded residences. Developers and brands jointly identify HNWI growth hotspots to enrich their offer. Over the past five years, the highest growth rates in terms of the number of HNWIs have been observed in North America (53%), followed by the Middle East (34%) and Asia-Pacific (31 %). This is consistent with our observations of the largest increase in branded residence stock over the same period.

“Going forward, the Middle East is expected to experience a sharp increase in the number of HNWIs over the next five years. The United Arab Emirates is expected to see a 22% increase in the number of affluent households, while Saudi Arabia (13%), Kuwait (51%) and Qatar (22%) are also expected to experience healthy growth in the number of wealthy households. wealthy households. wealthy residents. This bodes well for the market for branded residential developments in the region.

While still high, growth in branded residential development in prime locations in Dubai, South Florida and New York is slowing as many brands seek expansion opportunities in emerging cities and resort locations, according to the report.

Of the top 15 locations, 10 of them are resort destinations or emerging destinations, demonstrating how diversified the branded residence sector has become. Cities and resorts in emerging markets such as Phuket, the Caribbean and Mexico are climbing the rankings as buyers seek additional residences in vacation and seasonal areas. These locations are led by luxury and non-luxury brand developments

Top Players by Pipeline Completion and Supply

Parent companies and parent groups, with a large number of brands under their umbrella, continue to compete for market share and brand recognition. Marriott International remains comfortably at the top of the hotel parent company rankings, where it has been since 2002. However, in recent years there have been rising stars and new entrants to the market, both in terms of type and location of hotel. the parent brand. Accor, for example, ranks third in number of properties completed in 2022, dropping from fifth place in 2021.

Non-American brands such as Emaar and Banyan Tree have become global competitors. As more and more residents of regions other than North America and Europe move up the wealth ladder, the demand for branded products that can meet their needs will increase.

For non-hotel brands, there is more activity and jostling for position compared to hotel parent brands, but YOO remains at the top of the charts. From established players in design, fashion, golf and wealth brands to new entrants in automotive, music and art brands, such as the recently announced Louvre Residences in Abu Dhabi, growth non-hotel brands demonstrates that buyers do not appear to be limited to traditional hotel offers. Brands such as Mahindra (Pininfarina), LightArt and DAMAC

(Roberto Cavalli) will move up the rankings in the future.

Fast-growing economies such as Brazil, the United Arab Emirates and India are leading the pack for the non-hotel pipeline, with each country forecasting growth of more than 70% in the non-hotel brand program from existing levels. current supply. The lifestyles offered by these non-hotel brands, and the fact that there are fewer existing residences, offer the perfect combination for trophy assets for the growing number of high net worth individuals.

About Savills

Savills plc is a global property services provider listed on the London Stock Exchange. Present in the Middle East for over 40 years, Savills offers a wide range of specialist advisory, management and transaction services in the United Arab Emirates, Oman, Bahrain, Egypt and Saudi Arabia. Expertise includes property management, residential and commercial agency services, property and commercial asset valuation, and investment and development advice. Originally founded in the UK in 1855, Savills has an international network of over 600 offices and associates employing 39,000 people across the Americas, UK, Europe, Asia-Pacific, Africa and the Middle East.

Pound rate against dollar hits 10-week best as dollar slips and stocks rise http://louthonline.com/pound-rate-against-dollar-hits-10-week-best-as-dollar-slips-and-stocks-rise/ Mon, 14 Nov 2022 10:35:00 +0000 http://louthonline.com/pound-rate-against-dollar-hits-10-week-best-as-dollar-slips-and-stocks-rise/

The exchange rate between the pound and the dollar (GBP/USD) jumped above 1.1700 and posted a 10-week high above 1.1770 on Friday before a limited correction.

The exchange rate between the pound and the euro (GBP/EUR) strengthened to 1.1480 before correcting to 1.1435.

Global asset prices surged after the latest inflation data from the United States.

The headline inflation rate in the United States fell to a 9-month low of 7.7% from 8.2% and below expectations of 8.0%, while the base rate fell to 6, 3% versus 6.6%.

The data reinforced optimism that inflation had peaked. In response, markets scaled back expectations for future Fed rate hikes, expecting rates to be raised to 4.5% in December from 4.75% before the data, and the peak in US rates should now be below 5.00%.

Risk appetite rebounded strongly with equities soaring as the dollar posted steep losses.

The weakness in the dollar directly boosted the pound and the surge in risk appetite also provided net support for the pound.

Markets recalibrate Fed policy trajectory

The euro to dollar (EUR/USD) exchange rate jumped to 3-month highs above 1.0250 on Friday as the dollar posted steep losses.

bannerThe policies of the Federal Reserve and the trend of the dollar will be hotly debated.

According to Carol Kong, strategist at Commonwealth Bank of Australia; “A currency strategist at I think the US CPI results for October will support the case for a downward revision to the FOMC rate hike in December.”

Socgen considers the dollar to have peaked and EUR/USD to bottom with room for further gains; “Despite the energy crisis and pessimism regarding the conflict in Ukraine, inflation and growth, the bottom in EURUSD is likely behind us and midrange targets can be attacked.”

He added; “The pair should rise slightly towards projections of 1.0285 and the August high of 1.0360/1.0450, which is also the 200-DMA.”

ING does not expect dollar losses to continue; “We remain reluctant to get into the broader bearish dollar story at this time.”

The bank expects the Fed to be reluctant to take a dovish stance without stronger evidence, especially with a tight labor market.

It also considers that there is still a lack of attractive alternatives to the dollar.

Rabobank added; “The USD may be approaching the final stages of its rally, but we consider it far too early to expect the USD to change course.”

Queen’s funeral hurts September GDP

UK GDP was estimated to have shrunk by 0.6% in September, a steeper than expected decline of 0.4% for the month.

The August decline was revised to 0.1% from the 0.3% originally reported.

In this context, the contraction of GDP in the third quarter was contained to 0.2% against expectations of a fall of 0.5%.

GDP is estimated at 0.2% below February’s pre-pandemic level.

Activity in the services sector fell 0.8% for the month after falling 0.1% in August with a second straight sharp drop in consumer services output falling 1.7% after a contraction of 1.6% in August.

Industrial production increased by 0.2% on the month, with a growth of 0.4% for the construction sector, manufacturing being unchanged on the month.

ONS Director of Economic Statistics Darren Morgan said: ‘With September showing a notable decline partly due to the effects of the additional bank holiday for the Queen’s funeral, overall the economy has shrunk slightly in the third quarter.”

He added; “The quarterly decline was led by manufacturing, which saw widespread declines across most industries.”

The UK faces a prolonged recession

Resolution Foundation Research Director James Smith commented; “Slumping consumer spending caused the economy to contract in the third quarter of 2022. This put Britain on course for the fastest return to recession in nearly half a century.”

He added; “These latest figures provide a sobering backdrop to next week’s Autumn Statement. The Chancellor will need to strike a balance between putting public finances back on a sustainable footing, without further deepening the cost of living crisis. , or touch already overloaded public services.

Kitty Ussher, chief economist at the Institute of Directors, noted that the weakness was spreading; “The slowdown is now spreading across the economy with contractions in B2B sectors, such as information and technology and professional science activities, now joining existing difficulties in retail and manufacturing. “

PwC’s chief economist, Barret Kupelian, expected a prolonged downturn; “The overall dynamics of economic activity in the UK are also concerning. Inflation remains high, financial conditions are tightening at a rapid pace and there is strong potential for government spending cuts in the autumn statement of next week. These will all be significant headwinds for future growth.

According to Yael Selfin, chief economist at KPMG UK; “The current slowdown is expected to last until the end of 2023, during which time GDP is expected to decline by 1.6 percent.”

Paul Dales, chief UK economist at Capital Economics, noted the potential for brief relief for October, but added; “The fourth quarter is also the time when the brake on high inflation will be particularly important and when the cumulative effect of rising interest rates will strengthen. We believe these effects will mean that GDP will continue to decline for about a year, causing GDP to decline by about 2% from peak to trough.

Dales expects further but more limited BoE rate hikes; “None of this will stop the Chancellor from tightening fiscal policy next Thursday or stopping the Bank of England from raising rates above 3%. We still think rates may need to rise to 5 %, although tighter fiscal policy may reduce the need to raise rates quite far.

CBI Chief Economist Alpesh Paleja noted the government’s tough choices; “Weaker growth prospects and persistently high inflation will make some economic policy decisions difficult. The Autumn Statement should draw lessons from the 2010s: fiscal sustainability and higher trend growth are two immediate priorities. »

Thomas Pugh, RSM’s UK economist, added; “We expect Chancellor Hunt to impose around £50billion in tax hikes and spending cuts, which means public consumption will start to dampen GDP while the huge rise in the cost of Corporate borrowing will weigh heavily on investment.”

He added; “Furthermore, a global economic downturn means that large increases in export volumes are unlikely to continue. All of this suggests that GDP contractions are not only likely to continue, but will worsen in the first half of next year.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, noted the global comparison; The British economy is the only one in the G7 to have seen its GDP fall quarter on quarter in the third quarter. Britain is also the only G7 economy where the quarterly GDP measure has yet to return to its fourth quarter 2019 level. What the fuck.”

Pending financial statement; ING commented; “Above all, we will seek details on how the government will make its energy support less generous from April, which is most likely to reshape the outlook for 2023.”

The government said it would move to more targeted support, but there were no further details.

ING added; “The sharp drop in wholesale gas prices could see most households paying £3,300 on average in financial year 2023, compared to £2,500 a year under the government guarantee. That would equate to around 9% of household disposable income and further dampen overall economic activity next summer. »

ING added; “The domestic situation for the pound remains uncertain at best, and we believe this puts the GBP/USD pair at risk of fairly rapid corrections if support from a weaker dollar evaporates.”

MPC Capital Releases Nine-Month 2022 Figures and Significantly Raises Full-Year 2022 Guidance http://louthonline.com/mpc-capital-releases-nine-month-2022-figures-and-significantly-raises-full-year-2022-guidance/ Mon, 14 Nov 2022 09:36:02 +0000 http://louthonline.com/mpc-capital-releases-nine-month-2022-figures-and-significantly-raises-full-year-2022-guidance/ EQS-Ad-hoc: MPC Münchmeyer Petersen Capital AG / Keyword(s): Change in 9-month forecast/figures
MPC Capital Releases Nine-Month 2022 Figures and Significantly Raises Full-Year 2022 Guidance

14-Nov-2022 / 10:33 CET/CEST
Disclosure of privileged information according to. in Article 17 MAR of Regulation (EU) No 596/2014, transmitted by EQS News – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


MPC Capital Releases Nine-Month 2022 Figures and Significantly Raises Full-Year 2022 Guidance

– Very positive operational development in the first nine months of 2022
– Annual forecast for EBT adj. increased to approximately €15.0 million
– Sustained interest in real estate investments linked to the energy transition

Hamburg, November 14, 2022 – MPC Münchmeyer Petersen Capital AG (“MPC Capital”, Deutsche Börse Scale, ISIN DE000A1TNWJ4), Hamburg-based asset and investment manager, has increased its consolidated revenue to 27.1 million euros in the first nine months of the 2022 financial year, increasing from 24.6 million euros the previous year. Management fees amounted to €21.2 million (9M 2021: €20.3 million), transaction fees to €5.7 million (9M 2021: €4.1 million euros).

Consolidated profit before tax (EBT) amounted to 28.8 million euros after the first nine months of 2022. Operating EBT adjusted for the proceeds from the sale of the Dutch real estate business (EBT adj.) s amounted to 12.3 million euros. During the same period of the previous year, MPC Capital generated an EBT of 5.1 million euros. The EBT (adjusted) margin has therefore improved significantly, from 21% the previous year to 45% in the first nine months of 2022.

Cash and cash equivalents (cash and bank balances) increased to €57.7 million as of September 30, 2022 (December 31, 2021: €38.5 million). The equity ratio was 82% (31 December 2021: 75%).

Significant increase in earnings forecasts

Despite difficult economic and geopolitical conditions, the positive development of activity in the first half of 2022 continued in the second half above the assumptions on which the initial forecast was based. EBT adj. after nine months was already above the full-year 2022 guidance range, and further earnings contributions are expected for the fourth quarter of 2022.

In this context, the Management Board has decided to significantly increase the EBT adj. guidance for the full year 2022 from the initial range of EUR 8.0 million to EUR 12.0 million to approximately EUR 15.0 million. The consolidated revenue forecast for 2022 remains unchanged.

The positive outlook and increased earnings forecast is primarily due to the continued high earnings contribution from the co-investment portfolio, which includes both steady investment returns and realized exit earnings. In addition, MPC Capital benefits from an ever-growing interest in real estate investments linked to the energy transition. For example, MPC Capital was able to launch long-term investment projects for methanol-powered container ships in the third quarter of 2022. The demand for renewable energy projects also remains high.

Substantial dividend growth expected

The Management Board intends to pay approximately half of the Group’s net profit after tax and minority interests, adjusted for the proceeds from the sale of the Dutch real estate business, to shareholders as a dividend. This would represent a significant increase compared to the dividend for the 2021 financial year. The Management Board will propose the exact amount of the dividend when presenting the 2022 consolidated accounts in the spring of 2023.

Note: Figures for the third quarter and first nine months of 2022 have not been audited or revised.

This release contains forward-looking statements that are subject to certain risks and uncertainties. Future results could differ materially from those currently anticipated due to various risk factors and uncertainties, including, among others, changes in business, economic and competitive conditions, exchange rate fluctuations, uncertainties in litigation or investigative procedures and availability of funding. MPC Capital AG assumes no responsibility for updating the forward-looking statements contained in this release.

Contact person and discloser in accordance with article 17 of MAR

MPC Capital SA
Stefan Zenker
Head of Investor Relations and Public Relations
Such. +49 40 38022-4347
Email: s.zenker@mpc-capital.com

About MPC Capital AG (www.mpc-capital.com)

MPC Capital is a global asset and investment manager for real estate assets in the areas of real estate, renewable energy and maritime transport. Its range of services includes the selection, initiation, development and structuring of investments, through active management to divestment. With approximately 170 employees and over 25 years of experience, MPC Capital offers institutional investors access to investments in selected markets with attractive growth and return opportunities. As a responsible and family-owned company, listed on the stock exchange since 2000, MPC Capital contributes to meeting the financing needs to achieve the global climate objectives.

14-Nov-2022 CET/CEST EQS distribution services include regulatory announcements, financial/corporate news and press releases.
Archives on www.eqs-news.com

Why Budget 2023 Should Increase Tobacco Taxes – The Island http://louthonline.com/why-budget-2023-should-increase-tobacco-taxes-the-island/ Thu, 10 Nov 2022 23:43:44 +0000 http://louthonline.com/why-budget-2023-should-increase-tobacco-taxes-the-island/

Amid widespread economic uncertainty during 2022, Sampath Bank maintained a strong capital base and a stable liquidity profile. Proactive efforts to identify challenges and implement appropriate strategies have enabled the Bank to further strengthen its soundness and stability. The Bank also continued to lead by example in demonstrating its commitment to the national growth agenda by promoting inward remittances and encouraging the influx of export earnings to the country while helping all stakeholders manage the current economic crisis. CSR activities have also been accelerated by undertaking multiple projects under the Bank’s flagship “Weweta Jeewayak” program to boost the rural economy.

The Bank declared a PAT of Rs 7.2 billion and a PBT of Rs 9.3 billion for the period ended 30 September 2022, reflecting a decline of 19.8% and 24.4% respectively, compared to the figures declared. for the corresponding period in 2021, which reflects the current economic crisis in the country. As of September 30, 2022, the Group declared PAT and PBT of Rs 7.7 billion and Rs 10.2 billion, a decrease of 21.6% and 24.3% respectively compared to the corresponding period of 2021.

Key Financial Highlights Reported by Sampath Bank for 2022:

276% growth in FX revenue resulting from the sharp depreciation of the LKR against the US Dollar by 82% or Rs 164.75. Considerable increase of 69.5% in net fee and commission income during the period , driven by cards and trade-related operations.

The Bank recorded an impairment charge of Rs 48.8 billion on loans and investments to account for possible economic uncertainties during the year.

Fund-based income

Total interest income increased by 67.7% year-on-year during the nine months ended September 30, 2022, reaching Rs 106 billion against Rs 63 billion reported during the corresponding period of the previous year. This is mainly explained by the increase in interest rates recorded in 2022, which saw the AWPLR reach 25.95% as of September 30, 2022, an increase of 1,953 basis points compared to September 30, 2021 and a increase of 1,734 basis points compared to the end of 2021. The one-year Treasury bill coupon rate also increased to 29.85% as of September 30, 2022, an increase of 2,284 basis points. basis compared to September 30, 2021.

Driven by rising market interest rates, the Bank’s interest expense increased by 57.3% from the same period last year to Rs 52.8 billion for the reporting period . Prudent asset and liability management resulted in net interest income increasing 79.4%

Non-Fund Based Income

During the reporting period, the Bank’s net income from fees and commissions (NFCI) increased significantly by 69.5% compared to the same period of the previous year. NFCIs, which include revenue from many sources, such as loans and advances, credit cards, commerce and electronic channels, grew significantly thanks to card-related activities and fee and commission revenue from trade-related activities.

Other net operating income for the nine months ended September 30, 2022 was Rs 18 billion. This 320% year-on-year increase was attributed to the Rs 164.75 decline in the value of the LKR against the USD. In 2022, the Bank recorded a net trading loss of Rs 3 billion against the loss of Rs 98 million recorded the previous year. Total foreign exchange revenue for the reporting period was Rs 14.5 billion, up from Rs 3.8 billion recorded last year.

Depreciation charges

The Bank recognized a total impairment charge of Rs 48.8 billion for the nine months ended 30 September 2022. This is an increase of 396% from the charge of Rs 9.8 billion reported on last year. Of this amount, the impairment charge for loans and advances amounted to Rs 37.7 billion, while Rs 10.3 billion related to other financial instruments. In addition, an impairment charge totaling Rs 839 Mn has been recorded against other commitments and contingencies.

Impairment charge on loans and advances: In order to reflect the deterioration of the country’s economic environment, the Bank increased the probability weighting assigned to a worst-case economic scenario and revisited the EFA model which led to the recognition of a provision for impairment significantly higher during the reporting period. Industries considered high risk have been expanded to capture a wider range of industry-specific stressors. The potential impact of higher inflation, higher interest charges and increased taxes on the retail segment are some of the other factors that have been considered in the recognition of provisions for depreciation.

The Bank has reviewed the adequacy of the impairment allowance with respect to tourism customers and other similar impacted industries where necessary and adequate impairment allowances have been recorded for individually significant loan impairments. The Bank also continued to recognize a provision for impairment of customers exiting the moratorium at the end of December 2021 and June 2022, as some customers requested additional concessions given the current economic outlook. Additionally, steps have been taken to transition customers from Stage 1 to Stage 2 based on their ability to withstand the negative effects caused by the economic downturn.

The culmination of these efforts has resulted in higher overall provision coverage of 9.8% as of September 30, 2022, which is considered sufficient to help the Bank absorb potential losses resulting from difficult macroeconomic conditions.

Impairment charge on other financial instruments: The Bank provided Rs 9,040 million against SLISBs and Rs 935 million against SLDBs as of September 30, 2022. This decision was influenced by two key factors: rating downgrade Sri Lanka sovereign in May 2022 to RD of C by Fitch Ratings and the current debt restructuring measures taken by the government. The Bank’s accumulated impairment provision for SLDBs and SLISBs stood at Rs 21.6 billion at the end of the reporting period. In the meantime, the Bank was able to significantly reduce exposure to FCY ​​instruments by converting matured SLDBs to LKR instruments during the reporting period.

Net operating income

Total operating income for the period increased by Rs 40 billion. However, the impairment charge also increased by Rs 39 billion, limiting the growth in net operating income to 3.7%.

Operating Expenses

Operating expenses during the reporting period amounted to Rs 20.5 billion, an increase of 23.6% from the Rs 16.6 billion recorded during the corresponding period last year. Rising inflation and the depreciation of the LKR were the main contributors to this increase. Despite the growth recorded in operating expenses, the Bank’s cost to income ratio (CIR) fell significantly by 1,460 basis points and stood at 25% against 39.6% recorded in the corresponding period. of 2021. This decrease in CIR was mainly due to the increase in total operating income exceeding the increase in total operating costs.

Tax expenditures

Despite the 17.6% drop in profit before VAT, VAT on Financial Services increased by 9.3% due to the upward movement of the VAT rate from 15% to 18%, with effect from January 1, 2022 .

The Inland Revenue (Amendment) Bill published on October 11, 2022 has not been substantially enacted by parliament. Therefore, the Bank did not take into account the changes proposed in the draft law for the reference period.

Main ratios

Return on average equity (after tax) fell to 8.08% as of September 30, 2022, compared to 11.05% at the end of 2021. Return on average assets (pre-tax) decreased set at 0.96% as of September 30, 2022 versus 1.44% reported for 2021.

Capital ratios

As of September 30, 2022, the Bank maintained all of its capital ratios well above regulatory minimum requirements. The Bank’s CET 1, Tier 1 and total capital ratios as of September 30, 2022 were 11.31%, 11.31% and 13.72% respectively, compared to 13.95%, 13.95% and 17.02 % at the end of 2021. The decline in the ratios during the reporting period is due to the combined impact of the increase in risk-weighted assets resulting from the depreciation of the LKR, cash dividends and the payment of the surcharge.

Assets and liabilities

Sampath Bank’s total assets exceeded Rs 1.3 Tn at the end of September 2022, an increase of Rs 113 bn (annualized growth of 12.6%) compared to the position at December 31, 2021 of Rs 1.2 Tn. The increase in cash and cash equivalents and net loans and advances contributed to the aforementioned growth. One of the main causes of balance sheet expansion can be attributed to the devaluation of the local currency during the year.

Total advances increased by 22.6% (annualized) during the reporting period from Rs 813 billion at the end of December 2021 to Rs 951 billion as at September 30, 2022. The LKR loan portfolio increased by 12.1% (annualized). It is worth mentioning that the value of foreign currency denominated loans increased significantly after the LKR depreciated by Rs 164.75 against USD during the period. If exchange rate variations had not occurred, total loans and advances would have increased by 8.8% (annualized). During 3Q22, the deposit base in LKR increased by Rs 44.4 billion due to deposit mobilization initiatives promoted by the Bank. Nevertheless, the growth of the LKR deposit base was limited to 0.8% compared to the end of 2021.

Tokyo Electron cuts outlook on US chip export restrictions http://louthonline.com/tokyo-electron-cuts-outlook-on-us-chip-export-restrictions/ Thu, 10 Nov 2022 16:00:00 +0000 http://louthonline.com/tokyo-electron-cuts-outlook-on-us-chip-export-restrictions/

Major chip equipment supplier Tokyo Electron Ltd slashed its full-year outlook yesterday after memory chipmakers cut spending and the United States tightened restrictions on chip equipment exports. advanced chip manufacturing to China.

The company now expects annual operating profit of 546 billion yen ($3.7 billion), down 24% from its previous forecast, despite quarterly revenue growth worldwide. Its caution echoes the pessimism of its American rivals, such as Applied Materials Inc and Lam Research Corp.

Tokyo Electron would not try to take advantage of an opportunity created by U.S. restrictions on its U.S. peers, Hiroshi Kawamoto, general manager of the company’s finance unit, told a news conference.

Photo: Reuters

“We understand that US manufacturers may have difficulty doing business with Chinese customers. We will not try to fill the void they leave,” he said.

The company was operating at nearly full capacity, with lead times of several months for the delivery of equipment.

With a customer list that includes Semiconductor Manufacturing International Corp (中芯國際) and Yangtze Memory Technologies Co (長江存儲), Tokyo Electron derives around a quarter of its revenue from China, although that number includes overseas companies that there are factories.

Japan’s exports of chipmaking equipment to China have hit record highs so far this year, up more than 20 percent year-on-year in the third quarter.

“U.S. sanctions will cause Chinese manufacturers to cut capital expenditures, leading to delivery delays,” Kawamoto said.

US President Joe Biden’s administration has announced sweeping regulations to limit sales of its advanced semiconductors and chipmaking equipment to China, upending the US$550 billion globally interconnected industry.

While the move dealt a blow to China’s chip industry, it imposed tough restrictions on U.S. semiconductor equipment firms that are expected to cost them billions of dollars in revenue.

This was in addition to spending cuts announced by memory chipmakers from SK Hynix Inc to Micron Technology Inc.

The United States has signaled to its allies its desire that they follow suit on export controls to limit China’s access to critical chip technologies.

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