The document provides a weekly market review of the Colombo Stock Exchange for the week ending 6th January 2012. It summarizes that both indices declined for the week, extending the prevailing sluggish momentum. A few of the largest decliners were highlighted. New listings and an acquisition in the tourism sector were also mentioned. Metrics like trading volumes and foreign flows were provided. The document concludes with an analysis of warrant valuations for some companies and a list of members qualifying for the "Billion Rupee Club" based on over LKR1 billion in quarterly profits.

1. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 1
Focus
Volume 38
Volume 01
706 October 2011
th January 2012
th
Colombo Stock Exchange
Weekly Review by Asia Wealth Management Research
IN THIS ISSUE; ASI Daily Closing
(ASI) (LKR mn)
2012 Kicks Off Red……….. 6196
Focu
The Colombo Bourse concluded its first trading week for the
year 2012 with both indices shedding further, extending the long
prevailed sluggish momentum driven by lack of confidence over the Colombo Stock Exch 6022
Volume 38
5848 955
market. Pg02
7 October 2011
5674
Analysis of Various Warrants Listed on the
CSE 5500
19- 20- 21- 22- 23- 27- 28- 29- 30- 2-Jan3-Jan4-Jan5-Jan6-Jan
0
Comparison of the warrants trading price with its Dec Dec Dec Dec Dec Dec Dec Dec Dec
intrinsic value (derived through the Black Scholes Call option Turnover (RHS) ASI closing (LHS)
Pg 03
th
valuation method).
Market Statistics
06-Jan 30-Dec % Chg.
Asia Wealth’s ‘Billion Rupee Club’ Pg 04 All Share Index 5,930.52
W eekly R eview by Asia Wealth Mana
Milanka Price Index 5,083.15
6,074.42
5,229.16
-2.4
-2.8
Banking & Finance 13,527.08 13,812.68 -2.1
Food & Beverage 11,806.77 12,112.42 -2.5
Focu
Colombo Stock Exch
Diversified 1,857.70 1,909.05 -2.7
Commodity Prices Hotels & Travels 3,783.55 3,929.20 -3.7
Pg 05
Volume 38
Weekly overview of commodity trading Telecommunication 164.78 167.91 -1.9
Manufacturing 3,230.13 3,285.15 -1.7
7 October 2011
Market Capitalisation (LKR bn) 2,166.60 2,214.00 -2.1
(USD bn) 19.01 19.43 -2.2
2012 week 1: Market turnaround remains Turnover (LKR mn)
(USD mn)
1,937.70
17.01
2,750.10
24.14
-29.5
-29.6
elusive… Average Daily Turnover (LKR mn) 387.50 687.50 -43.6
Volume (mn shares) 93.00 124.20 -25.1
The market was off to a sluggish start to the year with a WoW loss Foreign Purchases (LKR mn) 308.70 93.10 231.6
of 2.4% recorded on the ASI with retailers in absentia. Pg 06 Foreign Sales (LKR mn) 463.10 1,352.90 -65.8
th
Major Price Movements Large Trades
Company Price +/-LKR +/- % Volume Company Volume
Walk & Greig (Env. Resources) 32.00 (8.00) (20.00) 5,563,100 Seylan Merchant Bank (Non Voting) 14,100,000
Nation Lanka 12.90 (2.90) (18.35) 816,700 Weekly Review by Asia Wealth Manag
Waskaduwa Beach Resort 6,894,400
Horana 33.00 (4.80) (12.70) 35,600 Walk & Greig 5,563,100
Sigiriya Village 83.00 (12.00) (12.63) 3,700 Free Lanka Capital Holdings 501/’0020
Hayleys - Mgt 25.20 (3.30) (11.58) 73,600 Tess Agro 4,963,500
Colonial Motors Plc 414.90 14.90 3.73 18,500 Blue Diamonds (Non Voting) 4,017,100
Bogawantalawa Tea Estate 15.00 0.60 4.17 7,500 Seylan Merchant Bank 3,793,600
Morisons (Non Voting) 155.40 6.40 4.30 36,000 Walk & Greig (W.0002) 3,515,700
Colombo Stoc
Connaissance (Amaya) 83.50 3.50 4.38 7,100 Amana Takaful Plc 2,783,500
York Arcade 27.50 2.40 9.56 897,800 Panasian Power 2,699,600
8
1

2. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 2
The Week in FOCUS
2012 Kicks Off Red………..
The Colombo Bourse concluded its first trading week for the year 2012 with both indices shedding further, extending
the long prevailed sluggish momentum driven by lack of confidence over the market. The All Share Index dipped
144.0 points WoW to close at 5,930.5 points (-2.4%), whilst the Milanka Price Index also shedding by 146.0 points
WoW to close at 5,083.1 points (-2.8%). Indices benefitted mainly on the back of losses made by Aitken Spence
(-9.1% WoW), Dialog Axiata (-5.1% WoW), Cargills Ceylon (-5.7% WoW), Lanka Orix Leasing Company (-6.5% WoW),
John Keells Holdings (-1.8% WoW), Environmental Resources Investments (-20.0% WoW) & Vallibel One Limited
(-7.9% WoW).
Activities in the market were relatively low with thin volumes and turnover levels driven by a mix of institutional, high
net worth and retail interest. The average daily turnover for the week had been LKR387.5 mn with an average weekly
volume of 19 mn. Further, the week saw a decline of circa 2.1% in overall market capitalization together with a Year
to date return of negative 2.4%.
The top traded counter for the week is John Keells Holdings, contributing a bulk of 17% to the weekly total turnover,
indicating that institutional and high net worth investors are accumulating the stock at prevailing discounted prices in
the light of future growth prospects. Secondly, it was evident that heavy speculative trading was on Environmental
Resources Investments closing the share with a price dip of 20% WoW, giving a high impact on the indices with a loss
of LKR2.5 bn in market capitalization. Heavy foreign selling pressure on Commercial Bank of Ceylon has also added
on to increase the weekly turnover. Meanwhile, heavy interest was seen on the new entrant to the bourse,
Waskaduwa Beach Resort.
During the week Kalpitiya Beach Resort and Waskaduwa Beach Resort got listed on the Diri Savi Board under the
Hotels and Travel sector. Kalpitiya Beach Resort issue opened at LKR19.00 to close at LKR17.00 at the initial day of
trading. At the same time Waskaduwa Beach Resort opened at LKR13.50 to close at LKR14.00.
Apart from the above, in the midst of booming tourism sector, LOLC Leisure Limited made a strategic move to
acquire Dikwella Resort Limited for a consideration of LKR1, 014 mn.
In the economic context the call market rates stabilised in the face on Central Bank’s open market interventions.
Furthermore, Seylan Merchant Bank (Non Voting), Waskaduwa Beach Resort, Environmental Resources
Investments and Free Lanka Capital Holdings topped the list in terms of volume during the week.
The week saw a net foreign outflow of LKR154.4 mn where foreign purchases amounted to LKR 308.7mn whilst
foreign sales amounted to LKR463.1 mn.
Market capitalization stood at LKR2, 166.6 bn, nevertheless the YTD performance closed at -2.4%.

3. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 3
Features
Analysis of Various Warrants Listed on the CSE
The below table depicts a comparison of the warrants trading price with its intrinsic value (derived through the Black
Scholes Call option valuation method). The 6th column to the right depicts the difference between the intrinsic value
and the traded price. Hence, the positive figures would explain the potential for the respective warrant to further
appreciate. Thus, the negative value would denote that the warrant is overvalued at the current price (assuming the
underlying stock price to be constant). However, it is noted that the intrinsic value is derived based on the current
value of the underlying stock price, its volatility, period to maturity and the risk free rate. Hence, any adverse
movement of the mentioned assumptions would have an adverse impact on the warrant value, and any favourable
movement would positively impact the warrant value (E.g.: if in case the asset price appreciates from the existing, it
would invariably increase the value of the warrant.
Warrants Valuation
Price According to Black
Exercise Share Price Warrant Price Undervalued/
Expiry Date Scholes model (Intrinsic
price (2012/01/06) (2012/01/06) (Overvalued)
value)
CLPL-W-0013 118.00 101.00 25-Aug-14 17.80 6.08 (11.72)
CLPL-W-0014 142.00 101.00 25-Aug-15 18.00 1.15 (16.85)
GREG-W-0002 33.00 32.00 26-Sep-13 15.00 3.24 (11.76)
GREG-W-0003 36.00 32.00 24-Feb-14 15.00 1.85 (13.15)
GREG-W-0006 39.00 32.00 24-Feb-15 15.00 1.97 (13.03)
REEF-W-0018 30.00 48.00 30-Jun-12 19.70 19.13 (0.57)
REEF-W-0019 40.00 48.00 15-Jun-15 16.90 17.72 0.82

4. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 4
Colombo Bourse’s Billion Rupee Club
Table below shows the members who have qualified to be a part of ‘Asia Wealth Research’s Billion Rupee Club’.
The eligibility criteria lie with their earnings reaching LKR1 bn mark. The list will be refreshed on a quarterly basis
identifying the new qualifying members whilst eliminating the disqualifying.
Net Profit Trailing
Company Price Market cap
4Qtrs ROE
LKR mn LKR LKR mn
DISTILLERIES 9096.68 148.00 27% 44400.00
COMMERCIAL BANK [V] 7878.20 99.00 18% 75743.45
COMMERCIAL BANK [NV] 7878.20 70.00 18% 3665.54
JOHN KEELLS HOLDINGS 7252.74 174.80 12% 147070.12
CEYLON TOBACCO 7014.00 473.00 163% 88604.13
CARSON CUMBERBATCH 6780.78 541.50 27% 106343.51
HNB [V] 5763.48 148.00 15% 46072.19
HNB [NV] 5763.48 80.00 15% 6174.08
DIALOG TELEKOM 5210.73 7.90 16% 64335.85
SRI LANKA TELECOM 5037.00 45.00 10% 81218.70
LOLC 5031.28 75.00 30% 35640.00
BUKIT DARAH 4961.00 1073.60 11% 109507.20
SAMPATH BANK 4614.68 197.50 23% 30978.70
DIMO 3195.65 1280.00 50% 11361.84
CEYLON GUARDIAN 2783.10 260.00 24% 21345.15
AITKEN SPENCE 2623.86 113.00 12% 45877.55
DFCC BANK 2454.13 108.50 10% 28763.10
NESTLE LANKA 2449.49 889.00 90% 47761.94
BROWNS 2330.34 230.00 14% 16301.25
CENTRAL FINANCE 2291.09 204.90 19% 21490.59
HAYLEYS 2282.37 365.00 14% 27375.00
NDB 2230.19 122.00 13% 20032.63
RICHARD PIERIS 2224.62 8.40 37% 16281.18
ASIAN HOTEL & PROPERTIES 1917.96 80.00 14% 35422.02
DIPPED PRODUCTS 1873.80 105.10 37% 6291.44
COLOMBO DOCKYARD 1872.00 230.00 23% 15740.53
CHEVRON LUBRICANTS 1756.86 169.00 52% 20280.00
ROYAL CERAMICS 1739.94 138.10 30% 15300.01
UNITED MOTORS 1670.41 143.80 35% 9673.01
ASIA CAPITAL 1504.49 64.00 68% 7040.00
CEYLINCO INSURANCE [V] 1453.76 749.30 17% 14986.00
CEYLINCO INSURANCE [NV] 1453.76 327.00 17% 2097.53
NATIONS TRUST BANK 1405.77 55.50 17% 12798.70
LB FINANCE 1319.06 135.00 43% 9349.71
CEYLON TEA SERVICES 1314.06 680.00 22% 13600.00
LION BREWERY 1232.90 186.00 22% 14880.00
HEMAS HOLDINGS 1108.64 32.00 12% 16489.30
CARGILLS 1104.17 196.10 15% 43926.40
CEYLON THEATRES 1095.07 166.00 9% 30394.14
SINGER SRI LANKA 1081.09 118.00 25% 14774.73
AIT. SPENCE HOTEL HOLD. 1053.03 65.00 12% 21858.85

5. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 5
Commodity Prices
USD WEEKLY (DATE AS 16.12.11 23.12.11 30.12.11 06.01.12 WoW %
AT) Change
Brent Crude Oil (Barrel 103.17 107.89 108.01 112.74 4%
USD)
METAL
Gold (Ounce USD) 1577.20 1611.3 1555.25 1,612.05 4%
Copper LME ( Ton.USD) 7201.50 7567 7500.75 7578.4 1%
AGRI
Tea SLR/Kg 358.02 384.89 - 347.44 -10%
(Dec 15) (Dec 23) (Jan 05)
Rubber (RSS 1) LKR 398 375 373 369.90 -1%
(Dec 13) (Dec 15) (Dec 22) (Jan 05)
Exchange Rates 16.12.11 23.12.11 30.12.11 06.01.12 WoW%
( LKR) Change
USD 113.9 113.9 113.9 113.9 -
EURO 148.44 148.92 147.38 145.57 -1.0%
STG (GBP) 176.86 178.7 175.48 176.49 1.0%
YEN 1.46 1.46 1.47 1.47 -
YUAN (CNY) 17.9 18.0 18.0 18.0 -
OIL
Crude oil prices spiked over $112 a barrel as worries over potential disruption to Iran's oil supplies reined over investor
expectations. However, the Energy Information Administration said inventories of crude oil and key refined petroleum products
in the U.S., the world's biggest oil consumer, rose far more than expected last week. The stock builds came as total demand in
the week ended Dec. 30 slumped to a 14-year low for the last week of the year. This is expected to exert downward pressure on
oil prices in the coming weeks.
GOLD
Gold rose 4 percent during the week, breaking ranks with the euro on the back of renewed hedge fund interest and technical
buying. Bullion reversed early losses on rising crude oil prices after European governments agreed in principle to ban imports of
Iranian oil. Gold has more than recovered from last week's losses that briefly sent it into a bear market.
COPPER
Copper futures eased, tracking a decline in the euro as investors worried that the debt crisis there could rattle the industrial
economy and curb demand for metals. Copper is used in everything from plumbing and wiring to automobiles and electronics,
making prices sensitive to the global economic outlook.
USD
The US dollar had a bullish week, following a less than enthusiastic German debt auction which sent investors back toward safe-
haven assets like the USD and CHF. The dollar saw upward movement against many of its main currency rivals, particularly the
euro and UK pound. The EUR/USD tumbled well below the psychologically significant 1.3000 level, while the GBP/USD fell under
1.5600 before staging a slight correction.

6. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 6
2012 week 1: Market turnaround remains elusive…
The market was off to a sluggish start to the year with a WoW loss of 2.4% recorded on the ASI with retailers in
absentia. Retailers continued to shun the market despite the commencement of trading of two IPO’s at the beginning
of the week. Foreign institutional and high net worth investors followed suit with net foreign sales recorded in a
number of fundamentally strong counters such as Commercial bank & Hayleys. The continued decline in foreign
participation could also be partly attributed to the worsening current account position of the economy which led to
the circulation of news items in the media hinting at the possibility of a further devaluation of the Rupee. Despite the
Central banks best attempts to quash the reports, the damage had already been done as evident in the net foreign
outflow of LKR154.42mn.
However despite the poor performance of the equity market, the Central bank succeeded in arresting the continuous
rise in treasury yields which remained flat across all maturities at this week’s auction. This fact in conjunction with
the Inflation in the month of December remaining at single digit levels, offers hope to investors for the coming
weeks.

7. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 7
Focus on Investment
Key Buys Charts Sourced from Asia Wealth Research
Tokyo Cement Manufacturing 80 TOKYO CEMENT COMPANY
N – LKR45.00 X – LKR30.00 70
60
TKYO, being the joint market leader in the cement industry, has its 50
grinding facility located in Trincomalee, ideally located for the
rebuilding boom. TKYO, a direct beneficiary of construction sector 40
upturn, is in a strong position to take advantage of increasing demand 30
in current excess capacity. TKYO completed a 10 MW bio mass power
20
plant which provides them significant cost advantage together with
additional boost to top line. 10
0
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan
Colonial Motors Motor 600
COLONIAL MOTORS PLC
N – LKR414.90
500
COLO has penetrated into the domestic market by introducing KIA vehicles at
400
significantly reduced prices. That has been highly successful though it led to
reduce the gross profit margin of the company. Gross profit margin has slightly 300
improved from 24% to 25% on QoQ basis however it has dipped YoY to record a
drop from 37.5% to 24.7% during 1QFY12. Nevertheless going forward, 200
company would be able to improve margins by simply skimming the prices of
100
vehicles together with attaining better margins in Sale of spare parts and
repairs business.
0
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan
Sampath Bank Banking 350
SAMPATH BANK PLC
N – LKR194.10
300
Bank will continue its aggressive expansion to ensure its spread of service 250
through the island. As the pioneer in blending IT with banking, the company will
200
revamp its existing products and innovate new customer focus products. With
the expansions in construction of tourism related infrastructure and expansion 150
of existing industries loan book is expected to grow further.
100
50
0
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan
John Keells Holdings Diversified 350 JOHN KEELLS HOLDINGS PLC
N – LKR168.00
300
Going forward, with the growth in GDP, per capita income and increase in 250
tourist arrivals we anticipate the consumer retail and the leisure sector to 200
boom. Hence we expect the forward PE multiples to be 15.4X and 13.0X in FY12
and FY13 respectively. Hence the heavy weight JKH is considered to be a value 150
stock. 100
50
0
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan

8. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 8
Focus on Investment
Asian Hotels Hotel 250
ASIAN HOTELS & PROPERTIES PLC
N – LKR 74.80
200
Asian Hotels and Property Development PLC is well poised to ride the expected
growth in the hotel sector of the country. We expect to see a healthy growth in
the industry, shouldered by the improvement in both the tourist arrivals to the 150
country as well as the growth in the overall economy.
100
50
0
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan
CIC Holdings Chemicals & Pharmaceuticals 250 CIC HOLDINGS PLC
N – LKR105.00 X –LKR73.00
200
With country’s agricultural sector achieving a phenomenal growth during the
FY2010, and with vast opportunities unfolding in North & East, CIC is well
positioned to reap benefits as a pioneering firm catering predominantly to 150
agricultural sector. Acquisition of dairy farms in north & east region coupled with
CIC’s plans to expand overseas will strengthens company’s earnings in the 100
medium to long term.
50
0
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan
Commercial Bank Banking 300 COMMERCIAL BANK OF CEYLON PLC
N – LKR100.00 X – LKR75.00
250
Commercial Bank is the largest private sector commercial bank with an asset
200
base of LKR370.3bn and operates with a 400 ATM points, which is also the largest
single network in the country. Towards the future, bank is well positioned with
150
capital, to take advantage of the strong credit demand prevailing in the low
interest rate economy.
100
50
0
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan
Distilleries Company Food & Beverage DISTILLERIES COMPANY OF SRI LANKA PLC
250
N – LKR144.00
200
Distilleries with its insurance segment, power plant operating in full capacity,
together with its plantation segment generating higher earnings driven by the
demand for tea will result a bottom line growth. In addition its beverage segment 150
that has a seasonal impact which is shouldered by the expected foreign influx has
great potential in the forthcoming periods. In addition, with DIST’s current cash 100
rich position, we can expect the company to expand their diversification
strategies.
50
0
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan

9. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 9
Focus on Investment
Hatton National Bank Banking 450
HATTON NATIONAL BANK PLC
N – LKR152.00 X – LKR82.00
400
350
HNB, the second largest private commercial bank with a total asset base of
300
LKR323.3 bn and a strong network of over 200 branches, is continuing its focus
on expanding its branch network. HNB which has a relatively larger retail deposit 250
base is projected to enjoy higher interest spreads and would also benefit from 200
the growth in SME lending. Banking sector earnings are expected to be robust
with interest margins of around 6% to be maintained in 2011E. 150
100
50
0
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan
CHEVRON LUBRICANTS LANKA PLC
Chevron Lubricants Manufacturing 185
N – LKR168.00 180
175
LLUB with a renowned history in paying high dividends, during FY10 company
paid LKR1,470mn as dividends which is a payout of 98% opposed to 96% 170
dividend payout in FY09(LLUB paid LKR1440mn dividends in FY09). Going 165
forward we do not expect a drastic change in company’s dividend policy. Hence, 160
LLUB would definitely find its way to an equity portfolio based on recurring
155
income in terms of mammoth dividends, but not in terms of value.
150
145
140
135
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan
LB Finance Banking & Finance 350
LB FINANCE PLC
N – LKR135.60
300
LB Finance is a leading registered finance company engaged in Leasing and Hire 250
Purchase business. Company is operating with a total asset base of LKR 3bn and
200
an island wide branch net work of 34. With satisfactory liquidity levels and
capital adequacies, company is poised to take advantage in the prevailing low 150
interest rate regime.
100
50
0
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan
Royal Ceramics Manufacturing 350 ROYAL CERAMICS LANKA PLC
N – LKR138.00
300
250
A reconstruction boom in the North and East would drum up the overall
economic growth whilst RCL would strongly benefit from the growing demand in 200
the Western and Southern provinces. Further, with the local tourism expected to
rebound hotel capacity building would prompt additional demand for highly 150
quality tiles. Further, cost rationalising process in the factories and value added
product manufacturing would strengthen company earnings. 100
50
0
6-Jan 6-Feb 6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep 6-Oct 6-Nov 6-Dec 6-Jan

10. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 10
Stock Exchange Anouncements
As at 6th January 2012
Rights issues
 Pelwatte Sugar* : 01 for 04 rights issue @LKR18.00
Rights issue would be delayed until the outcome of the proposed Act with regard to acquisition of its land by the State is known.
 Nation Lanka Finance : 01 for 04 rights issue @LKR10.00, XR: 06.01.2010; Last date of acceptance & payment: 26.01.2012; Trading commence:
18.01.2012.
Share Swap
 Ceylon and Foreign Trades : One (01) share for every Ninety One point Two Seven Four (91.274) shares held at a consideration of
LKR9.30 per share.
Sub-Division of Shares
 J L Morison Son & Jones (Ceylon) : Each existing voting & nonvoting ordinary share to be sub divided into ten (10) shares based on share
holding as at 21.12.2011
 Kandy Hotels Company : One (01) voting share to be subdivided into Thirty Five (35) shares.

11. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 11
Stock Exchange Anouncements
Dividend Announcements
Company Dividend per share XD Date Payment Date
Chevron Lubricants Lanka Interim Dividend of LKR3.50 23.12.2011 04.01.2012
Cargills Interim Dividend of LKR0.70 29.12.2011 06.01.2012
National Development Bank Interim Dividend of LKR3.50 04.01.2012 11.01.2012
Ceylon Tobacco Company Interim Dividend of LKR4.50 10.01.2012 20.01.2012
United Motors Lanka PLC Interim Dividend of LKR 3.00 11.01.2012 16.01.2012
Lanka Floortiles PLC Interim Dividend pf LKR 1.00 17.01.2012 26.01.2012
CT Land Development Interim Dividend pf LKR 0.60 18.01.2012 24.01.2012

12. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 12
Valuation Guide
M.CAP. Price Earnings EPS (LKR) PER
Company YE SH(mn) DPS DY ROE BVPS PBV
Bn (LKR) FY09 FY10 FY11 FY12E FY13E FY09 FY10 FY11 FY12E FY13E FY09 FY10 FY11 FY12E FY13E
FINANCIAL SERVICES
HNB Dec 311.41 47.33 152.00 4,483 4,787 5,223 8,068 9,366 11.5 12.3 13.4 20.8 24.1 13.2 12.3 11.3 7.3 6.3 4.67 3% 17% 84.0 1.8
HNB(NV) Dec 77.19 6.33 82.00 4,483 4,787 5,223 8,068 9,366 11.5 12.3 13.4 20.8 24.1 7.1 6.7 6.1 3.9 3.4 4.67 6% 17% 84.0 1.0
Commercial Bank Dec 765.09 76.51 100.00 4,192 5,508 7,724 9,527 - 5.1 6.7 9.4 11.7 - 19.5 14.8 10.6 8.6 - 3.41 3% 18% 46.3 2.2
Commercial Bank Dec 52.36 3.93 75.00 4,192 5,508 7,724 9,527 - 5.1 6.7 9.4 11.7 - 14.6 11.1 7.9 6.4 - 3.41 5% 18% 46.3 1.6
Sampath Bank Dec 156.85 30.45 194.10 2,073 3,485 4,951 5,316 - 13.2 22.2 31.6 33.9 - 14.7 8.7 6.1 5.7 - 7.91 4% 24% 107.3 1.8
NDB Bank Dec 164.20 21.02 128.00 2,085 2,150 2,989 3,826 5,316 12.7 13.1 18.2 23.3 32.4 10.1 9.8 7.0 5.5 4.0 6.00 5% 15% 93.6 1.4
LB Finance Mar 69.26 9.39 135.60 360 500 1,020 1,613 2,196 5.2 7.2 14.7 23.3 31.7 26.1 18.8 9.2 5.8 4.3 3.50 3% 47% 37.7 3.6
Central Finance Mar 104.88 21.33 200.00 1,127 1,046 1,827 2,316 2,696 10.7 10.0 17.4 22.1 25.7 18.6 20.1 11.5 9.1 7.8 2.03 1% 17% 103.9 1.9
CONGLOMERATES
John Keells Hold. Mar 841.43 141.36 168.00 4,732 5,201 8,246 9,531 11,303 5.6 6.2 9.8 11.3 13.4 29.9 27.2 17.1 14.8 12.5 3.00 1.8% 11.7% 73.7 2.3
Expolanka Mar 1954.92 16.81 8.60 309.7 518.0 1,546.9 1,354.0 1,586.0 0.2 0.3 0.8 0.7 0.8 54.3 32.5 10.9 12.4 10.6 0.12 1.4% 21.4% 3.6 2.4
FOOD & BEVERAGE
Distilleries Mar 300.00 43.20 144.00 3,387 2,136 8,196 5,182 5,634 11.3 7.1 27.3 17.3 18.8 12.7 20.3 5.3 8.3 7.7 3.00 2.1% 27% 112.5 1.3
TOURISM
Asian Hotels Mar 442.8 33.12 74.8 531 630 1,775 2,058 2,374 1.2 1.4 4.0 4.7 5.3 62.5 52.7 18.7 16.1 14.2 1.00 1.3% 14% 31.5 2.4
MANUFACTURING
Royal Ceramics Mar 110.79 15.29 138.00 517.89 964.40 1,441.2 2,000.5 2,285.1 4.7 8.7 13.0 18.1 20.6 29.5 15.9 10.6 7.6 6.7 3.25 2.4% 30.4% 51.6 2.7
Chevron Lubricants Dec 120.00 20.16 168.00 1,495 1,501 1,925 2,386 2,993 12.5 12.5 16.0 19.9 24.9 13.5 13.4 10.5 8.4 6.7 12.25 7.3% 52% 28.1 6.0
Tokyo (Voting) Mar 202.50 9.11 45.00 347 369 874 1,046 1,117 1.7 1.8 4.3 5.2 5.5 26.3 24.7 10.4 8.7 8.2 1.70 3.8% 17% 28.2 1.6
Tokyo (NV) Mar 101.25 3.04 30.00 347 369 874 1,046 1,117 3.4 3.6 8.6 10.3 11.0 8.8 8.2 3.5 2.9 2.7 1.70 5.7% 17% 56.4 0.5
Lanka Walltile Mar 54.60 5.16 94.50 279.35 477.88 407.83 425.85 459.92 5.1 8.8 7.5 7.8 8.4 18.5 10.8 12.7 12.1 11.2 2.50 2.6% 16.0% 66.5 1.4
Piramal Glass Mar 950.09 7.32 7.70 (260.94) (61.09) 578.67 1,024.5 1,241.8 -0.3 -0.1 0.6 1.1 1.3 N/A N/A 12.6 7.1 5.9 0.30 3.9% 26.0% 3.0 2.5
Motor
Colonial Motors Mar 9.12 3.79 414.90 (2) 40 232 842 1,232 -0.2 4.4 25.4 92.2 135.1 N/A 94 16 4.5 3.1 1.50 0.4% 27% 185.8 2.2
PLANTATIONS
Namunukula Plantatio Mar 23.75 1.40 59.00 41 147 409 354 613 1.7 6.2 17.2 14.9 17.4 37.7 10.4 3.7 4.4 3.7 1.00 1.7% 26% 61.4 1.0
Laugfs Gas (Voting) Mar 335.00 12.29 36.70 243 527 851 1,246 1,522 0.6 1.4 2.2 3.2 3.9 58.4 26.9 16.7 11.4 9.3 1.50 4.1% n/a 17.8 2.1
Laugfs Gas (Non voting) Mar 52.00 1.13 21.80 243 527 851 1,246 1,522 0.6 1.4 2.2 3.2 3.9 34.7 16.0 9.9 6.8 5.5 1.50 6.9% n/a 17.8 1.2
Note:
FY11 is an expected figure for all companies with their financial year ending in December.
Since Laugfs Gas was listed in December 2010, four quarter financials are unavailable.

13. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 13
Broad Market Valuation Guide
Company Year Price Price Performance Shares Trailing BVPS Trailing 4Qtrs Net Net Profits Trailing Trailing PBV
End (LKR) 1W(%) 1M(%) 1Q(%) Mn ROE Profits Sep ‘11 June ‘11 Mar’ 11 Dec’ 10 EPS PE Market Cap (mn)
MARKET 15.93% 152,108.29 44,572.37 34,283.18 37,510.54 40,860.37 14.24 2.27 2,166,600.00
FINANCIAL SERVICES - - - 15.43% 39,888.54 10,777.40 8,666.54 7,512.01 12,154.52 12.70 1.96
Banking 25,971.01 5,704.73 4,861.60 6,373.94 6,934.46
COMMERCIAL BANK [V] COMB MainB D 100.00 - 0.50 (9.91) 765.09 18.15% 53.11 7,878.20 2,064.80 1,976.00 2,064.90 1,772.50 9.64 10.4 1.9 76,508.53
COMMERCIAL BANK [NV] COMB MainB D 75.00 0.40 3.31 (5.44) 52.36 18.15% 53.11 7,878.20 2,064.80 1,976.00 2,064.90 1,772.50 9.64 7.8 1.4 3,927.36
DFCC BANK DFCC MainB M 111.00 (1.68) 2.78 (11.97) 265.10 10.18% 90.96 2,454.13 529.58 683.04 611.12 630.40 9.26 12.0 1.2 29,425.84
HNB [V] HNB MainB D 152.00 0.46 4.83 (22.84) 311.41 14.88% 99.70 5,763.48 1,380.84 1,292.53 1,221.31 1,868.80 14.83 10.2 1.5 47,333.75
HNB [NV] HNB MainB D 82.00 (1.44) (5.75) (8.89) 77.19 14.88% 99.70 5,763.48 1,380.84 1,292.53 1,221.31 1,868.80 14.83 5.5 0.8 6,329.63
NATIONS TRUST BANK NTB MainB D 55.90 (1.93) (1.06) (8.36) 230.61 17.05% 35.76 1,405.77 433.70 360.40 375.85 235.82 6.10 9.2 1.6 12,890.95
NDB NDB MainB D 128.00 (7.31) 6.67 (5.88) 164.20 13.43% 101.12 2,230.19 620.89 396.68 605.34 607.28 13.58 9.4 1.3 21,017.84
PAN ASIA BANK PABC MainB D 24.80 (2.36) (0.80) (1.59) 295.04 20.50% 11.52 696.67 208.77 210.03 196.02 81.84 2.36 10.5 2.2 7,317.02
SAMPATH BANK SAMP MainB D 194.10 (0.26) (3.23) (10.82) 156.85 23.23% 126.66 4,614.68 1,149.23 1,134.80 980.05 1,350.60 29.42 6.6 1.5 30,445.40
SEYLAN BANK [V] SEYB MainB D 65.00 (3.85) - - 173.33 4.22% 51.12 728.88 396.51 (303.90) 249.04 387.23 2.16 30.1 1.3 11,266.67
SEYLAN BANK [NV] SEYB MainB D 30.30 (3.25) (1.00) (19.02) 164.75 4.22% 51.12 728.88 396.51 (303.90) 249.04 387.23 2.16 14.1 0.6 4,991.82
HDFC HDFC MainB D 1400.00 (0.02) (3.45) (18.60) 6.47 10.11% 304.35 199.02 8.20 120.52 70.31 (0.01) 30.76 45.5 4.6 9,059.47
UNION BANK UBC MainB D 18.50 (2.63) (2.63) (13.95) 349.25 na 14.51 na 62.68 71.23 60.00 na na 1.3 6,461.13
Finance Co.s & / Merchant Banks 26.55% 9,762.22 4,723.89 3,112.99 402.02 1,684.55
ASIA CAPITAL ACAP MainB M 62.00 (3.73) (10.14) (26.37) 110.00 67.93% 20.14 1,504.49 979.84 0.64 248.30 275.72 13.68 4.5 3.1 6,820.00
ALLIANCE FINANCE ALLI MainB M 785.00 (0.95) (0.63) (6.99) 2.43 29.77% 442.39 320.05 95.85 81.93 103.56 38.70 131.71 6.0 1.8 1,907.55
ARPICO FINANCE ARPI MainB M 115.50 (3.67) (11.15) (6.85) 4.46 7.77% 72.45 25.13 9.11 3.76 5.61 6.64 5.63 20.5 1.6 515.42
CENTRAL FINANCE CFIN MainB M 200.00 (1.43) (4.71) (24.03) 104.88 19.06% 114.62 2,291.09 668.66 618.20 532.13 472.10 21.84 9.2 1.7 20,976.67
NATION LANKA CSF MainB M 12.90 (20.13) (25.29) (34.87) 199.93 73.49% 0.81 118.87 (8.78) (34.77) (3.16) 165.57 0.59 21.7 15.9 2,579.10
LOLC LOLC MainB M 78.00 (6.00) (6.34) (15.63) 475.20 30.07% 35.21 5,031.28 1,988.12 1,725.04 600.02 718.10 10.59 7.4 2.2 37,065.60
LB FINANCE LFIN MainB M 135.60 (2.16) (0.51) (10.55) 69.26 42.88% 44.42 1,319.06 349.15 351.02 391.18 227.71 19.05 7.1 3.1 9,391.27
MERCHANT BANK MBSL MainB D 38.50 (3.03) 2.40 1.05 135.00 15.30% 22.52 465.23 126.16 48.23 126.55 164.28 3.45 11.2 1.7 5,197.50
PEOPLE'S MERCHANT PMB MainB M 15.30 (2.55) (1.92) (23.50) 67.50 24.60% 9.03 149.88 5.90 135.06 (16.38) 25.30 2.22 6.9 1.7 1,032.75
SEYLAN MERCHANT [V] SEMB MainB D 1.70 (10.53) (5.56) (32.00) 826.49 1.88% 0.40 10.31 10.48 (22.15) 18.76 3.22 0.01 228.6 4.3 1,405.03
SEYLAN MERCHANT [NV] SEMB MainB D 0.70 - - (12.50) 560.00 1.88% 0.40 10.31 10.48 (22.15) 18.76 3.22 0.01 94.2 1.8 392.00
THE FINANCE TFC MainB M 38.40 (5.19) (5.19) (9.00) 57.97 na na (2,481.28) 6.96 26.39 (2,074.13) (440.50) na na na 2,225.90
THE FINANCE[NV] TFC MainB M 11.90 (4.03) (5.56) (15.00) 100.00 na na (2,481.28) 6.96 26.39 (2,074.13) (440.50) na na na 1,190.00
CAPITAL REACH CRL DiriSaviB M 42.60 (5.12) (5.12) (14.80) 37.45 na 28.39 na 53.25 45.98 na na 1.5 1,595.54
PEOPLES LEASING FINANCE SMLL DiriSaviB D 33.80 (5.32) (3.70) (22.65) 68.14 na 21.85 na 138.83 70.39 na na 1.5 2,303.16
VALLIBEL FINANCE VFIN MainB M 43.90 (1.39) 1.67 (5.11) 41.55 31.07% 13.37 172.66 60.15 48.15 36.65 27.70 4.16 10.6 3.3 1,824.07
SINHAPUTRA SFL DiriSaviB M 102.50 0.49 (10.87) (11.64) 6.30 na 79.79 na 32.61 36.64 na na 1.3 645.33
SINGER FINANCE SFIN MainB M 25.80 (4.81) (5.17) (19.18) 106.67 16.65% 9.25 164.25 46.34 51.27 60.88 5.77 1.54 16.8 2.8 2,752.00
BIMPUTH LANKA INVESTMENTS BLI DiriSaviB M 43.00 (10.42) (6.32) (34.15) 20.20 na 28.03 na 3.40 na na 1.5 868.60

14. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 14
Broad Market Valuation Guide
Company Year Price Price Performance Shares Trailing BVPS Net Profit Net Profits Trailing Trailing PBV Mkt Cap Mn
End (LKR) 1W(%) 1M(%) 1Q(%) Mn ROE 4Qtrs Sep'11 Jun'11 Mar'11 Dec'10 EPS PE
CITIZENS DEVELOPMENT FINANCE CDB MainB M 64.10 (1.38) (1.54) (8.56) 46.30 35.27% 36.62 671.21 161.27 80.20 219.04 210.7 12.92 5.0 1.8 2,967.78
CITIZENS DEVELOPMENT FINANCE CDB MainB M 55.20 (1.60) (8.00) 6.77 5.67 35.27% 36.62 671.21 161.27 80.20 219.04 210.7 12.92 4.3 1.5 312.94
SENKADAGALA FINANCE SFCL DiriSaviB M 20.00 - - - 53.37 na 24.44 na 128.64 104.76 na na 0.8 1,067.36
SWARNAMAHAL FINANCE SFS DiriSaviB M 89.80 (3.66) (4.17) 18.36 25.00 na 14.81 na 76.58 na na 6.1 2,245.00
CHILAW FINANCE LIMITED CFL DiriSaviB M 21.00 (6.25) (4.98) (15.32) 28.08 na 11.37 na 18.60 na na 1.8 589.76
COMMERCIAL CREDIT LIMITED COCR DiriSaviB M 22.50 (5.06) (15.09) (27.42) 218.07 na 3.20 na 265.53 na na 7.0 4,906.67
MERCANTILE INVESTMENTS MERC DiriSaviB M 1562.00 - - - 3.01 na 1773.46 na 622.67 na na 0.9 4,695.37
MULTI FINANCE MFL DiriSaviB M 46.40 (7.01) (9.20) (17.88) 22.46 na 19.62 na 10.96 na na 2.4 1,042.24
LANKA ORIX FINANCE LOFC DiriSaviB M 7.80 (2.47) (8.14) (25.47) 2800.00 na 1.48 na 617.48 na na 5.3 21,840.00
ABANS FINANCIAL SERVICES AFSL DiriSaviB M 65.00 (4.27) (13.33) (24.15) 37.00 na 10.05 na 21.33 na na 6.5 2,405.00
CENTRAL INV & FINPLC CIFL MainB M 8.80 2.30 (1.11) (11.88) 83.43 na 8.42 na 2.75 na na 1.0 734.16
ASSOCIATED MOTOR FINANCE PLC AMF DiriSaviB M 300.50 - (30.44) (39.90) 5.61 na 74.21 na 47.33 28.93 na na 4.0 1,685.31
CAPITAL ALLIANCE FINANCE LIMITED CALF DiriSaviB M 37.00 1.37 (4.64) (5.37) 33.92 na 6.71 na 10.50 na na 5.5 1,255.05
NANDA INVESTMENTS AND FINANCE NIFL DiriSaviB M 11.50 (6.50) (6.50) (27.67) 100.72 na 4.64 na 6.90 na na 2.5 1,158.24
SOFTLOGIC CAPITAL LIMITED SCAP DiriSaviB M 33.00 (2.50) (3.11) - 27.20 na na na 83.76 na na na 897.60
ENTRUST SECURITIES ESL DiriSaviB M 43.70 (3.74) (28.31) - 33.00 na na na na na na 1,442.10
PEOPLE’S LEASING PLC MainB M 15.60 (2.50) (3.11) - 1560.00 na na na na na na 24,336.00
TRADE FINANCE TFIL DiriSaviB M 19.80 (3.41) (12.78) - 56.80 na na
Insurance 3,213.72 189.97 586.54 517.48 3,076.71
AMANA TAKAFUL INS. ATL DiriSaviB D 2.30 (4.17) - (11.54) 1000.00 na 0.91 na 11.20 (20.90) na na 2.5 2,300.00
ASIAN ALLIANCE AAIC DiriSaviB D 157.00 (5.82) (8.88) (55.72) 37.50 na 34.02 na (172.50) 288.71 na na 4.6 5,887.50
CEYLINCO INSURANCE [V] CINS MainB D 725.00 (2.91) (3.24) (6.40) 20.00 17.05% 322.74 1,453.76 90.76 344.36 286.31 732.34 55.04 13.2 2.2 14,500.00
CEYLINCO INSURANCE [NV] CINS MainB D 328.20 (4.31) (2.00) (3.47) 6.41 17.05% 322.74 1,453.76 90.76 344.36 286.31 732.34 55.04 6.0 1.0 2,105.23
AVIVA NDB CTCE MainB D 250.00 1.05 (1.96) (7.41) 30.00 28.88% 94.97 822.88 27.61 34.20 147.62 613.44 27.43 9.1 2.6 7,500.00
HNB ASSURANCE HASU MainB D 53.00 (6.85) (2.57) (10.02) 50.00 17.42% 27.96 243.56 13.40 24.62 24.74 180.80 4.87 10.9 1.9 2,650.00
UNION ASSURANCE UAL MainB D 107.00 (1.02) 7.00 (2.73) 75.00 26.88% 34.40 693.53 58.21 64.55 58.81 511.97 9.25 11.6 3.1 8,025.00
JANASHAKTHI JINS DiriSaviB D 14.30 (4.67) 2.88 (7.74) 363.00 na 7.21 na 280.12 770.35 na na 2.0 5,190.90
Venture Capital Co.s 941.58 158.80 105.40 218.57 458.81
CAPITAL DEV & INV COMPANY CDIC MainB D 300.00 7.91 4.13 (24.05) 43.86 8.37% 117.30 430.72 72.17 30.97 106.44 221.14 9.82 30.5 2.6 13,156.50
FIRST CAPITAL CFVF MainB M 15.40 (4.35) (3.75) (13.97) 101.25 28.24% 14.10 403.05 57.39 56.94 79.92 208.80 3.98 3.9 1.1 1,559.25
LANKA VENTURES LVEN MainB M 35.30 (7.59) (11.31) (9.95) 50.00 13.97% 15.44 107.82 29.23 17.50 32.22 28.87 2.16 16.4 2.3 1,765.00

15. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 15
Broad Market Valuation Guide
Company Year Price Price Performance Shares Trailing BVPS Net Profit Net Profits Trailing Trailing PBV Mkt Cap Mn
End (LKR) 1W(%) 1M(%) 1Q(%) Mn ROE 4Qtrs Sep'11 Jun'11 Mar'11 Dec'10 EPS PE
BEVERAGE FOOD AND TOBACCO - - - 32.11% 24,748.38 6,095.97 5,099.25 8,335.00 5,506.66 12.37 3.97
BAIRAHA FARMS BFL MainB M 205.00 (1.14) 0.58 (14.86) 16.00 30.91% 81.09 401.03 78.50 55.18 103.45 163.91 25.06 8.2 2.5 3,280.00
CARGILLS CARG MainB M 191.50 (5.62) (1.74) (6.54) 224.00 15.19% 32.46 1,104.17 219.35 325.97 268.12 290.74 4.93 38.8 5.9 42,896.00
CEYLON BREWERY BREW MainB M 400.00 - - (8.26) 20.99 28.62% 135.72 815.25 309.42 176.25 165.66 163.91 38.84 10.3 2.9 8,395.24
CEYLON COLD STORES CCS MainB M 98.00 (2.10) (2.00) (9.18) 95.04 7.46% 55.93 396.47 188.68 124.29 38.07 45.43 4.17 23.5 1.8 9,313.92
CEYLON TEA SERVICES CTEA MainB M 670.00 (4.29) 4.69 (16.25) 20.00 21.70% 302.78 1,314.06 104.08 250.58 658.60 300.80 65.70 10.2 2.2 13,400.00
CEYLON TOBACCO CTC MainB D 480.00 (2.06) 6.67 23.39 187.32 162.51% 23.04 7,014.00 1,985.00 1,819.00 814.00 2,396.00 37.44 12.8 20.8 89,915.40
COCO LANKA [V] COCO MainB M 54.50 1.49 (3.54) (21.13) 21.60 13.84% 54.17 175.40 51.59 18.28 49.83 55.70 7.50 7.3 1.0 1,177.20
COCO LANKA [NV] COCO MainB M 45.00 12.22 (5.06) (15.57) 1.80 13.84% 54.17 175.40 51.59 18.28 49.83 55.70 7.50 6.0 0.8 81.00
CONVENIENCE FOOD SOY MainB M 270.00 (8.47) (0.15) (25.02) 2.75 31.58% 87.58 76.06 25.81 11.73 17.51 21.02 27.66 9.8 3.1 742.50
DISTILLERIES DIST MainB M 144.00 (2.11) (3.81) (15.64) 300.00 26.96% 112.45 9,096.68 1,611.34 1,238.92 5,027.62 1,218.80 30.32 4.7 1.3 43,200.00
HARISCHANDRA MILLS HARI MainB M 2990.00 - 3.10 1.36 0.96 11.98% 543.29 62.48 23.41 13.13 12.60 13.35 65.09 45.9 5.5 2,869.80
KEELLS FOOD PRODUCTS KFP MainB M 124.50 - 6.32 124.50 124.50 14.86% 2.91 53.76 17.73 15.82 0.67 19.55 0.43 288.3 42.8 15,500.25
KOTMALE HOLDINGS LAMB MainB M 43.70 (4.38) 0.69 (1.13) 31.40 13.65% 18.61 79.80 15.71 22.09 25.20 16.80 2.54 17.2 2.3 1,372.18
LION BREWERY LION MainB M 184.00 (3.16) 0.49 (6.60) 80.00 21.91% 70.33 1,232.90 299.81 332.40 313.79 286.89 15.41 11.9 2.6 14,720.00
LANKA MILK FOODS LMF MainB M 103.10 (3.73) (6.27) (22.25) 40.00 7.64% 51.66 157.78 119.33 57.41 55.54 (74.50) 3.94 26.1 2.0 4,123.79
NESTLE LANKA NEST MainB D 875.00 (0.23) 1.03 (0.06) 53.73 89.80% 50.77 2,449.49 767.85 644.35 615.49 421.80 45.59 19.2 17.2 47,009.78
THREE ACRE FARMS TAFL MainB D 102.00 (3.47) (4.48) (6.96) 23.55 45.91% 22.89 247.42 78.46 3.03 41.26 124.67 10.51 9.7 4.5 2,401.59
RENUKA AGRI RAL DiriSaviB M 6.70 (1.47) 6.70 6.70 401.25 na 2.55 na 172.93 49.32 na na na 2.6 2,688.38
TEA SMALLHOLDERS TSML MainB M 66.00 (10.81) 2.96 (17.40) 30.00 11.30% 21.12 71.62 8.35 (9.18) 30.65 41.80 2.39 27.6 3.1 1,980.00
RAIGAM WAYAMBA SALTERNS LTD RWSL DiriSaviB M 4.10 (4.65) 2.50 (8.89) 282.21 na 2.29 na 18.62 47.62 na na na 1.8 1,157.05
HVA FOODS HVA DiriSaviB M 37.10 (4.65) (5.38) (26.49) 66.43 na 7.06 na 4.99 45.89 na na na 5.3 2,464.50
CHEMICALS & PHARMACEUTICALS (2.46) (0.95) (15.17) 17.27% 3,192.88 413.81 541.55 904.96 1,332.56 8.41 1.45
CHEMANEX CHMX MainB M 120.00 - 0.84 (7.55) 15.75 0.45% 78.75 5.57 (9.69) 1.14 0.61 13.50 0.35 339.5 1.5 1,890.00
CHEMICAL INDUSTRIES [V] CIC MainB M 105.00 (5.83) (7.49) (18.54) 72.90 13.59% 73.22 943.14 187.07 203.80 169.60 382.67 9.95 10.6 1.4 7,654.50
CHEMICAL INDUSTRIES [NV] CIC X MainB M 73.00 (5.06) (2.79) (14.80) 21.87 13.59% 73.22 943.14 187.07 203.80 169.60 382.67 9.95 7.3 1.0 1,596.51
HAYCARB HAYC MainB M 153.00 (1.29) (1.23) (4.08) 29.71 16.28% 96.34 466.10 141.03 124.77 111.22 89.08 15.69 9.8 1.6 4,545.99
INDUSTRIAL ASPHALTS ASPH MainB M 500.00 (0.06) (10.22) (28.06) 0.67 4.16% 10.95 2.95 0.73 0.61 1.34 0.26 4.42 113.1 45.6 333.28
J.L. MORISON [V] MORI MainB M 320.00 11.51 (87.82) (89.58) 5.81 11.41% 229.49 197.74 38.99 37.45 93.20 28.10 26.19 12.2 1.4 1,858.65
J.L. MORISON [NV] MORI MainB M 155.40 4.36 (89.65) (92.93) 1.74 11.41% 229.49 197.74 38.99 37.45 93.20 28.10 26.19 5.9 0.7 270.78
LANKEM CEYLON LCEY MainB M 254.00 (2.31) 4.96 (21.44) 24.00 27.08% 134.82 876.25 (4.29) 111.22 202.20 567.12 36.51 7.0 1.9 6,096.00
SINGALANKA SING MainB M 127.30 (5.14) (2.08) (40.46) 5.54 142.43% 53.30 420.64 (0.11) (0.11) 215.55 205.31 75.92 1.7 2.4 705.35
MULLERS MULL MainB M 2.70 (3.57) - (12.90) 283.00 20.69% 0.44 25.63 8.82 8.53 5.45 2.83 0.09 29.8 6.2 764.10
UNION CHEMICALS UCAR MainB D 756.10 (6.37) (11.31) (5.49) 1.50 22.37% 170.27 57.12 12.27 16.70 12.58 15.58 38.08 19.9 4.4 1,134.15
CONSTRUCTIONS (2.73) (0.28) (10.41) 15.12% 1,939.95 492.45 150.71 437.18 859.61 10.89 1.65
COLOMBO DOCKYARD DOCK MainB D 235.10 (1.55) 0.90 (7.84) 68.44 23.24% 117.72 1,872.00 455.47 210.49 466.80 739.25 27.35 8.6 2.0 16,089.56
LANKEM DEVELOPMENTS LDEV MainB M 16.00 (3.05) 5.30 (12.64) 60.00 na 19.53 (162.37) (148.13) (1.61) (6.89) (5.74) na na 0.8 960.00
MTD WALKERS KAPI MainB M 35.70 (7.03) (5.80) (18.86) 114.36 6.39% 31.52 230.32 185.11 (58.16) (22.73) 126.10 2.01 17.7 1.1 4,082.55

16. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 16
Broad Market Valuation Guide
Company Year Price Price Performance Shares Trailing BVPS Net Profit Net Profits Trailing Trailing PBV Mkt Cap Mn
End (LKR) 1W(%) 1M(%) 1Q(%) Mn ROE 4Qtrs Sep'11 Jun'11 Mar'11 Dec'10 EPS PE
DIVERSIFIED (2.69) (0.24) (13.48) 16.59% 27,585.28 12,337.72 6,436.00 6,864.95 5,569.52 14.83 2.46
AITKEN SPENCE SPEN MainB M 113.60 (5.56) 4.31 (15.84) 406.00 11.80% 54.75 2,623.86 583.18 550.74 910.90 579.04 6.46 17.6 2.1 46,121.15
CARSON CUMBERBATCH CARS MainB M 540.00 (0.22) (2.01) (7.69) 196.39 26.81% 128.78 6,780.78 620.22 3,506.32 1,747.41 906.83 34.53 15.6 4.2 106,048.93
CEYLON THEATRES CTHR MainB M 170.00 (5.03) (3.95) (5.61) 183.10 9.17% 65.26 1,095.07 280.92 244.05 234.56 335.53 5.98 28.4 2.6 31,126.53
COLOMBO FORT LAND CFLB MainB M 47.20 (3.67) 4.89 (17.91) 180.00 20.92% 26.08 982.22 98.61 90.32 367.41 425.89 5.46 8.6 1.8 8,496.00
FINLAYS COLOMBO JFIN MainB D 274.90 5.73 16.98 (8.06) 35.00 4.30% 148.51 223.42 65.65 60.38 12.89 84.51 6.38 43.1 1.9 9,621.50
HAYLEYS HAYL MainB M 372.50 (0.67) 2.08 (0.67) 75.00 14.41% 211.25 2,282.37 1,779.57 268.58 144.31 89.90 30.43 12.2 1.8 27,937.50
HEMAS HOLDINGS HHL MainB M 30.70 (8.18) (8.73) (20.89) 515.29 11.86% 18.14 1,108.64 224.20 261.97 311.08 311.40 2.15 14.3 1.7 15,819.42
JOHN KEELLS HOLDINGS JKH MainB M 168.00 (1.41) 2.32 (16.10) 841.43 11.70% 73.66 7,252.74 1,577.35 1,367.61 2,550.67 1,757.11 8.62 19.5 2.3 141,360.10
DUNAMIS CAPITAL CSEC MainB M 16.00 (1.23) (8.57) 39.13 123.00 29.28% 10.89 391.97 18.32 11.92 16.33 345.40 3.19 5.0 1.5 1,967.95
RICHARD PIERIS RICH MainB M 8.70 (4.44) (5.49) (14.85) 1938.24 36.70% 3.13 2,224.62 1,237.84 10.84 335.34 640.60 1.15 7.6 2.8 16,862.65
SUNSHINE HOLDINGS SUN MainB M 27.50 (5.17) (6.78) (22.54) 133.33 16.44% 17.57 385.07 (5.57) 63.28 234.05 93.32 2.89 9.5 1.6 3,666.67
SOFTLOGIC HOLDINGS SHL MainB M 17.20 (5.00) (1.72) (16.59) 779.00 29.81% 9.62 2,234.52 499.88 275.55 829.25 629.85 2.87 6.0 1.8 13,398.80
EXPOLANKA HOLDINGS EXPO MainB M 8.60 (5.56) (3.41) (24.78) 1954.92 na 3.63 na 301.34 273.54 940.29 na na 2.4 16,812.27
FREE LANKA CAPITAL HOLDINGS FLCH DiriSaviB M 2.90 (6.45) (3.33) (23.68) 1368.00 na 4.66 na (85.72) na na 0.6 3,967.20
VALLIBEL ONE LIMITED VONE DiriSaviB M 22.00 (7.56) (5.58) (18.82) 1086.56 na 31.52 na 1,787.05 na na 0.7 23,904.31
BROWNS INVESTMENTS PLC BIL DiriSaviB M 4.10 (2.38) - (14.58) 1860.00 na 7.07 na 3,354.88 na na 0.6
FOOTWEAR AND TEXTILES (3.19) (1.15) (3.73) -25.14% (1,648.03) (177.09) (148.46) (809.51) (621.19) na 1.50
CEYLON LEATHER CLPL MainB M 101.00 0.80 0.10 25.03 34.23 6.01% 55.57 114.28 40.50 20.41 16.58 36.79 3.34 30.3 1.8 3,457.61
HAYLEYS - MGT MGT MainB M 25.20 (10.88) (9.61) (25.29) 50.78 na 31.00 (1,762.31) (168.21) (168.87) (799.53) (625.70) na na 0.8 1,279.68
KURUWITA TEXTILES KURU MainB M 26.60 11.30 10.37 (5.00) 25.00 na 58.16 na (171.55) (59.12) (108.30) na na 0.5 665.00
ODEL ODEL DiriSaviB M 30.60 (5.57) (0.97) (11.85) 144.95 na 11.20 na 122.17 32.56 76.02 na na 2.7 4,435.47
ORIENT GARMENTS OGL DiriSaviB M 30.00 (4.18) (26.05) (8.31) 54.92 na na na 18.74 na na na
HOTELS AND TRAVELS (3.71) (0.01) (12.51) 7.03% 5,477.04 635.36 553.39 3,189.87 1,183.20 28.46 2.61
City Hotels 3,143.44 532.08 546.92 1,386.33 678.11
ASIAN HOTEL & PROPERTIES AHPL MainB M 74.80 (2.09) 1.77 (15.48) 442.78 13.77% 31.46 1,917.96 361.08 296.67 803.63 456.59 4.33 17.3 2.4 33,119.59
GALADARI GHLL MainB D 28.50 - 1.04 (8.78) 182.43 1.01% 8.25 15.26 (45.49) (18.43) 43.71 35.47 0.08 340.7 3.5 5,199.37
HOTEL DEVELOPERS HDEV DefaultB M 94.80 - - (33.05) 45.23 na na na na na na 4,287.43
HOTEL SERVICES SERV MainB M 19.00 (7.88) 1.08 (16.89) 176.00 2.32% 9.06 36.91 (0.37) (2.32) 52.70 (13.10) 0.21 90.6 2.1 3,344.00
RENUKA CITY HOTEL RENU MainB M 300.00 (4.37) 3.45 (14.29) 7.00 14.99% 261.00 273.96 51.58 177.65 28.76 15.98 39.14 7.7 1.1 2,100.00
TAJ LANKA TAJ MainB M 39.00 - (1.27) (14.29) 139.64 6.66% 17.92 166.70 45.24 22.15 52.65 46.65 1.19 32.7 2.2 5,445.86
TRANS ASIA TRAN MainB M 68.20 (13.96) (2.43) (11.05) 200.00 15.25% 24.02 732.65 120.03 71.20 404.90 136.53 3.66 18.6 2.8 13,640.00

17. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 17
Broad Market Valuation Guide
Company Year Price Price Performance Shares Trailing BVPS Net Profit Net Profits Trailing Trailing PBV Mkt Cap Mn
End (LKR) 1W(%) 1M(%) 1Q(%) Mn ROE 4Qtrs Sep'11 Jun'11 Mar'11 Dec'10 EPS PE
Resort Hotels 2,333.60 103.29 6.47 1,803.53 505.09
AIT. SPENCE HOTEL HOLD. AHUN MainB M 69.00 (3.17) 1.97 (3.86) 336.29 11.56% 27.08 1,053.03 104.99 85.18 590.15 272.70 3.13 22.0 2.5 23,204.01
AMAYA LEISURE CONN MainB M 83.50 2.45 (0.48) (17.73) 48.03 11.26% 43.12 233.14 48.01 50.93 67.60 66.60 4.85 17.2 1.9 4,010.86
BROWNS BEACH HOTELS BBH MainB M 16.50 (2.94) 4.43 (6.25) 129.60 1.02% 21.18 28.04 26.01 29.00 (51.97) 25.00 0.22 76.3 0.8 2,138.40
CEYLON HOTELS CORP. CHOT MainB M 27.00 (2.53) (3.23) (13.46) 171.83 1.47% 33.95 85.93 (2.07) (21.29) 117.56 (8.27) 0.50 54.0 0.8 4,639.28
CONFIFI HOTEL HLDG. PALM MainB M 231.80 10.38 0.78 0.78 7.20 na 188.51 (89.09) (71.72) (63.37) 50.48 (4.49) na na 1.2 1,668.96
RIVERINA HOTELS BHR MainB M 104.70 (0.29) 2.65 (6.52) 14.18 na 119.73 (113.10) (84.22) (47.66) 34.27 (15.50) na na 0.9 1,484.82
BERUWALA WALK INN BINN MainB D 153.00 5.44 2.96 (18.18) 0.90 na na (18.81) (4.38) (4.45) (6.94) (3.05) na na na 137.70
EDEN HOTELS EDEN MainB M 38.00 (0.53) (0.53) (9.79) 52.80 7.32% 26.29 101.67 21.27 (21.13) 81.23 20.30 1.93 19.7 1.4 2,006.40
HOTEL SIGIRIYA HSIG MainB M 76.50 3.65 6.53 10.84 5.86 17.01% 26.72 26.63 13.31 4.08 3.85 5.39 4.55 16.8 2.9 448.21
HUNAS FALLS HUNA MainB M 71.50 (2.05) 0.99 (7.38) 5.63 21.10% 15.31 18.16 8.09 5.08 2.17 2.82 3.23 22.1 4.7 402.19
KANDY HOTELS KHC MainB M 270.00 1.39 2.23 22.73 16.50 1.08% 341.92 60.81 24.70 9.42 16.85 9.84 3.69 73.3 0.8 4,455.00
JOHN KEELLS HOTELS KHL MainB M 12.90 (4.44) (4.44) (16.23) 1456.15 7.22% 8.07 848.69 113.95 7.27 521.28 206.20 0.58 22.1 1.6 18,784.29
LIGHT HOUSE HOTEL LHL DiriSaviB M 47.00 (11.96) 4.20 (7.83) 46.00 3.16% 49.57 72.09 9.55 (2.62) 48.06 17.10 1.57 30.0 0.9 2,162.00
MIRAMAR MIRA DefaultB M 200.00 - - (33.33) 2.75 na na na na na na 550.00
MAHAWELI REACH MRH MainB M 27.70 (1.07) (7.67) (11.50) 47.07 na 18.76 (503.24) (141.97) (13.67) (161.00) (186.61) na na 1.5 1,303.74
NUWARA ELIYA NEH MainB M 1375.00 (8.33) 9.97 (14.06) 2.00 5.48% 959.79 105.47 31.01 0.78 49.18 24.50 52.63 26.1 1.4 2,755.32
PEGASUS PEG MainB M 56.60 (4.68) (1.21) (16.18) 27.35 6.98% 38.08 72.74 21.78 21.67 16.05 13.24 2.66 21.3 1.5 1,548.14
REEFCOMBERS REEF MainB M 48.00 (3.99) (9.59) (20.76) 78.48 na 17.43 (20.63) (24.82) (17.20) 15.72 5.67 na na 2.8 3,767.04
ROYAL PALMS RPBH MainB M 63.00 (1.94) (0.49) (8.03) 50.00 7.32% 26.91 98.45 5.37 1.17 64.97 26.94 1.97 32.0 2.3 3,150.00
SIGIRIYA VILLAGE SIGV MainB M 83.00 (12.63) 2.34 (20.95) 9.00 6.99% 55.13 34.67 10.93 (3.83) 21.50 6.08 3.85 21.5 1.5 747.00
STAFFORD/DOLPHIN STAF MainB M 40.00 (6.98) (2.68) (21.57) 31.62 8.40% 22.55 59.92 11.19 11.54 43.90 (6.71) 1.89 21.1 1.8 1,264.86
TANGERINE TANG MainB M 80.20 (0.99) (3.02) (10.89) 20.00 5.22% 94.60 98.74 13.02 4.70 69.46 11.55 4.94 16.2 0.8 1,604.00
SERENDIB HOTELS [V] SHOT MainB M 27.50 (4.51) (2.14) (10.42) 75.51 5.71% 12.62 80.30 (5.26) (5.52) 75.28 15.80 0.72 38.2 2.2 2,076.66
SERENDIB HOTELS [NV] SHOT MainB M 18.60 (4.12) 0.54 18.60 36.01 5.69% 12.66 80.30 (5.26) (5.52) 75.28 15.80 0.72 25.8 1.5 669.81
MARAWILA RESORTS MARA DiriSaviB M 10.00 (0.99) - (12.28) 122.50 na 6.85 na (23.62) (23.62) 25.18 na na 1.5 1,225.00
FORTRESS RESORTS RHTL DiriSaviB M 23.00 - 0.44 (14.81) 110.89 na 5.66 na (1.84) 108.69 na na 4.1 2,550.39
KALPITIYA BEACH RESORT CITK DiriSaviB M 16.70 - - - 161.20 na na na na na na 2,692.04
WASKADUWA BEACH RESORT CITW DiriSaviB M 13.70 - - - 155.60 na na na na na na 2,131.72
INVESTMENT TRUST (7.10) (12.09) (24.33) 14.79% 3,551.03 691.09 2,550.84 955.83 364.45 11.88 1.76
ASIAN COTTON MILLS ASCO MainB M 160.00 (0.12) (2.50) (10.91) 7.99 3.79% 72.92 22.09 (3.87) (2.34) 46.60 (18.30) 2.77 57.8 2.2 1,277.68
CEYLON GUARDIAN GUAR MainB M 250.00 (1.96) (1.38) (18.03) 82.10 23.93% 141.68 2,783.10 391.64 1,714.33 492.51 184.62 33.90 7.4 1.8 20,524.18
CEYLON INVESTMENT CINV MainB M 103.80 (5.55) (3.80) (13.56) 98.51 na 66.81 na 211.88 699.66 97.30 na na 1.6 10,225.84
COLOMBO FORT INV. CFI MainB M 250.00 (5.66) (15.25) (16.67) 5.00 10.68% 33.64 17.97 9.08 1.54 2.85 4.50 3.59 69.6 7.4 1,250.00
COLOMBO INV. TRUST CIT MainB M 250.00 (4.58) (16.33) (16.75) 5.50 12.74% 23.09 16.18 9.57 1.47 1.54 3.60 2.94 85.0 10.8 1,375.00
SHAW WALLACE SHAW MainB M 314.90 - 4.20 (12.01) 5.12 na 431.19 na (34.13) 35.28 1.18 na na 0.7 1,612.46
RENUKA HOLDINGS [V] RHL MainB M 52.30 (2.97) 0.38 (12.83) 44.52 27.23% 43.70 529.62 104.20 100.97 323.15 1.30 10.40 5.0 1.2 2,328.26
RENUKA HOLDINGS [NV] RHL MainB M 33.30 0.91 2.46 (14.62) 6.43 27.23% 302.60 529.62 104.20 100.97 323.15 1.30 10.40 3.2 0.1 214.07
GUARDIAN CAPITAL WAPO DiriSaviB M 131.00 (5.62) (5.14) (15.92) 25.83 24.02% 29.34 182.07 2.71 (0.07) (9.31) 188.73 7.05 18.6 4.5 3,384.23

18. Sri Lanka Focus 6th January 2012 ASIA RESEARCH TEAM 18
Broad Market Valuation Guide
Company Year Price Price Performance Shares Trailing BVPS Net Profit Net Profits Trailing Trailing PBV Mkt Cap Mn
End (LKR) 1W(%) 1M(%) 1Q(%) Mn ROE 4Qtrs Sep'11 Jun'11 Mar'11 Dec'10 EPS PE
LAND AND PROPERTY (1.68) (2.72) (9.64) 4.93% 1,814.82 402.46 466.05 796.72 753.24 23.67 1.17
C T LAND CTLD MainB M 27.10 (6.23) - (10.56) 48.75 6.42% 45.35 141.89 34.04 32.74 52.27 22.84 2.91 9.3 0.6 1,321.13
CARGO BOAT CABO MainB M 100.00 (3.94) (7.41) (20.76) 10.20 23.49% 66.61 159.62 18.88 115.26 8.58 16.89 15.65 6.4 1.5 1,020.00
CEYLINCO HOUSING CHOU MainB M 19.10 2.69 (6.83) (15.49) 13.38 na 5.63 (100.92) (1.26) (17.40) (26.76) (55.50) na na 3.4 255.56
CEYLINCO SEYLAN CSD MainB M 12.00 (2.44) - (12.41) 147.96 2.02% 29.65 88.62 20.13 54.95 0.45 13.09 0.60 20.0 0.4 1,775.58
COLOMBO LAND CLND MainB D 54.40 (0.73) 0.93 (10.80) 199.88 0.94% 13.98 26.21 19.25 0.07 5.93 0.96 0.13 414.9 3.9 10,873.53
COMMERCIAL DEVELOP. COMD MainB D 110.00 (0.09) (1.52) 2.42 12.00 12.41% 60.38 89.92 17.40 21.19 13.64 37.69 7.49 14.7 1.8 1,320.00
EAST WEST EAST MainB M 24.00 (5.16) (8.08) (19.80) 138.24 7.05% 3.19 31.07 4.65 4.77 17.28 4.37 0.22 106.8 7.5 3,317.76
EQUITY ONE EQIT MainB M 48.50 (4.72) 3.41 (10.19) 40.32 4.54% 36.19 66.19 3.50 4.17 30.60 27.93 1.64 29.5 1.3 1,955.60
EQUITY TWO ETWO MainB M 29.30 (0.34) (0.34) (0.34) 31.00 5.99% 16.47 30.56 1.68 2.45 10.91 15.51 0.99 29.7 1.8 908.30
HUEJAY HUEJ MainB M 153.30 (3.55) (8.94) (15.50) 1.80 na 7.51 (2.90) (1.43) 1.16 (1.41) (1.21) na na 20.4 275.94
KELSEY DEVELOPMENTS KDL MainB M 23.10 (0.43) (0.43) (18.37) 17.43 na 7.29 (23.84) (8.52) (3.96) (6.66) (4.70) na na 3.2 402.62
ON'ALLY HOLDINGS ONAL MainB M 70.20 (3.44) (2.64) (1.27) 17.50 8.93% 58.74 91.84 12.80 13.77 56.24 9.04 5.25 13.4 1.2 1,228.55
OVERSEAS REALTY OSEA MainB D 13.50 (2.86) (4.23) (3.55) 843.48 5.26% 20.37 903.91 116.66 162.57 124.72 499.95 1.07 12.6 0.7 11,387.04
PROPERTY DEVELOPMENT PDL MainB D 55.20 5.75 (6.44) (19.42) 66.00 15.47% 28.46 290.55 68.46 71.00 74.91 76.18 4.40 12.5 1.9 3,643.20
SERENDIB LAND SLND MainB M 2230.00 - - (25.64) 0.36 3.09% 567.86 6.32 1.48 1.69 1.47 1.68 17.57 126.9 3.9 802.80
YORK ARCADE YORK MainB M 27.50 7.54 5.45 (10.26) 12.00 15.13% 8.70 15.80 4.14 1.63 7.75 2.28 1.32 20.9 3.2 330.00
INFRASTRUCTURE IDL DefaultB M 133.50 (0.74) (10.94) 256.00 4.86 na na na na na na 648.47
TOUCHWOOD TWOD DiriSaviB M 20.80 (1.89) (4.59) (13.69) 71.27 na 42.50 na 90.59 426.80 86.26 na na 0.5 1,482.42