Tag Archives: First Capital Equities

First Capital Equity Forum 2021 – Life Insurance and Port City

View our live discussion on the Sri Lanka Life Insurance Sector with industry veterans on 15th July 2021.
Followed by dialogue around the Colombo Port City Economic Commission Act.
Expert panelists include :
• Iftikar Ahamed – Managing Director Softlogic Life Insurance PLC
• Prakash Schaffter – Executive Chairman Janashakthi Insurance PLC
• Harshanee Deshapriya – Group Chief Legal Officer Janashakthi Limited
• Dilshan Wirasekara – Director/ Chief Executive Officer First Capital Holdings PLC (Moderator)


Watch the Video Here>>

View the Sector Coverage >>

Start Trading with First Capital Equities>>


Announcing the First Capital Equity Forum – ‘Life Insurance and Port City’

First Capital Holdings PLC has organized an investor forum titled “First Capital Equity Forum – Life Insurance and Port City to be held on Thursday 15th July 2021, from 3.30 p.m. to 5.00 p.m. The forum will be presented as a virtual form, via Zoom and Facebook Live.

The event is geared to provide participants with an overview of our expectations on the Life Insurance Sector, followed by a panel discussion on the Life Insurance Sector and a dialogue on the Colombo Port City Economic Commission Act.

Register now >> https://tiikm.zoom.us/webinar/register/WN_dNaqmxC8QqKZqf_Ez4ojjA

Read the full report >> https://firstcapital.lk/reports/life-insurance-sector-22-jun-2021/ 

Trade with First Capital Equities >>



Lets Talk Delivery vs Payment (DVP)

Delivery vs Payment (DVP) System is an important change to the Sri Lankan Equity Market and will uplift the CSE to be on-par with regional Markets and also, elevate Sri Lanka to an Emerging Market status.
DVP is an efficient system that will not impact investors’ credit, day trading, and cost of trading, settlement will still be on T+3.
Additionally, this globally accepted practice will minimize settlement risk and strengthen the overall credibility and integrity of the CSE, making the Sri Lankan Equity market attractive to Foreign Investors.
The change will mainly be between the Stockbroker Backoffice system and the CSE and, will hopefully be implemented by end of July 2021.
Watch Jaliya Wijeratne CEO of First Capital Equities and President Colombo Stock Brokers Association together with officials from the Securities and Exchange Commission of Sri Lanka and the Colombo Stock Exchange answer questions sent by the investor community.
If you have any questions or concerns regarding the implementation of DVP, please email equities@firstcapital.lk

Potential of Corporate Debt Capital – Sri Lanka Investment Forum 2021

Sri Lanka Investment Forum Livestream, in which our Director, CEO, Dilshan Wirasekara moderated a discussion on the Potential of Corporate Debt Capital with Senaka Kakiriwaragodage – Director, Chief Executive Officer for NDB Capital Holdings Limited and Vishnu Balachandran – Executive Vice President for CAL.

View the session: https://m.youtube.com/watch?v=xmQCT4nyVjQ


TRADE THE RIGHT WAY – Online Trading

First Capital is home to one of the largest financial research capabilities of its kind.

When you are trading from home, make sure to choose First Capital as your stockbroker, so that you have access to plenty of insights and experts who’ll share with you the trends and analytics to make the right trading decisions in a snap of time.

Call us on +94112639888 or email info@firstcapital.lk and we will have our team reach out to you with more information.

Mid-year Outlook – 3rd Research Conference

First Capital presents “Mid-year Outlook – 3rd Research Conference” a follow-up to the hugely successful “Investment Strategy 2020 – 2nd Research Conference” held in February 2020, at the Oak Room, Cinnamon Grand.

The event is geared to provide participants of the investment community, an overview of our expectations on the economic front mainly on interest rates, AWPLR, exchange rate, bond expectations, GDP forecast etc.

Mid-year Outlook 2020 webinar will be held on Tuesday, 22nd September 2020 at 3.00 pm.

Presenters, Dimantha Mathew and Atchuthan Srirangan from our Research Team will take you through a recap of recommendations of Jan 2020 and post covid-19 revisions, in addition to discussing “Why W-Shaped Recovery?”.

Register today by clicking https://tiikm.zoom.us/webinar/register/WN_J5980arwT5GU3R4yJIPwLA


Hansanee Eye 11


There are 19 companies listed under the plantations sector on the Colombo Stock Exchange generating a total market capitalization of LKR 22Bn. The industry is mainly export oriented revolving around Tea, Rubber and Palm Oil cultivation, however the segment is currently going through changes.

Ceylon Tea commands $ 1.2Bn  of the Export Market while Rubber  has an Export Economy of $24 Mn.


The largest contributor according to market capitalization is Watawala Plantation with a market cap of LKR 4.5Bn, it is the largest palm oil cultivator in the island.

In the financial year 2016 palm oil generated LKR 1.6Mn profit and in a global context it is in high demand with an expected growth of 7.3% over the next 5 years.


Watch the full episode >> 

Analysis of the Plantation Sector and the dynamics involved, on Channel Eye’s “Business Today” 11-01-2017 – Senior Research Analyst Hansinee Beddage.

Find more Sector and Company Reports here >>


Strong growth predicted for Lankan oil palm industry

FC Research quoted by Mirror Business 

By Chandeepa Wettasinghe

Sri Lanka’s oil palm plantation operators can expect strong growth in the industry for the foreseeable future due to the global palm oil demand, the research arm of a Colombo-based equity brokerage said in a report.

“This growth is on the back of global palm oil prices moving upward due to the expectations of global shortages in supply matching demand,” First Capital Research (FC Research) said.

It noted that due to the El-Nino weather conditions, the reducing rain fall in the major oil palm cultivating countries such as Malaysia, Indonesia and Thailand in 2015, the supply from those markets are expected to drop by six million tonnes.

“It is expected that the supply of palm oil will not meet the demand in coming years, pushing up the price as forecasted. Global price increase will push up the local palm oil price in correlation,” FC Research said.

It added that within three months, the palm oil prices, which were US $ 583.19 per tonne increased to US $ 692.41 per tonne last September and that the prices would move up to US $ 713 per tonne by 2020, according to the World Bank estimates.

Palm oil is used as a raw material in making vegetable oil and biodiesel—which is gaining demand due to the world moving towards less crude oil consumption—and the combined manufacturing of both are expected to grow by 7.9 percent annually until 2025, according to FC Research.

In Sri Lanka, Watawala Plantations PLC was the country’s first and currently the largest oil palm cultivator with around 3,157 hectares under cultivation under a diversification effort that began over a decade ago, which allowed it to remain profitable during hard times for tea and rubber recently.

Namunukula Plantations PLC had an extent of 2,020 hectares of oil palm under cultivation, followed by Elpitiya Plantations PLC with 1,447 hectares and Agalawatte Plantations PLC with 1,294 hectares at the start of the current financial year.

Kegalle Plantations PLC is planning to plant 1,125 acres of oil palm in its current rubber fields, while Bogawantalawa Tea Estates PLC has also announced its intentions to plant 700 hectares of oil palm over the past year.

FC Research said that oil palm cultivation requires less labour, with just 0.1 workers required per hectare, compared to four workers for tea and one worker for rubber required for the same land extent under cultivation. Oil palm workers have also been noted to earn three times as much as a tea plucker.

Labour wage payment is a major issue in the tea and rubber-dominated plantation industry, which was only recently able to come to a compromise with the trade unions in increasing wages.

‘Elpitiya Plantations Firing up the Palm oil Engine’



Elpitiya Plantations PLC (ELPL) is a listed regional plantation company engaged in Tea, Rubber and Palm oil cultivation. ELPL is expected to grow its earnings at a CAGR of c.36% FY16-FY19E, to c. LKR 500Mn in FY19E. Earnings will grow on the back of Palm oil having segment margin improving and contribution to revenue portfolio increasing. FC Research expect ELPL to provide an annualized return of 46% with a fair value of LKR 27.0 by FY18E. STRONG BUY

Palm oil to drive bottom line growth: ELPL’s top line is expected to grow at a CAGR of c.10%YoY in FY16-FY19E. FC Research expect that performance will be on the back of earnings from Palm oil improving with a CAGR of c.28%YoY. As of FY16 Palm oil contributed 17% to ELPL’s revenue portfolio which FC Research expect to increase to c.27% by FY18E. This growth is on the back of global Palm oil prices moving upward due to expectations of global shortages in supply matching demand and mature palm oil plantations hectarage of ELPL increasing by CAGR of c.13%.

Multiplexing revenues through investments: ELPL has diversified from its principal activities to manufacturing specialty tea Hydro power generation, hotel and adventure park operations through its investments which will create additional revenue streams to ELPL. FC Research expects ELPL to benefit substantially from Elpitiya Dianhong Jin Ya Tea Company (Pvt) Ltd as it will provide an edge to acquire market share in China, 10th largest customer of Ceylon tea and a high growth market, and AEN Palm Oil processing (Pvt) Ltd will provide synergy to ELPL by boosting margins in the segment.

ELPL to provide a return of 46% by FY18E: FC Research estimates ELPL’s fair value at LKR 27.0 (DCF based LKR 30.5, PER based LKR 24.3) providing an annualized return of 46% in FY18E.

Investment risk: Impact from government policy actions in estate worker wage hike and cap on land held by plantations Company is yet to be seen. ELPL is also exposed to the risks of key currency rates’ fluctuations and volatility of product prices.

-First Capital

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