JKH - 31.03.2013

http://www.cse.lk/cmt/upload_report_file/508_1369738031.pdf

Some how this company show YoY growth and improves NAV.

Still a king of a share.

4Q2013
LMS has done well
SAGT has got struck
Leisure sector is stagnant , which means KHL results should be poor
Property sales is steady despite concerns ( this is key strength of JKH)
Retail sales down , supermarket business being squeeze through taxes?

why this is good share ?????

PE - 289/14.33 = 20.16

pls explain !

Yes presently to market this is overvalued at PBV of 3 and PE of 20.

But no matter how we value this using standard methods it is an investor favorite.Foreign specially. Liquidity, transparent management, multiple intests in key areas of the economy and time proven returns keep this share going. Also JKH is cash rich.

It maybe difficult to anyalze JKH movements as some of us sold at Rs 230, 250 , 270 thinking overvalued. But it kept on going ( now at a Rs 10 dip).

One thing I can tell you is if there is bull run , JKH will run further overvalued or not ( to us retailers)

For a long term investor I think this is must to have in portfolio so you can forget with easy mind and check in 5 years what the value is.

Btw, I am not saying to enter JKH immediately . It was a lot and need to stabilize.

VISA wrote:why this is good share ?????

PE - 289/14.33 = 20.16

pls explain !

slstock wrote:Yes presently to market this is overvalued at PBV of 3 and PE of 20.

But no matter how we value this using standard methods it is an investor favorite.Foreign specially. Liquidity, transparent management, multiple intests in key areas of the economy and time proven returns keep this share going. Also JKH is cash rich.

It maybe difficult to anyalze JKH movements as some of us sold at Rs 230, 250 , 270 thinking overvalued. But it kept on going ( now at a Rs 10 dip).

One thing I can tell you is if there is bull run , JKH will run further overvalued or not ( to us retailers)

For a long term investor I think this is must to have in portfolio so you can forget with easy mind and check in 5 years what the value is.

Btw, I am not saying to enter JKH immediately . It was a lot and need to stabilize.

VISA wrote:why this is good share ?????

PE - 289/14.33 = 20.16

pls explain !

JKH Established 1979 and Quoted 1986


John Keells Holdings (JKH) in FY 1986/1987

Profit - Rs 14.6 million
Number of shares issued - 10 million
NAV - Rs 26.27
EPS - Rs 1.46
Dividend - Rs 1
Price 31st March 1987 - Rs 11 (Hi Rs 25.25, Low Rs 8.75,)
FY 86/87 - Number of shares traded = 788,456, Turnover = Rs 14,722,113

So,

1 Share of JKH @ Rs 11 as at 31st March 1987 is equal 85 shares @ Rs 300 in May 2013.
Rs 1 in JKH in 1987 = Rs 2318 today (ignoring Rights Issue costs & Dividends received)

In 1986/1987 too, JKH @ Rs 25.25 a share was trading at P/E of 17

Just saying ....

Source: JKH Annual Reports 2004 & 2012

NO doubt SL BEST

The country’s top bluechip conglomerate John Keells Holdings (JKH) saw net profits grow 24 percent to Rs. 13.59 billion for the year ended March 31, 2013 with profits growing 19 percent in the March quarter to Rs. 5.9 billion, interim financial results filed with the stock exchange showed.

During the year, JKH saw revenue grow 10 percent to Rs. 85.55 billion and up three percent to Rs. 23.35 billion during the quarter.

The earnings per share amounted to Rs. 14.33 as against Rs. 11.52 a year ago.

"Finance income of Rs.4.77 billion for the year includes Union Assurance PLC’s life and general insurance funds’ interest income of Rs.2.66 billion, which net of related costs has been reflected under the Financial Services operating segment results," the group said in a statement.

"The recurring PBT for the financial year 2012/13, excluding fair value adjustments on investment property and capital gains on share disposals, was Rs.13.54 billion, an increase of 19 per cent over the recurring PBT of Rs.11.41 billion in the previous year. On a similar basis, the recurring profit attributable to equity holders of the parent was Rs.10.31 billion, representing an increase of 21 per cent over the Rs.8.54 billion recorded in the previous year."

Net profits from the group’s leisure sector rose 28.7 percent to Rs. 4.76 billion during the year. The leisure operating segment encompasses two five star city hotels in Colombo, Cinnamon Grand and Cinnamon Lakeside, and seven resort hotels spread in prime tourist locations all over Sri Lanka and three resorts in the Maldives offering beaches, mountains, wildlife and cultural splendor under the two brands ‘Cinnamon Hotels and Resorts’ and ‘Chaaya Hotels and Resorts’. The Leisure operating segment also has destination management businesses in Sri Lanka and India.

The transportation segment reported a net profit of Rs. 3.39 billion, up 8.9 percent from a year earlier. Businesses of the transportation operating segment offer an array of transportation related services in Sri Lanka and the region and these operations comprise of South Asia Gateway Terminals in the port of Colombo, a marine bunkering business, joint ventures and associations with leading shipping and air transportation multinationals and logistics, travel and airline services in Sri Lanka, India and the Maldives.

The consumer foods and retail segment saw net profits fall by 13.7 percent to Rs. 2 billion. The consumer foods and retail operating segment competes in the three major categories namely beverages, frozen confectionary and convenience foods. Retailing business through the ‘Keells Super’ chain of supermarkets and in partnership with Nations Trust Bank, has created ‘Nexus’, coalition loyalty card in the country.

The property segment saw profits grow 27.8 percent to Rs. 1.19 billion and the financial services segment reported 19.6 percent growth in net profits to Rs. 1.4 billion.

The property operating segment concentrates primarily on development and sale of residential apartments while the financial services operating segment offer a complete range of financial solutions including commercial banking (Nations Trust Bank), insurance (Union Assurance), stock broking, debt trading, fund management and leasing.

Information technology segment profits grew 261 percent during the year to Rs. 238.3 million while profits from ‘other’ areas of business grew 241.4 percent to Rs. 548.3 million.

The information technology operating segment comprises from BPO, software services and information integration to office automation which offers end-to-end ICT services and solutions. Others operating segment includes plantation services sector which operates tea factories, tea and rubber broking and pre-auction produce warehousing. This segment also consists of John Keells Holdings PLC including its divisions / centre functions such as John Keells Capital and Strategic Group Information Technology division (SGIT), as well as other companies providing ancillary services.

JKH yesterday (28) announced a final dividend of Rs. 1.50 per share and John Keells PLC (JKL) a first and final dividend of Rs. 3.50.
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