Company Snapshot John Keells Holdings PLC

300.00 250.00 200.00 150.00 100.00 50.00 JKH ASPI S&P SL 20

JKH.N Rs. 216.9 HOLD |Target Price Rs.253 Upside 16.4%

John Keells Holdings PLC (JKH) is the largest listed company on the Colombo Stock Exchange, with business interests primarily in Transportation, Leisure, Property, Consumer Foods & Retail, Financial Services and Information Technology, among others. Started in early 1870s as a produce and exchange broking business. The Group has been known to constantly re-align, re-position and re-invent itself in pursuing growth sectors of the time. JKH is one of the top players in Hotel industry while being the largest city hotel operator of the country. Market Leader in soft drinks and ice creams. Leisure Sector Profits are expected to grow further with the increasing tourist arrivals. OnThree20 and, K Zone mall in Ja-Ela is expected to complete during next Year Growth in Revenue, EBIT and Profit after Tax is at 16.3%, 26.34% and 33.38% CAGR during last 10 years.

Revenue Breakdown
Financial Services 10% IT 8% Others 3% Transporta tion 22%

Leisure 23%

Consumer Foods & Retail 29%

Risks
Property 5% Revenue (Rs Mn) Revenue Growth (%)

30% 25% 20% 15% 10% 5% 0% -5%

90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

High Competition in Consumer Foods & Retail sector. Countries shrinking external trade due to Rescission in EU and USA would impact on profit margins due to high dependency on Transportation industry.

Valuation
Valuation is based on Relative valuation method using average PE of 21.75x for the last ten years. Company is fairly valued at Rs.253 which is a gain of 16.4%. Based on above Valuation John Keells Holdings PLC is recommended HOLD.
All figures in Rs..Mn Group revenue Revenue Growth EBIT EBIT Growth Attributable to Equity holders Total Equity EPS EPS Growth NAVPS Market Price (Adjusted) P/E 1H2013 40,696 21% 2,133,550 63% 4,071 83,558 4.79 49% 87.97 229.10 23.91 2012 76,700 27% 13,581 19% 9,775 80,041 11.6 17% 84.32 206.0 17.76 2011 60,500 26% 11,425 44% 8,245 67,195 9.9 57% 70.59 214.2 21.64 2010 47,980 17% 7,908 -1% 5,201 56,262 6.3 11% 59.03 138.0 21.9 2009 41,023 -2% 7,986 -3% 4,733 50,467 5.7 -7% 53.91 47.1 8.26

16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

EBIT (Rs. Mn) EBIT Growth (%)

50% 40% 30% 20% 10% 0% -10%

Disclaimer: This Document is prepared and issued using publically available information. The writer has made every effort to ensure the accuracy but will not be responsible for any errors, losses or damages. The recipients of this report must take their own independent decisions.

Charitha Jayasri Thabrew 2012-11-13