JKH.N0000

Hi All,

Don't panic. Strong support ahead for JKH in between S2-S4 range. I expect JKH to be bounce back within this range. Next support levels for JKH will be,

S1 - 162.50
S2 - 161.33 ---(H1)
S3 - 160.75 ---(H2)
S4 - 160.17 ---(H3)
S5 - 158.42
S6 - 156.67

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Thank You

Now 163.10

LSE wrote:Hi All,

Don't panic. Strong support ahead for JKH in between S2-S4 range. I expect JKH to be bounce back within this range. Next support levels for JKH will be,

S1 - 162.50
S2 - 161.33 ---(H1)
S3 - 160.75 ---(H2)
S4 - 160.17 ---(H3)
S5 - 158.42
S6 - 156.67

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Thank You

Thanks LSE.

Thank you, dear LSE

JKH is doing well at the moment. But selling pressure is still there at the moment. Once selling pressure is absorb JKH will start it's journey towards 170+

Next resistance levels will be,

R6 - 170.67
R5 - 168.92
R4 - 167.17
R3 - 166.00
R2 - 164.83 ---(H2)
R1 - 164.25 ---(H1)

H1 & H2 will be very critical. Need big volumes to break the next level. Keep watching. Will update you timely.

Thank You
     

LSE wrote:Now 163.10      

LSE wrote:Hi All,

Don't panic. Strong support ahead for JKH in between S2-S4 range. I expect JKH to be bounce back within this range. Next support levels for JKH will be,

S1 - 162.50
S2 - 161.33 ---(H1)
S3 - 160.75 ---(H2)
S4 - 160.17 ---(H3)
S5 - 158.42
S6 - 156.67

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Thank You

JKH reaching overbought territory so fast. New comers better to stand back and watch. The people bout around 140/- or below should stay watching for that strategic deal to happen and then exit.

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Technical Analysis chart - JKH.N0000

JKH net up 37-pct in Sept

ECONOMYNEXT - Sri Lanka's John Keells Holdings Plc (JKH) net profits for the September quarter grew 37 percent from a year earlier to 5.1 billion rupees driven by stronger finance income and a tax reversal.

The firm reported earnings of 3.67 rupees per share for the quarter. For the 6-months to September, earnings were 5.25 rupees per share on total profits of 7.2 billion rupees , which were up 11 percent.

Revenue for the September quarter grew 10 percent from a year earlier to 32.6 billion rupees, cost of sales grew at a faster 17 percent to 26.4 billion rupees, and gross profits fell 13 percent to 6.2 billion rupees.

Selling and distribution expenses grew 66 percent to 1.7 billion rupees.

Finance income went up 39 percent to 3.5 billion rupees.

JKH received a tax reversal of 632.5 million rupees, compared to a tax expense of 941.4 million rupees last eyar.

Financial services contributed 1.9 billion rupees in profits to JKH in the September quarter, up 309.3 percent from a year earlier, despite revenue remaining flat at 2.5 billion rupees.

The boost came from the insurance arm Union Assurance, which received a 1.4 billion rupee tax benefit with the changes to the income tax law this April.

Transport segment profits were up 1.3 percent to 1.1 billion rupees, with revenue up 47.8 percent to 6.1 billion rupees.

While the bunkering business had greater volumes and improved margins, the container terminal in Colombo was affected with lower domestic container traffic, Chairman Susantha Ratnayake said.

Leisure sector profits fell 44.8 percent to 397.2 million rupees, on sales which fell 5.1 percent to 5.5 billion rupees.

"The decline in profitability is mainly attributable to the City Hotels sector, the partial closure of “Ellaidhoo Maldives” and the closure of “Cinnamon Hakuraa Huraa Maldives” for the reconstruction of the hotel." Ratnayake said.

Consumer foods profits fell 47.5 percent to 275.8 million rupees, with sales up 1.9 percent to 4.3 million rupees.

A sugar tax which depressed sales of soft drinks, and costs of setting up a new ice cream factory saw segment profits fall, Ratnayake said.

The retail segment, which operates Keells supermarkets fell to a 112.4 million rupee loss from a 354 million profit.

"The supermarkets business continued to record a growth in customer footfall which contributed towards modest same store sales, despite the subdued macro conditions which also resulted in a contraction in average basket values," Ratnayake said.

The supermarkets also went through a rebranding and refitting phase, adding to costs, he said.

Long-term borrowings grew to 19.7 billion rupees from 18.5 billion rupees, while short-term borrowings were up to 3.5 billion rupees from 3.1 billion rupees.

Long-term borrowings grew to 19.7 billion rupees from 18.5 billion rupees, while short-term borrowings were up to 3.5 billion rupees from 3.1 billion rupees. (Colombo/Nov11/2018)

ri Lanka's JKH profits up 37-pct in September with finance income, tax reversals

ECONOMYNEXT- Sri Lanka's John Keells Holdings Plc (JKH) net profits for the September quarter grew 37 percent from a year earlier to 5.1 billion rupees driven by stronger finance income and deferred tax reversal.

Earnings per share for the quarter were 3.67 rupees. Earnings per share for the first 6 months of the financial year grew to 5.25 rupees, from 4.73 rupees a year earlier. The JKH share was 142 rupees, down 2.1 percent on intra-day trading.

Revenue for the September quarter grew 10 percent from a year earlier to 32.6 billion rupees, while cost of sales were up 17 percent to 26.4 billion rupees, leading to gross profits falling 13 percent to 6.2 billion rupees.

Selling and distribution expenses grew 66 percent to 1.7 billion rupees. Ginance income went up 39 percent to 3.5 billion rupees.

JKH received a deferred tax reversal of 632.5 million rupees, compared to a tax expense of 941.4 million rupees.

The balance sheet expanded, with 341.6 billion rupees in total assets by end-September, up from 322.4 billion rupees at the start of the financial year.

Long-term borrowings grew to 19.7 billion rupees from 18.5 billion rupees, while short-term borrowings were up to 3.5 billion rupees from 3.1 billion rupees.

Financial services contributed 1.9 billion rupees in profits to JKH in the September quarter, up 309.3 percent from a year earlier, despite revenue remaining flat at 2.5 billion rupees.

The boost came from the insurance arm Union Assurance, which received a 1.4 billion rupee tax benefit with the changes to the income tax law this April.

Transport segment profits were up 1.3 perent to 1.1 billion rupees, with revenue up 47.8 percent to 6.1 billion rupees.

While the bunkering business had greater volumes and improved margins, the container terminal in Colombo was affected with lower domestic container traffic, Chairman Susantha Ratnayake said.

Leisure sector profits fell 44.8 percent to 397.2 million rupees, on sales which fell 5.1 percent to 5.5 billion rupees.

"The decline in profitability is mainly attributable to the City Hotels sector, the partial closure of “Ellaidhoo Maldives” and the closure of “Cinnamon Hakuraa Huraa Maldives” for the reconstruction of the hotel." Ratnayake said.

Consumer foods profits fell 47.5 percent to 275.8 million rupees, with sales up 1.9 percent to 4.3 million rupees.

A sugar tax which depressed sales of soft drinks, and costs of setting up a new ice cream factory saw segment profits fall, Ratnayake said.

The retail segment, which operates Keells supermarkets fell to a 112.4 million rupee loss from a 354 million profit.

"The supermarkets business continued to record a growth in customer footfall which contributed towards modest same store sales, despite the subdued macro conditions which also resulted in a contraction in average basket values," Ratnayake said.

The supermarkets also went through a rebranding and refitting phase, adding to costs, he said. (Colombo/Nov11/2018)

Harry, Captains up stakes in John Keells Holdings (JKH)-November 8, 2018

November 8, 2018 (LBO) – Colombo Stock Exchange market bellwether John Keells Holdings (JKH) reported its quarterly results last night, which included an update of its top 20 shareholder list. Notable trends included foreign selling and local buying.

In particular, Harry Jayawardena controlled Melstacorp upped its stake from 3.5% of the company to a 4% holding. The Captains also upped their stake to 17.5% from 16.6%. The bulk of the Captain’s holding is in the accounts of S.E. Captain and Paints and General Industries Ltd. It is possible that Jayawardena and the Captains have additional smaller holdings in JKH titled in other names that don’t appear in the top 20 shareholders list.

As of September 30, 2018, The Captains and Jayawardena together own at least 21.5% of the total outstanding shares of the company. It is likely that these holdings increased in October as there was significant local buying and foreign selling during the month.

After spiking to Rs155/share, the stock price of JKH as come back down to Rs142 in todays trading as Sri Lanka’s constitutional crisis continues to drag. Net asset value of the share at the end of the September quarter stood at Rs151/share.

Some analysts have speculated that if foreigners continue selling shares, that JKH will become vulnerable to a hostile takeover.

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JKH profits halve on finance costs, Easter bombings

ECONOMYNEXT- Net profits at John Keells Holdings, Sri Lanka's largest conglomerate, fell 54 percent to 994.3 million rupees from a year earlier, the firm said, with accounting changes to finance costs and lower revenue growth hitting the bottom line.




Earnings per share for the quarter was 75 cents. The firm's share closed at 151 rupees, down 80 cents on Thursday.




Revenue grew at a slower 5 percent to 31.7 billion rupees from a year earlier due to the hotel segment which suffered from low tourist arrivals following the Easter bombings, while cost of sales rose 8 percent to 26.5 billion rupees, leading to gross profits falling 8 percent to 5.2 billion rupees.




Finance costs grew 145 percent to 1.2 billion rupees.




John Keells Group Chairman Krishan Balendra said that the rise in finance costs was due to a change in accounting standards from LKAS 17 to SLFRS 16, which does not recognize operating leases.




"Under the adoption of SLFRS 16, the impact to the income statement is front-loaded due to the higher finance expense at the inception of the lease," he said.




The new standard affected the group's hotels in the Maldives and supermarkets, for which lands are leased.




Long-term borrowings of the group rose to 36.3 billion rupees in June from 21.2 billion rupees in March, while short term borrowings rose to 4.1 billion rupees from 3.2 billion rupees.




Meanwhile, finance income fell 25 percent to 2 billion rupees from a year earlier.




Short-term investment assets of the group fell to 38.5 billion rupees in June from 52.8 billion in March.




Tax expenses were down 33 percent to 457.4 million rupees.




The group's leisure operations recorded a revenue of 2.9 billion rupees, down from 4.4 billion rupees a year earlier, while losses after tax grew to 1 billion rupees from 278.4 million rupees.




"The decline in profitability is on account of the negative impacts to the Sri Lankan leisure business as a result of the Easter Sunday terror attacks in April 2019 which targeted several religious establishments and three city hotels including Cinnamon Grand Colombo," Balendra said.




"The growth momentum of arrivals is expected to recover to pre-incident levels in the next 9-12 months, as historically indicated by other travel destinations which have experienced similar terrorism incidents," he said.




The relaxation of travel advisories which were placed by key tourism markets and Sri Lanka being listed on top global travel publications is helping recovery, he said.




"We are encouraged that the forward bookings for the Group’s Sri Lankan resort hotels have witnessed an upward trend in recent weeks, reaching levels of approximately 75 per cent compared to the bookings received at the same time last year, indicating signs of recovery."




Two hotels, Hakuraa Hurra in the Maldives, and Cinnamon Bentota Beach which were closed for reconstruction will reopen in December 2019, he said.




Meanwhile, transportation segment revenue fell to 5.5 billion rupees in June from 5.6 billion rupees a year earlier, while profits after tax grew to 961.7 million rupees from 826 million rupees.




"Transportation recorded a strong performance in the Ports and Shipping business, South Asia Gateway Terminals (SAGT), driven by higher volumes and an improved volume mix," Balendra said.




Logistics throughput grew 30 percent, he said.




However, bunkering operations had suffered in May and June due to from fuel price variations between Colombo and Singapore, lowering volumes of bunkering fuel sold in Colombo, he said.




The retail segment revenue grew to 15.7 billion rupees from 13.1 billion rupees, while after tax profits fell to 141.6 million rupees from 170.5 million rupees, hit by finance costs under the new accounting standard for leases.




The customer's average basket value at Keells supermarkets had grown 1.6 percent, while customer footfall had grown 2 percent, contributing to a 3.6 percent rise in same-store sales Balendra said.




However, limited entry into malls due to security concerns following the bombins had led to lower sales at supermarkets inside malls.




Three new supermarkets were opened during the quarter, bringing the total to 98, while between 25 to 30 store openings are planned for the entire year, Balendra said.




The consumer foods segment, which produces processed foods, soft drinks and ice cream, posted sales of 4.5 billion rupees, which was a growth from 3.7 billion rupees, while profits grew to 406.6 million rupees from 231.5 million rupees.




Balendra said that higher demand for fruit juice, dairy, water, fizzy drinks and ice cream pushed the segment up, helped by the newly installed ice cream plant.




Revenue from the financial services segment fell marginally to 2.46 billion rupees from 2.52 billion rupees while after tax profits fell to 314.9 million rupees from 550 million rupees.




The profits at the group's insurance business Union Assurance had enjoyed a higher profit base a year earlier due to a one-off tax credit, Balendra said.




"Profitability of Nations Trust Bank was impacted by a decrease in the rate of loan growth and higher impairment charges due to the heightened credit risk from subdued macro-economic conditions," he said. (Colombo/Jul25/2019)

JKH Technical Update

Though the company suffered in profitability in the June quarter the share price is seeing improving after slipping to 145/-. RSI is @ 58 well within neutral region. Still early stage to comment on a future move however the current market conditions which has a direct correlation to political developments can trickle down the impact into JKH directly as it is the largest stock in CSE.

If speculation on political front made to be realistic then the coming week will be very interesting to JKH.

From 160 to 80 within three months. Financials are distressed for now. The stock too. But looks like the technical bottom has been formed and bargain hunters approaching. If volumes increases then I think the price will adjust towards 100/-.

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Sri Lanka’s John Keells Holdings net up 18-pct in March

ECONOMYNEXT – Profits at Sri Lanka’s John Keells Holdings grew 18 percent to 3.7 billion rupees in the March 2020 quarter from a year earlier, interim accounts showed, with only a marginal impact from Coronavirus in the quarter.

The diversified group which has interests in property, container transshipment, hotels and fast moving consumer goods reported earnings of 3.18 rupees for the quarter.

In the year to March JKH reported earnings of 7.14 rupees, on total profits of 9.4 billion rupees, down 38 percent from a year earlier.

Total revenues grew 3 percent to 37.1 billon rupees, cost of sales grew 8 percent to 30 billion rupees and gross profits was down 14 percent to 7.0 billion rupees at group level.

JKH said bunkering profits grew with better margins. South Asia Gateway Terminals its container terminal became liable for tax.

Soft drinks and ice cream businesses had grown in January and February but curfews had hit sales in March.

“Both businesses recorded encouraging volume growth in the months of January and February, where volumes grew approximately 20%-30%, on average,” the firm said.

“However, the imposition of island-wide curfew due to the COVID-19 pandemic caused disruptions in sales in the last 2 weeks of March 2020, which is a peak sales month, resulting in a steep decline in volumes, thereby impacting overall volumes for the quarter.”

“The Supermarket business recorded a strong performance driven by a notable contribution from new outlets and growth in same store sales.

“Same store sales recorded an encouraging growth of 5.7 per cent in January and February 2020.


However, similar to the impacts in the Consumer Foods businesses, a steep decline in same store sales was recorded in March due to the imposition of curfew which resulted in outlets being closed during the latter half of March 2020. Consequently, same store sales for the quarter was 1.7 per cent.

Hotels which were recovering from a Easter Sunday attack in 2019 were again hit by the Coronavirus.

In property 19 units were sold in the Trizen apartment project before Coronavirus curfews led to a closure

Property projects had since resumed construction.

Unspecified administrative expenses rose 25 percent to 3.2 billion rupees.
Finance income was up 50 percent to 2.8 billion rupees. Fair value gains rose 77 percent to 573 million rupees.

Income taxes were down 26 percent to 1.2 billion rupees. (Colombo/Mar21/2020)

Will the JKH result have some positive spin-off for tomorrow's trading. Anyway April - Jun 2020 quarter will be very bad for them and can be worse than the same quarter 2019 where hit on business this time will be much more greater than Easter Sunday bombings.

Sri Lanka’s John Keells Holdings gets US$175mn from IFC

ECONOMYNEXT – Washington-based International Finance Corporation said it will invest 175 million US dollars in Sri Lanka’s based John Keells Holdings to help it expand retail and hotels businesses including in the Maldives.

“I believe partnering with an internationally reputed financial institution such as IFC, particularly at this juncture of time, is a vote of confidence for JKH and the country, at large,” Krishan Balendra, Chairman of John Keells Holdings said in a statement.

Sri Lanka’s growth prospects in the medium to long-term remain positive and we are confident that, as always, we have the strength and resolve to keep moving forward with our investment pipeline despite the current period of unprecedented challenges where the outlook is now more positive.”

The credit will be the largest ever in Sri Lanka by the IFC.

The funds will go to expand JKH’s supermarket chain in Sri Lanka and hotels refurbishment in the country and also in the Maldives.

JKH plans to open about 100 new supermarkets in Sri Lanka over the next three to five years, with a focus on less developed areas.

This will benefit small and medium enterprise as well as farmers who will become a part of the supply chains of new stores.

“IFC support will enable JKH…to continue to invest, and ultimately create more jobs and work for small and medium sized businesses, despite the challenging economic headwinds and uncertainty over COVID-19,” Amena Arif, IFC Country Manager for Sri Lanka and the Maldives said.

“It will also send a strong and positive message to the investor community that capital investments in Sri Lanka and Maldives are viable at this challenging time and are important to help the economies and the community to build resilience for the future.”

JKH hotels in Maldives will be comply with IFC’s ‘EDGE Buildings’ green standard.


Before the Coronavirus pandemic, tourism was Maldives top forex earner, accounting for three quarters of the nation’s gross domestic product. In Sri Lanka tourism was the third largest source of foreign exchange. (Colombo/June23/2020)

John Keells Holdings loses Rs1.6bn to Sri Lanka Covid-19 lockdown, sees recovery

ECONOMYNEXT – Sri Lanka’s John Keells Holdings, which has interests in leisure, ports, consumer goods and retail said it lost 1.6 billion rupees in the June 2020 quarter due to Coronavirus lockdowns but is seeing better than expected recovery as controls were eased.

The group reported loss per share of 1.26 rupees for the quarter.

Group revenues in the June quarter fell 32 percent to 21.6 billion rupees and cost of sales fell at a slower 26 percent to 19.6 billion rupees driving gross profits down 63 percent to 1.9 billion rupees.

Finance costs rose to 1.9 billion rupees from 1.1 billion rupees a year earlier and finance income fell 17 percent to 1.72 billion rupees.

With Sri Lanka containing the spread of Coronavirus, many of the businesses are recovering faster than expected.

“…[B]usiness recovery is reverting to almost pre COVID-19 levels, faster than anticipated, and this momentum is expected to continue if the pandemic remains contained,” Chairman Krishan Balendra told shareholders.

“The Leisure business, however, continues to be significantly impacted given the closure of the airport in Sri Lanka and the high dependency on the recovery of key source markets in particular.”

Maldives has re-opened the airport in July.

“While bookings for the next few weeks are low, we are encouraged by strong forward bookings for the peak season of January to April 2021, exceeding the bookings we had for the same time last year,” he said.

“Whilst Sri Lanka is yet to re-open its airport, our hotels in Sri Lanka have now commenced operations where the recovery of domestic tourism has been encouraging.”


South Asia Gateway Terminals, the container terminal had seen a 40 percent fall in volumes in April, which was reduced to a 20 percent fall in June. Bukering volumes were down but margins were better.

In consumer foods, easing of restrictions saw positive volume growth in June for ice creams but beverages showed a single digit fall, he said.

Supermarkets have seen a ‘sharp rebound’ in sales with customer footfalls recovering towards pre-Covid levels.

“Same store sales growth for the month of June recovered to negative single digit levels compared to the decline of 45 per cent, on average, in the months of April and May,” Balendra said.

“Given the change in the shopping patterns of customers where the frequency and purchase patterns due to consolidation of baskets has changed, the statistics on footfall and basket values are distorted in the short term.”

Supermarkets have revamped the online sales portal. Two outlets were opened in July.