John Keells Holdings: Key Highlights

John Keells Holdings
JKH-N - Rs.156.0
Yasas Wijethunga
Key Highlights
Email : yasas@ctclsa.lk
Phone : +94 77 0532059
4Q16 Results Summary
27 May 2016
Sri Lanka
4Q16 EPS excluding fair value gains of Rs.3.6 (+3% YoY on a recurring basis), above our
expectations, primarily due to higher than anticipated performance in Leisure, Consumer Food &
Retail (CF&R) and Others sectors
JKHs FY17E group recurring NP forecast revised up by +5% to Rs.13,344mn (-3% YoY) largely
due to upward revisions to Leisure and Others sectors. FY18E group NP forecast at Rs.14,631mn
(-10% YoY), largely driven by Leisure and CF&R sectors
Amid recent overall market weakness, the JKH share price has fallen -13% in 2016YTD and -11%
YoY (vs. -5% and -9% decline in ASI respectively)
JKH share trades at forward PER multiples of 13.9X for FY16E and 12.7X for FY17E, on modest
EPS growth expectations. Trailing PER at 13.0x. The share currently trades at a 9% discount to
our estimated Some of The Parts (SOTP) valuation of Rs.170 (excluding 2016 warrant conversion
at Rs.171)
At current prices, JKH warrants seems significantly overvalued, with only less than six months to
expiration and remains as a near term concern
The success of the US$820mn Waterfront Project remains critical to the group, given that JKH is
continuing to develop the Integrated Resort (IR) on the same scale, despite the removal of
gaming facilities. The project encountered a delay recently, pushing completion to 2019 (vs.
2018 previously), though not expected to materially impact the long term value of the project
Whilst near term weakness may prevail, stemming from the overall momentum of the market,
medium to longer term investors may accumulate the share on current price weakness
Diversified
Key Trading Information

Shares in Issue (mn)
Market Cap (US$ mn)
Estimated Free Float (%)
3M Avg Daily Volume
3M Avg Daily Turnover (US$)
12M High / Low (Rs)
3M / 12M Price Change (%)
JKH: Valuation Ratios

Financials - Year to 31 March
Relative Share Price Movement (%)

1,189.4
1,260.5
98.6
813,174
850,312
199.0 / 150.1
-1.9 / -11.1
120
110
100
JKH-N
ASPI
90
80
26-May-15
25-Nov-15
26-May-16
FY14
FY15
FY16
FY17E
FY18E
Net Revenue (Rs mn)
86,706
91,852
93,282
109,436
120,094
Net Profit (Rs mn)
11,532
13,037
13,807
13,344
14,631
10.6
11.5
11.6
11.2
12.3
Earnings per Share (Rs)

Earnings per Share Growth (%)
-1.5
8.5
0.8
-3.4
9.6
Price / Earnings Ratio (X)
18.8
15.1
12.8
13.9
12.7
Price / Earnings Growth (X)
N/A
1.8
16.0
N/A
1.3
Gross Dividend per Share (Rs)
3.1
3.1
7.0*
3.5
3.5
Gross Dividend Yield (%)
1.5
1.8
4.7
2.2
2.2
108.6
117.0
114.9
122.6
131.4
1.2
Net Book Value per Share (Rs)

Price / Book Value (X)
1.8
1.5
1.3
1.3
Return on Equity (%)
10.8
10.2
10.3
9.5
9.7
199.1
174.2
149.0
156.0
156.0
Market Price per Share (Rs)
Note: Valuations are based on recurring EPS, Adj. for Capital Issues (if any); Historic Ratios are based on Y/E MPS
Warrants - FY16 - 50mn warrants to be converted to shares at Rs.171 per warrant on 13 Nov 2016
*Includes a special dividend of Rs.3.5
Forecasts not adjusted for proposed 07:08 subdivision (subject to approval)
CT CLSA SECURITIES (PVT) LIMITED | A Member of the Colombo Stock Exchange
Source: CT CLSA
The Business
Most liquid company in
CSE accounting for
~15% of market
turnover
John Keells Holdings (JKH), Sri Lankas second largest listed company, with ~7% of total market
capitalisation (excluding warrants), is a leading conglomerate with a significant presence in Leisure,
Transportation, Property Development, Financial Services, Consumer Foods and Retail (CF&R) and
Information Technology. Currently, the Leisure sector is the groups main contributor to PAT (~28%
of total PAT in FY16), with a dominant presence in the Colombo city hotel space, and owning resorts
in both Sri Lanka and the Maldives. The group is in the process of developing an Integrated Resort,
Waterfront Project at an investment of ~US$820mn, slated for completion in 2019. Given its lack
of a controlling shareholder, and ~98% free float, JKH is the local markets most liquid share,
contributing ~15% of total market turnover in 2015
Recent Financial Performance

4Q16 EPS +3% YoY
above our expectations
JKH posted a 4Q16 recurring net profit of Rs.4,259mn (+8% YoY on a recurring basis), above our
expectations, primarily due to higher than anticipated performance in Leisure, Consumer Food &
Retail (CF&R) and Others sectors. Consequently, FY16 recurring NP amounted to Rs.13,807mn
(+6% YoY). 4Q16 recurring earnings excluding fair value gains of Rs.263mn. Meanwhile, 4Q15
reported earnings included a Rs.1,221mn capital gain on sale of 78% stake in UAL General and fair
value gains of Rs.49mn. 4Q16 recurring EPS of Rs.3.6 (+3% YoY) resulting in a FY16 recurring EPS
of Rs.11.6 (+1% YoY)
Key Figures & Ratios

Net Revenue (Rs mn)
Gross Profit (Rs mn)
Net Finance Income (Rs mn)
Profit Before Tax (Rs mn)
Reported Net Profit (Rs mn)
Recurring Net Profit (Rs mn)*
Net Cash Position (Rs mn)
Net Cash Per Share (Rs)
Capex (Rs mn)
4Q15
4Q16
% YoY
FY15
FY16
% YoY
24,879
7,715
1,334
6,973
5,222
3,952
3.5
48,117
42.5
766
24,897
8,479
1,627
6,482
4,522
4,259
3.6
57,013
47.9
1,360
0.1
9.9
22.0
-7.0
-13.4
7.8
2.6
18.5
12.8
77.5
91,852
26,146
7,454
18,557
14,348
13,037
11.5
48,117
42.5
2,999
93,282
28,225
7,017
19,198
14,070
13,807
11.6
57,013
47.9
4,582
1.6
7.9
-5.9
3.5
-1.9
5.9
0.8
18.5
12.8
52.8
Source: Company Interims

Note: Valuations and ratios on a recurring basis; Adjusted for capital issues (if any)
Per share growth numbers vary from total values due to added shares from conversion of Warrants and ESOPs
*4Q16 NP adjusted for fair value gains of Rs.263mn, 4Q15 NP adjusted for fair value gains of Rs.49mn and included Rs.1,221mn capital gain
on sale of 78% stake in UAL General
2Q15 NP adjusted for non-recurring gain of Rs.41mn on the sale of hotel reservation software
Sectoral Analysis
Sectoral Analysis
(Rs mn)
Sharp increase in CF&R

and Others profitability
Composition (%)
4Q15
4Q16
4Q15
4Q16
% YoY
FY15
FY16
% YoY
Net Revenue
Transportation
Leisure
Property
Consumer Foods & Retail
Financial Services
Information Technology
Others
24,879
3,501
7,437
1,936
7,966
1,451
1,836
752
24,897
1,924
7,477
632
10,096
1,874
2,200
695
0.1
-45.1
0.5
-67.3
26.7
29.2
19.8
-7.6
91,852
13,340
23,307
5,689
29,757
9,077
7,212
3,468
93,282
10,342
24,073
4,342
36,458
7,143
8,262
2,663
1.6
-22.5
3.3
-23.7
22.5
-21.3
14.5
-23.2
100
14.1
29.9
7.8
32.0
5.8
7.4
3.0
100
7.7
30.0
2.5
40.5
7.5
8.8
2.8
Profit After Tax

Transportation
Leisure
Property
Financial Services
Others
4,514
709
2,012
544
656
315
90
188
4,944
9.5
704
-0.7
2,036
1.2
442
-18.8
1,053
60.5
278
-11.6
-39 >-100.0
470 >+100.0
14,434
2,335
4,855
1,422
1,795
1,798
239
1,990
15,529
2,454
4,367
1,437
3,212
1,718
96
2,245
7.6
5.1
-10.1
1.0
78.9
-4.4
-59.9
12.8
100.0
15.7
44.6
12.1
14.5
7.0
2.0
4.2
100.0
14.2
41.2
8.9
21.3
5.6
-0.8
9.5
*Note: Valuations and ratios on a recurring basis
A CT HOLDINGS
GROUP
ANDTITLE
CLSA |
GROUP
EQUITY
REPORT
Date COMPANY
Source: Company Interims
Transportation Sector
4Q16 PAT of Rs.704mn (-1% YoY; 14% of group PAT); in line with our expectations.
Mediocre performance likely due to weak earnings from 100% owned oil bunkering arm,
Lanka Marine Services (LMS) whilst 42% owned associate, South Asia Gateway Terminal
(SAGT) earnings expected to have declined marginally; FY16 PAT +5% YoY to Rs.2,454mn
Oil bunkering impacted
by drop in revenue
According to JKH, LMS earnings have declined due to costs relating to an engine failure of one of
the oil barges during the quarter. Meanwhile, LMS margins believed to have increased due to
lower global oil prices (NYMEX -31% YoY and -20% QoQ), though to a limited degree as part of
the benefit expected to have passed through to an extent, amid considerable bargaining power
of customers and high competition within the industry
o
SAGT market share at

~27% in 4Q16
Competition in the bunkering space remains high, from players including state-owned Sri
Lanka Ports Authority (SLPA) starting bunkering operations at its newly built US$95mn ship
fueling unit in the Hambantota Port in Jun 2014. However, it is assumed that a more even
playing field has been generated for all the players, where earlier, some players had
agreements with state-owned Ceylon Petroleum Corporation (CPC) which allowed sourcing
bunker oil at lower prices
SAGT earnings impacted lower margin transshipment volume

transshipment mix was at 20 : 80 in 4Q16 vs. 25 : 75 in
volumes increase of +8% YoY (vs. 10-12% YoY volume
Consequently, SAGTs market share is estimated to have fallen
28% in 4Q15 (however increased from 25% in 3Q16)
o
gaining significance (domestic :

4Q15), offsetting the estimated
growth in port of Colombo).
marginally to 27% in 4Q16 from
The new player within the Colombo port, Colombo International Container Terminal (CICT),
continues to increase its presence, which is also believed to be at the expense of other
players. CICTs ability to cater to larger container vessels has enabled it to attract ships
which were previously not calling at the Colombo Port. CICT would continue to pose a
threat to SAGTs business in the near term. Government of Sri Lankas (GoSL) plans to
add more capacity in the medium term in port of Colombo is also expected to add more
pressure. However, the network creation in Colombo port would attract more ships which
would benefit all the players in the long term
Meanwhile, according to JKH, DHL Keells has performed well increasing its contribution to sector
bottom-line during 4Q16 and FY16
Sectoral PAT forecasts revised up by +7% to Rs.2,412mn for FY17E (-2% YoY, 16% of
total PAT), due to anticipated increased performance in DHL Keells and pickup in volumes at
SAGT. Meanwhile, we forecast FY18E sector PAT at Rs.2,557mn for (+6% YoY, 16% of
total PAT), with growth anticipated from steady performance in SAGT coupled with expected
recovery in LMS amid the pickup in oil prices from current lows
o
Shipping agency Maersk is expected to continue to provide relatively stable returns, though
contribution to sector bottom-line is believed to be immaterial
JKH may possibly bid for the management of container handling services of the new East
terminal of the Colombo port, with a capacity of 2.4mn TEUs. The bidding is expected to
commence in 2H2016. However, the operations in the East terminal are not anticipated to
commence until the newly opened CICT reaches a relatively sufficient level of capacity
utilization (recent newspaper articles suggested CICT handled 1.6mn TEUs in 2015; 65%
utilization). Therefore, given the uncertainty in the timelines and lack of information currently
disclosed, we have not factored such into our forecasts
May possibly bid for East

container terminal
Colombo Port Volumes (TEUs mn) & SAGT Mkt

Share (%)
Transportation Sector : PAT (Rs bn)
Others
SAGT
SAGT Market Share - RHS
0.8
5.5
4.5
3.5
2.5
1.5
0.5
0.7
0.6
0.5
0.4
FY11
4Q14
2Q15
4Q15
2Q16
4Q16
FY12
FY13
FY14
FY15
50
45
40
35
30
25
FY16
Others include Jaya Container Terminal (JCT) and CICT volumes

Source: CBSL, JKH
CT CLSA SECURITIES (PVT)

EQUITY
LIMITED
REPORT
| A Member
TITLE | of
Date
the Colombo Stock Exchange
Leisure Sector
4Q16 PAT +1% YoY to Rs.2,036mn, (41% of group PAT), above our expectations, amid a
recovery in city hotels after three consecutive quarterly declines; FY16 PAT -10% YoY to
Rs.4,367mn
Leisure Sector PAT (Rs mn)

2,250
FY14
FY16
1,750
FY15
City hotels : Comprise five star city hotels Cinnamon Grand (CG : 541 rooms) and Cinnamon
Lakeside (CL : 300 rooms Trans Asia Hotels - TRAN) through 79% owned listed subsidiary, Asian
Hotels & Properties (AHPL), which recorded a NP of Rs.705mn in 4Q16 (+40% YoY)
o
1,250
750
250
1Q
2Q
3Q
4Q
As indicated by JKH, segmental occupancy estimated to have increased to 7080% (vs. 65-70% in 4Q15), whilst ARRs are estimated to have remained
relatively flat in the range of US$130-135
Meanwhile, average LKR depreciated -1% QoQ (-7% YoY) in 4Q16 after depreciating -5%
QoQ in 3Q16
Thousands
Sri Lanka :
Tourist Arrivals (persons 000s)
210
2013
2015
240 room three star hotel in Colombo, Cinnamon Red, a ~20% owned joint venture with
Sanken Construction continued to perform well during the quarter (Share of results of
equity accounted investees for the Leisure sector increased +56% YoY Rs.12mn)
2014
2016
170
130
90
Resort hotels : Exposure through 80% owned listed subsidiary, John Keells Hotels (KHL), which
owns hotel properties in Sri Lanka (996 rooms) and Maldives (340 rooms). KHL is yet to release
4Q16 results
o
Sri Lanka resorts : As indicated by JKH, occupancy remained within the range of 8590%, whilst ARRs increased in the range of US$105-115. According to JKH, the
segment results were impacted by exchange revaluations relating to debt coupled with
employee costs incurred in line with a specific employee benefit requirement of the GoSL
Maldives resorts : the segment was impacted by slowdown in tourist arrivals of +4% YoY
to 344,160 persons in 4Q16. As indicated by JKH, occupancy declined YoY to 80-85%
in 4Q16 (vs. ~90% in 4Q15), whilst ARRs also dropped to ~US$380-385 (vs.
~US$400-410 in 4Q15)
50
Jan Mar May Jul
Sep Nov
Thousands
Source: Sri Lanka Tourism Development Authority

(SLTDA)
Maldives :
Tourist Arrivals (persons 000s)
2013
2014
2015
2016
125
100
75
Jan Mar May Jul
The Sri Lankan Hotel Management and Destination Management businesses are believed to have
contributed steadily in 4Q16, driven by a significant growth in overall tourist arrivals
Sectoral PAT forecast revised up by +7% for FY17E to Rs.4,644mn (+6% YoY, 31% of
total PAT), given improved performance in city hotels, offsetting the weak performance in the
resorts segment. FY18E PAT forecast at Rs.5,322mn (+15% YoY, 34% of total PAT),
primarily driven by rebound in resorts sector given growth in tourist arrivals coupled with
continued increased performance of Hotel Management and Destination Management businesses.
Contribution from these sectors would offset the pressure on City hotels which would see
increased competition from expected new properties set to enter Colombo in the medium term
o
The city hotel space would however witness a recovery over the long term with continued
rise in tourist arrivals and Colombo growing in recognition amongst Meetings, Incentives,
Conferences, and Exhibitions (MICE) travelers
The tourism industry would face some additional near term pressure following the corporate
income tax revision to 17.5% (previously at lower concessionary rate of 12% - however new
rate not yet implemented) and Value Added Taxes (VAT) revision to 15% (from 11% - w.e.f
02 May 2016) as per amendments to National Budget 2016
Some relief however is expected to be provided to the city hotel segment as per the
proposed 50% tax deduction which would be granted for companies engaging in
MICE tourism for five years
The mandatory registration requirement of all hotels under Sri Lanka Tourism
Development Authority (SLTDA) by 01 Jun 2016 is expected to be a beneficiary for resort
hotels as unregistered hotels are believed to be charging a lower rate with lower service
offerings. Subsequent to registration, we expect the establishments to incur higher service
related costs due to firmer regulation, leading to higher prices charged, reducing the price
disparity compared to registered establishments
Sep Nov
Source: Maldives Tourist Authority
Increase in taxes
applicable to tourism
industry
As per JKH, city hotel earnings, which have been under pressure recently, rebounded with
increased occupancy levels, somewhat benefited from increased tourist arrivals. Tourist
arrivals to Sri Lanka increased +22% YoY to 584,818 persons in 4Q16 - business related
travel believed to have increased during the quarter reversing the mediocre trend witnessed
for the most part in 2015 due to higher level of macro policy uncertainty. Further, the
quarterly earnings also benefited by the depreciation of LKR
A CT HOLDINGS
GROUP
ANDTITLE
CLSA |
GROUP
EQUITY
REPORT
Date COMPANY
Consumer Food and Retail (CF&R) Sector
4Q16 PAT Rs.1,053mn excluding fair value gains of Rs.17mn (+61% YoY; 21% of
group PAT), above our expectations, driven by robust growth in 81% owned, Ceylon
Cold Stores (CCS); FY16 PAT excluding fair value gains +79% YoY to 3,212mn
CCS reported a 4Q16 NP of Rs.967mn (+61% YoY), led by strong performance in both its
manufacturing and retail segments
o
Manufacturing segment : NP of Rs.972mn (vs. Rs.433mn in 4Q15); attributable to

higher volumes in both the key ice cream and soft drinks businesses. According to JKH, both
ice cream and soft drinks volumes grew significantly whilst improved consumer sentiment
is expected to have continued with increase in disposable income subsequent to sweeping
consumer relief measures offered by the GoSL in early-2015, the warm weather witnessed
during the quarter likely to have boosted volumes. Profit margins also expanded due to the
soft global prices of key commodities, negating higher import related costs due to the
depreciation of LKR during 3Q16
Retail segment : NP of Rs.304mn (vs. Rs.148mn in 4Q15); attributable to increase in

same store sales with expected increase in footfall coupled with added contribution from
newly opened stores. As per JKH, six supermarkets were opened in FY16 - subsequently
opened another supermarket in Apr 2016 bringing the total number of supermarkets to 51.
Further, retail segment likely benefited from the removal of deemed VAT from 01 Jan 2016.
As per the prior implementation of deemed-VAT, retailers had to pay VAT on 75% of revenue
irrespective of the composition of VAT liable products being sold
Improved consumer
sentiment and adverse
weather supporting
higher volumes
Total capex for CCS increased to Rs.974mn in 4Q16 (vs. Rs.208mn in 4Q15) with the mix
between manufacturing : retail standing at 38 : 62
90% owned Keells Food Products (KFP) reported a 4Q16 NP of Rs.71mn (-11% YoY) the growth have slowed down due to higher promotional expenses undertaken during 4Q16
FY17E sectoral PAT forecasts broadly maintained at Rs.3,959mn (+23% YoY, 26% of
total PAT). FY18E sectoral PAT forecast at Rs.4,452mn (+13% YoY, 28% of total PAT)
Major beneficiary from

the tax changes
Sector is anticipated to benefit from the decrease in corporate tax rates in manufacturing
segment to 17.5% (from 28% previously), as proposed by the Prime Minister as
amendments to National Budget 2016 yet to be implemented
The removal of deemed VAT w.e.f. 01 Jan 2016 will further benefit the retail
segment PBT impact from deemed VAT for FY16 was Rs.286mn (vs. Rs.339mn in FY15),
more than offsetting the increase of VAT rate to 15%
Whilst the local consumer sentiment may face a slowdown in 2H16E, with rise in interest
rates and fiscal tightening policies, impact on CCS is expected to be limited with products
being offered considered to be relatively underpenetrated. The sector continues to be a key
beneficiary of soft global commodity prices, though the benefit would partly be offsetted by
LKR depreciation. The increase in local farm gate milk prices (from Rs.60-70 w.e.f 2Q16) is
only expected to marginally impact CCS profitability due to its ability to switch between
input sources
The retail segment is expected to continue its positive performance amid the growth in
footfall and improved efficiencies coupled with further expansion of its supermarket network
Whilst benefiting from overall increase in consumer demand, KFP is expected to slow down in
the near term with lower demand projected from HORECA customers; HORECA customers
currently assumed to be contributing to ~25% of KFP revenue
Key beneficiary from

soft commodity prices
FY14
900
FY15
FY16
700
500
300
100
1Q
2Q
3Q
*Excluding fair value adjustments
We expect JKH to increase its presence in CF&R by seeking opportunities in sectors such as
dairy, to complement its ice cream business, with entries into milk and yogurt via the Elephant
House brand being possible options. However, the contribution from recent ventures into sugar
free and isotonic drinks are believed to be marginal at the moment
CCS: Manufacturing - Recurring

Net Profit (Rs mn)*
CCS: Retail - Recurring Net Profit (Rs mn)
CF&R - Recurring PAT (Rs mn)*

1,100
Addition of Segment NP is higher than CCS NP due to eliminations (-Rs.296mn) and

Share of results of equity accounted investments of (-Rs.13mn)
4Q
FY14
350
300
250
200
150
100
50
0
-50
FY15
FY16
FY14
1,000
FY15
FY16
750
500
250
0
1Q
1Q
2Q
3Q
4Q
2Q
3Q
4Q
*Excluding fair value adjustments

EQUITY
LIMITED
REPORT
| A Member
TITLE | of
Date
Property Sector
Final phases of revenue

recognition
Significant underutilized
land bank available for
future developments
4Q16 PAT of Rs.442mn, excluding fair value gains (-19% YoY; 9% of group PAT),
slightly above our expectations. Decrease in profits is due to lower revenue
recognition from 7th Sense apartment project. FY16 PAT, excluding fair value gains
+1% YoY to Rs.1,437mn
Units in both the apartment complexes OnThree20 and 7th Sense were sold in 2Q16.
According to JKH, 100% of revenue has been recognized from OnThree20 by 3Q16 and 95% of
revenue recognition was completed from 7th Sense as at 31 Mar 2016
Meanwhile, upmarket shopping mall in Colombo, Crescat Boulevard, is anticipated to have

contributed positively albeit modestly with increased rental income. Crescat currently operates at
~100% occupancy. Property sector earnings also include rental income from the K-Zone malls,
franchise outlets in key suburbs, Moratuwa and Ja-Ela, both of which are expected to be
enjoying ~70-85% occupancy levels
FY17E PAT forecast marginally revised up to Rs.221mn (-85% YoY, 1% of total PAT);
significant YoY decline is due to FY17E only comprising marginal revenue recognition from 7th
Sense. Meanwhile, FY18E PAT forecast at Rs.201mn (-9% YoY, 1% of total PAT), just
comprising of rental income from investment properties
JKH has a significant land bank, of nearly seven acres in Colombo and suburbs, available for
future developments. The Groups current main focus on large scale development remains the
Waterfront Project. Meanwhile, JKH mentioned that it is evaluating a few other options at the
moment and would venture into further property developments if any opportunities arise
National Budget 2016 removed restrictions on transfer of land for certain identified investments
and upfront tax on leasing of lands (current standard rate at 15% and concessionary rate at
7.5%) w.e.f 01 Jan 2016
o
Removal of taxes and
restrictions on transfer
of land
JKH : Unused and Underutilised Land

Owning company
Ahungalla Holiday Resort
Ahungalla
Facets (Pvt) Ltd
Ahungalla
John Keells PLC
Ja-Ela
Sentinel Reality (Pvt) Ltd
Vakarai
Trinco Walk Inn Ltd
Trincomalee
Whittall Boustead (Pvt)
Ltd. Colombo 02
Wirawila Walk Inn Ltd
Wirawila
JKHs ongoing projects such as Waterfront Project were anyway not expected to be impacted
as it falls under the Strategic Development Act, where exemptions are provided. Impact for
future developments anticipated to be limited, with projects likely to receive exemptions on a
case by case basis. Meanwhile, the new ruling provides more certainty on foreign holding
restrictions and taxation regarding future property developments by JKH
Further, relaxation on granting residential visa is considered as a positive step for the local
property sector; however the near term benefits are expected to be marginal as the costs
associated with obtaining visas are considered to be relatively high
JKH Property Sector: Development Properties
Area
(acres)
Saleable
Area Revenue Profit
(sq ft) (Rs bn) (Rs bn)
6.5
6.3
3.8
8.4
14.6
3.2
25.2
Source: JKH
Profit
Margin
(%)
No. of
Units
Start
/Complete % Sold
Avg Selling
Price (US$
per sq ft)
Previous Projects
Emperor
294,000
8.4
2.5
29.2
164 Jun-06 /Feb-12
100
245
Monarch
274,000
4.6
1.3
28.3
195
Jan-05 /Jan-08
100
185
OnThree20
519,000
13.3
3.3
25.0
475 Apr-11 /Dec-14
100
175
7th Sense*
130,000
5.5
0.8
15.1
66 Apr-13 /Sep-15
100
380
358,000
16.4
3.1
19.0
Current Projects
Future Project
Waterfront
231
*JKH holds a 51% stake in the 7th Sense project through British Overseas (Pvt) Ltd
A CT HOLDINGS
GROUP
ANDTITLE
CLSA |
GROUP
EQUITY
REPORT
Date COMPANY
Mar-14 /2019
360
Source: JKH & CT CLSA Estimates
Financial Services Sector
UAL earnings impacted

by trading and fair value
losses
4Q16 PAT of Rs.278mn (-12% YoY on a recurring basis; 6% of group PAT); slightly
below our expectations, largely due to decline in performance of 96% owned Union
Assurance (UAL); FY16 PAT -4% YoY on a recurring basis to Rs.1,718mn. 4Q15 included
a Rs.1,221mn capital gain on sale of 78% stake in UAL General
UAL reported a net profit of Rs.61mn for 1Q2016/4Q16 (-56% YoY). The decline was
amid trading and fair value losses, stemming from weak equity market performance in 4Q16
(All share index declined -12% in 4Q16) coupled with the increase in interest rates (treasury bill
yields increased 334bps during the quarter to reach 10.6% as at 31 Mar 2016). Meanwhile,
Gross Written Premium (GWP) increased +23% YoY Rs.1,933mn
o UAL continues to hold a 22% stake in the general insurance business and full control of the
life insurance business. The general insurance business is expected to be listed within
the stipulated timeline (at the discretion of new owner Fairfax Asia), but the reduction
of the stake for listing purposes by UAL or Fairfax is yet to be announced, as per the minimum
10% free float requirements for new listings
General insurance
business will be listed
Meanwhile, 30% owned banking associate Nations Trust Bank (NTB) contributed with increased
earnings, largely due to lower impairment charges; NTB reported a net profit of Rs.592mn
for 1Q2016/4Q16 (+20% YoY)
o The YoY lower provisions were off a high base - 1Q2015 recorded high impairment provisions
with a one off Rs.365mn charge being provided against overdue loans, to some customers
which has been apparently made against security that has been fraudulently provided
o The National Budget 2016 proposal to restrict Banks from granting leases w.e.f 01 Jun 2016
would pressure on NTB as ~25% of its loan book consists of leasing. However, the GoSL is yet
to come up with final regulations restricting leases and commercial banks are believed to be
continually engaging with the government regarding the rule. Further, regulations on the
possibility of forming a subsidiary to grant leases is yet unclear. However there would likely be
some upper limit for LCBs in granting leases as indicated by the Finance Minister
Issue over granting

leases by LCBs under
discussion
o JKH continues to retain its 30% stake in NTB, after requesting the CBSL to extend the April
2012 deadline to comply with the mandatory reduction in NTB to 15%. JKH may also be
interested in exploring possible opportunities for acquisitions or mergers within the financial
services sector in order to increase scale and contribution
Near term slowdown in

the vehicle leasing
Sectoral PAT forecast maintained at Rs.1,789mn for FY17E (+4% YoY on a recurring
basis, 12% of total PAT). FY18E PAT forecast at Rs.1,801mn (+1% YoY, 11% of total
PAT), as weaker contribution expected from NTB which is anticipated to be impacted from the
slowdown in vehicle leasing (on account of the tightening measures implemented on vehicle
imports) and rising rates expected to lower the interest margins
o UAL earnings in the near term would be susceptible to movements in interest rates affecting
its fixed income portfolio. However, this is likely to be offset by continued growth in core
operations and rebound and anticipated lower volatility in its equity portfolio (ASI increased
+8% through 1Q17)
Insurance industry is
underpenetrated in Sri
Lanka
o UALs life segment is expected to be a beneficiary of potential increase in local insurance

penetration in the longer term. Sri Lankas total industry GWP as % of GDP was 1.0% in
2014, which is relatively lower compared to regional peers. Meanwhile, short term
benefits are expected to be minimal with lack of awareness of insurance, especially in rural
areas as per the Insurance Board of Sri Lanka (IBSL). Further opportunities are expected to
arise in life insurance space in the medium to long term with possible consolidation in the
insurance industry
o Meanwhile, contribution from the stock brokering arm, John Keells Stock Brokers (JKSB)
would continue to be relatively immaterial to sector bottom line
Life Insurance Industry Market Share (%)

2014
AIA
25%
16%
11%
16%
25%
2008
13% 19%
18%
Ceylinco
28%
Financial Services Sector PAT (Rs mn)

1,000
FY14
FY15
FY16
800
600
SLIC
27%
UAL
Other
CINS Ceylinco Insurance, SLIC - Sri Lanka Insurance

Corporation, AIA subsidiary of AIA Group Limited, JINS
Janashakthi Insurance
Source: IBSL
400
200
0
1Q
2Q
3Q
4Q
Sector PAT in 3Q is high due to premiums recognised in life fund

within the year

EQUITY
LIMITED
REPORT
| A Member
TITLE | of
Date
Information Technology Sector
Sector yet to make

meaningful contribution
to JKH group profit
Would not rule out a

possible divestiture of
sector operations
4Q16 loss after tax of -Rs.39mn (vs. a PAT Rs.90mn in 4Q15), below our expectations,
stemming from BPO operations due to a one off bad debt provision. FY16 PAT of
Rs.96mn (-60% YoY on a recurring basis). 2Q15 included a Rs.41mn non recurring
gain on sale of hotel reservation software
The sector consists of Office Automation, Samsung mobile phone distribution business, Toshiba
copier business, Software Services business and Business Process Outsourcing (BPO) operations.
JKH also launched ZTE mobile phones in Sri Lanka in Nov 2014
Sectoral PAT forecasts revised down by -45% to Rs.157mn for FY17E (+64% YoY off a
low base) and forecast at Rs.172mn for FY18E (+10% YoY). A recovery is expected in
FY18E amid expansion of the product portfolio, led by increased smart phone sales and
distribution, under the Office Automation segment
The sector remains immaterial to overall JKH group earnings and we would not rule out a
possible divestiture of sector operations in the longer term
Others Sector
Significant boost in net

finance income due to
rise in interest rates and
added cash
4Q16 PAT of Rs.470mn, excluding fair value gains of Rs.98mn (vs. Rs.188mn in 4Q15;
10% of group PAT), above our expectations, driven by higher interest income amid the rise in
interest rates coupled with the added cash from conversion of warrants in Nov 2015 and exercise of
share options in 4Q16. FY16 PAT +13% YoY on a recurring basis to Rs.2,245mn excluding
fair value gains
o Overall net finance income increased to Rs.1,261mn (+84% YoY and +11% QoQ)
Meanwhile, plantations services segment was negatively impacted as tea prices continued to
remain at low levels. Continued challenging conditions for the local tea segment is expected to
continually hamper contribution from the plantations services segment
Sectoral PAT forecast revised up by +18% to Rs.1,924mn for FY17E (-14% YoY on
recurring basis), amid higher than anticipated increase in interest rates. FY18E PAT forecast
at Rs.1,367mn (-29% YoY)
o Interest income is expected to witness a decline over the coming years as cash will be utilized
for the IR project construction. Meanwhile, the inflow of cash from pre-sales of apartments at
the Waterfront project would partially compensate the cash position
Recent Significant Capital Gains Realised by JKH

Divestment
Period
Capital Gain (Rs mn)
UAL General
4Q15
1,221
Access Engineering (AEL)
3Q15
610
ExpoLanka Holdings (EXPO)
1Q15
389
Central Hospitals
4Q14
665
AHPL and KHL
2Q11
1,800
KHL - Rights
4Q10
751
Source: CT CLSA, Company interims, CSE announcements
A CT HOLDINGS
GROUP
ANDTITLE
CLSA |
GROUP
EQUITY
REPORT
Date COMPANY
Integrated Resort (IR) Waterfront Project

Waterfront Project at an
investment of
US$820mn
JKHs luxury IR Waterfront Development Project, at an investment of ~US$820mn comprising

800 room five star+ hotel, convention center, entertainment facilities, shopping complex,
apartments, luxury condominiums and office space, is progressing with construction. The project
is located at the former JKH head office premises of approximately 11 acres (land valued at
US$65mn). Construction commenced in Mar 2014 and currently JKH is expected to have
incurred ~30% of the total project cost with piling work already being completed and
excavation and foundation processes being initiated
In Jan 2016, JKH stated that that there were some unforeseen delays in the project
due to adverse weather conditions. Consequently, the project is anticipated to be
completed in 2019 (vs. 2018 previously). The project contract is believed to have agreed
upon for a pre-determined fixed price and there are no significant changes expected to the total
cost of the project. The delay is expected to only marginally lower the overall value of the
project with cash being tied up for an additional year
The change in the local political landscape in Jan 2015 prevented large-scale gaming facilities to
be operated within integrated resorts such as Waterfront. Nevertheless, Waterfront appears to
be continuing with the same scale, though returns from same are expected to be
significantly lower
The space earlier dedicated for casinos, of 150,000 sq ft is set to be used for an alternate
purpose, such as to expand conference or retail space or bring in other indoor entertainment
facilities. JKH would likely tap into the growing MICE market, primarily from India.
Supply for MICE market is currently limited in Sri Lanka and Waterfront will be a potential
beneficiary of the increase of the same. Further, the GoSLs interest in increasing MICE market
and daily revenue from a tourist, as also highlighted in National Budget 2016 would help the
establishment in the long run
The pre-sales of apartments in the two residential towers, comprising 431 units, is under way
with management noting that level of interest has been encouraging so far. Competition has
however ramped up with more high end residential complexes set to enter Colombo in
the next few years. JKH has a proven track record in the Colombo residential property
development space and increased promotion of Sri Lanka by other international property
developers are expected to bode relatively well for Waterfront
The pre-sales for the 30-storey standalone office complex is also anticipated to be receiving
positive interest. Demand for office space is likely to be positive, amid the anticipated
growth in investments and business environment in the next few years. Despite the new
additions of office space, demand would likely outweigh supply, presenting potential further
development opportunities for JKH and other industry dominant players
Waterfront appears to
be continuing with the
same scale
Tap into MICE market,

primarily from India
Increased competition
expected in high end
residential complexes
Revenue recognition to
be carried out only after
completion of project
Apartment and office space sales from the Waterfront Project are not expected to be visible
in the Property sector within the next two to three years, with management noting that
revenue recognition would be done only after completion of the project
The overall success of the Waterfront project will be dependent on new initiatives taken by JKH
to attract tourists. The project success will also depend on the level of support from and
engagement with the GoSL
Select Upcoming Residential Projects in Colombo Area

Completion
Year
Total Units
JKH
2019
431
~360
Imperial Builder
2017
205
> 231
Rajagiriya
Fairway Holdings
2016
132
> 154
Beira Lake
South City Projects
2017
224
> 326
Astoria
Duplication Road
AVIC
2018
350
> 260
Colombo City Centre
Beira Lake
Silver Needle - Abans
2018
182
> 315
ITC Colombo One
Galle Face
ITC
2018
130
TBA
One Galle Face
Galle Face
Shangri La
2019
198
>400
Project Name
Location
Developer
Waterfront
Colombo 02
Destiny Residency
Colombo 02
The Elements
Altair
Quoted rate
(USD/sqft)
Source: Jones Lang LaSalle Lanka, CT CLSA

EQUITY
LIMITED
REPORT
| A Member
TITLE | of
Date
Group Financial Performance
Net cash position

increased to Rs.57.0bn
Major capex targeted at

CF&R and Leisure
sectors
JKH posted a net cash position of Rs.57.0bn at group level as at 31 Mar 2016 (vs.
Rs.54.9bn as at 31 Dec 2015 and Rs.48.1bn as at 31 Mar 2015)
o
Group gross finance income increased +59% YoY Rs.1,559mn in 4Q16
JKH declared a FY16 Final Dividend of Rs.1.50 per share; XD: - 02.Jun.2016, PD: 13.Jun.2016. FY16 total DPS of Rs.7.00 (including special dividend of Rs.3.50 declared in 18
Nov 2015)
Whilst major future capex will be for the Waterfront Project, JKH is able to leverage its
strong balance sheet for expansion in other key sectors as well
Total group capex increased +78% YoY in 4Q16 to Rs.1,360mn, with CF&R and Leisure sectors
being the key beneficiaries accounting for 47% and 41% of spending respectively. FY16 capex at
Rs.4,582mn (+53% YoY) - with spending for Leisure and CF&R accounting for 60% and 32%
o
JKH: Recurring Quarterly EPS (Rs)

FY14
FY15
Further capex maybe incurred for CG in the near future for renovations in preparation to face
future competition
JKH: Sectoral Contribution to PAT (%)

FY16
4Q16
4.5
9%
14%
6% 6%
16%
7%
14%
21%
4Q15
0.4%
45%
41%
9%
3.5
2.5
1.5
1Q
2Q
3Q
4Q
48
32
6.0
Leisure
5.0
Property
4.0
Consumer Foods &

Retail
Financial Services
3.0
Others*
1.0
FY11
Net Cash (Rs bn) and Net Cash : Equity (%)

Net Cash - RHS
1,900
1,400
Net Cash : Equity

60
40
16
900
400
4Q15
2Q16
4Q16
* Excluding capital gains
FY13
FY14
FY15
FY16
2,100
4Q15
4Q16
1,550
36
50
1,000
40
28
2Q15
FY12
JKH Sectoral PAT (Rs mn)
32
4Q14
2.0
* Others include Information Technology and Others sectors
Gross Fin. Income & Contribution to Group PAT

Finance Income (Rs mn) - RHS*
% of PBT
JKH: Capex (Rs bn)
Transportation
24
30
4Q14
2Q15
4Q15
2Q16
4Q16
450
-100
Tran. Leis. Prop. CF&R Fin.

Serv.
IT
Others
Outlook & Valuations
Share underperformed
in recent periods
JKHs FY17E group recurring NP forecast revised up by +5% to Rs.13,344mn (-3%

YoY) largely due to upward revisions to Leisure and Others sectors. FY18E group NP
forecast at Rs.14,631mn (+10% YoY), largely driven by Leisure and CF&R sectors
The Leisure sector would be the main contributor to group earnings (~31-34% of group PAT)
followed by CF&R sector (~26-28% of group PAT) and Transportation sector (~16% of group
PAT). Lower contribution forecast from the Property sector, given that revenue from Waterfront
apartment pre-sales being recognised after project completion
Amid recent overall market weakness, the JKH share price has fallen -13% in 2016YTD and
-11% YoY (vs. -5% and -9% decline in ASI respectively)
JKH share trades at forward PER multiples of 13.9X for FY16E and 12.7X for FY17E, on
modest EPS growth expectations. Trailing PER at 13.0x
A CT HOLDINGS
GROUP
ANDTITLE
CLSA |
GROUP
EQUITY
REPORT
Date COMPANY
10

Estimated break up NAV
of Rs.170
The share currently trades at a 9% discount to our estimated Some of The Parts
(SOTP) valuation of Rs.170 (excluding 2016 warrant conversion at Rs.171)
On 24 May 2016, JKH announced that its Board of Directors recommended a 07 : 08

Sub Division of Shares (Subject to Approval)
o
Consequently, the number of shares would increase from 1,189mn to 1,359mn - the sub
division would not increase the stated capital of the company
JKHs Nov 2016 number of warrants and respective purchase price would also be adjusted number of warrants to be increase to 57.5mn from 50.3mn, purchase price adjusted to
Rs.149.29 (from Rs.170.62)
Further, JKH announced that its Board of Directors resolved to issue share options under an
Employee Share Option Plan (Subject to Approval)
Share trade below

warrant conversion price
The number of options to be issued amount to 26mn, exercisable over a period of three
years (2.25% of current total stated capital) not more than 9mn shares would be issued
per year (0.75% of current total stated capital). If the proposed subdivision is approved by
the shareholders, the options will be granted based on the number of shares post subdivision
At current prices, JKH warrants seem significantly overvalued, with only less than six months to
expiration. The JKH share price needs to increase at least over 10% for the warrant conversion
to be worthwhile, which remains a near term concern
Potential catalyst to re-rate the share in the medium term would hinge upon new developments
on Waterfront Project, especially the casino aspect. Considering JKHs strong balance sheet and
track record in M&A activity, there is a possibility of the group undertaking other big ticket
projects in the near to medium term
Whilst near term weakness may prevail, stemming from the overall momentum of the market,
medium to longer term investors may accumulate the share on current price weakness
JKH: Trailing Twelve Month PER (X) : 2013 2016YTD

27.0
23.0
19.0
15.0
11.0
02-Jan-13
10-Sep-14
20-May-16
Source: CSE, CT CLSA
JKH: Sum-of-the-parts (SOTP) Valuation
JKH Share Price Premium /

(Discount) to SOTP
Sector
Fair Value (Rs mn)
Main Valuation Basis
Time
Transportation
23,393
10x FY17E NP
28 Jul 2014
+4
Leisure
50,042
12x FY17E NP
CF&R
47,248
MV adjusted for stake in IR Project
05 Nov 2014
+20
30 Jan 2015
+12
29 May 2015
+1
30 Jul 2015
05 Nov 2015
+14
+3
29 Jan 2016
-7
27 May 2016
-9
Source: CT CLSA
Property
1,784
Finance
15,080
DCF with cost of capital of 15%

MV of UAL and NTB
IT
861
6x FY17E NP
Others excluding interest income
413
5x FY17E NP
Unutilised Land
Net cash position
IR project
Total Value
No of Shares (mn)
Value per share (Rs.)
1,078
55,441
7,175
From JKH FY15 Annual Report

Company net cash as at 31 Mar 2016
DCF with cost of capital of 18%
202,514
1,189
170
Source: CT CLSA

EQUITY
LIMITED
REPORT
| A Member
TITLE | of
Date
11

JKH: Sectoral PAT (Rs mn)
FY16
Var
% YoY
FY17E
Var %
YoY
FY18E
Var %
YoY
Transportation
2,454
5.1
2,412
-1.7
2,557
6.0
Leisure
4,367
-10.1
4,644
6.3
5,322
14.6
Property
1,437
1.0
221
-84.6
201
-9.2
3,212
78.9
3,959
23.2
4,452
12.5
Financial Services
1,718
-4.4
1,789
4.1
1,801
0.7
95.726
-59.9
157
63.7
172
9.8
2,245
12.8
1,924
-14.3
1,367
-28.9
Others
Group PAT
15,529
7.6
15,105
-2.7
15,871
5.1
Minority Interest
-1,722
23.2
-1,761
2.3
-1,240
-29.6
Group Net Profit
13,807
5.9
13,344
-3.4
14,631
9.6
FY16 Net Profit adjusted fair value gains of Rs.263mn
JKH: Key sector impact from Fiscal Policy changes

Sector
VAT
Corporate Income Tax
Other
Overall Impact
Transportation
N/A
15% from previous low rates

Effective Tax Rate was ~7% in
FY16
Development of maritime hub
Negative
Leisure
11% to 15%
12% to 17.5%
Tax concessions to MICE tourism
Neutral to
Negative
Register all establishments under SLTDA

Remove TDL of 1%
CF&R
11% to 15%
(Deemed VAT removed)
Retail : 28%
Manufacturing: 28% to 17.5%
Financial Services
11% to 15%
28%
JKH Group
Positive
Cessation of leasing by banks *
Encourage SME lending
-
* Currently under discussion
Negative
Negative
Source: Ministry of Finance, CT CLSA
Peer Conglomerate Analysis FY17E Relative Valuations

MPS (Rs)
EPS Growth (%)
Price / Earnings Ratio (X)
Price / Earnings Growth (X)
Return on Equity (%)
Key Sector Contr. to Group PAT (%)
3M Avg Daily Turnover (US$)
JKH
156.0
11.2
-3.4
13.9
-4.1
9.5
28.0
850,312
SPEN
80.1
7.4
25.5
10.8
0.4
7.9
69.6
59,587
DIST: Distilleries Company Of Sri Lanka, SPEN: Aitken Spence, HHL: Hemas Holdings,
~Key Sector Contribution to Group PBT
A CT HOLDINGS
GROUP
ANDTITLE
CLSA |
GROUP
EQUITY
REPORT
Date COMPANY
DIST
217.5
26.3
14.9
8.3
0.6
11.5
86.8
171,140
HHL
91.3
6.2
33.3
14.8
0.5
15.9
54.4
66,305
Source: CT CLSA
12
Major Shareholder Movements

Major Shareholder Movements as at 31 March 2016
Name
No. of Shares
Change
Comment
(Shares)*
Part of Malaysias
Khazanah National Bhd
1.
Broga Hill Investments Ltd
124,122,878
10.4
2.
Mr. S E Captain
119,937,442
10.1
3.
Paints & General Industries Ltd
92,726,824
7.8
649,630
Related party of Mr. S E

Captain
4.
Melstacorp (Pvt) Ltd
43,616,626
3.7
Subsidiary of Distilleries
Co. of Sri Lanka (DIST)
5.
Schroder International Selection Fund
38,491,960
3.2
-114,270
6.
Deutsche Bank AG London
35,868,199
3.0
7.
Aberdeen Global-Asian Smaller Companies

Fund
28,979,913
2.4
-1,700,000
8.
Aberdeen Global Asia Pacific Equity Fund
26,234,282
2.2
9.
HWIC Asia Fund ^
25,519,159
2.1
+2,533,381
10.
Aberdeen Institutional Commingled Funds,

LLC
23,772,318
2.0
+3,634,000
11.
Aberdeen Global-Emerging Markets Smaller

Companies fund
19,932,286
1.7
+1,000,000
12.
Mr.K Balendra
18,111,218
1.5
13.
Employees Trust Fund
16,438,392
1.4
+1,549,329
14.
London - Edinburgh Dragon Trust PLC
15,062,970
1.3
15.
Aberdeen Asia Pacific Equity Fund
12,497,857
1.1
16.
Aberdeen Global Frontier Markets Equity

Fund
11,316,145
1.0
17.
Mrs. C S De Fonseka
11,282,940
0.9
18.
Mrs. S A J De Fonseka
11,069,333
0.9
19.
Mr. R S Captain
10,675,183
0.9
-3,671,883
20.
Somerset Small Mid Cap Em All Country

Fund LLC
10,558,280
0.9
696,214,205
58.5
GoSL related party
Related party of Mr. S E

Captain
New Entrant to Top 20
*Change since 31 Dec 2015;

Exited top 20: Caravel Fund (International) Ltd 11.6mn shares
^ Also a shareholder of associate companies NTB and Union Assurance General

EQUITY
LIMITED
REPORT
| A Member
TITLE | of
Date
13
Research
Trading & Sales
Consultant / Sales
Sanjeewa Fernando
sanjeewa@ctclsa.lk
+94 77 742 7439
Lasantha Iddamalgoda
lasantha@ctclsa.lk
+94 11 255 2295
+94 77 778 2103
Rohan Fernando
rohan@ctclsa.lk
+94 11 255 2297
+94 76 778 2101
Chayanika Ranasinghe
chayanika@ctclsa.lk
+94 77 237 9731
Yasas Wijethunga
yasas@ctclsa.lk
+94 77 053 2059
Gayana Jayathilake
gayanaj@ctclsa.lk
+94 11 255 2290
Maduranga Hettiarachchi
maduranga@ctclsa.lk
+94 11 255 2290
Ryan Jansz
ryan@ctclsa.lk
+94 11 255 2290
Kavindu Ranasinghe
kavindu@ctclsa.lk
+94 11 255 2290
Dyan Morris
dyan@ctclsa.lk
+94 11 255 2320
+94 77 722 4951
Manura Hemachandra
manura@ctclsa.lk
+94 77 261 4797
Rosco Todd
rosco@ctclsa.lk
+94 77 262 7233
Dhammika de Silva
dhammika@ctclsa.lk
+94 77 356 2699
Arusha Michael
arusha@ctclsa.lk
+94 77 395 6765
Nuwan Madusanka
nuwan@ctclsa.lk
+94 76 858 9722
Shirali Rodrigo
shirali@ctclsa.lk
+94 11 255 2290
Disclaimer : This document has been prepared and issued by CT CLSA Securities (Pvt) Ltd. on the basis of publicly available information, internally
developed data and other sources, believed to be reliable. Whilst all reasonable care has been taken to ensure that the facts stated are accurate and the
opinions given are fair and reasonable, neither CT CLSA Securities (Pvt) Ltd. nor any director, officer or employee, shall in any way be responsible for the
contents. CT CLSA Securities (Pvt) Ltd. may act as a Broker in the investments which are the subject of this document or in related investments and may
have acted upon or used the information contained in this document, or the research or analysis on which it is based, before its publication. CT CLSA
Securities (Pvt) Ltd., its directors, officers or employees may also have a position or be otherwise interested in the investments referred to in this
document. This is not an offer to buy or sell the investments referred to in this document. It is not intended to provide professional, investment or any
other type of advice or recommendation and does not take into account the particular investment objectives, financial situation or needs of individual
recipients. Before acting on any information in this publication/communication, you should consider whether it is suitable for your particular
circumstances and, if appropriate, seek your own professional advice, including tax advice.
The markets in which CT CLSA Securities (Pvt) Ltd. operates may not have regulation governing conflict of interest over preparation and publication of
research reports (including but not limited to disclosure of perceived or actual conflict of interest) as may be found in more developed markets. Please
contact your investment advisor / analyst should you require further information over the relevant regulation and particular disclosure over perceived or
actual conflict of interest.
CT CLSA SECURITIES (PVT) LTD

A Member of the Colombo Stock Exchange
4-14 Majestic City, 10 Station Road, Colombo 4, Sri Lanka

General: +94 11 255 2290 to 2294
Facsimile: +94 11 255 2289
Email: info@ctclsa.lk Web: www.ctclsa.lk
A CT HOLDINGS GROUP AND CLSA GROUP COMPANY

John Keells Holdings: Key Highlights

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John Keells Holdings

4Q16 Results Summary

Key Trading Information

JKH: Valuation Ratios

Relative Share Price Movement (%)

Net Revenue (Rs mn)

Net Profit (Rs mn)

Earnings per Share (Rs)

Price / Earnings Ratio (X)

Price / Earnings Growth (X)

Gross Dividend per Share (Rs)

Gross Dividend Yield (%)

Net Book Value per Share (Rs)

Return on Equity (%)

Market Price per Share (Rs)

CT CLSA SECURITIES (PVT) LIMITED | A Member of the Colombo Stock Exchange