Sri Lanka Stock Picks

Sri Lanka stock picks site has been developed to give first hand information with regard to share trading opportunities available for investors who do not like go through lengthy research reports, calculations,etc but to have a clear idea about stocks that have future up side potential.Our service is just not for day traders but for the investors who wish to see their money growing in the long run.Our main objective is to provide information relating to trading under one roof.

Friday, January 27, 2012

Stellar 3Q for JKH

■Bottom line up 56% to Rs. 2.7 b; after tax profit tops Rs. 3 b with 49% growth; revenue higher by 35% to Rs. 21 b

■9-month after-tax profit up 2% to Rs. 6.25 b; revenue up 28% to Rs. 54.2 b

Premier blue chip John Keells Holdings (JKH) yesterday announced stellar results for its third quarter ended 31 December 2011, reflecting robust performance by all of its core sectors and continued momentum.

Group revenues of Rs. 21.14 billion and Rs. 54.27 billion in the 3Q and the first nine months of 2011/2012 were 35% and 28% above the corresponding periods in the previous year.

Group gross profits of Rs. 5.45 billion and Rs. 12.40 billion in the third quarter and the first nine months of 2011/2012 were 32% and 33% above the Rs. 4.12 billion and Rs. 9.35 billion recorded in the corresponding periods in the previous year.

The recurring Group profit before tax of Rs. 3.39 billion for the quarter and Rs. 7.39 billion for the first nine months of the financial year 2011/2012 grew by 44% and 33% respectively compared to Rs. 2.36 billion and Rs. 5.54 billion in the corresponding periods in the previous year, excluding the gains of Rs.1.79 billion from the sale of stakes in Asian Hotels and Properties PLC (AHPL) and John Keells Hotels PLC (KHL), JKH Chairman Susantha Ratnayake said in his review accompanying interim results.

Group PBT was Rs. 3.39 billion for the quarter and Rs. 7.39 billion for the first nine months of the financial year 2011/2012, compared to the PBT of Rs. 2.36 billion and Rs. 7.33 billion in the corresponding periods in the previous year. As stated above the previous year’s PBT for the first nine months included capital gains of Rs. 1.79 billion.

While the recurring profits attributable to equity holders grew by 55% for the quarter and 46% for the first nine months, the profits attributable to equity holders for the quarter and first nine months of the financial year 2011/2012 were Rs. 2.73 billion and Rs. 5.68 billion respectively as against Rs. 1.76 billion and Rs. 3.9 billion recorded in the corresponding periods in the previous year.

The Company PBT was Rs. 919 million for the quarter and Rs. 2.42 billion for the first nine months of 2011/2012 compared with the PBT of Rs. 1.12 billion and Rs. 4.44 billion in the corresponding periods in the previous year which included the capital gains.

Transportation PBT for the quarter increased by 44% to Rs. 879 million [2010/11 Q3: Rs. 611 million] on the back of improved performance in all segments.

Leisure recorded a PBT of Rs. 1,002 million for the quarter compared to a PBT of Rs. 632 million recorded in the same period last year, reflecting a growth of 59%. This growth was achieved despite the closure of two resort hotels for a part of the period. Both city hotels contributed significantly to the improved performance with Cinnamon Lakeside operating at full capacity from 1 October following refurbishment of some rooms.

JKH has partnered Sanken Construction Ltd. to build and manage a 240-room business hotel in Colombo and construction is progressing as planned. Chaaya Tranz, Hikkaduwa, which was closed from May 2010 for refurbishment, and Chaaya Wild, Yala, which was closed from May 2011 for refurbishment, were reopened on schedule in November 2011.

The construction of the Rs. 2.63 billion Chaaya Bey, Beruwala, is progressing as planned and will be the latest addition to the resort portfolio in the second half of 2012.

Property recorded a PBT of Rs. 319 million for the quarter, compared to a PBT of Rs. 222 million recorded in the same period last year, reflecting a growth of 44%. The revenue recognition from the ‘Emperor’ project and the ‘OnThree20’ project were the main contributors to the sector’s performance this quarter. The construction of the Rs. 8 billion ‘OnThree20’ project is progressing as planned.

Consumer Foods and Retail PBT of Rs. 532 million for the quarter was an increase of 241% over the same quarter last year [2010/11 Q3: Rs. 156 million]. The soft drinks and ice creams businesses continued to perform exceptionally with higher volumes. The retail business also witnessed an improved performance driven by higher basket values, footfalls and better margins.

Financial Services PBT for the quarter was Rs. 606 million as against Rs. 528 million recorded in the corresponding period in the previous year, reflecting a growth of 15 percent. While Union Assurance and Nations Trust Bank performed to expectations, John Keells Stockbrokers continued to be impacted by the lower market turnover witnessed in the CSE.

Information Technology recorded a PBT of Rs. 65 million for the quarter, which was an improvement of 364% over the same period last year [2010/11 Q3: PBT Rs. 14 million]. The BPO business, which has acquired new customers, saw higher revenues while the Office Automation business continues to perform strongly.

Others comprising Plantation Services, John Keells Capital and the Corporate Centre recorded a PBT of 167 million for the first nine months while recording a marginal loss of Rs. 15 million for the quarter, as against Rs. 2.17 billion and Rs. 192 million recorded in the corresponding periods last year.

The previous year’s PBT for the first nine months included capital gains of Rs. 1.79 billion.

source - www.ft.lk