Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum
සිංහල පරිවර්තනය
Poll

SLEF Market Sentiment Indicator

73% 73% [ 1141 ]
27% 27% [ 426 ]

Total Votes : 1567

Latest topics
» FC recommends a STRONG BUY on SAMP.N
by Harry82 Today at 9:27 pm

» RENUKA CAPITAL PLC (KZOO.N0000)
by Wimal Modawansa Today at 5:38 pm

» Tax on capital gains arising on investment assets
by EquityChamp Today at 4:45 pm

» LANKA CEMENT PLC ...JUST THE START
by Wimal Modawansa Today at 3:29 pm

» TFC X next
by max shanu Today at 2:05 pm

» Lankem Developments PLC
by Steve Jansen Today at 1:31 pm

» Maskeliya Plantations PLC
by Dailytrader Today at 1:00 pm

» How about LDEV
by kapifm Today at 11:59 am

» Balangoda Plantations PLC
by EquityChamp Today at 11:55 am

» Malwatte Valley Plantations PLC
by gayanath1983 Today at 11:48 am

» MHDL 15+ next week
by monash Today at 11:43 am

» Interest Rates - CBSL Outlook
by plsp1 Today at 11:20 am

» Market is fully activated today
by samaritan Today at 10:34 am

» Why LCEM going up????
by ruwan326 Today at 7:01 am

» Gas price increased
by ShaneMc Yesterday at 11:07 pm

» sfin future
by EquityChamp Yesterday at 1:22 pm

» Why KOTA , BALA . BOPL come down ?
by EquityChamp Yesterday at 10:15 am

» DIST sub division of shares
by kapifm Yesterday at 9:47 am

» EAST Getting ready
by EquityChamp Yesterday at 9:40 am

» GEMS in AUGUST & SEPTEMBER
by EquityChamp Yesterday at 9:38 am

» DEAL IS DEAL - SIL REDI HORU FOR BOND SCAM HORU
by Ryan Hudson Sun Sep 24, 2017 9:32 am

» මුල් මාස හයේ තේ අපනයනය වැඩි වෙලා
by worthiness Sat Sep 23, 2017 8:39 pm

» semb next penny run
by EquityChamp Sat Sep 23, 2017 2:23 pm

» SFL moving.
by EquityChamp Sat Sep 23, 2017 2:21 pm

» Where Is Equity Champ
by stockback Fri Sep 22, 2017 11:41 pm

» CAUTION - ABANS FINANCE PLC IN DEEP TROUBLE?
by worthiness Fri Sep 22, 2017 9:32 pm

» TJL මොකද වෙන්නෙ.
by EquityChamp Fri Sep 22, 2017 9:23 pm

» Abans in trouble after Hayleys acquiring Singer?
by EquityChamp Fri Sep 22, 2017 4:45 pm

» whats good to buy for 300,000
by ruwan326 Fri Sep 22, 2017 11:45 am

» Next three years will be the developmental phase of the government – PM
by samaritan Fri Sep 22, 2017 10:30 am

» TO SHARE HOLDERS OF CITK
by Eugine Fernando Thu Sep 21, 2017 1:23 pm

» GUAR trading With 46% discount price OF NAV
by man123 Thu Sep 21, 2017 12:17 pm

» FULL TIME INVESTOR - CSE
by Rich Guy Thu Sep 21, 2017 12:12 pm

» DRUG LORDS VS BOND LORDS
by Yahapalanaya Thu Sep 21, 2017 5:11 am

» binary trade
by jayasurya1126 Wed Sep 20, 2017 10:50 pm

» What about VPEL dividend
by duinvest Wed Sep 20, 2017 8:54 pm

» lcem.... 10+
by Wimal Modawansa Wed Sep 20, 2017 7:52 pm

» YORK 25++++++++++++ EASY TARGET,
by anges Wed Sep 20, 2017 7:09 pm

» something happen to hunns
by newone Wed Sep 20, 2017 7:07 pm

» SLTL Target price???
by lk-investor Wed Sep 20, 2017 6:13 pm

» RWSL..............
by Namal Wed Sep 20, 2017 2:11 pm

» Smart Recommendation 2 - Next run BIL
by Ran49 Wed Sep 20, 2017 8:27 am

» Rain on VPEL
by Ran49 Wed Sep 20, 2017 7:14 am

» AINV.N and PCHH.N Annual Reports
by Neluka Karannagoda Tue Sep 19, 2017 10:04 am

» Grain elevators to go up very very soon
by Ran49 Tue Sep 19, 2017 7:23 am

» Financial Instrument- Lease BG/SBLC
by leasingmandate Mon Sep 18, 2017 8:19 pm

» PC ELECTIONS LIKELY IN DECEMBER
by ShaneMc Mon Sep 18, 2017 7:40 pm

» Please Advise Me..
by ruwan326 Mon Sep 18, 2017 12:44 pm

» WHY RETAILERS ADD SURCHARGE ON CREDIT CARD PAYMENT
by csebrowser Sun Sep 17, 2017 9:59 pm

» (TRADE AND PROJECT FINANCING INFORM OF FINANCIAL INSTRUMENT SUCH AS BG/SBLC/LC)
by amlease12 Sun Sep 17, 2017 8:10 pm

» ELPL Poised to be doubled within this years
by ranferdi Sun Sep 17, 2017 8:07 am

» JVP ECONOMIC VISION FOR REVIEW
by D.G.Dayaratne Sun Sep 17, 2017 7:58 am

» Lalith, Anusha Sentenced to RI & admitted to Prison Hospital
by Yahapalanaya Sun Sep 17, 2017 7:28 am

» TAX on EPF when withdrawing
by hettdas Sun Sep 17, 2017 7:25 am

» Export Sector
by D.G.Dayaratne Sun Sep 17, 2017 6:18 am

» Bank Guarantee / Standby Letter Of Credit (BG/SBLC)
by thomaschavez Sat Sep 16, 2017 9:50 pm

» US RATES ..........!!!!!!!!!!!
by anges Sat Sep 16, 2017 8:37 pm

» UDPL future gem in plantaion
by Ran49 Fri Sep 15, 2017 6:01 pm

» Biggest ever Acquisition 12.5 Billion LKR Singer in Heylese
by anges Fri Sep 15, 2017 4:30 pm

» what is D.P.'s next catch?
by anges Fri Sep 15, 2017 4:28 pm

» Abans Group to be Acquired by Singapore based fund
by fortuneteller Fri Sep 15, 2017 1:51 pm

» Lankem Development (LDEV) - Rights Issue and its Implications
by sanjulanka Fri Sep 15, 2017 10:43 am

» BROWNS CAPITAL PLC (FLCH.N0000)
by sharemarket Fri Sep 15, 2017 10:26 am

» Why people buy PCH.N ?
by Neluka Karannagoda Fri Sep 15, 2017 10:03 am

» Can anyone recommend good fund managers in Sri Lanka?
by kjojo Fri Sep 15, 2017 9:11 am

» Don't sell your valuable shares at cheap
by prabath Thu Sep 14, 2017 11:31 pm

» WHY PLANTATION ONLY.......
by sanjulanka Thu Sep 14, 2017 11:07 pm

» KOTA latest star
by kjojo Thu Sep 14, 2017 10:22 pm

» CITK TRADING SUSPENDED WHAT NEXT?
by Eugine Fernando Thu Sep 14, 2017 11:12 am

» Brother of President remanded over accident
by Yahapalanaya Thu Sep 14, 2017 9:18 am

» Baiyas Selling....Toiyass Buying...
by soileconomy Thu Sep 14, 2017 8:19 am

» New Revenue Act leaving investors confused
by Teller Thu Sep 14, 2017 3:16 am

» Singer any news ??
by Wimal Modawansa Wed Sep 13, 2017 3:08 pm

» PEOPLE'S LEASING BUYING SIGNAL Target Price 19 ..PLEASE KEEP EYE ON THIS..
by hettdas Wed Sep 13, 2017 2:42 pm

» HAYL.N000 and SINS.N000 Trading Halted
by Suranga_77 Wed Sep 13, 2017 12:50 pm

» Moody’s gives thumbs up to new Inland Revenue Bill
by predictor Wed Sep 13, 2017 5:57 am

» Dialog Acquire Colombo Trust Finance CALF
by gdid Tue Sep 12, 2017 8:22 pm

» FUTURE OF CTC?????????????
by sureshot Tue Sep 12, 2017 8:18 pm

» AINV.N and PCHH.N Interim Financial Statements released
by Neluka Karannagoda Tue Sep 12, 2017 11:20 am

» DOCK FUTURE............
by kjojo Tue Sep 12, 2017 9:29 am

» Sri Lanka President to pay income tax: Finance Minister
by Yahapalanaya Mon Sep 11, 2017 6:48 pm

» BIL Hit 5+++ soon.
by Ran49 Mon Sep 11, 2017 5:32 pm

» Make additional Money For your ........
by ruwan326 Mon Sep 11, 2017 12:21 pm

» Touchwood court case
by ruwan326 Mon Sep 11, 2017 11:32 am

» Country is much better & CSE ??
by samaritan Mon Sep 11, 2017 10:48 am

» Good news ADB assistance
by worthiness Sun Sep 10, 2017 7:24 pm

» Super September.!!!!!!!
by ranferdi Sun Sep 10, 2017 9:37 am

» DON'T BUY ABANS FINANCE SHARES
by Wimal Modawansa Sat Sep 09, 2017 3:43 pm

» FLCH worth than Bil
by gayanath1983 Sat Sep 09, 2017 12:41 pm

» HOTELS.....HOTELS
by ice4083 Sat Sep 09, 2017 8:32 am

» New Inland Revenue Act Passed
by D.G.Dayaratne Fri Sep 08, 2017 2:42 pm

» very transparent opportunity to make money online
by jayasurya1126 Fri Sep 08, 2017 10:27 am

» Prospects for Fisheries Industry
by plsp1 Fri Sep 08, 2017 9:59 am

» WATCHING CSF
by Teller Fri Sep 08, 2017 12:07 am

» LOFC Chart 28.04.2017 (weekly chart)
by stockback Thu Sep 07, 2017 1:43 pm

» Any hope for TWOOD
by ruwan326 Thu Sep 07, 2017 9:50 am

» Risk of Third World War. Are we ready
by samaritan Thu Sep 07, 2017 9:26 am

» AINV.N and PCHH.N flying
by Teller Thu Sep 07, 2017 12:27 am

» මේකෙන් සල්ලි ගත්ත අය ඉන්නවද​? Fist month 33000/=
by Chinwi Wed Sep 06, 2017 4:55 pm

John Keells Miserable Future until 2020

View previous topic View next topic Go down

John Keells Miserable Future until 2020

Post by Mark Levin on Fri May 12, 2017 2:50 am

A recent Analysis of John Keells done by an International Fund Management Company. Some say Khazanah Nasional Berhad Fund of Malaysia will start shedding the shares.

Sri Lanka's John Keells at a Decisive Moment and at a Miserable Future until 2020


In order to fund the Watefront Project (Cinnamon Life) JKH raised Rs.23.1 billion (approx US$ 178mn) in FY 2013/14 by way of a rights issue attached with two types of warrants. Subsequently by excising the warrants Rs.8 billion was raised in 2015 but however the 2016 warrant was heavily undersubscribed. Only Rs.3.2 billion was raised from it though it was supposed to raise Rs.8.6 billion. This was because investors were doubtful about the success of this project and how wisely JKH has used the cash from the rights issue.

Extraordinary gains and interest income from the recent rights issue have buoyed earnings during the last several years. In 2016, interest income of Rs.8,011mn amounted to the 42% of PBT and far exceeded the best performing leisure sector which posted pre-tax profit of only Rs2,311mn. Going forward, such large amounts of interest income may not recur as rights issue proceeds will get utilized in the Water Front Project in the next two years.  

"Waterfront Project” is now behind schedule and there has been a cost overrun in the piling stage of the project due to unanticipated barriers. Officially there has been an acceptance of an 18 month delay by Hyndai, Keangnam, & Nawaloka (HKN-Joint Venture) that would result in reduction in profitability of the project.

During FY 2015/16 ROCE of all sectors of JKH have improved. However excluding the Food & Retail, Financial Services, and Transportation Sectors all other major sectors’ ROCE is below the 12 month Treasury Bill yield, with some sectors operating at less than half the TB rate.

JKH management sold down their stakes in Union Assurance, Access Engineering and Expo Lanka Holdings and recognized capital gains of Rs2.2 billion in 2014/15. Reasons for this move have not been satisfactorily explained. As JKH has sufficient cash, perhaps these sales demonstrate a pre-occupation with short-term earnings rather than a long-term strategic focus. However investments in hotels which JKH management are eyeing to dispose are rather difficult to be sold immediately.  Hence there won’t be any capital gains realized through sale of investments in the near future.  

Waterfront Project is the largest private sector investment to date in Sri Lanka with an estimated cost of approximately USD 800 Million. The company has entered in to USD 395 Million syndicated loan facility with Standard Charted Bank being the required debt financing for this project. The massive interest cost of this syndicated loan will be capitalized in to fixed assets under the accruals basis of accounting. However after completing the project the interest cost will get charged to the income statement as an expense which will significantly reduce profitability. The income generated from various buildings of the project will take many years to exceed the interest charge.

Mark Levin
Stock Analytic
Stock Analytic

Posts : 16
Equity Stars : 178
Reputation : 0
Join date : 2017-05-12

Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum
Statistics
We have 21134 registered users
The newest registered user is CHANAKA PRASAD

Our users have posted a total of 327840 messages in 50368 subjects
Who is online?
In total there are 137 users online :: 12 Registered, 0 Hidden and 125 Guests

bkasun, damithg, dmtmadusanka, fern, gdid, Harry82, lk-investor, Namal, SIRRA123, spider_snh, sureshot, Wimal Modawansa

Most users ever online was 541 on Mon Sep 19, 2011 11:29 am
Forum Disclaimer

The information contained in this forum have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein.

www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever.

Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.