Business
JKH hoping to see recovery across all segments aided by pickup in economy
Targeted opening of Cinnamon Life Hotel and Mall expected to bode well for JKH Leisure business
By Sanath Nanayakkare
John Keells PLC is expected to recover from some of of its downbeat numbers with the overall pickup in the economy, according to a Review issued by First Capital Research, based on information in the public domain.
While saying that, FC Research added that JKH 4QFY23 earnings declined by 69.7%YoY to LKR 3.3Bn, affected by the higher base in 4QFY22 due to recognition of LKR 18.6Bn (LKR 9.5Bn in 4QFY23) in exchange gains.
It also said that recurring EBITDA, excluding Cinnamon Life for 4QFY23, also declined by 20.5%YoY to LKR 11.6Bn caused by decline in profitability in Transportation (-39.0%YoY), Consumer Foods -65.5%YoY), Retail (-8.7%YoY) and Property (-91.3%YoY) segments.
The Review further said: “However, on the flip-side Leisure and Financial Services businesses continued to perform well during 4QFY23 on the back of strong tourist arrivals and high interest rates, respectively.
“Going forward, we expect a recovery across all segments of the company (excluding Property) aided by the overall pick up in the economy.
“Furthermore, Group’s Leisure business is expected to benefit from increased arrivals to Maldives and Sri Lanka (expected to reach 2.5Mn arrivals in 2025E), downward revision of electricity tariffs (revised down by 26.3%) and re-introduction of the minimum room rates for Colombo hotels (ARR for 5-star category revised up to USD 130.0/night from USD 60/night).
“Moreover, the targeted opening of the Cinnamon Life Hotel and Mall in 1QFY25E is also expected to bode well for the JKH Leisure business in the coming years.
“Furthermore, notable growth in profits is expected from Consumer and Retail segments as disposable incomes and favorable global commodity prices are expected to aid margin improvement in the coming quarters.
“Therefore, taking into consideration the bright outlook for JKH together with the improved investor sentiment upon the completion of DDR, we believe the current PER multiple of 8.3x FY25E earnings is deeply undervalued for JKH, thus we believe the share should reiterate and trade at its 5-yr average PER multiple of 14.0x.
“Moreover, assigning an equal weightage as PER (value of stocks), we have valued JKH on a SOTP method (sum of the parts valuation method) and arrived at a target price of LKR 210.0 for FY25E, the Review said.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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