FIRST ASIA SECURITIES
PakistanSri LankaPREV
EquitiesFixed Income
DATA AS OF 20 JUN 2026 · EOD

JKH

John Keells Holdings
CONGLOMERATE

LAST · LKR

22.60
+0.02 ▲ +0.09%
P/E 29.4× · YIELD 1.5% · ROE 5.1%

52W RANGE

20.5026.10
38% OF RANGE · YTD −12.4%
01 / JKH — 1 YearAS OF 20 JUN 2026 · EOD
PERIOD 1Y · 250 SESSIONS▼
The Call
BUY+19%
27.00LKR · 12-MO
~13× RECOVERED EPS

Tourism and consumer recover; ROE climbs.

Risks to our view
02 /

FAS DESK · FIRST ASIA SECURITIES RESEARCH · 23 JUN 2026 · EOD

Trough earnings mask a recovery conglomerate

  1. 01

    Buy, LKR 27 target: the optically high 29× is on trough earnings (5% ROE); as leisure, consumer and property recover, the forward multiple collapses.

  2. 02

    Sri Lanka's bellwether — leisure, retail, property, financial services and ports — is the cleanest proxy on the post-IMF recovery and the tourism rebound.

  3. 03

    Falling rates revive the property and consumer arms while a stronger rupee eases imported-input costs across the group.

  4. 04

    On a normalising earnings base our LKR 27 target is ~13× recovered EPS — a re-rate as ROE climbs back toward mid-teens.

Where we differ from the street
Street viewOur viewWe change our mind if
A high multiple on a low ROE is a poor entry.It is trough-earnings optics; on recovered earnings the multiple is mid-teens and falling.Earnings recovery stalling as tourism plateaus.
Arrivals are volatile and event-driven.Arrivals and room rates are on a multi-year rebuild off a low base; JKH's leisure assets have operating leverage.A external shock to arrivals or a security setback.
Holdco complexity caps the multiple.A cleaner portfolio and a recovering ROE argue for the discount to narrow.Capital allocated to low-return ventures.

— FIRST ASIA SECURITIES RESEARCH · NOT INVESTMENT ADVICE