Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to LK₨23.50, the stock trades at a trailing P/E ratio of 5x. Average trailing P/E is 18x in the Consumer Durables industry in Asia. Total loss to shareholders of 21% over the past three years. Recent Insider Transactions • Sep 03
CEO & Chairman recently bought LK₨105k worth of stock On the 25th of August, Sivarajah Thumilan bought around 4k shares on-market at roughly LK₨24.98 per share. This transaction increased Sivarajah's direct individual holding by 2x at the time of the trade. This was the largest purchase by an insider in the last 3 months. Sivarajah has been a buyer over the last 12 months, purchasing a net total of LK₨153k worth in shares. Reported Earnings • Aug 19
First quarter 2024 earnings released: LK₨0.84 loss per share (vs LK₨3.52 loss in 1Q 2023) First quarter 2024 results: LK₨0.84 loss per share (improved from LK₨3.52 loss in 1Q 2023). Revenue: LK₨339.8m (up 157% from 1Q 2023). Net loss: LK₨14.6m (loss narrowed 76% from 1Q 2023). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Jun 03
Full year 2023 earnings released: EPS: LK₨16.51 (vs LK₨19.11 loss in FY 2022) Full year 2023 results: EPS: LK₨16.51 (up from LK₨19.11 loss in FY 2022). Revenue: LK₨2.24b (up LK₨1.93b from FY 2022). Net income: LK₨33.7m (up LK₨366.7m from FY 2022). Profit margin: 1.5% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 17
Third quarter 2023 earnings released: EPS: LK₨6.69 (vs LK₨4.62 loss in 3Q 2022) Third quarter 2023 results: EPS: LK₨6.69 (up from LK₨4.62 loss in 3Q 2022). Revenue: LK₨1.55b (up LK₨1.48b from 3Q 2022). Net income: LK₨116.6m (up LK₨197.1m from 3Q 2022). Profit margin: 7.5% (up from net loss in 3Q 2022). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 7% per year, which means it is performing significantly worse than earnings. Recent Insider Transactions • Nov 19
Non-Independent Non-Executive Director recently sold LK₨129m worth of stock On the 15th of November, Prakash Schaffter sold around 5m shares on-market at roughly LK₨24.60 per share. This transaction amounted to 70% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of LK₨75m more than they bought in the last 12 months. Announcement • Nov 17
Blue Ocean Group of Companies acquired 60% stake in Kelsey Developments PLC (COSE:KDL.N0000) for LKR257 million. Blue Ocean Group of Companies acquired 60% stake in Kelsey Developments PLC (COSE:KDL.N0000) for LKR257 million on November 15, 2022.
Blue Ocean Group of Companies completed the acquisition of 60% stake in Kelsey Developments PLC (COSE:KDL.N0000) for LKR257 million on November 15, 2022. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non Executive Director Marian Roshanie Nimalka Moraes was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Sep 11
Non-Independent Non-Executive Director recently bought LK₨183m worth of stock On the 6th of September, Prakash Schaffter bought around 7m shares on-market at roughly LK₨24.60 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • Aug 17
First quarter 2023 earnings released: LK₨3.60 loss per share (vs LK₨2.24 loss in 1Q 2022) First quarter 2023 results: LK₨3.60 loss per share (down from LK₨2.24 loss in 1Q 2022). Revenue: LK₨132.2m (up 165% from 1Q 2022). Net loss: LK₨62.8m (loss widened 61% from 1Q 2022). Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Board Change • Jul 22
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non Executive Director Marian Roshanie Nimalka Moraes was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Jul 10
Full year 2022 earnings released: LK₨19.11 loss per share (vs LK₨4.91 profit in FY 2021) Full year 2022 results: LK₨19.11 loss per share (down from LK₨4.91 profit in FY 2021). Net loss: LK₨333.0m (down 490% from profit in FY 2021). Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Announcement • Jul 09
Kelsey Developments PLC, Annual General Meeting, Jul 29, 2022 Kelsey Developments PLC, Annual General Meeting, Jul 29, 2022, at 10:30 Sri Lanka Standard Time. Agenda: To receive the Report of the Board of Directors and the Audited Financial Statements of the Company for the year ended 31 March 2022 together with the report of the Auditors thereon; to re-appoint Mr. Eardley Perera as a Director of the Company in terms of Section 211 of the Companies Act No. 07 of 2007, by passing the following resolution; to consider the executive changes; to re-appoint Messrs. Ernst & Young, Chartered Accountants as Auditors of the Company for the ensuing year and authorize the Directors to determine their remuneration; to authorize the Directors to determine and make donations; and to consider the other resolutions. Reported Earnings • Jun 02
Full year 2022 earnings released: LK₨19.13 loss per share (vs LK₨4.91 profit in FY 2021) Full year 2022 results: LK₨19.13 loss per share (down from LK₨4.91 profit in FY 2021). Net loss: LK₨333.5m (down 490% from profit in FY 2021). Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Board Change • May 24
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non Executive Director Roshanie Moraes was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Apr 27
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non Executive Director Roshanie Moraes was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 17
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: LK₨4.62 loss per share (down from LK₨1.67 profit in 3Q 2021). Revenue: LK₨73.9m (down 71% from 3Q 2021). Net loss: LK₨80.5m (down 377% from profit in 3Q 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Board Change • Feb 04
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non Executive Director Roshanie Moraes was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Jan 29
Kelsey Developments plc Appoints Roshanie Jayasundera Moraes to the Board of Directors, Member of the Janashakthi Group, as an Independent Non-Executive Director Kelsey Developments PLC appointed Roshanie Jayasundera Moraes to the board of directors, a member of the Janashakthi group, as an Independent Non-Executive Director, with effect from January 10, 2022. A Fellow of the Chartered Institute of Marketing (CIM), UK, Moraes holds a Master of Business Administration from the Postgraduate Institute of Management (PIM), University of Sri Jayewardenepura. She brings with her close to four decades of experience in the corporate sector. She has held leadership positions in some of the country's leading enterprises in the travel and tourism, airline representation, loyalty, quick service restaurants, retail and property development sectors. Having worked at Browns Tours and Aitken Spence for a brief period, Moraes joined Sri Lanka's premier blue-chip company John Keells Holdings in 1991. She served in three of the group's key sectors-transportation, retail and property development and went on to hold the position of Executive Vice President of John Keells Holdings until her retirement in December 2021. The appointment is part of Kelsey Developments' strategic efforts to strengthen its board of directors with a diverse mix of business captains from a wide range of sectors. With this, the board of directors of Kelsey Developments PLC now comprises of Eardley Perera - Chairman, Prakash Schaffter, Prof. Chitra Weddikkara, Roshni Fernando, Roshanie J. Moraes, ACM Gagan Bulathsinghala and Arul Sivagananathan. Their wealth of experience from across a variety of industries together with the strong fundamentals of the parent company, the Janashakthi group, offers Kelsey Developments a solid foundation to springboard off to greater heights. Reported Earnings • Nov 17
Second quarter 2022 earnings released: LK₨3.64 loss per share (vs LK₨2.26 profit in 2Q 2021) The company reported a poor second quarter result with weaker earnings, revenues and control over costs. Second quarter 2022 results: Revenue: LK₨26.0m (down 92% from 2Q 2021). Net loss: LK₨63.4m (down 264% from profit in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 17
Second quarter 2022 earnings released: LK₨3.64 loss per share (vs LK₨2.26 profit in 2Q 2021) The company reported a poor second quarter result with weaker earnings, revenues and control over costs. Second quarter 2022 results: Revenue: LK₨26.0m (down 92% from 2Q 2021). Net loss: LK₨63.4m (down 264% from profit in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Board Change • Nov 01
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. No highly experienced directors. Independent Chairman Eardley Perera Perera is the most experienced director on the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Board Change • Oct 02
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. No highly experienced directors. Independent Chairman Eardley Perera Perera is the most experienced director on the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Board Change • Sep 14
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Gagan Bulathsinghala was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Sep 13
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Gagan Bulathsinghala was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Sep 10
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Gagan Bulathsinghala was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Executive Departure • Sep 09
Independent Non-Executive Director Chandana de Silva has left the company On the 2nd of September, Chandana de Silva's tenure as Independent Non-Executive Director ended after 9.3 years in the role. We don't have any record of a personal shareholding under Chandana's name. A total of 3 executives have left over the last 12 months. Executive Departure • Sep 09
Non-Executive Non-Independent Director Dinesh Schaffter has left the company On the 2nd of September, Dinesh Schaffter's tenure as Non-Executive Non-Independent Director ended after 13.7 years in the role. We don't have any record of a personal shareholding under Dinesh's name. A total of 3 executives have left over the last 12 months. Executive Departure • Sep 09
Non-Independent Non-Executive Director Ramesh Schaffter has left the company On the 2nd of September, Ramesh Schaffter's tenure as Non-Independent Non-Executive Director ended after 2.7 years in the role. We don't have any record of a personal shareholding under Ramesh's name. A total of 3 executives have left over the last 12 months. Board Change • Aug 20
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Gagan Bulathsinghala was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Is New 90 Day High Low • Dec 21
New 90-day high: LK₨41.30 The company is up 16% from its price of LK₨35.70 on 22 September 2020. The Sri Lankan market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Durables industry, which is up 14% over the same period. Reported Earnings • Nov 15
Second quarter 2021 earnings released: EPS LK₨2.05 The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: LK₨314.5m (up LK₨285.5m from 2Q 2020). Net income: LK₨35.7m (up LK₨92.7m from 2Q 2020). Profit margin: 11% (up from net loss in 2Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. 