Valuation Update With 7 Day Price Move • May 07
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to LK₨275, the stock trades at a trailing P/E ratio of 16.4x. Average trailing P/E is 17x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 276% over the past three years. New Risk • Feb 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Sri Lankan stocks, typically moving 9.2% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.2% average weekly change). Revenue is less than US$1m (LK₨209m revenue, or US$676k). Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (LK₨6.12b market cap, or US$19.8m). Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to LK₨278, the stock trades at a trailing P/E ratio of 17.9x. Average trailing P/E is 18x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 245% over the past three years. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to LK₨269, the stock trades at a trailing P/E ratio of 17.3x. Average trailing P/E is 17x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 213% over the past three years. Reported Earnings • Nov 21
Second quarter 2026 earnings released: EPS: LK₨2.33 (vs LK₨2.17 in 2Q 2025) Second quarter 2026 results: EPS: LK₨2.33 (up from LK₨2.17 in 2Q 2025). Net income: LK₨59.7m (up 7.5% from 2Q 2025). Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 44% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 24
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to LK₨219, the stock trades at a trailing P/E ratio of 13.3x. Average trailing P/E is 15x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 226% over the past three years. Upcoming Dividend • Sep 22
Upcoming dividend of LK₨1.50 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 17 October 2025. Payout ratio is a comfortable 9.1% but the company is paying out more than the cash it is generating. Trailing yield: 0.8%. Lower than top quartile of Sri Lankan dividend payers (4.5%). Lower than average of industry peers (2.8%). Declared Dividend • Sep 03
Dividend of LK₨1.50 announced Dividend of LK₨1.50 is the same as last year. Ex-date: 29th September 2025 Payment date: 17th October 2025 Dividend yield will be 0.7%, which is lower than the industry average of 9.0%. Sustainability & Growth Dividend is covered by earnings (26% earnings payout ratio) but not covered by cash flows (185% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 12% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 17
First quarter 2026 earnings released: EPS: LK₨1.89 (vs LK₨2.11 in 1Q 2025) First quarter 2026 results: EPS: LK₨1.89 (down from LK₨2.11 in 1Q 2025). Net income: LK₨48.3m (down 11% from 1Q 2025). Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 40% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to LK₨197, the stock trades at a trailing P/E ratio of 11.8x. Average trailing P/E is 12x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 167% over the past three years. Valuation Update With 7 Day Price Move • Jul 24
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to LK₨172, the stock trades at a trailing P/E ratio of 10.3x. Average trailing P/E is 12x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 153% over the past three years. Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to LK₨116, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 8x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 35% over the past three years. Reported Earnings • May 23
Full year 2025 earnings released: EPS: LK₨16.68 (vs LK₨10.32 in FY 2024) Full year 2025 results: EPS: LK₨16.68 (up from LK₨10.32 in FY 2024). Net income: LK₨427.1m (up 62% from FY 2024). Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to LK₨110, the stock trades at a trailing P/E ratio of 19.1x. Average trailing P/E is 9x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 47% over the past three years. Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: LK₨1.24 (vs LK₨2.50 in 3Q 2024) Third quarter 2025 results: EPS: LK₨1.24 (down from LK₨2.50 in 3Q 2024). Revenue: LK₨50.0m (up 2.4% from 3Q 2024). Net income: LK₨31.7m (down 51% from 3Q 2024). Profit margin: 63% (down from 131% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. New Risk • Nov 19
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 590% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (6.8% average weekly change). Revenue is less than US$1m (LK₨202m revenue, or US$692k). Market cap is less than US$10m (LK₨1.92b market cap, or US$6.59m). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (89% net profit margin). Upcoming Dividend • Sep 20
Upcoming dividend of LK₨1.50 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 16 October 2024. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Sri Lankan dividend payers (8.5%). Lower than average of industry peers (6.7%). Valuation Update With 7 Day Price Move • Aug 29
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to LK₨72.00, the stock trades at a trailing P/E ratio of 14.4x. Average trailing P/E is 7x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 11% over the past three years. Declared Dividend • Aug 23
Dividend of LK₨1.50 announced Shareholders will receive a dividend of LK₨1.50. Ex-date: 27th September 2024 Payment date: 16th October 2024 Dividend yield will be 1.8%, which is lower than the industry average of 9.0%. Announcement • Aug 21
Lee Hedges PLC, Annual General Meeting, Sep 26, 2024 Lee Hedges PLC, Annual General Meeting, Sep 26, 2024. Reported Earnings • Aug 15
First quarter 2025 earnings released: EPS: LK₨2.11 (vs LK₨4.55 in 1Q 2024) First quarter 2025 results: EPS: LK₨2.11 (down from LK₨4.55 in 1Q 2024). Revenue: LK₨50.9m (up 7.4% from 1Q 2024). Net income: LK₨54.1m (down 54% from 1Q 2024). Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 7% per year. Valuation Update With 7 Day Price Move • Mar 28
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to LK₨93.90, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 7x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 52% over the past three years. Reported Earnings • Feb 16
Third quarter 2024 earnings released: EPS: LK₨2.50 (vs LK₨4.75 in 3Q 2023) Third quarter 2024 results: EPS: LK₨2.50 (down from LK₨4.75 in 3Q 2023). Net income: LK₨64.1m (down 47% from 3Q 2023). Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Jan 23
Lee Hedges plc Appoints Senanayake Mudiyanselage Nanda Lalith Senanayake as the Senior Independent Director The Board of Directors of Lee Hedges PLC has decided to appoint Mr. Senanayake Mudiyanselage Nanda Lalith Senanayake as the Senior Independent Director of the Company with immediate effect. Reported Earnings • Nov 18
Second quarter 2024 earnings released: EPS: LK₨3.06 (vs LK₨4.15 in 2Q 2023) Second quarter 2024 results: EPS: LK₨3.06 (down from LK₨4.15 in 2Q 2023). Net income: LK₨78.2m (down 26% from 2Q 2023). Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Buying Opportunity • Oct 31
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 4.0%. The fair value is estimated to be LK₨93.70, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 37%. Announcement • Sep 28
Lee Hedges PLC Announces the Cessation of Mr. S Balaratnam as Director Lee Hedges PLC announced the cessation of Mr. S Balaratnam as Director, effective September 28, 2023. Upcoming Dividend • Sep 25
Upcoming dividend of LK₨1.00 per share at 1.2% yield Eligible shareholders must have bought the stock before 02 October 2023. Payment date: 20 October 2023. Payout ratio is a comfortable 4.6% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Sri Lankan dividend payers (7.3%). Lower than average of industry peers (8.1%). Announcement • Sep 02
Lee Hedges plc Proposes Final Dividend for the Year Ended 31 March, 2023 Lee Hedges PLC at the AGM to be held on 27 September, 2023 proposed final dividend of LKR 1 per share for the year ended 31 March, 2023, as recommended by directors. Reported Earnings • Aug 17
First quarter 2024 earnings released: EPS: LK₨4.55 (vs LK₨3.19 in 1Q 2023) First quarter 2024 results: EPS: LK₨4.55 (up from LK₨3.19 in 1Q 2023). Net income: LK₨116.4m (up 43% from 1Q 2023). Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 31
Full year 2023 earnings released: EPS: LK₨20.18 (vs LK₨11.28 in FY 2022) Full year 2023 results: EPS: LK₨20.18 (up from LK₨11.28 in FY 2022). Net income: LK₨516.6m (up 79% from FY 2022). Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 16
Third quarter 2023 earnings released: EPS: LK₨4.75 (vs LK₨0.93 in 3Q 2022) Third quarter 2023 results: EPS: LK₨4.75 (up from LK₨0.93 in 3Q 2022). Net income: LK₨121.7m (up 409% from 3Q 2022). Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to LK₨93.00, the stock trades at a trailing P/E ratio of 6.2x. Average trailing P/E is 6x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 35% over the past three years. Valuation Update With 7 Day Price Move • Jan 17
Investor sentiment deteriorated over the past week After last week's 15% share price decline to LK₨75.90, the stock trades at a trailing P/E ratio of 5x. Average trailing P/E is 6x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 4.1% over the past three years. Reported Earnings • Nov 17
Second quarter 2023 earnings released: EPS: LK₨4.15 (vs LK₨1.83 in 2Q 2022) Second quarter 2023 results: EPS: LK₨4.15 (up from LK₨1.83 in 2Q 2022). Net income: LK₨106.2m (up 127% from 2Q 2022). Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Non Independent Non Executive Director Rupert Spencer was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Upcoming Dividend • Sep 20
Upcoming dividend of LK₨1.00 per share Eligible shareholders must have bought the stock before 27 September 2022. Payment date: 18 October 2022. Payout ratio is a comfortable 7.4% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Sri Lankan dividend payers (7.6%). Lower than average of industry peers (7.8%). Announcement • Sep 02
Lee Hedges PLC, Annual General Meeting, Sep 26, 2022 Lee Hedges PLC, Annual General Meeting, Sep 26, 2022, at 14:30 Sri Lanka Standard Time. Agenda: To receive and consider the annual report of the directors on the affairs of the company and the audited financial statements for the financial year ended 31st March 2022 and the Report of the Auditors; to declare a final dividend of INR 1/=per share for the year ended 31st March 2022, as recommended by the Directors; to re-elect Directors of the company; To re-appoint Messrs. KPMG., Chartered Accountants as Auditors of the Company as set out in Section 154(1) of the Companies Act No. 07 of 2007and to authorize the Directors to fix their remuneration; to authorize the Directors to determine donations for the year 2022/2023 not exceeding INR.250,000/=; to transact any other business that may properly be brought before the meeting. Announcement • Sep 01
Lee Hedges plc Proposes to Declare A Final Dividend for the Year Ended 31St March 2022 Lee Hedges PLC at Annual General Meeting on 26 September 2022 the company proposed to declare a final dividend of LKR 1 per share for the year ended 31st March 2022, as recommended by the Directors. Reported Earnings • Aug 17
First quarter 2023 earnings released: EPS: LK₨3.19 (vs LK₨1.68 in 1Q 2022) First quarter 2023 results: EPS: LK₨3.19 (up from LK₨1.68 in 1Q 2022). Net income: LK₨81.7m (up 90% from 1Q 2022). Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment deteriorated over the past week After last week's 20% share price decline to LK₨70.00, the stock trades at a trailing P/E ratio of 5.8x. Average trailing P/E is 7x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 11% over the past three years. Reported Earnings • Jun 03
Full year 2022 earnings released: EPS: LK₨12.01 (vs LK₨7.09 in FY 2021) Full year 2022 results: EPS: LK₨12.01 (up from LK₨7.09 in FY 2021). Net income: LK₨307.5m (up 69% from FY 2021). Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Non Independent Non Executive Director Rupert Spencer was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment deteriorated over the past week After last week's 16% share price decline to LK₨70.00, the stock trades at a trailing P/E ratio of 10.7x. Average trailing P/E is 11x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 4.2% over the past three years. Reported Earnings • Feb 16
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: LK₨0.93 (down from LK₨1.44 in 3Q 2021). Revenue: LK₨37.5m (down 5.5% from 3Q 2021). Net income: LK₨23.9m (down 35% from 3Q 2021). Profit margin: 64% (down from 93% in 3Q 2021). The decrease in margin was primarily driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improved over the past week After last week's 16% share price gain to LK₨98.80, the stock trades at a trailing P/E ratio of 14.1x. Average trailing P/E is 15x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 47% over the past three years. Recent Insider Transactions • Jan 09
Executive Chairman & MD recently sold LK₨7.7m worth of stock On the 5th of January, Sinnadurai Vamadevan sold around 73k shares on-market at roughly LK₨106 per share. This was the largest sale by an insider in the last 3 months. Despite the recent sale, Sinnadurai has been a buyer over the last 12 months, purchasing a net total of LK₨11m worth of shares. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 19% share price gain to LK₨104, the stock trades at a trailing P/E ratio of 14.8x. Average trailing P/E is 13x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 57% over the past three years. Board Change • Jan 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 1 highly experienced director. Non Independent Non Executive Director Rupert Spencer was the last director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improved over the past week After last week's 19% share price gain to LK₨90.00, the stock trades at a trailing P/E ratio of 12.8x. Average trailing P/E is 12x in the Real Estate industry in Sri Lanka. Total returns to shareholders of 37% over the past three years. Reported Earnings • Nov 15
Second quarter 2022 earnings released: EPS LK₨1.83 (vs LK₨1.73 in 2Q 2021) Second quarter 2022 results: Net income: LK₨46.9m (up 5.7% from 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 21
Upcoming dividend of LK₨1.00 per share Eligible shareholders must have bought the stock before 28 September 2021. Payment date: 18 October 2021. Trailing yield: 1.5%. Lower than top quartile of Sri Lankan dividend payers (5.7%). Lower than average of industry peers (3.7%). Reported Earnings • Aug 18
First quarter 2022 earnings released: EPS LK₨1.68 (vs LK₨1.84 in 1Q 2021) First quarter 2022 results: Net income: LK₨43.0m (down 8.8% from 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Recent Insider Transactions • Jul 21
Executive Chairman & MD recently bought LK₨21m worth of stock On the 15th of July, Sinnadurai Vamadevan bought around 300k shares on-market at roughly LK₨70.00 per share. This was the largest purchase by an insider in the last 3 months. This was Sinnadurai's only on-market trade for the last 12 months. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment deteriorated over the past week After last week's 19% share price decline to LK₨63.00, the stock is trading at a trailing P/E ratio of 7.3x, down from the previous P/E ratio of 9x. This compares to an average P/E of 10x in the Real Estate industry in Sri Lanka. Total return to shareholders over the past three years is a loss of 21%. Reported Earnings • Feb 17
Third quarter 2021 earnings released: EPS LK₨1.44 (vs LK₨1.84 in 3Q 2020) Third quarter 2021 results: Net income: LK₨36.9m (down 22% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 09
New 90-day low: LK₨74.00 The company is down 6.0% from its price of LK₨78.90 on 11 November 2020. The Sri Lankan market is up 34% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Real Estate industry, which is up 12% over the same period. Reported Earnings • Nov 15
Second quarter 2021 earnings released: EPS LK₨1.73 Second quarter 2021 results: Net income: LK₨44.3m (down 11% from 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 4% per year. Is New 90 Day High Low • Oct 19
New 90-day high: LK₨82.00 The company is up 1.0% from its price of LK₨81.00 on 21 July 2020. The Sri Lankan market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Real Estate industry, which is up 9.0% over the same period. Upcoming Dividend • Oct 02
Upcoming Dividend of LK₨1.00 Per Share Will be paid on the 29th of October to those who are registered shareholders by the 9th of October. The trailing yield of 1.3% is below the top quartile of Sri Lankan dividend payers (5.5%), and is lower than industry peers (4.0%). 
