*First Capital Research | Earnings Update | 21 Feb 2025* *JOHN KEELLS HOLDINGS PLC | DOWNGRADE TO HOLD* *FY26E: LKR 25.0 [+11%]* *“PROFIT OUTLOOK UNCHANGED; LIMITED UPSIDE POTENTIAL”* JKH reported net profit dipped by 4.8%YoY to LKR 2,845.1Mn falling short of our estimate of LKR 3.9Bn. The variance is profits is largely attributable to the pre-opening costs at City of Dreams project, which opened its doors on Oct-24. With performance expected to pick up with the normalization of operations at City of Dreams with the launch of its mall and gaming operations in 3Q2025, we have maintained our target price at LKR 25.0 for FY26E. However, given the recent price performance of the JKH share and with the narrowing down of the upside to our TP, we *revised down our recommendation from MAINTAIN BUY to HOLD.* *Full Report* - https://firstcapital.lk/wp-content/uploads/2025/02/JKH-Earnings-Update-DOWNGRAD-TO-HOLD-21-02-25.pdf *-First Capital Research-*