*First Capital Research | Earnings Update | 21 Feb 2025* *JAT HOLDINGS PLC | MAINTAIN BUY* _FY26E: LKR 40.0 [+40.8%]_ *“RESULTS DRIVEN; MARGINS SOAR AS BINDER BENEFITS UNFOLD”* During 3QFY25, JAT's bottom-line impressively grew by 81.7%YoY, reporting earnings of LKR 490.0Mn and surpassing our estimates by 5.3%. Our target price for FY26E remains at LKR 40.0 due to the improving economic conditions in Sri Lanka, margin improvements from vertical backward integration, and lower tax rates resulting from deferred tax asset. Currently, JAT is trading at a TTM PER of 10.0x, slightly above the market PER of 9.3x. This reflects a rerating of JAT compared to its 3-year average PER of 7.2x. However, FCR believes this rerating may continue, potentially reaching a PER of 10.0x by FY26E.*_MAINATAIN BUY_* *Full Report* - _https://firstcapital.lk/wp-content/uploads/2025/02/JAT-Earnings-Update-MAINTAIN-BUY-21-02-25.pdf_ *-First Capital Research-*