JINS.N0000 Janashakthi Insurance - Cup & Handle BO

Apr 5

Breaking 46 will make a C&H Break Out.

Dividend Pending

* Amount > LKR 5 (JINS can distribute tax free dividend received from CFVF.N0000)


Profit Expectations

* Earnings should be good.
* Majority of BOND portfolio is classified under 'Financial Assets at Fair Value Through Profit
or Loss'. Hence capital gains due to rate cuts will reflect in P&L.

NAV

* LKR 60.64 / PBV 0.75 (All other life insurance companies in CSE are trading above NAV.)

Apr 7

Note

Future Monetary Policy

* We expect at least 2 more rate cuts by MB of Sri Lanka. Hence YoY earnings growth expected to continue towards Q2 2024 (Capital gains from Bond Portfolio.

Apr 7

Note

Breakout from C&H pattern formation

* 05/04/2024 closed above the LKR 46 mark, effectively breaking C&H pattern.

Apr 29

Trade active

Our conservative expectation was JINS to declare an LKR 5.00 dividend.

But

Today JINS declared a dividend of LKR 13.24
Close to 3X our dividend expectation.

26.6% DY for today's closing price.