Citrus Hikkaduwa PLC - CITH.N0000 (CSE/Colombo Stock Exchange)

Strategy

Price braking out from post rights consolidation.

- CITH consolidated around LKR 4.10-4.30 with relatively very high volumes
- Now breaking out from the consolidation area

Technical Analysis (Chart Patterns)

* Currently CITH is making a Reverse Head & Shoulder pattern break out with a re-test
* Printed a 20/50 MA cross
* On 20th June 2024 CITH closed above 150 MA with volume

Potential Pattern Targets

* Pattern target LKR 5.80

Fundamentals & business outlook

* Post rights NAV is about LKR 9.80
* PBV 0.46
* About LKR 650 M of rights issue funds will be utilized to reduce debt
* Q4/2024 EPS LKR 0.31
* As interest rates of the country is falling, interest burden of the company is reducing drastically
* Tourism arrivals are continuing to grow

Speculative Points

* WHAT MIGHT BE THE REASON MANAGEMENT DECIDED TO SETTLE INTERCOMPANY LOANS IN THE GROUP?
* WILL CITH DISPOSE IT'S HOLDING IN CLND (Colombo Land PLC)