IGI Securities Limited – Day Break

Karachi, June 22, 2018 (PPI-OT): Oil and Gas Marketing Companies – APL: Striving to regain lost footprints; maintain ‘BUY’

We have revised upwards our earnings for Attock Petroleum Limited (APL) by +3%/+5%/+9% for FY18/19/20F on the back of a) increased prices of Furnace oil (FO) which has surged by +24% on average in FY18, b) increased prices and sales for asphalt and, c) +22%/+5%YoY growth in MS/HSD sales. As a result our target price is revised upwards by +9% to PKR 740.0/share (from previous PKR 677/share) after incorporating the aforementioned changes in assumption.

The GoP has imposed super tax of 3% which will gradually phase out by 1% by FY21 and reduction of 1% annually in corporate tax to reach 25% by FY23.

APL has aggressively pursued expansion in to retail outlets with number of retail outlets increasing to 618 till Mar-18 compared to 563 in FY16. We expect retail outlet to reach 628 which in our view will further boost MS and HSD sales.

We still maintain a ‘BUY’ call on APL with our revised Dec-18 target price of PKR 740.3/share offering 20% upside from last close. The Company is currently trading at FY18E/19F P/E of 9.3x/9.0x and offers the highest dividend yield of 7.3% among its peers.

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IGI Securities Limited – Day Break

Karachi, June 22, 2018 (PPI-OT): Oil and Gas Marketing Companies – APL: Striving to regain lost footprints; maintain ‘BUY’

We have revised upwards our earnings for Attock Petroleum Limited (APL) by +3%/+5%/+9% for FY18/19/20F on the back of a) increased prices of Furnace oil (FO) which has surged by +24% on average in FY18, b) increased prices and sales for asphalt and, c) +22%/+5%YoY growth in MS/HSD sales. As a result our target price is revised upwards by +9% to PKR 740.0/share (from previous PKR 677/share) after incorporating the aforementioned changes in assumption.

The GoP has imposed super tax of 3% which will gradually phase out by 1% by FY21 and reduction of 1% annually in corporate tax to reach 25% by FY23.

APL has aggressively pursued expansion in to retail outlets with number of retail outlets increasing to 618 till Mar-18 compared to 563 in FY16. We expect retail outlet to reach 628 which in our view will further boost MS and HSD sales.

We still maintain a ‘BUY’ call on APL with our revised Dec-18 target price of PKR 740.3/share offering 20% upside from last close. The Company is currently trading at FY18E/19F P/E of 9.3x/9.0x and offers the highest dividend yield of 7.3% among its peers.

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IGI Securities Limited – Day Break

Karachi, June 22, 2018 (PPI-OT): Oil and Gas Marketing Companies – APL: Striving to regain lost footprints; maintain ‘BUY’

We have revised upwards our earnings for Attock Petroleum Limited (APL) by +3%/+5%/+9% for FY18/19/20F on the back of a) increased prices of Furnace oil (FO) which has surged by +24% on average in FY18, b) increased prices and sales for asphalt and, c) +22%/+5%YoY growth in MS/HSD sales. As a result our target price is revised upwards by +9% to PKR 740.0/share (from previous PKR 677/share) after incorporating the aforementioned changes in assumption.

The GoP has imposed super tax of 3% which will gradually phase out by 1% by FY21 and reduction of 1% annually in corporate tax to reach 25% by FY23.

APL has aggressively pursued expansion in to retail outlets with number of retail outlets increasing to 618 till Mar-18 compared to 563 in FY16. We expect retail outlet to reach 628 which in our view will further boost MS and HSD sales.

We still maintain a ‘BUY’ call on APL with our revised Dec-18 target price of PKR 740.3/share offering 20% upside from last close. The Company is currently trading at FY18E/19F P/E of 9.3x/9.0x and offers the highest dividend yield of 7.3% among its peers.

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