JS Securities Limited – Morning Briefing

Karachi, October 03, 2017 (PPI-OT): POWER: 4QFY17 diluted EPS expected at Rs0.11

We preview 4QFY17 EPS of Power Cement Limited (POWER) wherein we expect the company to post PAT of Rs110mn (diluted EPS: Rs0.11) for the quarter.

We expect revenues to grow by 5.8% YoY during the quarter, mainly due to improvement in prices. Dispatches on the other hand, are likely to remain weak mainly because of Eid Holidays during the period.

With these results, diluted FY17 EPS is likely to clock-in at Rs0.45, down 10.9% YoY. Along with the result, we expect POWER to payout a cash dividend of Rs0.25/share keeping recent budgetary changes into consideration.

We keep our ‘Buy’ rating intact on the company with Dec-2017 Target Price of Rs16, implying an upside of 54%.

4QFY17 to post strong growth due to low base

We preview 4QFY17 EPS of Power Cement Limited (POWER) wherein we expect the company to post diluted EPS of Rs0.11 for the quarter, up more than 3x as compared to the same period last year. We expect revenues to grow by 5.8% YoY during the quarter, mainly due to improvement in prices (average retail prices in South up by 6.9% YoY to Rs575/bag during 4QFY17). Dispatches on the other hand, are likely to remain weak mainly because of Eid Holidays during the period.

We forecast GP margin to clock-in at 24% vis-à-vis 19% recorded during 4QFY16 mainly due to price improvements during the quarter, offsetting coal price increase during the same period (R-Bay coal prices average up 38% YoY to clock-in at US$76.5/ton).

‘Buy’ maintained with TP of Rs16

We keep our „Buy‟ rating intact on the company with Dec-2017 Target Price of Rs16, implying an upside of 54%. Key risks to our valuations include (1) larger than expected increase in international coal prices, (2) breakdown in cement pricing arrangement and (3) larger than forecasted depreciation of PKR vis-à-vis the greenback.

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JS Securities Limited – Morning Briefing

Karachi, October 03, 2017 (PPI-OT): POWER: 4QFY17 diluted EPS expected at Rs0.11

We preview 4QFY17 EPS of Power Cement Limited (POWER) wherein we expect the company to post PAT of Rs110mn (diluted EPS: Rs0.11) for the quarter.

We expect revenues to grow by 5.8% YoY during the quarter, mainly due to improvement in prices. Dispatches on the other hand, are likely to remain weak mainly because of Eid Holidays during the period.

With these results, diluted FY17 EPS is likely to clock-in at Rs0.45, down 10.9% YoY. Along with the result, we expect POWER to payout a cash dividend of Rs0.25/share keeping recent budgetary changes into consideration.

We keep our ‘Buy’ rating intact on the company with Dec-2017 Target Price of Rs16, implying an upside of 54%.

4QFY17 to post strong growth due to low base

We preview 4QFY17 EPS of Power Cement Limited (POWER) wherein we expect the company to post diluted EPS of Rs0.11 for the quarter, up more than 3x as compared to the same period last year. We expect revenues to grow by 5.8% YoY during the quarter, mainly due to improvement in prices (average retail prices in South up by 6.9% YoY to Rs575/bag during 4QFY17). Dispatches on the other hand, are likely to remain weak mainly because of Eid Holidays during the period.

We forecast GP margin to clock-in at 24% vis-à-vis 19% recorded during 4QFY16 mainly due to price improvements during the quarter, offsetting coal price increase during the same period (R-Bay coal prices average up 38% YoY to clock-in at US$76.5/ton).

‘Buy’ maintained with TP of Rs16

We keep our „Buy‟ rating intact on the company with Dec-2017 Target Price of Rs16, implying an upside of 54%. Key risks to our valuations include (1) larger than expected increase in international coal prices, (2) breakdown in cement pricing arrangement and (3) larger than forecasted depreciation of PKR vis-à-vis the greenback.

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JS Securities Limited – Morning Briefing

Karachi, October 03, 2017 (PPI-OT): POWER: 4QFY17 diluted EPS expected at Rs0.11

We preview 4QFY17 EPS of Power Cement Limited (POWER) wherein we expect the company to post PAT of Rs110mn (diluted EPS: Rs0.11) for the quarter.

We expect revenues to grow by 5.8% YoY during the quarter, mainly due to improvement in prices. Dispatches on the other hand, are likely to remain weak mainly because of Eid Holidays during the period.

With these results, diluted FY17 EPS is likely to clock-in at Rs0.45, down 10.9% YoY. Along with the result, we expect POWER to payout a cash dividend of Rs0.25/share keeping recent budgetary changes into consideration.

We keep our ‘Buy’ rating intact on the company with Dec-2017 Target Price of Rs16, implying an upside of 54%.

4QFY17 to post strong growth due to low base

We preview 4QFY17 EPS of Power Cement Limited (POWER) wherein we expect the company to post diluted EPS of Rs0.11 for the quarter, up more than 3x as compared to the same period last year. We expect revenues to grow by 5.8% YoY during the quarter, mainly due to improvement in prices (average retail prices in South up by 6.9% YoY to Rs575/bag during 4QFY17). Dispatches on the other hand, are likely to remain weak mainly because of Eid Holidays during the period.

We forecast GP margin to clock-in at 24% vis-à-vis 19% recorded during 4QFY16 mainly due to price improvements during the quarter, offsetting coal price increase during the same period (R-Bay coal prices average up 38% YoY to clock-in at US$76.5/ton).

‘Buy’ maintained with TP of Rs16

We keep our „Buy‟ rating intact on the company with Dec-2017 Target Price of Rs16, implying an upside of 54%. Key risks to our valuations include (1) larger than expected increase in international coal prices, (2) breakdown in cement pricing arrangement and (3) larger than forecasted depreciation of PKR vis-à-vis the greenback.

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