Escolar Documentos
Profissional Documentos
Cultura Documentos
May 3, 2011
Pakistan Research
Synopsis
Sales of the sector posted an upsurge of 23% YoY. Highest growth of 30% YoY was observed in sales of ENGRO. Average price of the Urea and DAP was recorded 37% and 34% YoY higher in 1QCY11. Total financial cost of the sector rose by 32% YoY. Engro posted highest upsurge of 61% YoY in its financial cost. Other operating income rose by 39% YoY. Engro led the sector. Earnings of the sector posted a substantial rise of 38% YoY. FFBL recorded a highest increase of 93% in its earnings. Our DCF based target price for FFC and FFBL is PKR148 and PKR45 respectively. We recommend a HOLD stance.
year. Conversely, the none operating income of the showed a significant growth of 39% YoY because of a dividend income. As a result, PAT of the fertilizer witnessed a handsome growth 38% YoY over same last year.
(PKR m) Sales Cost of Sales Gross Profit S & D expenses Administrative expenses Operating Profit Finance Cost Other operating Expenses Other Operating Income Profit Before Tax Taxation Profit After Tax 1QCY10 34,314 23,458 10,856 2,713 623 7,521 1,504 414 1,962 7,565 2,222 5,536 1QCY11 42,085 26,967 15,118 2,918 847 11,353 1,988 682 2,722 11,406 3,698 7,635
HOLD
11683.76 12035.89 8376.77 -32.59 -21.65 -21.04 -0.28 -0.18 -0.25
% Chg 23% 15% 39% 8% 36% 51% 32% 65% 39% 51% 66% 38%
KSE-100 ENGRO
FFC
FFC also came out with impressive financial results in 1QCY11 as its revenue grew by 17% YoY to PKR11.10bn as against PKR9.50bn in 1QCY10. Gross profit of the company grew by 46% YoY to PKR5.92bn as against PKR4.05bn in same period last year. Thus, PAT posted a growth of 51% over same period the last year. The bottom line enjoyed a strong uplift from 13% YoY lower financial cost and 56% YoY higher other income. The company declared 45% cash dividend along with results.
Muhammad Sarfraz Abbasi Sarfraz.abbasi@summitcapital.com.pk 021-35376125 B-209, Park Towers, Clifton, Karachi
Disclaimer: All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Summit Capital (Pvt.) Limited accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the publication. All information is provided without warranty and Summit Capital (Pvt.) Limited makes no representation of warranty of any kind as to the accuracy or completeness of any information hereto contained.
ENGRO
ENGRO stood as a star performer of the sector in terms of growth in revenue as its top line grew by 30% YoY to PKR21.85 over 1QCY10. Gross profit of the company posted an upsurge of 31% YoY to PKR6.12bn as against PKR4.68bn in 1QCY11. However, the company recorded 61% YoY higher financial cost to PKR1.45bn against PKR904m in same period of last year. The PAT of the company reached PKR2.04bn, showing an upsurge of 13% YoY.
DAWH
Conversely to the other listed companies, DAWH posted decline in its sales revenue of 22% YoY to PKR1.08bn versus PKR1.39bn in 1QCY10. The company posted a loss per share of PKR0.61 in 1QCY11 mainly attributable to 1) decline in sales and 2) one time loss of PKR349.25m.
Disclaimer: All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Summit Capital (Pvt.) Limited accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the publication. All information is provided without warranty and Summit Capital (Pvt.) Limited makes no representation of warranty of any kind as to the accuracy or completeness of any information hereto contained.