Information - Wishstocks

[ Morning Report ]
Friday, December 19, 2014
Market Overview
Bullish activity witnessed in Karachi Stock Exchange (KSE) on Thursday owing to end of
PIT protest in the national interest which welcome market participants. The benchmark KSE-100 index was up by 160.31 point to close at 30,827.45 points.
CHCC: Higher electricity tariff restricts profitability growth
In our today's morning report, we have presented the financial result of Cherat Cement
Company Limited (CHCC) for the 1QFY15 in detail.
PAT drop by 8%
Cherat Cement has posted profit after tax (PAT) of Rs 251 million (EPS: Rs 1.42) compared
to Rs 273 million (EPS: Rs 1.54) during the same period last year. Lower results posted by
the company mainly due to upward revision of tariff by the government. However, rising
cement prices and better volumetric growth provide support. On QoQ basis, company
growth also decline by 10% QoQ to Rs 251 million (EPS: Rs 1.42) in 1QFY15 versus Rs 281
million (EPS: Rs 1.59) in 4QFY14 owing to lower volumes and decline in other income.
Revenue up by 4%
Revenue of the company increased by 4.3% to Rs 1.55 billion in 1QFY15 compared to Rs
1.48 billion owing to higher dispatches and elevated cement prices. Volumetric sales up
by 3% to 232k tons against 225k tons in 1QFY14. Local dispatches surge by 1.5% to 145k
tons against 142k tons in 1QFY14. Exports volume hikes by 5.5% to 87k tons versus 83k
tons in same period last year. While cost of sales increase by 11% to Rs 1.14 billion versus Rs 1.03 billion in 1QFY14 due to due to increase in electricity charges and better sales
volume. Gross profit decrease by 10% to Rs 412 million compared to Rs 460 million due
to higher cost associated to electricity. Thus margin decrease to 26.6% in 1QFY15 versus
30.9% recorded in 1QFY14. Retention prices increased 1% to Rs 6,695/ton versus Rs
6,610/ton in 1QFY14. Moreover, EBITDA down by 9.2% to Rs 2,722/ton against Rs
2,999/ton in 1QFY14.
Rs in million
Sales
Cost of Sales
Gross Profit
Distribution Costs
Administrative Expenses
Other Expenses
Other Income
Operating Profit
Finance Costs
Profit before Taxation
Taxation
Profit after Taxation
EPS
Source: Company Report
1QFY15
1,553
1,140
412
52
41
21
17
315
9
306
55
251
1.42
1QFY14
1,489
1,029
460
45
34
31
9
359
6
353
81
273
1.54
YoY
4.3%
10.9%
-10.3%
14.5%
23.1%
-31.2%
94.5%
-12.3%
43.8%
-13.3%
-31.7%
-7.8%
4QFY14
1,753
1,298
454
49
37
28
32
372
9
363
83
281
1.59
QoQ
-11%
-12%
-9%
4.7%
13%
-25%
-47%
-15%
2.1%
-16%
-34%
-10%
Outlook
We expect domestic demand is expected to increase due to expectation of higher spending by private sector coupled with infrastructural projects by the government. Therefore
in order to meet the expected rise in cement demand the company is going towards plant
expansion which is currently operating at its maximum capacity. Moreover, political situation in Afghanistan is also improving which is expected to provide boost the reconstruction activities in the county. At the current price level of Rs 66.85, the stock of CHCC is
trading 7.6% lower from our DCF based June'15 target price of Rs 72/share.
NCCPL (U.S $ in million)
Portfolio Investment U.S $ in million)
FIPI (18-Dec-2014)
-3.41
Local Companies (18-Dec-2014)
-0.31
Banks / DFI (18-Dec-2014)
0.33
Mutual Funds (18-Dec-2014)
-0.20
NBFC (18-Dec-2014)
0.22
Local Investors (18-Dec-2014)
1.16
Other Organization (18-Dec-2014) 2.21
Yearly(Jul, 2014 up to 11-Dec-2014)
122.84
Monthly(Dec, 2014 up to 11-Dec-2014) -20.91
Daily (11-Dec-2014)
-5.67
Total Portfolio Investment (28-Nov-2014) 6029
1
News Update
Total liquid foreign reserves of the country stand
at $14.04204 billion, said State Bank of Pakistan
(SBP). According to SBP's weekly statement here
on Thursday, the foreign reserves held by State
Bank on Dec. 12, amounted $9.34605 billion and
the net foreign reserves held by other banks
were of $4.69509 billion. During the week ending Dec. 12, SBP's liquid foreign reserves
increased by $144 million to $9.347 billion compared to $9.203 billion in the previous week.
During the week, SBP received $73 million from
multilateral, bilateral and other sources.
State Bank of Pakistan (SBP) on Thursday accepted bids of Rs 20.3 billion in its open market operation (purchase of Government of Pakistan Ijara
Sukuk on Bai Mujjal basis). SBP accepted all bids
offered for 6-months and 12-months Sukuk. The
deferred price accepted is Rs 112.7149 billion,
said SBP statement.
As directed by the Prime Minister to resolve the
issue regarding recovery of outstanding electricity bills, Finance Minister Ishaq Dar here on
Thursday chaired a high level meeting asking
NAB to resume the recovery exercise on fast
track basis. Chairman NAB, Ch Qamar Zaman,
Secretary Finance, Dr Waqar Masood, Secretary
Water and Power, Younus Dhaga, Advisor
Finance Division, Rana Asad Amin and other senior officials attended the meeting. The meeting
observed that billions of rupees of electricity
bills were unpaid to date, placing the national
economy under tremendous strain. Both private
as well as public sector entities and domestic
consumers were among the defaulters. This situation could not be allowed to go on any further,
the meeting agreed.
KSE Statistics
Indices
All Share Index
KSE-30TM Index
KSE-100TM Index
Turnover
All Share Index
KSE-30TM Index
KSE-100TM Index
December 18, 2014
22,397.74
19,892.16
30,827.45
195,190,130
78,856,150
126,783,920
[ Morning Report ]
Friday, December 19, 2014
Pivot Analysis
Board Meetings
Company
CR
RSI
Buy 1
Buy 2
Sell 1
Sell 2
Pivot
KSE 100 INDEX
30827.45
41.00
30,612 30,397
31,098
31,368
30,883
Attock Cement
195.05
66.38
189.55 184.10
199.00
203.00
193.55
Adamjee Insurance
49.26
51.80
48.85
48.45
49.85
50.40
49.45
Askari Bank
22.00
43.57
21.80
21.65
22.20
22.35
22.00
Azgard Nine
5.96
50.72
5.80
5.65
6.15
6.35
6.00
Attock Petroleum
510.31
33.24
506.90 503.45
516.90
523.45
513.45
Attock Refinery
188.83
41.86
186.95 185.10
190.35
191.90
188.50
Bank Al-Falah
30.36
45.51
30.10
29.80
30.85
31.30
30.55
BankIslami Pak
10.09
46.64
10.00
9.95
10.20
10.30
10.10
Bank.Of.Punjab
9.98
69.88
9.80
9.60
10.25
10.55
10.10
Faysal Bank
16.84
35.28
16.65
16.50
17.00
17.20
16.85
Fauji Cement
23.95
57.30
23.75
23.60
24.25
24.50
24.05
Fauji Fert Bin
42.90
50.28
42.50
42.15
43.55
44.20
43.20
Fauji Fertilizer
116.25
37.30
115.50 114.75
117.50
118.75
116.75
Habib Bank Ltd
211.01
57.32
209.35 207.70
212.35
213.65
210.65
Hub Power
73.46
55.19
72.55
73.90
74.35
73.45
ICI Pakistan
481.67
26.52
477.45 473.25
485.45
489.20
481.20
Lucky Cement
476.49
52.10
472.20 467.90
480.90
485.30
476.60
MCB Bank Ltd
280.92
36.70
276.05 271.15
288.90
296.85
284.00
Maple Leaf Cement
41.48
68.99
41.00
40.50
42.15
42.85
41.70
National Bank
64.95
54.03
64.40
63.90
65.70
66.50
65.20
Nishat Mills
119.76
41.92
116.20 112.60
123.65
127.60
120.10
Pak Petroleum
176.16
32.21
174.30 172.45
178.20
180.25
176.35
21.64
44.15
21.95
22.25
21.75
P.T.C.L.A
73.00
21.45
21.25
CR = Yesterday's Closing Rate; RSI = 14 day RSI.
RSI Indication: Less than 30 Indicate oversold position & Greater than 70
Indicate overbought position.
Risk Disclosure
This report has been prepared by AZEE Securities (Pvt) Limited and the information contained in the Product is
intended solely for the recipient or attached skilled individuals of the firm. The Firm accepts no liability whatsoever
for the actions of individual, collateral or third parties in all over Pakistan and abroad as well. This report is provided solely for the information of professional advisers who are expected to make their own investment decisions
without undue reliance on this report and AZEE Securities (Pvt) Limited accepts no responsibility whatsoever for any
direct or indirect consequential loss arising from any use of this report contents. All rights reserved. The material
contained in this report is based on data obtained from sources we deem to be reliable and without prior written
permission this information is provided on an "as is" basis.
2
Company
Siemens (Pak)
Shahmurad Sugar Mills
Fauji Fertilizer
Al-Noor Sugar Mills Ltd
Dewan Sugar Mills Ltd
Mirpurkhas Sugar Mills Ltd
DATE
19-12-2014
19-12-2014
22-12-2014
22-12-2014
22-12-2014
23-12-2014
TIME
10:00
11:30
11:00
11:30
4:00
3:00
Key Data
Money Market
T-Bills (3 Mths)
T-Bills (6 Mths)
T-Bills (12 Mths)
Discount Rate
Kibor (1 Mth)
Kibor (3 Mths)
Kibor (6 Mths)
Kibor (9 Mths)
Kibor (1 Yr)
P.I.B (3 Yrs)
P.I.B (5 Yrs)
P.I.B (10 Yrs)
P.I.B (15 Yrs)
P.I.B (20 Yrs)
P.I.B (30 Yrs)
10-Dec-2014
10-Dec-2014
10-Dec-2014
15-Nov-2014
18-Dec-2014
18-Dec-2014
18-Dec-2014
18-Dec-2014
18-Dec-2014
18-Dec-2014
18-Dec-2014
18-Dec-2014
18-Dec-2014
18-Dec-2014
18-Dec-2014
9.46%
9.49%
9.50%
9.50%
9.91%
9.66%
9.66%
9.94%
9.97%
10.40%
10.73%
11.65%
12.10%
12.20%
12.40%
Commodities
Crude Oil (brent)$/bbl
Crude Oil (WTI)$/bbl
Cotton $/lb
Gold $/ozs
Silver $/ozs
Malaysian Palm $
GOLD (PMEX) PKR
KHI Cotton 40Kg PKR
62.57
57.54
60.51
1,202.65
16.05
621
38,840
5,037
Contacts
CORPORATE OFFICE.
Suite # 208 2nd floor, Business & Finance
Centre, Main I.I. Chundrigar Road, Karachi,
Pakistan.
Tel: 111-293-293, 021-2467131-40
Email: [email protected]
Karachi Stock Exchange
(Guarantee) Ltd. (Registered)
33, Ground Floor, Karachi Stock Exchange, Stock
Exchange Road, Karachi – 74000, Pakistan.
Tel: 021-2473513-22
Fax: 021-2473519
Email: [email protected]
CALL: 111-AZE-AZE
URL: http://www.azeetrade.com
Email: [email protected]