Cherat Cement Co.

Co. is engaged in the manufacturing and marketing of cement and clinker.
  • TickerCHCC
  • ISINPK0029801013
  • ExchangePakistan Stock Exchange
  • SectorConstruction & Materials
  • CountryPakistan
Rahul Hans

Pakistan Cement: Upgrade estimates on significantly weaker cost pressures

Despite a slow demand outlook, the cement sector’s profitability is expected to re-surge in FY 21/22f due to significant cost savings, which back an average 6ppts expected increase in the sector’s gross margins. Key supporting factors are lower international oil and coal prices (energy cost savings) and steep decline in interest rates. We think cement demand and prices will rebound strongly 2HFY21 onwards when the Covid-19 pandemic will likely be more manageable and the government would likel...

Rahul Hans

Cherat Cement: 3QFY20 – Barely positive gross margins lead to another loss

Cherat Cement (CHCC) has posted 3QFY20 NLAT of PKR627mn (LPS: PKR3.23), taking 9MFY20 loss to PKR1.2bn (LPS: PKR6.11), from a profit of PKR2.2bn (EPS: PKR11.58) in 9MFY19. The drag in earnings came from (i) drop in gross margins by 20.4ppt yoy to 0.17%, (ii) increase in finance cost by 81x yoy. On a PBT basis, the loss in 3Q came in at PKR816mn, which is worse than our estimate of PKR709mn, mainly due to lower-than-expected GMs. 3QFY20 KEY RESULT HIGHLIGHTS Net revenue decreased by 4% yoy to ...

Rahul Hans

Pakistan Cements: 3QFY20 preview – the worst is not over yet

With a backdrop of lower retention prices, higher input costs, elevated finance costs and infighting among North-based producers, profitability of IMS cement universe is likely to remain depressed in 3QFY20, with an estimated cumulative net losses of PKR2.5bn. Almost all producers – including the less leveraged FCCL and KOHC – alongside CHCC, MLCF and DGKC are likely to book losses in 3Q amid (i) further compression of retention prices qoq (ii) increased competition, (iii) higher coal prices ...

Rahul Hans

Pakistan Cements - Factors for a turnaround are well positioned

We think that the present lockdown will keep cement demand below full potential until the end of 1HFY21. Thereafter, a strong rebound in demand growth and profit margins seems more probable given an earlier-than-expected start of monetary easing and government’s stimulus for the construction sector, in our view. During FY21f, Cement producers will have greater willingness and ability to raise prices (or trim discounts) at the prospect of rising economic growth and government focus on low-cost...

Team AKD Research

AKD STOCK SMART, Mar 20, 2020

StockSmart                        Weekly Review                                 KSE-100 started the week with a massive selloff and increased concerns over growing cases of COVID-19 around the world. Commodities also witnessed a slide on the back of decreasing demand projections whereas ongoing tussle between global oil players also took a toll on oil prices. That said, slight rebound was witnessed towards tail-end of the week as investors went after cheap valuations. Consequently, KSE-100 closed the week at 30,667pts, down 14.5%WoW. Foreign investors continued with the selling, in-line wit...

1 director bought

A director at Cherat Cement Co bought 300,000 shares at 67.137PKR and the significance rating of the trade was 65/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of ...

Rahul Hans

Pakistan Cement: Upgrade estimates on significantly weaker cost pressures

Despite a slow demand outlook, the cement sector’s profitability is expected to re-surge in FY 21/22f due to significant cost savings, which back an average 6ppts expected increase in the sector’s gross margins. Key supporting factors are lower international oil and coal prices (energy cost savings) and steep decline in interest rates. We think cement demand and prices will rebound strongly 2HFY21 onwards when the Covid-19 pandemic will likely be more manageable and the government would likel...

Rahul Hans

Cherat Cement: 3QFY20 – Barely positive gross margins lead to another loss

Cherat Cement (CHCC) has posted 3QFY20 NLAT of PKR627mn (LPS: PKR3.23), taking 9MFY20 loss to PKR1.2bn (LPS: PKR6.11), from a profit of PKR2.2bn (EPS: PKR11.58) in 9MFY19. The drag in earnings came from (i) drop in gross margins by 20.4ppt yoy to 0.17%, (ii) increase in finance cost by 81x yoy. On a PBT basis, the loss in 3Q came in at PKR816mn, which is worse than our estimate of PKR709mn, mainly due to lower-than-expected GMs. 3QFY20 KEY RESULT HIGHLIGHTS Net revenue decreased by 4% yoy to ...

Rahul Hans

Pakistan Cements: 3QFY20 preview – the worst is not over yet

With a backdrop of lower retention prices, higher input costs, elevated finance costs and infighting among North-based producers, profitability of IMS cement universe is likely to remain depressed in 3QFY20, with an estimated cumulative net losses of PKR2.5bn. Almost all producers – including the less leveraged FCCL and KOHC – alongside CHCC, MLCF and DGKC are likely to book losses in 3Q amid (i) further compression of retention prices qoq (ii) increased competition, (iii) higher coal prices ...

Rahul Hans

Pakistan Cements - Factors for a turnaround are well positioned

We think that the present lockdown will keep cement demand below full potential until the end of 1HFY21. Thereafter, a strong rebound in demand growth and profit margins seems more probable given an earlier-than-expected start of monetary easing and government’s stimulus for the construction sector, in our view. During FY21f, Cement producers will have greater willingness and ability to raise prices (or trim discounts) at the prospect of rising economic growth and government focus on low-cost...

Team AKD Research

AKD STOCK SMART, Mar 20, 2020

StockSmart                        Weekly Review                                 KSE-100 started the week with a massive selloff and increased concerns over growing cases of COVID-19 around the world. Commodities also witnessed a slide on the back of decreasing demand projections whereas ongoing tussle between global oil players also took a toll on oil prices. That said, slight rebound was witnessed towards tail-end of the week as investors went after cheap valuations. Consequently, KSE-100 closed the week at 30,667pts, down 14.5%WoW. Foreign investors continued with the selling, in-line wit...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch