Fauji Cement

Fauji Cement is engaged in the manufacturing and marketing of cement.
  • TickerFCCL
  • ISINPK0074501013
  • 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...

Luis Arredondo

FCC: 1Q’20 RESULTS AND CHANGE OF T.P. TO UNDER REVISION (ANÁLISIS BANCO SABADELL)

Has released 1Q'20 vs 1Q'19 Results Sales: € 1.485 Bn (+3.3% vs. +3.5% BS(e)); EBITDA: € 218.5 M (+5.1% vs. +9.5% BS(e)); EBIT: € 94.5 M (-4.4% vs. +4.7% BS(e)); Net Profit: € 28.1 M (-61.2% vs. -59.8% BS(e)); The 1Q’20 results came in below expectations on the operating level incl. the provisions made for Covid-19 and above excl. them. EBITDA on the quarter increased less than expected (+5.1% vs. +9.5% BS(e) despite sales being in line (+3.3% vs. +3.5% BS(e9) due to a € 20 M provision (~2% of EBITDA’20e) for Covid-19 (with no impact on cash). Excluding this effect, EBITDA would have come in ...

Research Department

INFORME DIARIO 29 ABRIL (ANÁLISIS BANCO SABADELL)

COMPAÑÍAS QUE APARECEN EN EL INFORME. ESPAÑA: ACS, BANKIA, DIA, AENA, ENCE, IAG, IBERDROLA, NH HOTELES, REPSOL, TELEFÓNICA, SECTOR TURÍSTICO EUROPA: AIRBUS, DAIMLER Consolidando niveles Nueva jornada de mercados al alza a ambos lados del Atlántico. En el Euro STOXX todos los sectores menos Farma y Telecom cerraron en positivo con Bancos y Seguros liderando las subidas. Por el lado macro, en España la tasa de desempleo subió menos de lo esperado hasta el 14,4% con 579.000 personas afectadas por ERTEs de la crisis del Covid-19. Mientras, P. Sanchez anunció u plan de confinamiento asimétrico po...

Rahul Hans

Fauji Cement: Q3 FY 20 review: Lower domestic sales erode profitability

Fauji Cement Company Ltd (FCCL) posted 3QFY20 NLAT of PKR210mn (LPS: PKR0.15), as compared to our estimate of PKR364mn (LPS: PKR0.26). This is the first quarterly loss by the company since 2QFY12, this narrowed 9MFY20 profitability to PKR272mn (EPS PKR0.20), down 89%yoy. The complete erosion of profits yoy is mainly due to (i) lower domestic sales, (ii) higher energy tariffs, and (iii) increased transportation cost. Key highlights: * Net sales decreased by 25% yoy to PKR3.9bn on account of d...

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...

Research Department

BANCO SABADELL RECOMMENDED PORTFOLIO WEEK 06 TO 13 MARCH 2019 (ANÁLISIS BANCO SABADELL)

BANCO SABADELL RECOMMENDED PORTFOLIO WEEK 06 TO 13 MARCH 2019 (ANÁLISIS BANCO SABADELL)

Research Department

CAMBIO DE CARTERAS BANCO SABADELL SEMANA 06 A 13 MARZO 2019 (ANÁLISIS BANCO SABADELL)

CAMBIO DE CARTERAS BANCO SABADELL SEMANA 06 A 13 MARZO 2019 (ANÁLISIS BANCO SABADELL)

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...

Luis Arredondo

FCC: 1Q’20 RESULTS AND CHANGE OF T.P. TO UNDER REVISION (ANÁLISIS BANCO SABADELL)

Has released 1Q'20 vs 1Q'19 Results Sales: € 1.485 Bn (+3.3% vs. +3.5% BS(e)); EBITDA: € 218.5 M (+5.1% vs. +9.5% BS(e)); EBIT: € 94.5 M (-4.4% vs. +4.7% BS(e)); Net Profit: € 28.1 M (-61.2% vs. -59.8% BS(e)); The 1Q’20 results came in below expectations on the operating level incl. the provisions made for Covid-19 and above excl. them. EBITDA on the quarter increased less than expected (+5.1% vs. +9.5% BS(e) despite sales being in line (+3.3% vs. +3.5% BS(e9) due to a € 20 M provision (~2% of EBITDA’20e) for Covid-19 (with no impact on cash). Excluding this effect, EBITDA would have come in ...

Research Department

INFORME DIARIO 29 ABRIL (ANÁLISIS BANCO SABADELL)

COMPAÑÍAS QUE APARECEN EN EL INFORME. ESPAÑA: ACS, BANKIA, DIA, AENA, ENCE, IAG, IBERDROLA, NH HOTELES, REPSOL, TELEFÓNICA, SECTOR TURÍSTICO EUROPA: AIRBUS, DAIMLER Consolidando niveles Nueva jornada de mercados al alza a ambos lados del Atlántico. En el Euro STOXX todos los sectores menos Farma y Telecom cerraron en positivo con Bancos y Seguros liderando las subidas. Por el lado macro, en España la tasa de desempleo subió menos de lo esperado hasta el 14,4% con 579.000 personas afectadas por ERTEs de la crisis del Covid-19. Mientras, P. Sanchez anunció u plan de confinamiento asimétrico po...

Rahul Hans

Fauji Cement: Q3 FY 20 review: Lower domestic sales erode profitability

Fauji Cement Company Ltd (FCCL) posted 3QFY20 NLAT of PKR210mn (LPS: PKR0.15), as compared to our estimate of PKR364mn (LPS: PKR0.26). This is the first quarterly loss by the company since 2QFY12, this narrowed 9MFY20 profitability to PKR272mn (EPS PKR0.20), down 89%yoy. The complete erosion of profits yoy is mainly due to (i) lower domestic sales, (ii) higher energy tariffs, and (iii) increased transportation cost. Key highlights: * Net sales decreased by 25% yoy to PKR3.9bn on account of d...

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...

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