Hub Power Co. Ltd.

Hub Power Company is a holding company. Through its subsidiaries, Co. is engaged as a power producer in Pakistan that focuses on developing, owning, operating and maintaining power stations. Co. supplies electricity to Water and Power Development Authority and National Transmission and Despatch Company under long term Power Purchase Agreements for its Hub and Narowal plants respectively.
  • TickerHUBC
  • ISINPK0065001015
  • ExchangePakistan Stock Exchange
  • SectorElectricity
  • CountryPakistan

Pakistan Power_Older IPPs at the back of the line, (AKD Daily, Jun 08, 2020) - Corrected

Pakistan Power: Older IPPs at the back of the line The release of PKR~201bn in additional stopgap liquidity in the power space completes the disbursement of PkR~400bn over FY19-20 by the current PTI-led Govt. where the widely circulated breakup of recipients (74/3 power generation/T&D companies) resulted in lesser funds for listed names (8/8) directly listed IPPs/holding companies). Adding additional descriptive data overlays, we show that 1) clearance for recent CPEC/RLNG projects (cumulative 49.6% of disbursement) has been prioritized, 2) thermal plants receiving higher EPP payments (EPP...

Yusra Beg

Pakistan utilities: Govt favours CPEC and renewable power plants in disbursement

As per channel checks, the Government of Pakistan has chalked out the disbursement plan for cPKR200.9bn worth of proceeds from the Energy Sukuk II. This Sukuk issue is government guaranteed, has a 10yr tenure with bi-annual profit payments (at 6M KIBOR minus 10bps), and will be subsequently listed on the PSX. This follows the first Sukuk issued in March 2019 (also PKR200bn size). The bulk of the disbursement (c59%) will be made to hydel plants, WAPDA and coal-fired IPPs. Note that many of the...

Muhammad Saad Ali ...
  • Yusra Beg

Pakistan Market: KSE-100 – Staging a bounce back

The KSE-100 bounced back in April 2020, rising 17% mom, after a sharp 23% decline in March. The rally was led by (i) government decision to ease off lockdown conditions for certain industries, (ii) an emergency 200bps cut in the policy rate, bringing it to 9.0%, and (iii) a massive 62% slump yoy in global oil prices. MSCI World / EM indices were up 11.0%/ 9.0% mom. Market activity, however, came down by 11% mom to US$50mn average daily traded value. Foreign selling narrowed to US$69mn (vs US$...

Yusra Beg

Hub Power: 9MFY20 analyst briefing takeaways

Hub Power Company held its3QFY20 Analyst Briefing today to discuss its financial performance. HUBC posted 3QFY20 consolidated NPAT of PKR7,201mn (EPS: PKR5.55), up 2.3x yoy, and 31%qoq. This takes 9MFY20 NPAT to PKR18,253mn (EPS PKR: 14.07), up 2.1x yoy. HUBC’s performance During the 9M period, the base plant, Narowal and Laraib, operated at a load factor of 8.6%, 37% and 40% respectively while showing 90%+ availability. Regarding project timelines, Thar Energy/TEL (330MW) will become operati...

Yusra Beg

Hub Power: Q3 FY 20 review – Higher indexation leads to earnings beat

HUBC posted 3QFY20 consolidated NPAT of PKR7,201mn (EPS: PKR5.55), up 2.3x yoy, and 31% yoy. This takes 9MFY20 NPAT to PKR18,253mn (EPS PKR: 14.07), up 2.1x yoy. This is a strong result, higher than our expected EPS of PKR5.01, primarily led by (i) higher gross profits (up 25% yoy) likely due to higher receipt of penal interest income and PKR devaluation vs. last year and (ii) strong profits from its associate (CPHGC). HUBC skipped dividends in line with expectations. Key highlights: * Net s...

The Hub Power Company Limited: 1 director sold

A director at The Hub Power Company Limited sold 500,000 shares at 78.589PKR and the significance rating of the trade was 74/100. 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. Th...

Pakistan Power_Older IPPs at the back of the line, (AKD Daily, Jun 08, 2020) - Corrected

Pakistan Power: Older IPPs at the back of the line The release of PKR~201bn in additional stopgap liquidity in the power space completes the disbursement of PkR~400bn over FY19-20 by the current PTI-led Govt. where the widely circulated breakup of recipients (74/3 power generation/T&D companies) resulted in lesser funds for listed names (8/8) directly listed IPPs/holding companies). Adding additional descriptive data overlays, we show that 1) clearance for recent CPEC/RLNG projects (cumulative 49.6% of disbursement) has been prioritized, 2) thermal plants receiving higher EPP payments (EPP...

Yusra Beg

Pakistan utilities: Govt favours CPEC and renewable power plants in disbursement

As per channel checks, the Government of Pakistan has chalked out the disbursement plan for cPKR200.9bn worth of proceeds from the Energy Sukuk II. This Sukuk issue is government guaranteed, has a 10yr tenure with bi-annual profit payments (at 6M KIBOR minus 10bps), and will be subsequently listed on the PSX. This follows the first Sukuk issued in March 2019 (also PKR200bn size). The bulk of the disbursement (c59%) will be made to hydel plants, WAPDA and coal-fired IPPs. Note that many of the...

Muhammad Saad Ali ...
  • Yusra Beg

Pakistan Market: KSE-100 – Staging a bounce back

The KSE-100 bounced back in April 2020, rising 17% mom, after a sharp 23% decline in March. The rally was led by (i) government decision to ease off lockdown conditions for certain industries, (ii) an emergency 200bps cut in the policy rate, bringing it to 9.0%, and (iii) a massive 62% slump yoy in global oil prices. MSCI World / EM indices were up 11.0%/ 9.0% mom. Market activity, however, came down by 11% mom to US$50mn average daily traded value. Foreign selling narrowed to US$69mn (vs US$...

Yusra Beg

Hub Power: 9MFY20 analyst briefing takeaways

Hub Power Company held its3QFY20 Analyst Briefing today to discuss its financial performance. HUBC posted 3QFY20 consolidated NPAT of PKR7,201mn (EPS: PKR5.55), up 2.3x yoy, and 31%qoq. This takes 9MFY20 NPAT to PKR18,253mn (EPS PKR: 14.07), up 2.1x yoy. HUBC’s performance During the 9M period, the base plant, Narowal and Laraib, operated at a load factor of 8.6%, 37% and 40% respectively while showing 90%+ availability. Regarding project timelines, Thar Energy/TEL (330MW) will become operati...

Yusra Beg

Hub Power: Q3 FY 20 review – Higher indexation leads to earnings beat

HUBC posted 3QFY20 consolidated NPAT of PKR7,201mn (EPS: PKR5.55), up 2.3x yoy, and 31% yoy. This takes 9MFY20 NPAT to PKR18,253mn (EPS PKR: 14.07), up 2.1x yoy. This is a strong result, higher than our expected EPS of PKR5.01, primarily led by (i) higher gross profits (up 25% yoy) likely due to higher receipt of penal interest income and PKR devaluation vs. last year and (ii) strong profits from its associate (CPHGC). HUBC skipped dividends in line with expectations. Key highlights: * Net s...

FFBL & HUBC: Result Previews,(AKD Daily, Oct 23, 2019)

Fauji Fertilizer Bin Qasim Ltd (FFBL) is expected to post 3QCY19 NLAT of PkR76mn (LPS: PkR0.08) on a standalone basis, vs. NPAT of PkR790mn (EPS: PkR0.85) in 3QCY18. This will take cumulative 9MCY19 NLAT to PkR2.0bn (LPS: PkR2.17) vs PkR203mn (LPS: PkR0.22) in the same period last year. The loss for the quarter is expected to be largely on the back of (i) 5.4ppt YoY lower gross margins of 12.6%, courtesy cost push inflation amid limited pass-on and (ii) 95% YoY higher finance cost due to additional borrowing for working capital amid policy rate hikes. On sequential basis, the losses are expect...

Ali Asghar Poonawala

Pakistan Strategy: Yields signal a road less travelled for markets, (AKD Daily, Aug 23, 2019)

Following the results of the latest PIB auction (cut-off yields for 5yr/10yr bonds falling 25/40bps to 13.55/13.15%), we draw conclusions for monetary policy based on the inverted yield curve (yield spread between 3yr & 10yr widened to 110bps vs. 70bps in the July) significantly weakening the case for further tightening Making the case for an inversion being positive for domestic equities, we highlight major characteristics of Pakistan’s financial markets (thinly traded debt market limits predictive power of yields) that negate many of the widely held international trends based on this phenom...

Muhammad Saad Ali ...
  • Raza Jafri

Pakistan (IMS): Mid-Year Strategy – towards a better H2 19

• The IMF Executive Board approved Pakistan’s three-year US$6bn EFF programme. If successful, the programme can lead to more equitable growth for Pakistan . • We are encouraged by Pakistan’s new-look macroeconomic policy making, which is now coherent and better coordinated. • Low investor confidence led the KSE-100 to hit its 2019td low earlier in the week. Confidence should now improve.

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Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

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