Lucky Cement Ltd.

Lucky Cement is a cement manufacturing and distribution company which is based in Pakistan. Co. is engaged in the manufacture and sale of Ordinary Portland, Sulphate Resistant, and Slag Cement. Co.'s brand names included Lucky Cement, Lucky Star, Lucky Gold, Chairman, and Lucky Sulphate Resistant Cement. Co. maintains production facilities in Pezu (Production capacity: 13,000 tons per day) as well as in Karachi (Production capacity: 8,000 tons per day). In addition, Co. is engaged in developing export markets for bulk loose cement from Pakistan to the Gulf Countries, African Markets, and Far East Region including Nepal & Sri Lanka.
  • TickerLUCK
  • ISINPK0071501016
  • 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

Lucky Cement: 3QFY20 review: In line with expectations; pricing indiscipline hurts bottom line

Lucky Cement (LUCK) has posted an unconsolidated NPAT of PKR999mn (EPS: PKR3.09) for 3QFY20, down 64% yoy but up 2% qoq, in-line with our projected NPAT of PKR981mn (EPS: PKR2.89). This takes 9M EPS to PKR9.08, down 65% yoy. Though the GMs of 12% in 3Q are the highest among all cement results so far, they are the lowest by LUCK in recent times. On a consolidated basis, LUCK reported a bottom-line of PKR2.36bn (EPS: PKR6.0), down 34% yoy This was due to (i) dismal core cement operations, and, ...

Masroor Hussain Zaidi

LUCK: Higher other income and lower ETR improves net margin

Lucky Cement Limited (LUCK) announced its result for 3QFY20 wherein the company reported a Profit after Tax of PKR 999mn (EPS: PKR 3.09) compared to PKR 981mn (EPS: PKR 3.03) in the previous quarter. This result was broadly in line with our expectations.   On cumulative basis, the company reported profit after tax of PKR 2,936mn posting a 65% decline from same period last year. This sharp decline in profitability is mainly attributable to i) drop in local cement dispatches, ii) lower cement prices and ii) higher energy cost.    The company’s overall volume declined by 2.6% to 5.8mn Tons duri...

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...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

EM Remains In Favor; Shanghai Comp Breaking Out A weakening US dollar (DXY) continues to be a major tailwind for both EM equities and the commodity Sectors. Improving price and RS trends for these risk-on areas of the market are among the many characteristics consistent with historical bull markets. Therefore, we continue to label this a bull market and we believe global equities are still in the early innings of a broad-based advance. • EM Equities. Price action has remained weak for the US dollar (DXY), which has been great news for EM equities. As outlined in our 12/19/19 Int'l Compass an...

Lucky Cement Ltd: 1 director bought

A director at Lucky Cement Ltd bought 1,150,000 shares at 479.690PKR and the significance rating of the trade was 100/100. 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...

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

Lucky Cement: 3QFY20 review: In line with expectations; pricing indiscipline hurts bottom line

Lucky Cement (LUCK) has posted an unconsolidated NPAT of PKR999mn (EPS: PKR3.09) for 3QFY20, down 64% yoy but up 2% qoq, in-line with our projected NPAT of PKR981mn (EPS: PKR2.89). This takes 9M EPS to PKR9.08, down 65% yoy. Though the GMs of 12% in 3Q are the highest among all cement results so far, they are the lowest by LUCK in recent times. On a consolidated basis, LUCK reported a bottom-line of PKR2.36bn (EPS: PKR6.0), down 34% yoy This was due to (i) dismal core cement operations, and, ...

Masroor Hussain Zaidi

LUCK: Higher other income and lower ETR improves net margin

Lucky Cement Limited (LUCK) announced its result for 3QFY20 wherein the company reported a Profit after Tax of PKR 999mn (EPS: PKR 3.09) compared to PKR 981mn (EPS: PKR 3.03) in the previous quarter. This result was broadly in line with our expectations.   On cumulative basis, the company reported profit after tax of PKR 2,936mn posting a 65% decline from same period last year. This sharp decline in profitability is mainly attributable to i) drop in local cement dispatches, ii) lower cement prices and ii) higher energy cost.    The company’s overall volume declined by 2.6% to 5.8mn Tons duri...

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,

Market remained lackluster during the week, influenced by lack of participation and no significant trigger, closing the week at 33,672pts, down 1.5%WoW. During the week, average daily turnover declined to 51mn shares, down 41% WoW while on Thursday, market witnessed second lowest volumes of 5 years (~40mn shares). Increase in fertilizer prices created some positive sentiment in the sector and brought it amongst the top performers while majority of other sectors remained dreary – in-line with the overall sentiment. Key news flows during the week included: 1) State Bank of Pakistan (SBP) receivi...

Ford Equity International Rating and Forecast Report

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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