ASTL_Riding the construction boom, (AKD Daily, Aug 17, 2021)
AKD Daily
ASTL: Riding the construction boom
- ASTL held its analyst briefing on Friday to apprise investors about company’s financial performance and future outlook. To recall, company posted PAT of PkR1.37bn (EPS: PkR4.61) in FY21 vs. net loss of PkR1.24bn in the same period last year.
- The phenomenal growth in FY21 came on the back of increased revenue, up 48%YoY to PkR39.2bn mainly attributable to i) impressive volumetric growth of 33%YoY where rebar sales clocked in at 375.7K tons (+33%YoY) in FY21, and ii) higher avg. retention prices of rebar +11%YoY.
- Earnings outlook for the company remains robust with ASTL targeting volumetric growth of +20%YoY to 420-450K tons rebar dispatches for FY22 through increasing North’s share to 50% which is already +5.31pptYoY in FY21 to 38%.
- We expect the sector including ASTL to remain in limelight on the back of government's continued support to construction sector. The company currently trades at FY22 P/E of 8.2x while 3-yr PEG stands at 0.45x with our TP of PkR64/sh providing a capital upside of 50% from last close.
AKD Research
Amreli Steels Limited is a Pakistan-based steel manufacturing company. The Company is engaged in the manufacture and sale of steel bars and billets. The Company offers a range of steel bars for all construction needs.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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