ATBA - Analyst Briefing Takeaways, , (AKD Off the Analyst's Desk Oct 20, 2023)
AKD, Off the Analyst's Desk
ATBA - Analyst Briefing Takeaways,
Atlas Battery Ltd. (ATBA) held its analyst briefing today to update investors on their FY23 results and provide insights into the company's future outlook. To note, in FY23, the company reported earnings of PkR2.2bn (EPS PkR63), a substantial increase from PAT of PkR0.7bn (EPS PkR20) in the previous year.
- The remarkable growth in earnings is primarily attributed to an expansion in volumetric sales and a notable increase of over 50% in product prices throughout the past year.
- A significant portion of ATBA's revenue, around 90-95%, is derived from the replacement market, with the remaining coming from OEMs. In terms of customer distribution, 55-60% of sales cater to UPS and solar, while the rest is dedicated to the automotive sector.
- The notable rise in last year's inventory is linked to the escalation in raw material costs and an increase in imported raw material inventory holding period from 2-3 months to 4-6 months as a precaution against import restrictions.
- Of the total raw materials, approximately 85% are locally sourced, with the remaining 15% imported. "Lead," a crucial raw material, is predominantly procured locally. However, local lead prices are influenced by international commodity price volatility and exchange rate fluctuations.
- ATBA maintains its focus on solar-compatible batteries and endeavors to adhere to international standards to minimize wastage and claims.
- Over the past year, the company introduced five new batteries, comprising two for automotive use and three for bikes. Moreover, ATBA boasts a comprehensive range of maintenance-free batteries for local vehicles, spanning from 660cc to 3,500cc.
- The company is dedicated to becoming a market leader by emphasizing volume growth and establishing a nationwide exclusive network. As of now, ATBA holds the second position in terms of market share, trailing “Osaka”.
AKD Research
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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