BIFO - FY23 Analyst Briefing Takeaways, (AKD Off the Analyst's Desk Nov 22, 2023)
AKD, Off the Analyst's Desk
BIFO - FY23 Analyst Briefing Takeaways
BIFO held its analyst briefing earlier today to discuss their FY23 financial performance and future outlook. Following are the key highlights of the briefing:
- To recall, company posted earnings of PkR13.1/sh in FY23 vs. PkR5.34/sh in SPLY, an increase of 1.5xYoY. The said increase is primarily attributable to increase in sales volumes and improvement in gross margins.
- Company’s exports have doubled in FY23 owing to supplies made to mining endeavors in Baluchistan, i.e; Duddar and Saindak (classified as exports due to mining location being declared as export processing zones).
- Overall, significant increase in the supplies was made in the Oil & Gas and Mining sector in FY23.
- On the Thar coal mining end, BIFO’s management stated that were in touch with the said mining venture but nothing significant has materialized since Thar is only using imported products.
- Meanwhile, company is in touch with other coal and salt mining projects in the country. Additionally, company is in touch with other upcoming mining ventures as well, i.e NRL (Natural Resources (Pvt) Ltd.).
- Furthermore, company is actively perusing CPEC infrastructure development and Hydropower projects to enhance its market share.
- Management apprised that they are in touch with the local office for Reko Diq and if the mining venture matures, it would enhance company volumes.
- To enhance the capacity utilization, company is making efforts to improve its exports and exploring opportunities in Africa and Europe.
- Company has successfully made supplies to North Sudan in previous year, however due to eruption of war, receipts of Export proceeds were delayed. Management stated that transfer of funds have been initiated and expects to receive payment shortly.
- As per management, ~70-80% of the company’s raw material is imported, meanwhile, company is trying to increase their reliance on local resources to reduce their dependency on imported raw material without compromising the finished products.
- Going forward, management expects huge growth in topline and profitability
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.