AKD Securities Limited - Cherat Cement Co. (CHCC) Pakistan Cement: Profitability for 2QFY21 increased by 9.8x/2.1xYoY/QoQ,(AKD Daily, Mar 02, 2021)

Report

AKD Securities Limited

Shahrukh Saleem

EUR 9.31 For Business Accounts Only

Pakistan Cement: Profitability for 2QFY21 increased by 9.8x/2.1xYoY/QoQ,(AKD Daily, Mar 02, 2021)

AKD Daily

Pakistan Cement: Profitability for 2QFY21 increased by 9.8x/2.1xYoY/QoQ

AKD Cement universe posted a stellar increase in profitability of 9.8x/2.1x YoY/QoQ as profit after tax stood at PkR6.6bn for 2QFY21 while gross margins stood at 24% against 11/19% for 2QFY20/1QFY21.
Profitability for 1HFY21 stood at PkR9.8bn against a loss of PkR615mn as gross margins improved to 22% from 9% in 1HFY20 on the back of players engaging in severe price competition during 1HFY20 in the backdrop of North witnessing a significant increase in capacity.
Company wise, LUCK continues to maintain the status of lowest cost producer with highest gross margins from our universe of 29%. On the other hand, major surprise was posted by CHCC with gross margins of 26% while company also announced an interim dividend of PkR1/sh.
We maintain our optimism on the local cement sector as local cement demand remains upbeat (up 17% for 7MFY21) which is expected to continue supporting pricing power of local players as they look to pass on the impact of increasing coal prices. MLCF (TP: PkR80.1/sh), DGKC (TP: Pk209.7/sh) and LUCK (TP: PkR1289.5/sh) stand as our top picks from the AKD cement universe.

AKD Research

02/03/2021 EN

Underlying

Cherat Cement Co.

Co. is engaged in the manufacturing and marketing of cement and clinker.

See profile

PK0029801013 Pakistan Stock Exchange Pakistan

Provider

AKD Securities Limited

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.

See profile

Analysts

Shahrukh Saleem

Other Reports on these Companies

AKD Securities Limited

CHCC_4QFY23 Result Review ? Higher taxation hit earnings, (AKD Off the Analyst's Desk Sept 5, 2023)

Cherat Cement Company Limited (CHCC) announced their 4QFY23 result where the company posted PAT of PkR93mn (EPS: PkR0.5), a decline of 93%/91% QoQ/YoY. The decline is majorly on the back of declining margins and higher taxation. Net Sales clocked in at PkR8.6bn for 4QFY23, down by 7%/9% QoQ/YoY because of decline in the company offtakes (↓ 8%QoQ). Overall, for the full year, topline increased by 17%YoY, driven by a 42%YoY increase in retention prices, which offset a 19% annual decline in sales volumes. Gross margins clocked in at 21.4% vs. 25.9%/28.5% for 3QFY23/SPLY, possibly attributa...

EUR 9.31

September 5, 2023 September 5, 2023 2 EN

Tellimer

Cherat Cement: 3QFY23 Review: Low volumes and margins hurt profit

Cherat Cement (CHCC) has posted 3QFY23 NPAT of PKR1.3bn (EPS: PKR6.55), up 19% YoY but down 18% QoQ. The result came in lower than our expected earnings of PKR1.6bn (EPS: PKR8.17), majorly due to lower than expected GMs. The company has announced interim cash dividend of PKR1.50/sh. This takes 9MFY23 NPAT to PKR4.3bn (EPS: PKR22.19), reflecting a growth of 25% YoY. KEY HIGHLIGHTS OF 3QFY23 RESULT: * Net revenues have increased to PKR9.3bn, up 19% YoY but down 11% QoQ. Despite the reduction i...

PREMIUM

April 27, 2023 April 27, 2023 1 EN

Tellimer

Cherat Cement: 2QFY23 Review: Elevated topline lead to earnings beat

Cherat Cement (CHCC) has posted 2QFY23 NPAT of PKR1.6bn (EPS: PKR8.01), up 32% YoY and 5% QoQ. The result came in higher than our expected earnings of PKR1.2bn (EPS: PKR6.15). Higher-than-expected revenue was the major deviation. This takes 1HFY23 NPAT to PKR3.0bn (EPS: PKR15.64), depicting a growth of 28% YoY. Key highlights of 2QFY23 result: * Net revenues has increased to PKR10.4bn, up 37% YoY and 15% QoQ, this is due to a large jump in local cement prices. We expected a topline of PKR8.6...

PREMIUM

February 15, 2023 February 15, 2023 1 EN

KOHC 3QFY24 Result Review - Lower offtakes lead to profit decline (AKD Off the Analyst's Desk Apr 25, 2024)

AKD, Off the Analyst's Desk KOHC 3QFY24 Result Review - Lower offtakes lead to profit decline Kohat Cement Company Limited (KOHC) announced its 3QFY24 financial results earlier today, where the company posted earnings of PkR2.1bn (EPS: PkR10.5), a decline of 7%QoQ, primarily attributable to the lower offtakes. The result marginally exceeded our expectations amidst higher than expected gross margins. Company’s topline witnessed an 18%QoQ/15%YoY decline to PkR8.5bn compared to PkR10.4bn in the quarter before. The said quarterly decrease is primarily due to a 18%QoQ fall in the sales volu...

EUR 9.31

April 26, 2024 April 26, 2024 2 EN

Usama Rauf

Usama Rauf

CHCC_3QFY24 Result Review —Gross margin contraction leads to earnings decline(AKD Off the Analyst's Desk Apr 25, 2024)

AKD, Off the Analyst's Desk CHCC_3QFY24 Result Review —Gross margin contraction leads to earnings decline Cherat Cement Company Limited (CHCC) announced its 3QFY24 results, where the company posted earnings of PkR1.2bn (EPS: PkR6.4) vs. PAT of PkR1.9bn (EPS: PkR9.6) in the quarter before, down 33%QoQ (in line with our expectations of PkR6.4/sh). The said quarterly earnings drop is majorly attributable to the gross margins contraction and lower sales volume. Net Sales were reported at PkR8.6bn vs. PkR10.2bn in 2QFY24 (↓33%QoQ/2%YoY). The quarterly decline is mainly due to a 14% quar...

EUR 9.31

April 26, 2024 April 26, 2024 2 EN

Team AKD Research

Team AKD Research

FFBL 1QCY24 Result Review—Increased earnings amidst normalized tax charge, (AKD Off the Analyst's Desk Apr 25, 2024)

AKD, Off the Analyst's Desk FFBL 1QCY24 Result Review—Increased earnings amidst normalized tax charge, Fauji Fertilizer Bin Qasim Limited (FFBL) announced its 1QCY24 result today, where the company posted earnings of PkR4.3bn (EPS: PkR3.3) compared to PkR4.0bn (EPS: PkR3.1) in 4QCY23, an increase of 6%QoQ. The said earnings growth is predominantly attributed to a normalized tax charge during the quarter, in contrast to one-time tax adjustments in the preceding quarter. The result come in line with market and our expectations. Topline clocked in at PkR46.5bn vs. PkR56.2bn in the preceding ...

EUR 9.31

April 25, 2024 April 25, 2024 2 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Pakistan Cement: Profitability for 2QFY21 increased by 9.8x/2.1xYoY/QoQ,(AKD Daily, Mar 02, 2021)

CHCC_4QFY23 Result Review ? Higher taxation hit earnings, (AKD Off the Analyst's Desk Sept 5, 2023)

Cherat Cement: 3QFY23 Review: Low volumes and margins hurt profit

Cherat Cement: 2QFY23 Review: Elevated topline lead to earnings beat

KOHC 3QFY24 Result Review - Lower offtakes lead to profit decline (AKD Off the Analyst's Desk Apr 25, 2024)

CHCC_3QFY24 Result Review —Gross margin contraction leads to earnings decline(AKD Off the Analyst's Desk Apr 25, 2024)

FFBL 1QCY24 Result Review—Increased earnings amidst normalized tax charge, (AKD Off the Analyst's Desk Apr 25, 2024)

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe