FFC_FATIMA & EFERT 3QCY17 Earnings Previews
FFC: 3QCY17 Earnings Preview
FFC is scheduled to announce its 3QCY17 financial results tomorrow (Oct 20'17), where we expect FFC's earnings to clock in at PkR2.03bn (EPS: PkR1.60) - down 22%YoY. This decline in earnings is expected on the back of GM coming off by 12pptsYoY to 19.6% (includes subsidy) on account of lower urea prices (down 8%YoY), higher discounts offered during the period and higher proportion of low margin DAP sales in sales mix (DAP offtake: up 11.6xYoY to 249k tons in 3QCY17). On a cumulative basis, we expect 9MCY17F earnings to stand at PkR5.85bn (EPS: PkR4.60) compared to PkR7.51bn (EPS: PkR5.90) in 9MCY16, down 22%YoY. Alongwith the result, we also expect an interim cash dividend of PkR1.30/sh. Having lost 24%CYTD, the stock currently trades at a CY17F PE of 11.3x where our Jun'18 TP of PkR96.9/sh offers an upside of 22% from current price level. BUY!
FATIMA: 3QCY17 Earnings Preview
FATIMA is scheduled to announce earnings for 3QCY17 on Monday (Oct 23'17), where we expect the company to post unconsolidated NPAT of PkR1.48bn (EPS: PkR0.70) vs. NPAT of PkR3.39bn (EPS: PkR1.62) in 3QCY16, depicting a decrease of 56%YoY/27%QoQ. The decline in earnings is expected on the back of: 1) 32%YoY/27%QoQ decrease in topline to PkR6.93bn reflecting -52%/-22%/-3%YoY movement in Urea/NP/CAN off-take to ~72k/79k/124k tons and 2) 6.4ptsYoY decline in GM to 49.2% in 3QCY17 on account of lower urea prices (down 8%YoY) and higher discounts offered during the period. On a cumulative basis, we expect 9MCY17F earnings to stand at PkR5.77bn (EPS: PkR2.75) compared to PkR6.37bn (EPS: PkR3.03) in 9MCY16, down 9%YoY. Having lost 19%CYTD, the stock currently trades at a CY17F PE of 6.5x where our Jun'18 TP of PkR45.11/sh offers an upside of 49% from current price level. BUY! .
EFERT: 3QCY17 Earnings Preview
EFERT is scheduled to announce its 3QCY17 financial results on Tuesday (Oct 24'17), where we expect EFERT's earnings to clock in at PkR2.63bn (EPS: PkR1.98) - down 8%YoY. The decline in earnings is expected on the back of on the back of GM coming off by 3.5pptsYoY to 27.5% (includes subsidy) on account of lower urea prices (down 8%YoY), higher discounts offered during the period and higher proportion of low margin DAP sales in sales mix (DAP offtake: up 84%YoY to 210k tons in 3QCY17). On a cumulative basis, we expect 9MCY17F earnings to stand at PkR6.73bn (EPS: PkR5.06) compared to PkR5.66bn (EPS: PkR4.25) in 9MCY16, up 19%YoY. Alongwith the result, we also expect an interim cash dividend of PkR1.0/sh. Having lost 11%CYTD, the stock currently trades at CY17F PE of 10.1x where our Jun'18 TP of PkR72.1/sh offers an upside of 19% from current price level. Buy!
Engro Fertilizers Limited is a Pakistan-based company, which is engaged in manufacturing, purchasing and marketing of fertilizers. The Company's brands include Engro Urea, Engro NP, Engro DAP, Zingro, Engro MOP, Engro SSP and Engro Zarkhez. Engro NP is the Company's fertilizer brand with Nitrogen and Phosphorous content in equal quantity. Engro DAP primarily contains Di-Ammonium Phosphate, and is imported by Engro EXIMP and marketed by the Company. Engro DAP is marketed in approximately 50 kilogram bags. Zingro is a micronutrient fertilizer, and is imported by Engro EXIMP and marketed by the Company. Engro Zarkhez has Nitrogen, Phosphorous and Potassium, and is primarily offered for sugar cane, fruit orchards, vegetables, potato and tobacco farming. Engro Envy is primarily offered to urban market for gardens, lawns, flower beds, fruit plants and ornamental plants. The Company is a subsidiary of Engro Corporation.
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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