FFC_1QCY21 EPS clocked in at PkR4.57 - (Inline expectation), (AKD, Off the Analyst's Desk, April 28, 2021)
AKD, Off the Analyst's Desk
FFC: 1QCY21 EPS clocked in at PkR4.57 - (Inline expectation)
- Fauji Fertilizer Company Ltd (FFC) announced 36% YoY higher NPAT of PkR5.82bn (EPS: PkR4.57) in 1QCY21, in line with our expectation.
- The YoY increase earnings is majorly attributable to 58%YoY increase in other income, courtesy dividend announced by AKBL and, increase in short term investment in anticipation of commencement of GIDC payments as per Supreme Court’s Aug’20 verdict.
- While revenues increased 5%YoY, gross margins increased 275bps YoY to 39% due to lower gas rates as compared to the same period last year.
- On sequential basis, the earnings declined 18%, due to absence of re-measurement impact of GIDC liability of PKR4.94bn recorded in the previous quarter (netting off one off impairment loss of PkR1bn; EPS impact PkR2.22).
- The company is also announced first interim cash dividend of PkR3.5/sh vs. PkR2.5/sh in the same period last year and our expectation of PkR3.0/sh. Our TP of PkR131/sh implies a Buy stance at last close.
AKD Research
Fauji Fertilizer is engaged in the manufacturing, purchasing and marketing of fertilizers including the investment in other fertilizer manufacturing operations. As of Dec 31 2004, Co. had a design capacity of 2,455,000 tonnes for urea production and 445,000 tonnes for DAP production.
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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