FFBL_2QCY22 Analyst Briefing Takeaways, (AKD Off the Analyst's Desk Jul 29, 2022)
AKD, Off the Analyst's Desk
FFBL: 2QCY22 Analyst Briefing Takeaways
FFBL has conducted its analyst briefing to comment on recent result and to shed some light on future outlook. Key takeaways from the meeting are as follows:
- Fauji Fertilizer Bin Qasim (FFBL) has reported PAT of PkR1.7bn (EPS: PkR1.38) vs PAT of PkR2.6bn (EPS: PkR2.02) in SPLY.
- Higher coal price and super tax dented company’s profitability for 2QCY22.
- In 1HCY22, industry’s urea offtake increased by 12% YoY, while DAP offtake witnessed a decline of 10% during the same period. The decline in DAP offtake is due to higher prices as farmers are moving towards more affordable options.
- International DAP CFR price for Pakistan clocked in at US$984/ton in 1HCY22 vs US$524/ton in SPLY.
- Due to better gas supply situation and lower inventory levels of urea, FFBL deferred its plant turnaround in Jan’22. Management is planning to have plant turnaround in Jan’23.
- Performance of FPCL, PMP and AKBL remained satisfactory during the period, while FFL and FML are still struggling. FFL witnessed a 7% growth in topline and management is working on multiple strategies to revamp dairy business. On QoQ basis, FML witnessed a reduction in loss and has significantly reduced its debt.
- Management is expecting urea market to clock in at 6.5mn tons (CY21: 6.3mn tons) in CY22, while DAP market is expected to clock in at 1.5mn tons (CY21: 1.8mn tons).
- Latest DAP import price for Pakistan was ~US$1,030/ton.
- Phos acid price for 3QCY22 is expected at ~US$1,860/ton.
- Company has recorded dividend income of PkR2.5bn (PkR1.93/sh) from PMP in June quarter.
- Commenting on news of gas price hike, management stated that they have no other option except increasing fertilizer price.
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.