FFBL_FFC & EFERT_Result Previews , (AKD Daily, Jan 18, 2021)
AKD Daily
FFBL, FFC & EFERT: Result Previews
- FFBL is expected to outshine the other players in 4QCY20 amidst 59% YoY uptick in DAP volumes, along with uptrend in local DAP prices, GIDC elimination and a sharp decline in finance cost resulting in unconsolidated NPAT of PkR2.7bn (EPS: PkR2.90) as opposed to NLAT of PkR3.50bn (LPS: PkR3.75) in the same period last year.
- EFERT is expected to post a sequential decline in 4QCY20 earnings (EPS: PkR3.42) based on a decline in urea and DAP offtakes, combined with higher effective tax rate of 31% in 4Q as opposed as 2% in 3QCY20.
- For FFC, the 4QCY20 earnings are expected to witness growth of 9/9% QoQ/YoY (EPS: PkR3.96). Earnings increase on a sequential basis is expected on the back of 17%QoQ improvement in urea offtake. On YoY basis, a steep 40% decline in finance cost is expected to outweigh flattish operating profits.
- EFERT and FFBL have recorded PkR1,300mn and PkR600mn provisioning in lieu of the sales tax adjustment disallowed. Relaxation on the same may result in the companies recording a reversal (EPS impact of PkR0.69/0.46 per share for EFERT/FFBL; amount not disclosed by FFC).
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.
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