HBL_ABL & MLCF_Result Previews, (AKD Daily, Apr 20, 2021)
AKD Daily
HBL, ABL & MLCF: Result Previews
HBL 1QCY21 EPS likely to stand at PkR4.86/sh: Habib Bank Limited (HBL) is set to announce its 1QCY21 results today where we expect the bank to post an NPAT of PkR7.0bn (EPS: PkR4.86) compared to PkR4.1bn (EPS: PkR2.8) in the same period last year. On a sequential basis, earnings is expected to be +24.0% largely driven by, i) potential uptick in non funded income aided by capital gains (unrealized surplus on investments stands at PkR14.0bn as of Dec’20), ii) normalization in administrative costs (down 6.0%) which has historically been higher at year-end, and iii) cost of provisioning to decline to 0.18% in 1QCY21 vs. 0.22% in the previous quarter with the bank having already build adequate loss buffer (PkR6.4bn) whereas possible impairment reversals particularly in power sector stocks (27.8% share in total equity book) should further drag overall provisions. The result is likely to be accompanied by a dividend announcement of PkR1.5/sh.
ABL earnings to clock in at PkR3.78/sh in 1QCY21: Allied Bank Limited (ABL) is scheduled to hold its BoD meeting on Apr 22’21 to announce 1QCY21 results. In this regard, we expect the bank to record an earnings of PkR3.78/sh, +11.1%YoY/down 24.7%QoQ. Sequential downtick in earnings is attributable to normalization in provisioning costs (PkR273mn expense in 1QCY21E compared to a reversal of PkR1.4bn in the previous quarter) and marginal attrition in net interest income (down 6.6%QoQ). It overshadowed, i) potentially higher capital gains attributable to power sector stocks (the banking sector c. sold US$11.5mn in power sector in 1QCY21 culminating into a share of 52.7% of total net sell), resulting in total non funded income surging by 22.3%QoQ, and ii) normalization in administrative costs (down 6.2%QoQ). Together with the results, the bank is expected to announce a dividend of PkR2.25/sh
MLCF to post 3QFY21 consolidated EPS of PkR1.13: Maple Leaf Cement Factory (MLCF) is expected to announce its results today where we expect the company to post consolidated EPS of PkR1.13 for 3QFY21, up 16%QoQ while on unconsolidated basis, we expect the EPS to clock in at PkR0.90. Increase in earnings comes on the back of number of factors where paramount is the increase in prices which is expected to increase gross margins to 26.5% against 24.4% for 2QFY21. Even though coal prices increased significantly during the quarter, we expect MLCF to have utilized low cost coal from last quarter. Topline of the company is expected to increase by 7/40% QoQ/YoY to PkR9.7bn for 3QFY21 while finance cost for the quarter is expected to decrease by 51%YoY as the impact of decreasing interest rates finally sets in. We continue to like the stock where our TP of PkR80.1/sh provides upside of 71%.
AKD Research
Habib Bank Limited is engaged in commercial banking and asset management related services in Pakistan and overseas. The Bank's segments include Branch Banking, which consists of loans, deposits and other banking services to agriculture, consumer, small and medium-sized enterprise (SME), and commercial customers; Corporate Banking, which consists of lending for project finance, trade finance and working capital to corporate customers and it also provides investment banking services, including services provided in connection with mergers and acquisitions; Treasury, which consists of trading, fixed income, equity, derivatives and foreign exchange businesses, and it also includes credit, lending and funding activities with professional market counterparties; International Banking, which is engaged in monitoring and reporting purposes and consists of its operations outside of Pakistan, and Head Office/Others. It operates in Pakistan; Europe, Middle East and America, and Asia and Africa.
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.