Power_1QFY18 generated units rise 15%YoY
Dispatching a total of 11.23TwH units of electricity for the month of Sep'17, total units purchased by CPPA-G in 1QFY18 cumulates to 35.91TwH, recording a 15.12%YoY jump. Average cost per unit for the quarter settled at PkR5.51/KwH, against PkR4.27/KwH, up 28.8%YoY pushed by higher generation cost during the month of Sep'17. Generation cost inched up mainly due to: 1) 6.6% higher share of production on R-LNG where costs are up 26%YoY as Intl oil prices are significantly higher and 2) 4.7% lower production on hydel based plants. Moreover, inauguration of Chashma Nuclear complexes III & IV, RLNG based Bhikki, Balloki & QATPL and Jamshoro/Sahiwal coal fired plants have cumulatively added 5,732MW (at 28,089MW as of Sept'17) to the generation base in 1QFY18 leading to 1.9/3.5%YoY higher share of production from Nuclear/Coal based plants. Environmental concerns (e.g. smog) can reduce power generation on RFO & HSD in favor of RLNG based generation in the approaching winter months. On the back of these developments, multi-fuel fired characteristics of KAPCO cannot be understated, severely limiting offtake risk. The scrip offers an attractive 13.3/12.9% D/Y for FY18/19F with upcoming developments on 17.37% stake acquisition in HUBC (along with its upcoming projects via: CPHGC and TEL) to unfold upside potential.
Hub Power Company is a holding company. Through its subsidiaries, Co. is engaged as a power producer in Pakistan that focuses on developing, owning, operating and maintaining power stations. Co. supplies electricity to Water and Power Development Authority and National Transmission and Despatch Company under long term Power Purchase Agreements for its Hub and Narowal plants respectively.
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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