HUBC - 1HFY24 earnings up 44%YoY, (AKD Off the Analyst's Desk Feb 14, 2024)
HUBC |1HFY24 earnings up 44%YoY
The Hub Power Company (HUBC) announced its 2QFY24 result earlier today, where company reported consolidated quarterly earnings of PkR15.28bn (EPS: PkR11.78), changing by –11%QoQ/+15%YoY, above our expectations of EPS: PkR14.33/sh for the quarter. In addition to this, company also announced a cash dividend PkR4.0/sh for the quarter, taking total payouts during 1HFY24A to PkR9.0/sh (vs. PkR21.25/sh SPLY).
- Consolidated revenue for the quarter clocked in at PkR29.9bn, down by 11%QoQ as generation from subsidiaries/associate power plants remained on the lower end. Generation profile of the company’s power plants were as follows: CPHGC (64Gwh, ↓80%QoQ), TEL (572Gwh, ↓6%QoQ), NEL (7Gwh, ↓93%QoQ), TNPTL (436Gwh, ↓25%QoQ) and LEL (139Gwh, ↑1.2xQoQ).
- Share of profit from associates fell to PkR10.56bn during the quarter, down by 12%QoQ. Further, higher opex during the quarter, up 100%QoQ contributed to the modest earnings decline aswell.
- Finance costs stood flat at PkR6.98bn on a QoQ basis, however higher by 46%YoY. This is likely on the back of higher borrowings to finance the newly operational Thalnova plant alongside higher reliance on ST borrowings amidst tighter working capital situation during the period. Other income bolstered by 221%QoQ to PkR900mn as well, possibly amidst income from cash balances and receipt of LPS on trade receivables during the period.
- Inline without expectations, company also announced a dividend of PkR4.0/sh for the quarter, taking total payout for the first half to PkR9.0/sh (vs. PkR21.25/sh in SPLY).
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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