Power: Performance hinged on T&D losses
Performance evaluation report released recently by NEPRA does not paint an improving picture of the DISCOS and KEL. Highlighting weaknesses both in the performance and reporting of data, the regulator noted that IESCO remained the only DISCO majorly confirming with the targets set by NEPRA. Overall T&D and recovery losses, though slightly improving, hit the national exchequer to an extent of PkR49bn and PkR83bn, respectively. Time frame for new connections also went down for most of the DISCOS and KEL too, where IESCO's performance again depicted a remarkable improvement, taking the outstanding customers percentage to 0%. Amongst other factors, including SAIFI, SAIDI, fault rate, safety, consumer service complaints, loadshedding hours, and voltage supply; NEPRA has excluded all but safety for the ranking purposes on the back of unrealistic and non-reliable data submitted by the DISCOS and KEL. This indeed reflects the dismal reporting by the public sector companies in the energy chain. Accordingly, IESCO stood on top of the chain with 74% marks, while KEL secured 6th position (maintaining its previous rating with 62% marks). Improving T&D losses situation can be beneficial for IPPs with high load factors and favorable positions on NTDC's merit list. KAPCO, in this regard, finds a sweet spot for itself, where our TP of PkR83.8/sh, provides an upside of 20.6% along with FY18E/19F D/Y of 13.3/13.3%.
K-Electric Limited is a Pakistan-based company engaged in the generation transmission and distribution of electric energy to industrial and other consumers. The Company covers an area of over 6,500 square kilometers and supplies electricity to all the industrial, commercial, agricultural and residential areas that come under its network. The Company provides electricity to customers in Karachi, Dhabeji and Gharo in the province of Sindh and Hub and Uthal, Vindhar and Bela in Baluchistan. It produces electricity from its own generation units with an installed capacity of 2,341 megawatts. The Company's transmission system comprises a total of approximately 1,249 kilometers of 220 kilovolts, 132 kilovolts and 66 kilovolts lines with over 60 grid stations and approximately 130 power transformers. Its power distribution is managed though distribution of the area into approximately four regions, which are divided into a total of approximately 30 distribution centers.
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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