KAPCO & HUBC: 1QFY19 Result Previews
1QFY19 financial results for companies in our power universe will be released next week, with KAPCO’s BoD scheduled on Oct 23’ 18, to be followed by HUBC on Oct 26’ 18. Our expectation for the combined profitability is PkR5.93bn vs. PkR4.56bn in 1QFY18, up largely due to ~18% PkR devaluation against the US$ since Dec’18 amidst elevated interest rate environment.
KAPCO is forecasted to post 1QFY19 earnings of PkR2.53bn (EPS: PkR2.87), an uptick of 15.9%YoY, coming from 1) 6.1%YoY increase in gross profits, and 2) 63% rise in other income as higher interest rate environment gets KAPCO elevated rates on overdue receivables. On the other hand, finance cost is expected to shoot up by 33%YoY mainly due to higher short term borrowings.
HUBC’s earnings (attributable to owners) for 1QFY19 is approximated at PkR3.40bn (EPS: PkR2.94), up 42.8%YoY. Improvement in the bottom-line stems from higher gross profits (+24.8%YoY), while finance costs largely remained at previous levels as the base plant operated at a mere 13% capacity factor, thereby lowering working capital needs. Accompanying the result could be an interim payout of PkR1.5/sh.
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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