LUCK_FY20 Analyst Briefing Takeaways, (AKD Daily, Sep 01, 2020)
AKD Daily
LUCK: FY20 Analyst Briefing Takeaways
- Lucky Cement Ltd. (LUCK)’s FY20 unconsolidated PAT clocked in at PkR3.34bn (EPS: PkR10.34) against PkR10.54bn (EPS: PkR32.44) recorded in FY19. For 4QFY20, PAT clocked in at PkR409mn (EPS: PkR1.26), down 81/59% YoY/QoQ. The result was below our expectation.
- LUCK conducted its analyst briefing to discuss FY20 results where company attributed the decline in other income for 4QFY20 to absence of dividend from ICI while interest income also decreased. Providing guidance for FY20, management expects local cement demand growth to remain close to long term CAGR.
- Company’s other ventures posted an impressive performance in FY20 where KLM’s Sportage witnessed a spectacular response in its first year, taking topline to PkR33.8bn while EBITDA for cement operations in Iraq/Congo increased by 44/86%YoY for FY20.
- We maintain LUCK as our preferred play from the sector where our Jun'21 TP of PkR693.5/sh provides an upside of 13%. Company has a strong balance sheet which will help in fulfilling the financing commitments while the recently commissioned line will help in protecting market share.
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