LUCK_3QFY22 unconsolidated EPS clocked in at PkR17.12 - Higher than expectation
AKD, Off the Analyst's Desk
LUCK: 3QFY22 unconsolidated EPS clocked in at PkR17.12 - Higher than expectation
Lucky Cement Ltd. (LUCK) announced its result for 3QFY22 where company announced unconsolidated PAT of PkR5.5bn (EPS: PkR17.12), up 122%YoY while declining by 23% on YoY basis. For 9MFY22, company announced unconsolidated PAT of PkR11.7bn (EPS: PkR36.14).
- The result was above our expectation on account of higher other income where company recorded PkR4.1bn against our expectation of PkR1.3bn mainly due to a dividend of PkR1.1bn from Lucky Motors while company also recorded a PkR1.5bn fee for provision of technical services.
- Revenue for 3QFY22 stood at PkR21.3bn, up 25/3% YoY/QoQ despite decline in local dispatches as export sales provided support while increase in prices also mitigated the impact. For 9MFY22, unconsolidated revenue stood at PkR47.1bn.
- Gross margins for 3QFY22 stood at 22% against our expectation of 23%. On sequential basis, they declined by 1ppts where delayed pass on of increasing energy prices imparted its impact while on YoY basis, gross margins slipped by 14ppts.
- Company also apprised on ongoing projects where brownfield expansion in North is on track to be commissioned in Dec’22 and more than half of materials related to civil, mechanical and electrical works has been delivered on site.
- We have a Buy stance on the stock with a TP of PkR1021.6/sh.
AKD Research
Lucky Cement is a cement manufacturing and distribution company which is based in Pakistan. Co. is engaged in the manufacture and sale of Ordinary Portland, Sulphate Resistant, and Slag Cement. Co.'s brand names included Lucky Cement, Lucky Star, Lucky Gold, Chairman, and Lucky Sulphate Resistant Cement. Co. maintains production facilities in Pezu (Production capacity: 13,000 tons per day) as well as in Karachi (Production capacity: 8,000 tons per day). In addition, Co. is engaged in developing export markets for bulk loose cement from Pakistan to the Gulf Countries, African Markets, and Far East Region including Nepal & Sri Lanka.
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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