LUCK_Unconsolidated EPS clocked in PkR10.16 - Above expectations, (AKD, Off the Analyst's Desk, Oct 28, 2021)
AKD, Off the Analyst's Desk
LUCK: Unconsolidated EPS clocked in PkR10.16 – Above expectations
- Lucky Cement Limited (LUCK) announced 1QFY22 result where company posted unconsolidated PAT of PkR3.3bn (EPS: PkR10.2), up 48/38% YoY/QoQ. The result was significantly above our expectations as major deviation occurred in net sales where we believe lower than expected discounts played a part.
- Net sales clocked in at PkR16.9bn for 1QFY22, increasing by 18%YoY as overall local dispatches for the industry increased by 4.1%YoY however sequential increase in topline was witnessed despite a decrease in local dispatches as retail prices of cement improved.
- Gross margins clocked in at 27% against 28/27% for 1QFY21/4QFY21 where flattish performance on sequential basis despite improvement in prices was a consequence of increase in coal prices which have increased by 89.5% since Dec’20 and currently trade around USD165/ton.
- Distribution expenses decreased by 26%YoY where we believe decline in exports was the main reason as increase in coal prices have decreased the margin on clinker exports significantly. Administrative expenses on the other hand increased by 19/11% YoY/QoQ.
- Company also apprised on the ongoing projects where completion of 3.15mn tons expansion at Pezu is slated at Dec’22 while a commission date of LEPL has also been provided at Dec’21-end where the irritants disrupting the interconnection have been removed with the help of government.
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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