MLCF: FY19 Result Review, (AKD, Off the Analyst's Desk, Sep 20, 2019)
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Maple Leaf Cement (MLCF) announced results for FY19 where company posted PAT of PkR1.5bn (EPS: PkR2.47) on unconsolidated basis, down by 60%YoY. Gross margins clocked in at 12% against 17% in FY18 while effective tax rate stood at 11% for FY19 attributable to the recently commissioned expansion, in our view. On consolidated basis, PAT stood at PkR2.5bn (EPS: PkR4.14), down 46%YoY, as company realized income of PkR995mn on PBT level from its subsidiaries (mainly Maple Leaf Power Ltd.) For 4QFY19, company posted PAT of PkR315mn (EPS: PkR0.53), down 10/60% QoQ/YoY. Topline of MLCF increased by 20/28% YoY/QoQ which was partly attributable to dispatches in the region growing by 20/13% QoQ/YoY while 2.1mn tons of expansion being commissioned during the quarter also played a part. Interestingly, finance cost for 4QFY19 decreased by 14/13% QoQ/YoY despite commissioning of the new plant which might be due to early repayment of debt. Other charges increasing by 20xQoQ was another highlight of the result. However, we await clarity from management in this regard. Along with the result, company announce 85% right issue at a prices of PkR12/sh (premium of PkR2/sh) and final dividend of PkR0.5/sh. An amount of PkR6.01bn expected to be raised through right issue will be utilized to retire debt, as per the stock filing (total borrowings stood at PkR23bn as of Mar'19). ​ |
Maple Leaf Cement Factory is engaged in the production and sale of white cement, grey cement and clinker. Co. is a subsidiary of Kohinoor Textile Mills Limited.
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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