MLCF_3QFY21 consolidated EPS clocked in at PkR1.11, (in-line with expectation), (AKD, Off the Analyst's Desk, April 21, 2021)
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AKD Research - Off the Analyst's Desk |
April 21, 2021 |
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MLCF: 3QFY21 consolidated EPS clocked in at PkR1.11 (in-line with expectation) |
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· Maple Leaf Cement announced results for 9MFY21 where company posted PAT of PkR2.8bn (EPS: PkR2.59) against LAT of PkR2.7bn (LPS: PkR2.48) for 9MFY20. For 3QFY20 consolidated PAT clocked in at PkR1.2bn (EPS: PkR1.11) against consolidated LAT of PkR960mn (LPS: PkR0.87) while on sequential basis, earnings for the quarter improved by 14%QoQ. The result was in line with our expectations. · Topline of the company improved by 37/4% YoY/QoQ to PkR9.5bn for 3QFY21 as prices in North averaged at PkR594/bag against PkR504/bag for 3QFY20 while additional uplift was provided by robust demand growth. Consequently, gross margins for the quarter also improved to 26.8% against 24.4/1.3% in 2QFY21/3QFY20. · Operating expenses for the quarter increased by 64/22% QoQ/YoY as overall dispatches improved while finance cost declined by 56%YoY as the effect of decline in interest rate sets in. Tax rate for the quarter stood at 23.3% against 22.5% for 2QFY21. · On unconsolidated basis, 3QFY21 PAT clocked in at PkR4.4bn (EPS: PkR4.02) against LAT of PkR1.3bn for 3QFY20 while sequentially, it improved by a massive 5.5x majorly on account of high other income where we believe dividend from its subsidiary, Maple Leaf Power, played a part. · We continue to like the stock where increase in dispatches and prices is expected to result in earnings increasing with a CAGR of 37% for FY21-24. The stock currently trade at FY22 P/E of 6.9x where our TP of PkR80.1/sh provides an upside of 73%. |
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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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