MLCF_3QFY22 Unconsolidated EPS clocked in at PkR1.08 - In-line with expectations
AKD, Off the Analyst's Desk
MLCF: 3QFY22 Unconsolidated EPS clocked in at PkR1.08 – In-line with expectations
- Maple Leaf Cement Limited (MLCF) announced its 3QFY22 result where company posted unconsolidated PAT of PkR1.2bn (EPS: PkR1.08), down 73/35% YoY/QoQ, taking 9MFY22 PAT to PkR3.6bn (EPS: PkR3.27), down 35%YoY. The result was in-line with our expectations.
- Company’s topline increased by 27% on YoY basis majorly due to increase in prices as manufactures looked to pass on the impact of increase in coal prices. However, sequentially, topline declined by 2% where impact of decrease in offtake more than set off the impact of increase in prices.
- Unconsolidated gross margin for 3QFY22 clocked in at 24% against our expectations of 23%. Margins declined on QoQ basis as increase in energy and power cost became a drag while on YoY basis, they improved by 1ppts.
- Other income declined significantly due to high base effect as company realized dividend from Maple Leaf Power in 3QFY21. Impact of increasing interest rates is becoming visible on company’s income statement with finance cost for 3QFY22 standing at PkR494mn, up 42/30% YoY/QoQ.
- Along with the result, MLCF announced a decision to buy-back upto 25mn shares at the spot/current share prices. The buy-back will be 5% of the free float of the company and is subject to approval from shareholders.
- We have a Buy stance on the stock with a TP of PkR57.8/sh, providing upside of 52%
AKD Research
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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