MLCF_2QFY21 EPS clocked in at PkR0.97, (AKD, Off the Analyst's Desk, Feb 25, 2021)
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AKD Research - Off the Analyst's Desk |
February 25, 2021 |
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MLCF: 2QFY21 EPS clocked in at PkR0.97 (Significantly above expectation) |
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· Maple Leaf Cement Factory (MLCF) announced result for 1HFY21 where company posted consolidated PAT of PkR1.6bn (EPS: PkR1.48) against LAT of PkR1.8bn for 1HFY20 (LPS: PkR2.42) while for 2QFY21, consolidated PAT stood at PkR1.1bn (EPS: PkR0.97) against LAT of PkR785mn (LPS: PkR1.01) for 2QFY20. · On unconsolidated basis, PAT stood at PkR1.1bn (EPS: PkR1.01) for 1HFY21 against loss of PkR2.5bn (LPS: PkR2.23) while for 2QFY21 PAT clocked in at PkR799mn (EPS: PkR0.73), up 1.6xQoQ. The result was significantly above our expectation. · Gross margins for 2QFY21 clocked in at 22% against our expectation of 18% as efficient procurement of coal resulted in lower than expected fuel costs while we believe company has also reduced its discounts. · Company's finance cost declined 58/21% YoY/QoQ where dual impact of decreased short term borrowings and decline in interest rates played its part, in our opinion. Company's operating expenses decreased by 2%YoY where distribution cost witnessed a decline of 15%YoY while administrative expenses increased by 16%YoY. · With the result, company also announced a brownfield expansion of 8000tpd (annual capacity of 2.4mn tons) along with a WHR. Total cost outlay for the project stands at PkR18.5bn and the project is expected to be completed within 18 months from the date of opening the letter of credit. · We maintain a Buy stance on the stock with our TP of PkR80/sh. |
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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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