NCL: Analyst briefing takeaways
NCL held its analyst briefing today to discuss FY21 results and future outlook of the company. To highlight, the company reported unconsolidated NPAT of PkR2.2bn (EPS: PkR9.23) in 1QFY22 vs. NPAT of PkR0.5bn (EPS: PkR2.0) in the same period last year. In FY21, earnings stood at PkR5.6bn (EPS: PkR23.3) vs NPAT of PkR0.3bn (EPS: PkR1.11). The company reported consolidated NPAT of PkR2.5bn (EPS: PkR10.5) in 1QFY22 vs. NPAT of PkR0.97bn (EPS: PkR4.04) in the same period last year. In FY21, earnings stood at PkR6.9bn (EPS: PkR28.56) vs NPAT of PkR1.9bn (EPS: PkR7.75).
Key highlights of the briefing were:
Nishat (Chunian) Limited. Nishat (Chunian) Limited is a Pakistan-based textile company. The Company is principally engaged in the business of spinning, weaving, dyeing, printing, stitching, processing, doubling, sizing, buying, selling and otherwise dealing in yarn, fabrics and made-ups made from raw cotton, synthetic fiber and cloth and to generate, accumulate, distribute, supply and sell electricity. The Company operates in four business segments, which include Spinning, which produces a range of yarn using natural and artificial fibers; Weaving, which produces a range of greige fabric using yarn; Processing and Home Textile, which is engaged in processing greige fabric for production of printed and dyed fabric and manufacturing of home textile articles, and Power Generation, which is engaged in generating and distributing power. The Company has a spinning production of approximately 75,000 tons of yarn, three million meters of greige fabric in weaving and four million meters of finished fabric per annum.
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.
AKD Daily Pakistan Textile:Local yarn margins to remain strong in FY22 Local yarn margins currently stand at PkR261.5/kg or +61% vs PkR214.4/kg or +55% FYTD due to robust demand of downstream players. Yarn export prices were trading at a discount of 26.1% to local yarn prices which clocked in at PkR661/kg vs export prices of PkR523/kg in 1QFY22). On the global front, decline in Vietnamese exports will help India and Pakistan to fulfill export order originating from robust apparel demand form US and EU where Pakistan’s 4MFY22 textile exports have reached an all-time high of US$6.04bn (+...
Nishat Chunian Ltd (NCL) has reported an unconsolidated NPAT of PKR2.2bn in 1QFY22 (EPS: PKR9.23), down 7% qoq, while up a sharp c.4.7x yoy. The 1Q result is lower than our expected EPS of PKR10.85, where the deviation stems from lower-than-expected gross margins. KEY HIGHLIGHTS FROM 1QFY22 RESULT: * Revenue has clocked in at PKR14.8bn, up c.10% qoq, broadly in line with our expectation, where higher sales of the Spinning segment (both local and export sales of yarn) were a key contributor, ...
AKD Daily Pakistan OMCs: OMC volumes increase by 2%YoY for Nov’21! OMC sales clocked in at 1.8mn tons for Nov’21, up 2%YoY while on MoM basis, sales witnessed a decline of 12%. The YoY increase was led by FO sales as power production on FO has increased while HSD posted a meagre increase of 1%YoY and MS remained flat for the month on YoY basis. Overall, OMC volumes have increased by 18%YoY for 5MFY22 where FO took the lead with an increase of 28%YoY while MS/HSD posted increase of 11/20%YoY. APL turned out to be the star performer for the month with an increase in total volumes of 19%Yo...
AKD Daily Pakistan Strategy_Nov’21 market review and outlook Drawing curtains to MSCI EM, KSE-100 closed Nov’21 at 45,072.4pts denoting a –ve 2.5% performance during the month while marking the highest volatility CYTD. Avg. volume for the month stood at 316.1mn shares compared to 279.7mn shares in Oct’21 with activity largely tilted towards mainboards (KSE/KSE-ALL volume at 29.1% vs. 26.7% FYTD). Factors at play were, i) Central Bank mounting on aggressive monetary tightening (150bps hike in policy rates and 1% increase in cash reserve requirements of Commercial Banks), ii) Pakistan reach...
AKD Daily Pakistan Steel: MUGHAL Relishing multiple growth fronts We update our investment case on Mughal Steel & Iron Industries (MUGHAL) post corporate briefing session and release of 1QFY22 accounts where we incorporate MUGHAL’s higher than expected sales volume, increasing our FY22 sales volume assumption to 350k tons from 330k tons earlier for long-rolled segment while for copper segment, we have increased our assumption to 8k tons from 7.5k tons earlier (EPS for FY22F increased to PkR19.0 form PkR17.2). The outlook for long rolled segment remains promising on the back of ongoing co...
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