Pakistan Power_HUBC_Projections incorporating macro-economic developments, (AKD Daily, Jun 23, 2022)
HUBC: Projections incorporating macro-economic developments
We revise our target price to PkR116/sh, implying an upside of 73% from last close and a
D/Y of 13%. In the budget FY23, the Govt. has announced that the tax exemption for IPPs
is going to have a maximum limit of 25 years which has been duly incorporated in our
model.
Our revised projections also incorporate a RFR of 15.5%, along with PkR/US$ parity of
198/210 for FY23/FY24. Moreover, Crude oil is expected at US$95/bbl in FY23 and US$90/
bbl for FY24, while the long-term average for Crude oil is expected at US$70/bbl.
In FY22, HUBC has seen a surge in its utilization for the Base and Narowal plants. Utilization
factor for 11MFY22 for base plant hovers at ~11%, while utilization for Narowal plant
is ~46%
We expect the company to post EPS of PkR27.0 in FY23, driven by the commencing of
operations for the TEL and TNPTL plants which are expecting to launch in 1QFY23 and
2QFY23 respectively. Furthermore, we expect a cumulative payout of PkR8.5/sh .
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.