Flash Note: Attock Cement Pakistan Limited - Higher than Expected Tax Credit
- Attock Cement Limited (ACPL) announced its 4QFY18 financial result where it posted pre-tax earnings of PKR523mn (down 52%YoY/40%QoQ) due to decline in GMs to 25%, down 13pptsYoY and 5pptsQoQ. Net Earnings, however jumped by 2.2xYoY/2.8xQoQ to PKR2.57bn (EPS: PKR22.5) on the back of Tax Credit which we estimate at PKR2.3bn (PKR19.9/share). During FY18, pre-tax earnings declined by 30%YoY to PKR3.12bn as GMs declined by 9pptsYoY to 31%.
- While the reported PBT is in-line with our projections, the Bottomline was above our EPS forecast of PKR26.6, due to higher than expected Tax Credit on BMR and reduction in Deferred Tax Liability on change in corporate tax rates.
- Disregarding the impact of Tax Credit, we estimate the EPS of the company to stand at PKR18.5 for FY18, down 30%YoY.
- During 4QFY18 / FY18, topline grew by 36%YoY / 15%YoY, led by 44%YoY / 18%YoY growth in total offtakes mainly due to revival in exports (up 2xYoY/ 30%YoY). On QoQ basis, revenue also grew by 4% on the back of 79%QoQ jump in exports.
Attock Cement Pakistan Ltd. Attock Cement Pakistan Limited is principally engaged in manufacturing and sale of cement. The Company is also engaged in exporting clinker and cement both in bags and bulk to the United Arab Emirates (UAE), South Africa, Iraq, Sri Lanka and many other countries. The Company also has the facility of supply of cement in bulk and also produces the low alkali cement for some of its market. Its products include Ordinary Portland Cement (OPC), which is a product under the Falcon Brand used in all types of general construction. OPC can be used in concretes, mortars, grouts and premix concrete. It also offers Sulfate Resistant Cement (SRC), which is sold under falcon Brand and is used in sea and coastal areas and provides resistance to chemical attack from sulfates and dissolved salts present in sea and saline waters. The Company's Falcon Block Cement product is offered for block and precast slab makers.
Elixir Securities Pakistan is a Corporate Member of the Pakistan Stock Exchange & Pakistan Mercantile Exchange and is one of the leading securities brokerage & investment banking firms in Pakistan, established since 1994. Our principal business activities include all aspects of Pakistan’s Capital Markets covering Securities Brokerage (Equities, Fixed Income and Commodities), Corporate Finance & Capital Markets Advisory (M&A, ECM, DCM) and Investment Research (Economics & Securities). We are one of the most active & aggressive Broker-Dealers in Pakistan executing trades for most of the Top 20 Global Brokers with unmatched corporate access credentials and have successfully advised and closed on some landmark ECM transactions in the history of Pakistan including the largest deal in frontier Asia (USD 1.02 billion). Our Clients include foreign and domestic financial institutions (Banks, Asset Managers, Insurance Companies, Pension Funds) corporates, HNWI’s and retail investors. This is supported by a very strong and independent research capability, which is quoted regularly in both local and international media.
Elixir Securities Pakistan is the proud recipient of many awards & recognitions including AsiaMoney’s Brokers Poll 2017, FinanceAsia’s Pakistan Best Investment Bank and Best Broker 2017, The Asset’s Best Brokerage House in Pakistan 2016, Asiamoney’s “Best Domestic Equity House 2015 in Pakistan”, The Asset Triple A Country Awards 2015 - Pakistan “Deal of the Year” and “Deal of the Year-Highly Commended”, CFA Society of Pakistan Awards for Year 2015 “Best Research Analyst (1st Rank), CFA Society of Pakistan Awards for Year 2014 “Best Research Analyst (1st Rank)”, “Best Trader” 2nd Runner-up (3rd Rank), The Asset Triple A Country Awards 2014’s “Best Deal in Pakistan” and Capital Finance International’s nomination for “Best Equity Research in Pakistan 2010”.
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