Report
Farheen Irfan
EUR 4.57 For Business Accounts Only

Pakistan Oxygen Limited - Analyst Briefing Takeaways

  • In its Analysts Briefing, the Management updated on its ongoing expansion plan of PKR4.4bn to double its Air Separation Unit capacity by 250TPD (post expansion capacity: 513TPD) – the plant is expected to come online by 2Q2020.
  • The company also announced to resume manufacturing of electrodes which was earlier suspended in 2006-07 under BOC management due to high cost of production.
  • So far, PAKOXY has already posted a 57% YoY growth in 1H2018 EPS to PKR7.7 due to 14%YoY growth in gross profits and decline in Distribution, Administration and Other Expenses. 
  • With its strong geographic footprint, the Management is confident to deliver value to its shareholders by maintaining consistency in quality standards, tapping into newer markets, enhancing logistics services and adhering to its customers’ needs on tailor made basis.
Underlying
Linde Pakistan

Linde Pakistan Limited is engaged in the manufacturing of industrial and medical gases, welding electrodes and marketing of medical equipment. The Company operates in two segments: Industrial, medical and other gases, and Welding and others. The Industrial, medical and other gases segment covers business with industrial customers in the oil, chemical, food and beverage, metals and glass sectors, and medical customers in healthcare sector. The Welding and others segment covers sale of welding electrodes, packaged chemicals and a range of associated equipment, such as cutting and welding products and associated safety equipment. Gases and services are supplied as part of customer specific solutions. These range from supply by pipeline or from dedicated on-site plants to the users and supply by road tankers in liquefied form to others. Gases for cutting and welding, hospital, laboratory applications and various medical purposes are also distributed under pressure in cylinders.

Provider
Elixir Securities
Elixir Securities

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”.

Analysts
Farheen Irfan

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