Intermarket Pulse: ICI: Moderate estimate revision post 3QFY18 results
- We revisit our investment case on ICI, and revise our Jun’19 TP to PRs925/sh (upside: 6%; Neutral), after incorporating budget implications and revised assumptions post 3QFY18 results. Our new earnings estimates for FY18/19F are PRs38.42/46.53, 2% lower than previous estimates.
- Volumetric growth in Soda Ash segment was 3%YoY in 9MFY18 vs. our full year FY18 expectation of 7%YoY. We thus revise down our volumetric growth assumptions to 4.0%/5.5%YoY for FY18/19F. Upward revision in Furnace Oil (FO) price and Super Tax further lead to downward EPS revisions.
- However, higher Polyester primary margins and lower effective tax rate at the end of our investment horizon have absorbed the impact of negatives. Polyester primary margins have increased 16%YoY, amid uptick in oil prices and demand from China.
Co. is engaged in the manufacture and sale of pure terephtalic acid, polyester stable fiber, POY chips, soda ash, paints, specialty chemicals, sodium bicarbonate and polyurethane; formulation of agrochemicals; marketing of seeds, toll manufactured and imported pharmaceuticals and animal health products; and merchanting of general chemicals. Co. also acts as an indenting agent. Co., through its subsidiary ICI Pakistan PowerGen Limited, is engaged in generating, selling and supplying elecricity to industrial and other consumers.
Intermarket Securities Limited (IMS) is a full service corporate brokerage firm based in Karachi, Pakistan. We service both domestic and international clients. IMS was ranked #2 Best Local Brokerage and #3 Best for Overall Country Research for 2016 by AsiaMoney.
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.