LUCK: Best of all, but with fair share of risks
We moderately revise up LUCK’s June’18 TP to PRs867/sh (from PRs862/sh) and have a Buy stance, after incorporating FY17 results, downward revision in payout assumption and 2% tax credit on Shariah Compliance as per management’s guidance.
LUCK announced FY17 consolidated EPS: PRs50.10, up 9% YoY, led by 31% YoY growth in non-core earnings. While other cement manufacturers are likely to witness earnings decline, LUCK was able to sustain core operational profits. Along with the result, the company also announced final cash dividend of PRs12/sh.
LUCK offers a fair share of risks on multiple fronts including delays in North expansion & financial close of Lucky Electric, +5mn tons capacity inflow in South and influx of Angolan cement in DRC. LUCK is still trading at FY18F P/E of 12.5x, 21% premium to KSE 100 index.
Lucky Cement is a cement manufacturing and distribution company which is based in Pakistan. Co. is engaged in the manufacture and sale of Ordinary Portland, Sulphate Resistant, and Slag Cement. Co.'s brand names included Lucky Cement, Lucky Star, Lucky Gold, Chairman, and Lucky Sulphate Resistant Cement. Co. maintains production facilities in Pezu (Production capacity: 13,000 tons per day) as well as in Karachi (Production capacity: 8,000 tons per day). In addition, Co. is engaged in developing export markets for bulk loose cement from Pakistan to the Gulf Countries, African Markets, and Far East Region including Nepal & Sri Lanka.
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.