Strong Earnings Profile Warrants a Positive Stance
We initiate coverage on AGP Limited (AGP) with a positive stance and blended valuation based June 2019 target price of PKR 97.0/share, implying an upside of 12% from its last closing. We eye earnings CAGR of 21% over CY19-22F driven by i) strong growth in generic portfolio, ii) expanding Mylan portfolio, iii) better annual price adjustment as per Drug Policy 2018 and iv) reducing debt burden. Although favorable price revision is expected to support the growth, we believe increasing input cost in the wake of currency depreciation and aggressive launch plans may limit the margin expansion.
AGP CORPORATION is in the provision of power including electricity, air conditioner to the aircraft, as well as maintenance of special airport related facilities. The Company operates though three segment business. The Power Supply segment is in the provision of electricity, air conditioner and compressed air to the aircraft. The Maintenance segment is engaged in maintenance and management of special airport related facilities, buildings and utilities. The Associated segment is engaged in manufacturing and sales of food cart, operation and management of checked baggage inspection device, production and sales of low potassium vegetable, provision of support services for business jet, as well as sales of ground support equipment (GSE).
Ismail Iqbal Securities (Private) Limited (IISPL) is a TREC holder of the Pakistan Stock Exchange, as well as an SECP registered Underwriter and Book Runner. IISPL provides comprehensive financial services including Equity Sales, Research on Equities and the Macro-Economy, Investment Advisory, Portfolio Management, Corporate Finance, and extensive services for Private Equity investors. IISPL services a diversified client base, from Institutional to Retail Investors including High Net worth Individuals.
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.