Topline Flash Note: Kohinoor Textile Mills Limited (KTML): Corporate Briefing Notes
- The company largely operates in Bedsheet, Lenin and Home Textile segments.
- A large portion of company’s sales are coming from the local market, which helps it to perform better than peers.
- This year, Maple Leaf Cement (MLCF) may pay dividends, which will enhance payout capacity of KTML.
- Overall energy requirement of the company is 12MW, of which 5MW is met through the grid.
- To bridge this gap, company has installed a 5MW solar and also have gas and Furnace Oil based generators/plants.
- The company does not intend to enter in PPE segment, as they believe it is a temporary phenomena and cost/time will be incurred on R&D.
- As per the management, export orders are healthy right now in the country.
- KTML also has good orders for next three months.
- Utilization of processing industry remains lower, as company brings more value addition to products which keeps utilization at lower levels.
- If COVID-19 dissipates, then flow of orders will depend on competitiveness of the Pakistan textile industry.
- Even with delta of US2-5 cents per meter, international buyers tend to change supplying countries.
- Generally local cotton prices moves in tandem with international cotton prices.
So import of cotton does not mean it will be highly expensive. Company can maintain its existing margins.
Kohinoor Textile Mills Limited is engaged in manufacturing of yarn and cloth, processing and stitching the cloth, and trade of textile products. The Company's segments include Spinning, Weaving, Processing and home textile and Cement. Its Spinning segment produces yarn using various types of fibers. Its Weaving segment produces greige fabric using yarn. Its Processing and Home Textile segment is engaged in processing greige fabric for production of printed and dyed fabric, and manufacturing of home textile articles. Its production facilities consist of over 156,530 ring spindles capable of spinning a range of counts using cotton and man-made fibers. Its weaving facilities are located at Raiwind, which consists of over 252 looms and has a range of greige fabrics. Its processing facilities are located at the Rawalpindi unit, which are engaged in dyeing and printing fabrics for the home textile market. Its stitching facilities produce a range of home textiles for the export market.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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