Packages Limited (PKGS): 1Q2019 EPS Rs6.9 vs. EPS Rs1.8 in 1Q2018 (Above expectations)
- Packages Limited (PKGS) announced 1Q2019 consolidated profit of Rs670mn (EPS Rs6.9/sh vs. EPS of Rs1.8 in 1Q2018), which was higher than our expectations mainly due to higher investment income.
- We attribute this to the dividend income received from Tetra Pak, which likely came with a lag.
- Net revenues were up 9% YoY during the outgoing quarter. We attribute this to higher sales from packaging division & rental income from Packages Mall.
- Gross margins during the outgoing quarter remained almost flat at 14%, despite significant PKR devaluation against the greenback. We await management clarity in this regard.
- Distribution & marketing expenses have increased by 26% YoY on the back of increase in sales related activities & inflationary environment in economy.
- Financial charges witnessed considerable increase, up 80% YoY due to higher interest rates, +475bps to 10.75% since Jan 2018 to date.
- We flag 1) Bulleh Shah’s higher cost of production 2) economic slowdown 3) higher than expected fuel & energy costs and 4) lower than expected earnings from the Mall as key risks for PKGS.
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).
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.