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Topline Research
EUR 4.27 For Business Accounts Only

Thatta Cement (THCCL): Corporate Briefing - Key Takeaways

  • During 9MFY19, the company recorded a massive accretion in sales revenue of 33% YoY to Rs2.9bn primarily due to healthy growth in clinker exports sales.
  • However, the profit after tax of the company declined by 47% owing to (1) lower margin clinker sales, (ii) higher production cost due to a massive devaluation of Pak rupee and (3) price competition in the domestic market.
  • The company believes that it will continue to reap benefit from the newly available clinker export market, i.e. Bangladesh. The average selling price ranges from US$31-32/ton.
  • The company does not wish to export cement due to negative margin.
  • The 5MW waste heat recovery plant (WHRPP)  is expected to come online by July-2019. The said project would substitute approximately 40-45% reliance from captive energy.
  • The cement sector is expected to increase retail cement prices by Rs35/bag to pass on additional cost pressure of recent hike in FED rates from July 1, 2019.
  • On the domestic demand side, the company expects the south region local sales to remain flat during FY20 as compared to healthy growth of 15% YoY in 9MFY19.
  • Furthermore, THCCL expects domestic retail prices in the region to remain under pressure primarily due to upcoming capacity addition by power cement along with sluggish local demand growth.

 

 

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Topline Securities Limited
Topline Securities Limited

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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