reports
- IMS Research Team
Jun'23 Result Previews: Low demand and one-off super tax to clip earni...
* We expect the IMS Chemicals Universe (LOTCHEM, EPCL and LCI) to post 2Q2023 combined NPAT of c.PKR4.5bn, down 21% QoQ and 31% YoY. * Muted demand from the textile sector and resultantly lower sales volume, together with the one-off impact of super tax, will lead to a decline in earnings for LOTCHEM and LCI. We expect a payout of PKR1.0/sh & PKR15.0/sh from LOTCHEM and LCI, respectively. * We expect a sharp lift in gross margins for EPCL on resumption of natural gas supply post-wi...
- IMS Research Team
ICI Pakistan: 3QFY23 Review - Better sales and margins beat core estim...
LCI has posted consolidated NPAT of PKR18.9bn (EPS: PKR205.33) for 3QFY23, up from NPAT of PKR2.1bn (EPS: PKR21.79) SPLY. One-off gain, on the realized sale and remaining stake of NutriCo Morinaga has elevated earnings. If we exclude these gains, then core earnings arrive at PKR19.63/sh, against our expected EPS of PKR8.83, with higher revenue and better GMs leading the major deviation. This takes 9MFY23 reported NPAT to PKR21.7bn (EPS: PKR235.29), up 2.8x YoY. KEY HIGHLIGHTS FOR 3QFY23: * N...
- Ali Aziz Soorty
ICI Pakistan: 1QFY23 Result: Lower revenue led to earnings attrition; ...
ICI posted consolidated net profit of PKR1.9bn in 1QFY23 (EPS: PKR19.49), down 50% YoY but up 2.7x QoQ. This is in-line with our EPS expectation of PKR20.16. ICI did not announce a dividend payout this quarter, as the company has a history of paying dividends biannually. KEY HIGHLIGHTS OF 1QFY23 * Net sales clocked in at PKR24.3bn, much lower than our expected topline of PKR26.9bn. Lower PSF volumes and prices, along with flattish Soda Ash volumetric sales, likely hindered. * Gross marg...
- Ali Aziz Soorty
Pakistan Chemicals – Earnings affected by lower volumes and primary ma...
PAKISTAN CHEMICALS – SEP’22 RESULT PREVIEWS We expect IMS Chemicals Universe (LOTCHEM, EPCL and ICI) to post combined NPAT of c.PKR6.6bn up by 6%/12% QoQ/YoY, mainly due to higher topline growth and in the absence of one off super tax impact on a sequential basis. LOTCHEM’s primary margins have been relatively stable and remained upwards ( +5% QoQ). This will likely to safeguard its margins and profitability as compared to peer companies. Sales volumes of IMS Chemical universe are likely to d...
ICI Pakistan: 1 director
A director at ICI Pakistan sold 200,000 shares at 715.000PKR and the significance rating of the trade was 68/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly ...
- Ali Aziz Soorty
ICI Pakistan: FY22 Corporate Briefing Takeaways – More growth coming y...
ICI Pakistan recently announced record consolidated net profits of PKR8.8bn (EPS: PKR91.66) for FY22, up c.52% YoY from PKR5.2bn (EPS: PKR60.30) in FY21. The company also announced a final cash dividend of PKR15.0/sh, taking total payout to PKR35.0/sh for the year. KEY TAKEAWAYS SODA ASH & PSF ICI is set to expand the total capacity of its Soda Ash plant by 60,000 tons pa from 500,000 tons to 560,000 tons pa. Soda Ash has become the company’s major cash cow with FY22 exports showing 87% recor...
- Ali Aziz Soorty
ICI Pakistan: 4QFY22 Result Review - Higher margins beat expectations
ICI posted consolidated net profit of PKR663mn for 4QFY22 (EPS: PKR7.18) against our estimate of PKR4.90, majorly due to higher than expected topline and gross margins. This is a massive decline of 67% from a NPAT of PKR2.0bn (EPS: PKR21.79) last quarter. ICI in a surprising turn of events announced a dividend payout this quarter of PKR15/sh. Although the company historically does payout in the final quarter, we belived they would hold due to their intention to acquire 75% stake in Lotte Chem...
- Ali Aziz Soorty
Pakistan Chemicals – Earnings to slide amid one-offs and lower spreads
We expect IMS Chemicals Universe (LOTCHEM, EPCL and ICI) to post combined NPAT of c.PKR3.2bn which is set to decline sharply by 68%/39% QoQ/YoY, mainly due to (i) decreasing international spreads (in case of LOTCHEM and EPCL), (ii) higher exchange losses and (iii) one-off super tax impact. The IMS chemicals universe is expected to witness a drastic hit on profitability, majorly led by lower margins and one off tax adjustment in the form of super tax. LOTCHEM is the most safeguarded company in...
- Ali Aziz Soorty
ICI Pakistan: ICI emerges as a potential bidder for Pakistan’s sole PT...
ICI Pakistan Limited (ICI) has announced intention to acquire approximately 75.01% shareholding or (1,135.86mn shares) of Lotte Chemicals Pakistan Limited. A few weeks ago, ICI received a conditional bid from Morinaga Milk, Japan to acquire approximately 33.3% of NutriCo Morinaga Limited for US$56.6mn. ICI owns 51% of NutriCo and its Board of Directors has already granted in-principal approval to move forward with divestment of 26.5% only. The total consideration for the 26.5% stake in Nutric...
- Ali Aziz Soorty
ICI Pakistan: Partial divestment from Morinaga
ICI Pakistan Limited (ICI) has received a conditional offer from Morinaga Milk, Japan to acquire approximately 33.3% of NutriCo Morinaga Limited (NMPL) for US$56.6mn. ICI owns 51% of NMPL and its Board of Directors have granted in-principal approval to move forward with divestment of 26.5% only, keeping the remaining 24.5% The total consideration for the 26.5% stake in Nutrico comes to an estimated c PKR 9.5bn, with a one-off gain for ICI of c PKR7.4bn (details in table below). ICI may choose...
- Muhammad Saad Ali
ICI Pakistan: Takeaways from FY21 Corporate Briefing
ICI Pakistan had posted record consolidated net profits of PKR5.3bn (EPS: PKR60.30) for FY21, more than doubling yoy from PKR2.4bn (EPS: PKR28.14) in FY20. Alongside, it announced a final cash dividend of PKR20.0/sh, taking total payout to PKR40.0/sh for the year. Key Takeaways Soda Ash & PSF * ICI is set to expand the total capacity of its Soda Ash plant by 135,000 tons pa from 425,000 tons to 560,000 tons pa. The project will be completed in two phases - first 75,000 tons pa by June 2022 a...
- Muhammad Saad Ali
ICI Pakistan: 3QFY21 review – Record profitability
ICI Pakistan Ltd (ICI) has posted a net profit of PKR1.9bn (EPS PKR21.24) for 3QFY21, up 22% qoq and 4x yoy. Notably, 3Q net profits is the highest ever in a quarter posted by the company. The result takes the 9MFY21 NPAT to PKR4.3bn (PKR49.58/sh), up 86% yoy. ICI did not announce any dividend alongside the result. Broadly, we understand that the 3Q result is a repeat of the previous quarter – where all segments exhibited strong growth in profitability but most notable was the turnaround in P...
- Ailia Naeem
Intermarket Pulse: ICI: Moderate estimate revision post 3QFY18 results
We revisit our investment case on ICI, and revise our Jun’19 TP to PRs925/sh (upside: 6%; Neutral), after incorporating budget implications and revised assumptions post 3QFY18 results. Our new earnings estimates for FY18/19F are PRs38.42/46.53, 2% lower than previous estimates. Volumetric growth in Soda Ash segment was 3%YoY in 9MFY18 vs. our full year FY18 expectation of 7%YoY. We thus revise down our volumetric growth assumptions to 4.0%/5.5%YoY for FY18/19F. Upward revision in Furnace Oil ...
- Ailia Naeem
Intermarket Pulse: ICI: Emerging consumer proxy; initiate with Buy
We initiate coverage on ICI Pakistan Ltd (ICI) with a Buy rating and a Jun’19 TP of PRs910/sh offering 19% potential upside. We expect a 3yr EPS CAGR of 16% led by the company’s foray into high-growth Consumer & Pharmaceutical ventures, which is supported by healthy cash flows from its legacy Soda Ash business. ICI has achieved significant cost savings and profitability growth in its Soda Ash business. However, from here on, it will be the Life Sciences and Morinaga ventures which will not only...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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