Nishat Chunian Limited (NCL) has reported unconsolidated NPAT of PKR389mn (EPS: PKR1.62) in 3QFY23 versus NLAT of PKR1.7bn (LPS: PKR7.10) in 2QFY23. We were expecting a loss, where the major deviation stemmed from higher-than-expected gross margins and lower finance cost. This takes 9MFY23 unconsolidated NLAT to PKR1.4bn (LPS: PKR6.03). KEY HIGHLIGHTS FROM 3QFY23 RESULT INCLUDE: * Revenue clocked in at PKR17.4bn, up 21% QoQ and 8% YoY. The increase in topline is primarily attributable to hig...
A director at Nishat (Chunian) Ltd bought 512,000 shares at 21.820PKR and the significance rating of the trade was 57/100. 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...
Nishat Chunian Ltd (NCL) has reported an unconsolidated net loss of PKR0.1bn in 1QFY23 (LPS: PKR0.54), slipping into losses for the first time since the pandemic, compared to an EPS of PKR9.23 last year and PKR3.00 in the previous quarter. The result came in considerably below our estimated EPS of PKR3.45, owing to lower-than-expected margins and other income. Key highlights for 1QFY23: * Revenue clocked in at PKR15.3bn, up 3% YoY and slightly higher than our estimated revenue of PKR14.9bn. ...
* Despite the sharp downward revision in our target prices for the IMS Textile Universe, by 22% on average, we remain Overweight on the sector. The government’s policy of providing regionally competitive utility prices is vulnerable under the IMF program and global demand fares challenges, but valuations are already knocked down. * Global and local macroeconomic uncertainties have led us to further prune our revenue and earnings growth assumptions for FY23-24f by 1%/12%, respectively, f...
Nishat Chunian Ltd (NCL) has reported an unconsolidated NPAT of PKR0.72bn in 4QFY22 (EPS: PKR3.00), down 70% YoY and 65% QoQ, owing to significant margin attrition to the tune of 10.4ppt/5.3ppt YoY/QoQ, missing our EPS of PKR6.63. This took FY22 EPS to PKR31.10, up from an EPS of PKR23.32, last year. The result is accompanied with a dividend payout of PKR4.0/sh (IMS estimate of PKR5.0/sh), taking FY22 payout to PKR7.0/sh. KEY HIGHLIGHTS FOR 4QFY22: * Revenue clocked in at PKR14.8bn, up 12% f...
* We expect our Textile Universe to post combined core net profits of PKR7.9bn in 4QFY22, down 8% YoY largely owing to one-off supertax and increased borrowing costs, which are likely to offset strong revenue growth and exchange gains. * In terms of core profits, both ILP and GATM are expected to lead our Textile cluster, largely attributed to strong Spinning and Value-added margins (latter especially in case of ILP). * Despite record exports in 4Q, the Textile sector significantly...
AKD Daily Pakistan Commodities: Commodities Uncertainty looms large Global coal prices are on the rise after previously reaching an all-time high of USD460/ton in March on the Richard Bay index. Although the prices came down after that to as low as USD252/ton, the current prices of the commodity currently stand at USD324/ton. The average price on the index for May’22 was USD320/ton, up 10%MoM and 215%YoY. International scrap prices have contracted 29%MoM in May’22, currently hovering aroun...
AKD Daily Pakistan Textile: 10MFY22 textile exports up 26.0%YoY As per the data released by PBS, textile exports for the month of Apr’22 registered a growth of 31%YoY to stand at US$1.74bn. Segment–wise, value and non-value added exports posted a growth of 34/16.8%YoY in Apr’22 and 25.9/26.3%YoY in 10MFY22, respectively. In the value added segment, knitwear and bed wear registered a growth of 43.5%/16.3%YoY while readymade garments outperformed the segment with 43.9%YoY in Apr’22. In 10MF...
Nishat Chunian Ltd (NCL) has reported an unconsolidated NPAT of PKR2.0bn in 3QFY22 (EPS: PKR8.49), up 10% yoy but down 18% qoq. This takes 9MFY22 EPS to PKR28.10, up a staggering c.2.0x yoy. The 3Q result is lower than our expected EPS of PKR10.41, where the deviation stems from higher-than-expected finance cost and other expenses. KEY HIGHLIGHTS FROM 3QFY22 RESULT: * Revenue has clocked in at PKR16.2bn, up 33% yoy, in line with our expectation, where higher sales of the Spinning segment (bo...
* We believe that the pillars supporting growth for the Pakistani Textile exports remain well-grounded, even as the sector is likely to enter a period of slower growth than in recent years amid global headwinds. * Nonetheless, we have pruned our growth assumptions for revenue and earnings growth in FY23-24f led by normalizing margins. This is driven expectations of muted global growth and softer purchasing power for global consumers amid inflationary pressures world over – which have be...
Nishat Chunian Ltd (NCL) recently announced intentions to separate its subsidiary Nishat Chunian Power Ltd. (NCPL) as an independent entity. That is, it will transfer its holding in NCPL to the existing shareholders of NCL, in turn becoming a pure textile company itself. To recall, NCL presently has a 51% stake and controlling interest of NCPL. We think this is a wise move by NCL management, which will unlock greater value for its shareholders than by keeping NCPL as a subsidiary. For the pas...
Nishat Chunian Ltd (NCL) has reported an unconsolidated NPAT of PKR2.5bn in 2QFY22 (EPS: PKR10.38), nearly tripling yoy and up c.10% qoq. This takes 1HFY22 EPS to PKR19.61, up a staggering c.3.5x yoy. The 2Q result is higher than our expected EPS of PKR8.72, where the deviation stems from higher-than-expected gross margins. NCL announced an interim DPS of PKR3.0, against our expectation of no dividends. KEY HIGHLIGHTS FROM 2QFY22 RESULTS: * Revenue has clocked in at PKR16.2bn, up c.35% yoy, ...
AKD Daily NCL: Analyst briefing takeaways NCL held its analyst briefing today to discuss FY21 results and future outlook of the company. To highlight, the company reported unconsolidated NPAT of PkR2.2bn (EPS: PkR9.23) in 1QFY22 vs. NPAT of PkR0.5bn (EPS: PkR2.0) in the same period last year. In FY21, earnings stood at PkR5.6bn (EPS: PkR23.3) vs NPAT of PkR0.3bn (EPS: PkR1.11). The company reported consolidated NPAT of PkR2.5bn (EPS: PkR10.5) in 1QFY22 vs. NPAT of PkR0.97bn (EPS: PkR4.04) in t...
AKD Daily Pakistan Textile:Local yarn margins to remain strong in FY22 Local yarn margins currently stand at PkR261.5/kg or +61% vs PkR214.4/kg or +55% FYTD due to robust demand of downstream players. Yarn export prices were trading at a discount of 26.1% to local yarn prices which clocked in at PkR661/kg vs export prices of PkR523/kg in 1QFY22). On the global front, decline in Vietnamese exports will help India and Pakistan to fulfill export order originating from robust apparel demand ...
Nishat Chunian Ltd (NCL) has reported an unconsolidated NPAT of PKR2.2bn in 1QFY22 (EPS: PKR9.23), down 7% qoq, while up a sharp c.4.7x yoy. The 1Q result is lower than our expected EPS of PKR10.85, where the deviation stems from lower-than-expected gross margins. KEY HIGHLIGHTS FROM 1QFY22 RESULT: * Revenue has clocked in at PKR14.8bn, up c.10% qoq, broadly in line with our expectation, where higher sales of the Spinning segment (both local and export sales of yarn) were a key contributor, ...
PROFITS TO CONTINUE RISING BUT NON-TEXTILE TRIGGERS AWAITED * For 1QFY22 results, we expect our Textile Universe to post combined core net profits of PKR9.2bn, nearly tripling yoy, due to improvements in both revenues and margins, amid a sharp c.30% yoy rise in exports. * NCL is expected to lead our Textile cluster, in terms of core profitability (c.5x yoy growth), largely attributed to strong Spinning margins, while we see ILP’s earnings growth to be relatively softer at c.40% yoy (low...
AKD Daily Pakistan Textile: Spinners turning it on! Pakistan’s textile industry is in a macro sweet spot amid rampant demand in domestic market and internationally as global economies experience ‘return to normal’ phenomenon pushing up orders for apparels (US apparel imports +26.8%YoY in 5MCY21, Europe yet to pick pace). Shift in demand fundamentals has turned the table in favor of spinning players where lack of investment in infrastructure in yesteryears resulted in utilization levels of e...
Nishat Chunian Ltd (NCL) has reported an unconsolidated NPAT of PKR2.4bn for 4QFY21 (EPS: PKR9.93), the highest ever quarterly profits by the company, up 23% qoq and a big jump over a net loss last year. This takes FY21 NPAT to PKR5.6bn (EPS: PKR23.32). The 4Q result is significantly better than our expected EPS of PKR7.96, where the deviation stems from higher-than-expected gross margins. NCL announced a final DPS of PKR5.0 (lower than our DPS expectation of PKR6.5). Key highlights from 4QFY...
Pakistan’s total exports in August 2021 clocked in at US$2.2bn, down 4% mom from US$2.3bn in July, while up a sharp c.40% yoy (distorted due to the heavy torrential rain last year). Textile exports remained flat mom, sustaining the US$1.5bn level, while up a staggering c.45% yoy. The handsome growth is a testament to the strong demand for Pakistan’s textiles in the global market, while some regional competitors continued to grapple with Covid-19 lockdowns during the month. KEY HIGHLIGHTS IN T...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
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