reports
Kohat Cement: 1 director
A director at Kohat Cement sold 26,017 shares at 229.670PKR and the significance rating of the trade was 51/100. 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 s...
- Rahul Hans
Kohat Cement: 3QFY23 Review - Lower margins cause a drag
Kohat Cement Co. Ltd (KOHC) has posted 3QFY23 NPAT of PKR1.6bn (EPS: PKR8.08), down 17% QoQ and 1% YoY. This is lower than our estimated EPS of PKR10.29, on lower-than-expected GM’s. This takes 9MFY23 net profits to PKR5.4bn (EPS: PKR26.70), up 16% YoY. KEY HIGHLIGHTS OF 3QFY23 RESULT: * Net Sales have increased by 17% YoY but down 9% QoQ to PKR10.0bn. Reduced dispatches caused the sequential decline in topline. We expected a topline of PKR10.8bn. * Gross margins have reduced significan...
- Rahul Hans
Kohat Cement: 2QFY23 Review - Higher topline and prices expand earning...
Kohat Cement Co. Ltd (KOHC) has posted 2QFY23 NPAT of PKR1.9bn (EPS: PKR9.73), compared with a net profit of PKR1.6bn (EPS: PKR7.90) SPLY. The result came in line with our estimated EPS of PKR9.52. This takes net profits to PKR3.7bn in 1HFY23 (EPS: PKR18.62), up 25% YoY. KEY HIGHLIGHTS OF 2QFY23 RESULT: * Net Sales have increased by 33% YoY and 24% QoQ to PKR11.0bn. Sequential jump in sales emanated from a surge in local cement prices, which led to elevated retention prices. KOHC has posted ...
- Kamal Ahmed
KOHC_1QFY23 Analyst Briefing Takeaways, (AKD Off the Analyst's Desk No...
Kohat Cement Company (KOHC) organized its analyst briefing today to discuss 1QFY23 results and company’s future outlook. To recall, KOHC posted PAT of PkR1.78bn (EPS: PkR8.9), up 28%YoY. Company posted strong GMs of 31.3% during the quarter vs. 27.6%/33.2% during 4QFY22/1QFY22. Total industry dispatches for the 1QFY23 clocked in at 9.62mn tons, down 21%/25% on QoQ/YoY basis. Meanwhile, offtakes for KOHC during the same period stood at 688k tons, down 17%/20% on QoQ/YoY basis. Capacity uti...
- Rahul Hans
Kohat Cement: 1QFY23 Review - Strong earnings backed by elevated margi...
Kohat Cement Co. Ltd (KOHC) has posted 1QFY23 NPAT of PKR1.8bn (EPS: PKR8.89), compared with a net profit of PKR1.4bn (EPS: PKR6.96) in SPLY. The result came in higher than our expected EPS of PKR6.71. Higher-than-expected margins caused the major deviation. Key observations: * Net sales have increased by 30% YoY but are down 5% QoQ to PKR8.8bn, as volumes declined. However, elevated domestic prices supported the topline. Revenue came in higher than our expectation of PKR8.3bn. * The co...
- Rahul Hans
Kohat Cement: 4QFY22 review – earnings missed on higher-than-expected ...
Kohat Cement Co. Ltd (KOHC) has posted 4QFY22 NPAT of PKR0.4bn (EPS: PKR1.96), compared with net profit of PKR1.0bn (EPS: PKR4.81) in SPLY. The result came in lower than our expected EPS of PKR4.17, where higher-than-expected effective tax rate is the major deviation. Despite a weak quarter for earnings, full-year profitability has jumped 44% to PKR5.0bn (EPS: PKR25.01) in FY22. KEY OBSERVATIONS: * Net sales have increased by 49% YoY and 8% QoQ to PKR9.3bn. Increase in sales emanated from a ...
- Rahul Hans
Kohat Cement: 3QFY22 review – Impressive margins amid lower COGS; beat...
Kohat Cement Co. Ltd (KOHC) has posted 3QFY22 NPAT of PKR1.6bn (EPS: PKR8.19), compared with net profit of PKR1.1bn in SPLY. The result came in higher than our expected EPS of PKR7.20, where higher-than-expected margins is the major deviation. The result takes net profits to PKR4.6bn in 9MFY22 (EPS: PKR23.05), up 83% yoy. KEY HIGHLIGHTS OF 3QFY22 RESULT: * Net Sales have increased by 28% yoy and 4% qoq to PKR8.6bn. The increase in sales emanated from a surge in local cement prices, which in ...
- Rahul Hans
Pakistan Cements: Slower demand and elevated costs will reduce sector ...
IMS Cement Universe cumulative core profits are expected to decline sharply by c.18%/38% qoq/yoy to PKR7.7bn in 3QFY22, from PKR9.6bn in 2QFY22 and PKR13.1bn in 3QFY21. Despite better retention prices and import of coal from Afghanistan, lower utilization levels during the winter season and elevated international coal and oil prices will reduce sequential gross margins, by c.5ppt. Therefore net profits are estimated to decline. During the quarter, IMS Cement cluster declined by 5.8%, underper...
- Rahul Hans
Pakistan Cement: Valuations are attractive despite imminent risks
* We are revising estimates for our Cement coverage led by (i) elevated international energy prices, (ii) slower demand growth amid rising construction cost and lower government spending, (iii) inclusion of new expansions, and (iv) potential resumption of monetary tightening. * We assume that local cement demand growth will be flat in FY22f and expect an increase of 3%/5% yoy in FY23/24f, much lower than our previous growth estimates and also past 20yr average. Besides demand, major thr...
- Rahul Hans
Kohat Cement: Impressive margins amid efficient inventory management; ...
Kohat Cement Co. Ltd (KOHC) has posted 2QFY22 NPAT of PKR1.59bn (EPS: PKR7.90), compared with net profit of PKR0.96bn SPLY. The result is well above our estimated EPS of PKR6.40, where higher-than-expected margins is the major deviation. The result takes net profits to PKR2.98bn in 1HFY22 (EPS: PKR14.86), up 103% yoy. KEY HIGHLIGHTS OF 2QFY22 RESULTS: * Net Sales have increased by 38% yoy and 21%qoq to PKR8.21bn. Increase in sales emanated from a massive surge in local cement prices, which l...
- Team AKD Research
Pakistan Alpha (PTC & KOHC, Nov 11, 2021)
AKD - Pakistan Alpha PTC: Evolving business model to add value Our liking for PTC emanates from i) expanding FTTH network with ever increasing subscriber base, ii) improving market for Charji amid increase in adoption of online platforms for e-commerce, edutech, and travelling to remote areas (tourism) etc., iii) Ufone has been awarded 4G Spectrum License in Sep’21 where Ufone has secured the means to finance its acquisition and rollout of 4G services all over Pakistan, apart from thi...
- Rahul Hans
Pakistan Cement: Maintain our liking despite some headwinds
* We are revising estimates for our Cement coverage led by (i) elevated international energy prices, (ii) possible increase in interest rates going forward, (iii) inclusion of new expansion and (iv) revised local demand outlook and cement prices. * We believe that local cement demand will increase by 7%/5% in FY22/23f, lower than our previous estimates of 10%/8%. Presently, coal prices pose the biggest threat to the profitability of the sector but we assume that global prices will norma...
- Rahul Hans
Kohat Cement: 1QFY22 review – Strong margins despite cost pressures; e...
Kohat Cement Co. Ltd (KOHC) has posted 1QFY22 NPAT of PKR1.4bn (EPS: PKR6.96), compared to profit of PKR0.5bn (EPS: PKR2.52) SPLY. The result is well above our estimated EPS of PKR4.09. Higher-than-expected margins and elevated retention prices are the major deviation. KEY HIGHLIGHTS OF 1QFY22 RESULT: * Despite the decline in total cement offtake by 6% yoy and 3% qoq, net Sales have increased by 31% yoy and 9% qoq to PKR6.8bn. Increase in local cement prices and discontinuation of discounts ...
- Rahul Hans
Pakistan Cements: 1QFY22 Result Previews
EARNINGS TO DECLINE DUE TO LOWER VOLUMES AND ELEVATED COSTS * The cumulative profits of our Cement universe (unconsolidated) are expected to decline c.20% qoq to PKR6.0bn in 1QFY22 from PKR7.5bn in 4QFY21. However, on a yoy basis, the sector’s performance is expected to rise by c.64% from PKR3.7bn in 1QFY21. * Elevated variable costs amid increase in global coal and oil prices, along with PKR depreciation and lower volumes, are key reasons behind the expected sequential decline in gross...
- Rahul Hans
Kohat Cement: 4Q21 review – impressive result despite cost pressures; ...
Kohat Cement Co. Ltd (KOHC) has posted 4QFY21 NPAT of PKR1.0bn (EPS: PKR4.81), compared with a loss of PKR0.16bn SPLY; the result came in line with our estimated 4Q EPS of PKR4.70. FY21 net profits thus rise to PKR3.50bn against a loss of PKR0.45bn last year. On a qoq basis, profitability declined by 9% majorly due to lower offtake during the period. KEY HIGHLIGHTS OF 4QFY21 RESULT: * Net Sales have more than doubled yoy to PKR6.24bn, but declined by 7% qoq mainly due to a decline in total o...
- Rahul Hans
Pakistan Cements: 4QFY21 results preview
EXPECT A DECLINE IN PROFITS DUE TO LACK OF ONE-OFFS * The cumulative unconsolidated profits of IMS cement universe are expected to decline c.51% qoq to PKR8.6bn in 4QFY21 from PKR17.5bn in 3QFY21 (down 15% qoq excluding one-offs). However, on a yoy basis, the sector’s performance will be exceptional, given cumulative losses of PKR2.0bn in 4QFY20. * Higher variable cost amid increase in global coal and oil prices and the absence of one-off dividend income in case of LUCK, MLCF and DGKC a...
- Rahul Hans
Pakistan Cements: Be selective as the industry enters a new expansion ...
* The new expansions of c.26mn tons will take total capacity of the cement industry to c.95mn tons by end-FY24. Almost all of the North based companies have announced an expansion; most of the projects are brownfield and some producers have availed concessionary loans. * The outlook for domestic cement demand remains intact for FY22/23f at 10%/8%, backed by multiple incentives and projects from the government. But, demand growth will have to remain at least 5% yoy by FY24-25f, when the ...
- Rahul Hans
Pakistan Cements: Maintain positive outlook despite the surge in coal ...
We are revising the estimates of our Cement Universe, to adjust for rising global coal prices (up 33% since Feb 2021). Our EPS estimates for FY22/23f are down by 9%/7% on average. Note that we also assume higher local demand, which should allow better pass-through and higher retention prices – containing the decline in margins due to higher coal prices. We have also rolled over our target prices to June 2022, hence our TPs are largely similar to before the above changes. The cement stocks in ...
- Rahul Hans
Kohat Cement: 3QFY21 review – Higher prices lift earnings; in line wit...
Kohat Cement Co. Ltd (KOHC) has posted 3QFY21 NPAT of PKR1.06bn (EPS: PKR5.27), compared with a loss of PKR0.4bn SPLY; though the result is broadly in line with our estimated 3Q EPS of PKR5.59. The increase in profitability in 3Q was mainly led by higher domestic sales and massive jump in retention prices. 9MFY21 net profits thus rise PKR2.53bn against a loss last year. KEY HIGHLIGHTS: * Net sales have more than doubled yoy to PKR6.7bn. Local dispatches and exports together increased by 59% ...
- Rahul Hans
Pakistan Cements – 3QFY21 previews – Profitability to continue impress...
The IMS Cement Universe is expected to post combined net profits of about PKR11.25bn for 3QFY21 results, which will be a c.37% qoq rise from the cumulative profits of PKR8.23bn in the previous quarter. Key drivers were both greater volumes and higher local retention prices. All cement companies in our coverage, including DGKC and PIOC, are expected to post decent earnings for the period. Despite the recent correction in Cement sector stock prices, we believe that strong profitability show fro...
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