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Pak Elektron: 1 director
A director at Pak Elektron sold 4,089,900 shares at 23.060PKR and the significance rating of the trade was 74/100. 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...
PAEL_Power equipment led rebound imminent - BUY!, (AKD Daily, Jan 19, ...
AKD Daily PAEL: Power equipment led rebound imminent - BUY! Terse macro conditions have handicapped PAEL’s consumer durables geared investment case long before COVID-19 led shutdowns materially disrupted operations, resulting in sharply divergent sales performance over the period (9MCY20 Appliance/Power sales moved +33.8/-14.7%YoY) While sticking to our base case appliances revenue growth of 15%YoY (raised from 10% in Sept’20) underpinned by a “return to normal” outlook for consumer confide...
- Sunny Kummar
Pak Elektron (PAEL): 3Q2020 EPS at Rs0.49 (in line with our expectatio...
Pak Elektron (PAEL) announced its 3Q2020 financial result today, where the company booked a profit of Rs253mn (EPS: Rs0.49) compared to a profit of Rs26mn (EPS: Rs0.03) in 3Q2019. It takes 9M2020 loss to Rs173mn (LPS: Rs0.41) compared to a profit of Rs301mn (EPS: Rs0.54) in 9M2019. Net Sales of the company increased by 167% YoY to Rs8,158mn in 3Q2020. However, sales growth is misleading as this year’s quarter include sales from PEL Marketing (Pvt.) Limited (previously wholly owned subsidiar...
- Sunny Kummar
Pak Elektron (PAEL): 2Q2020 EPS at Rs0.19 (higher than our expectation...
Pak Electron (PAEL) announced its 2Q2020 financial result today, where the company booked a profit of Rs106mn (EPS: Rs0.19) compared to a profit of Rs94mn (EPS: Rs0.17) in 2Q2019. It takes 1H2020 loss to Rs426mn (LPS: Rs0.9) compared to a profit of Rs276mn (EPS: Rs0.51) in 1H2019. The earnings came in higher-than-expectations due to lower-than-expected distribution and finance costs. While Net Sales declined by 4% YoY during 2Q2029, they improved by 25% QoQ due to increase in volumetric sal...
- Sunny Kummar
Pak Elektron (PAEL): Recovery in Appliances with upbeat Power sales; R...
We reiterate our ‘Buy’ stance on Pak Electron (PAEL) with a revised Target Price of Rs40 (from Rs32 earlier), offering a potential upside of 30%. We are revising up our earnings forecasts for PAEL by 2-29% over 2020E-2022F, where we now expect EPS to clock in at Rs2.4 in 2020E and Rs4.7 in 2021F. Our optimism is based on (1) improving sales dynamics in Appliances division, (2) low interest rates, (3) higher-than-expected sales of Power division and (4) bottoming out of margins. Improving Sa...
PAEL: Jumping the medium-term puddle of mud,(AKD Daily, Oct 31, 2019)
Assessing detailed Sept’19 financials, we draw conclusions regarding better than expected (but still weak) profitability where below the line cost curtailment, low cost inventory kept margins firm and debt levels manageable An extended inventory cycle has stressed cash conversion, while monetary tightening depletes the bottom-line making continued profitability over the medium term a tight balance between topline growth and working capital management, in the backdrop of adverse macro and mone...
- Team AKD Research
AKD STOCK SMART, Aug 30, 2019
The market retraced 62% of its rally of the previous week, tumbling down by 5.35% (1,678 points) to 29,672 points during the outgoing week. The placement of Pakistan on ‘enhanced expedited follow up list’ by APG on Friday August 23rd, 2019 crushed investor sentiment, with market closing the first trading session in red. In addition to that, the reported potential divestment of PPL (10% of shares) and OGDC (7% of shares), index heavy weights, built further pressure on KSE-100. The GoP also introd...
PAEL: Languishing under weak demand outlook, (AKD Daily, Sep 06, 2019)
Post release of detailed accounts for 1HCY19, PAEL’s results showcase weak topline growth, where power division sales continued to slip and appliance demand failed to punch through with sizeable growth, slagging under a slew of macro dampeners Citing earnings seasonality and a slow working capital picture, we retain our stance on 2HCY19 earnings being particularly weak, where significant margin depletion is likely as more expensive inventory will be factored into product costs and implementat...
- Team AKD Research
PAEL: Dealing with a tough audience
Reading annual accounts for PAEL, we prune our estimates based on abundant demand headwinds for both business segments, GMs caving-in to rising cost pressures and higher finance costs as the firm supplants working capital outflows with (now costlier) ST borrowing Moreover, dismal sales performance in CY19 crystallizes our soft outlook with macro headwinds, combined with additional constraints on the horizon (power tariff hikes, controlled public sector power outlays), keeping us tilted toward...
Pak Elektron (PAEL): 3Q2018 EPS of Rs0.2, -51% YoY (-83% QoQ); (Below ...
Pak Elektron (PAEL) announced its 3Q2018 earnings where the company’s sales underperformed our expectations. This was mainly due to lower than anticipated volumetric sales of appliances, as per our channel checks. While yearly appliances sales improved, it remained below our estimated sales as competition in the sector kept PAEL’s volumetric growth in check, we believe. Power division also suffered from lower than expected sales in 3Q2019. We believe that this was due to slowdown in real est...
PAEL: Primed for a rebound
Terse market conditions have been particularly unkind to the consumer durables space, where the outlook on consumer demand and drying-up of power spending crystalizes dampeners for PAEL. Correcting ~49%CYTD, PAEL's valuation set looks enticing enough to generate investor interest, where despite rationalizing our growth assumptions for CY18-21F earnings, accommodating PkR weakness and rising cost of borrowing, the stock offers 36.5% upside at current levels. Threats to pricing power in a cha...
PAEL: Power division remains a pain in 1HCY18
Management of PAEL conducted an analyst briefing going over 1HCY18 operational parameters, coupled with guidance on CY18 results and outlook for additional business lines. Key highlights were: 1) the company has issued gross sales guidance aiming to reach topline of PkR44.95bn (+6%YoY) where tepid growth results from both segments undergoing heightened competition, 2) power division continuing to lag, expected to constitute 32% of Gross sales for CY18 arising from a slowdown in power transformer...
Pak Elektron (PAEL) : Analyst Briefing 1H2018
Topline Securities conducted analyst briefing of Pak Elektron today where the company discussed its 1H2018 financial performance and outlook. Following are key takeaways: PAEL announced consolidated earnings of Rs1,215mn (EPS Rs2.4/share), down 55% YoY during 1H2018. While sales were in line with estimates, earnings fell short of our expectation primarily on the back of lower than anticipated gross margins, down 5ppts to 25%. This was on the back of higher commodity prices and currency devaluat...
- Shumaila Badar
Management Expects Sales Growth in Appliances
Pak Elektron Limited’s (PAEL) management disclosed in its analyst briefing held yesterday that it expects the appliance segment to continue to lead sales growth. The increment in sales in this segment will come from not only the existing products, but also new products that the management is looking to venture into, including TVs, washing machines and small domestic appliances. The management also expects growth from the power segment, albeit at a lower rate. Earnings of the company will also re...
Pak Elektron (PAEL): 2Q2018 EPS of Rs1.3, -58% YoY (+27% QoQ); (Below ...
Pak Elektron (PAEL) announced consolidated earnings of Rs681mn (EPS Rs1.3/share), down 58% YoY during the outgoing quarter. While sales were in line with estimates, earnings fell short of our expectation primarily on the back of lower gross margins. In 2Q2018, the company was able to improve its volumetric sales in appliances division on sequential basis. To note, the company recorded substantial YoY decline in its refrigerator and air conditioner sales in 1Q2018. Gross margins of the compan...
PAEL: Multipliers come in all shapes & forms
We initiate coverage on Pak Elektron Ltd (PAEL PA) with a Buy rating having a Dec’18 TP of PkR51.70/sh. Rising consumer durable spending propagated by rapid urbanization and favorable demographics are slated to amplify White Goods purchases while distribution focused commercial energy CAPEX push power equipment demand. Both undergo upswings from existing but undisciplined infrastructure and consumer durable consumption patterns maintaining a long-term demand sweet-spot for PAEL. That said, we al...
PAEL_Multipliers come in all shapes & forms
We initiate coverage on Pak Elektron Ltd (PAEL PA) with a Buy rating having a Dec'18 TP of PkR51.70/sh. Rising consumer durable spending propagated by rapid urbanization and favorable demographics are slated to amplify White Goods purchases while distribution focused commercial energy CAPEX push power equipment demand. Both undergo upswings from existing but undisciplined infrastructure and consumer durable consumption patterns maintaining a long-term demand sweet-spot for PAEL. That said, we al...
- Topline Research
Pak Elektron (PAEL) : Reiterate Buy
We reiterate our ‘Buy’ stance on Pak Elektron (PAEL), Pakistan's one of the biggest home appliance and power equipment manufacturers, despite its weak performance in 1Q2018 (owing to strategic reasons to some extent while increasing competition also affected sales). After incorporating 1Q result, we tweak our assumptions for PAEL and tone down its EPS estimates by 15/22/32% to Rs5.3/6.0/6.3 in FY18E/FY19F/FY20F. However, since the stock has come down 18/65% in 2018/FY18YTD and has underperfo...
Pak Elektron (PAEL): 1Q2018 EPS of Rs1.1, -52% YoY (+59% QoQ); (Below ...
Pak Elektron (PAEL) announced 1Q2018 consolidated earnings of Rs536mn (EPS Rs1.1/share), below our expectations mainly owing to lower sales. Net sales of the company took an expected downturn during the outgoing quarter, -29% YoY primarily on the back of lower sales from appliances segment. Refrigerator which contributes more than 50% to PAEL’s appliances revenues witnessed volumetric decline of more than 20%, as per channel checks. Air conditioner, another major revenue driver of appliances...
- Team AKD Research
AKD STOCK SMART
Weekly Review Despite political noise and upward trend in int’l oil prices (Brent: +1.6%WoW), benchmark KSE-100 index shed another 596pts to close the current week at 40,248 (down 1.5%WoW). Distressed energy chain (HUBC/PSO/ATRL down 2.6/5.5/7.0%WoW) on account of abrupt closure of FO based power plants was the major culprit behind lackluster performance of bourse during the week. Although NEPRA’s announcement later during the week regarding KEL’s Multi Year Tariff hearing sparked a trigger in ...
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