reports
- Rahul Hans
Pioneer Cement: 3QFY23 Review - Lower offtake reduced profits; in line
Pioneer Cement Ltd (PIOC) has posted NPAT of PKR950mn (EPS: PKR4.18) for 3QFY23 up 96% YoY but down 19% QoQ, in line with our expected earnings of PKR940mn (EPS: PKR4.14). 9MFY23 net profits stand at PKR2.7bn (EPS: PKR11.91), up 66% YoY. KEY HIGHLIGHTS OF 3QFY23 RESULTS: * Net sales have increased by 18% YoY but are down 11% QoQ to PKR9.1bn in 3QFY23. The QoQ decline in revenue is due to lower volumes by 14% to 0.68mn tons. We expected a topline of PKR9.7bn. * Gross margins have increas...
- Rahul Hans
Pioneer Cement: 2QFY23 Review - Higher-than-expected margins lead to e...
Pioneer Cement Ltd (PIOC) has posted NPAT of PKR1.2bn (EPS: PKR5.17) for 2QFY23 up 22% YoY and 101% QoQ. This came in much better than our estimated EPS of PKR3.71, with higher-than-expected margins leading to the deviation. 1HFY23 net profits stand at PKR1.8bn (EPS: PKR7.75), up 54% YoY. KEY HIGHLIGHTS OF 2QFY23 RESULTS: * Net sales have increased by 20% YoY and 24% QoQ to PKR10.3bn in 2QFY23. The QoQ increase in revenue is due to higher volumes and retention prices, in our view. We expecte...
- Rahul Hans
Pioneer Cement: 1QFY23 Review - Topline beat and flattish margins
Pioneer Cement Ltd (PIOC) has posted NPAT of PKR0.6mn (EPS: PKR2.58) for 1QFY23 up 22% YoY, higher than our esimated NPAT of PKR0.5bn (EPS: PKR2.12). A higher-than-expected topline led to the deviation. Key observations * Net sales have increased by 34% YoY but are down 11% QoQ to PKR8.3bn in 1QFY22, higher than our expected revenue of PKR7.9bn. The increase in QoQ revenue majorly stemmed from a 14% QoQ increase in retention prices, in our view. * Gross margins have reduced by 0.6ppt Yo...
- Rahul Hans
Pioneer Cement: 4QFY22 Review - Higher tax dents better operating perf...
Pioneer Cement Ltd (PIOC) has posted a loss of PKR0.6mn (LPS: PKR2.57) for 4QFY22 from an EPS of PKR3.84 in 4QFY21. Whereas, we estimated NPAT of PKR0.4bn (EPS: PKR1.58). Higher-than-expected effective tax rate led to losses. However, the company’s gross margins and operating profits have improved significantly during the quarter. The result takes net profits in FY22 to PKR1.0bn (EPS: PKR4.62), down 47% YoY. Key observations * Net sales have increased by 51% YoY and 21% QoQ to PKR9.3bn in 4Q...
- Rahul Hans
Pioneer Cement: 3QFY22 Review - Higher tax rate leads to earnings miss
Pioneer Cement Ltd (PIOC) has posted a NPAT of PKR485mn (EPS: PKR2.14) for 3QFY22, down 29% yoy and 27% qoq. The result has come in lower than our estimated NPAT of PKR567mn (EPS: PKR2.49). Higher-than-expected effective tax rate is the major deviation. The result takes net profits in 9MFY22 to PKR1.6bn (EPS: PKR7.17), up 26% yoy. KEY RESULT HIGHLIGHTS FOR 3QFY22: * Net sales have increased by 23% yoy but are down 10% qoq to PKR7.7bn in 3QFY22, in line with our expected revenue of PKR7.8bn. ...
- 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
Pioneer Cement: 2QFY22 Review: Lower-than-expected sales lead to earni...
Pioneer Cement Ltd (PIOC) has posted a NPAT of PKR663mn (EPS: PKR2.92) for 2QFY22, up 3% yoy and 38% qoq. Same period last year, PIOC had booked a one-time tax credit of PKR235mn, which helped the company to post decent profits; hence the yoy growth is modest. The result has come in slightly lower than our estimated net profits of PKR752mn (EPS: PKR3.31). Lower-than-expected sales is the major deviation. The result takes net profits in 1HFY22 to PKR1,143mn (EPS: PKR5.03), up 88% yoy. KEY RESU...
- Team AKD Research
Stock Smart Weekly (Dec 31, 2021)
StockSmart Weekly Review In the closing week of CY21, market remained almost flat throughout the week, gaining just 1.08%WoW to close in at 44,596 points level. This took the cumulative performance throughout CY21 to 1.92% whereas the dollar adjusted return currently stands at –ve 8.52%. The volumes also remained flattish on WoW bases where ADT was recorded at 217.99mn shares as opposed to 215.43mn shares, down 1.2%WoW. The performance du...
- Team AKD Research
Stock Smart Weekly (Dec 17, 2021)
StockSmart Weekly Review Ending an otherwise volatile week, the KSE-100 index closed at 43,901pts, +1.2%WoW – the steepest performance in the past 4 weeks, with the catalyst being the forward guidance by the Central Bank. The Monetary Policy Committee (MPC) of the SBP delivered another 100bps hike, taking the policy rate to 9.75%, and communicated to “pause” monetary settings in the near term, expecting recent policy decisions to moderate...
- Team AKD Research
Stock Smart Weekly (Dec 10, 2021)
StockSmart Weekly Review After taking a heavy beating during last week on the back of high trade deficit for Nov’21, market took a breather on the first trading session of the week while in the second session, the news of assistance from Saudi Arabia being deposited into SBP’s account provided some relief and the market rallied 1.3% during the session. However, towards later part of the week, market set its sight on the upcoming monetary ...
- Rahul Hans
Pioneer Cement: 1QFY22 review – Decent earnings amid better cost effic...
Pioneer Cement (PIOC) has posted a NPAT of PKR480mn (EPS: PKR2.12) for 1QFY22, from a loss of PKR40mn (LPS: PKR0.17) in 1QFY21, but down 29% qoq. The result has come in line with our estimated net profits of PKR472mn (EPS: PKR2.02). Higher retention prices and greater cost efficiencies have led to yoy increase in profitability. KEY RESULT HIGHLIGHTS FOR 1QFY22: * Net sales have increased by 55% yoy, but are flattish qoq at PKR6.2bn. Sales volume in 1Q increased by 9% yoy, but declined by 12%...
- 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
Pioneer Cement: 4QFY21 Review: Lower sales and margins lead to earning...
Pioneer Cement (PIOC) has posted a NPAT of PKR681mn (EPS: PKR3.0) for 4QFY21, lower than our estimated net profits of PKR777mn (EPS: PKR3.42), mainly because of lower gross margins. This takes FY21 net profits to PKR1.97bn (EPS: PKR8.69), compared with a loss of PKR210mn SPLY. Despite the lower effective tax rate and the coal based CPP being fully operational in 4Q, profits declined sequentially due to higher variable costs qoq. Key result highlights for 4QFY21: * Net sales have increased by...
- Rahul Hans
Pakistan: Cement prices have surpassed expectations, and more hikes ar...
Second price hike in a week: As per our channel checks, cement prices in the North region have increased by PKR10/bag to a new all-time high of c.PKR660/bag. This is the second consecutive hike in the past week, taking total price increase to PKR20-25/bag. The major reasons for increasing cement prices is to pass on the recent increase in global coal prices (to US$133/ton, 13yr high) and transportation costs amid rising local petroleum prices. Prices have surpassed our assumption for FY22f; e...
- 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 ...
Pioneer Cement: 1 director
A director at Pioneer Cement sold 49,000 shares at 127.410PKR and the significance rating of the trade was 52/100. 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...
- Rahul Hans
Pioneer Cement: 3QFY21 Review: Lower sales and margins lead to earning...
Pioneer Cement (PIOC) has posted 3QFY21 NPAT of PKR687mn (EPS: PKR3.02), lower than our estimated profits of PKR786mn (EPS: PKR3.46), mainly because of lower revenues and gross margins. This takes 9MFY21 net profits to PKR1.3bn (EPS: PKR5.69), compared with a loss of PKR523mn SPLY. The surge in profitability in 3QFY21 is led by (i) higher volumes post expansion, (ii) better retention prices, and (iii) lower variable costs post commissioning of coal based CPP and WHR. Key result highlights for...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.