reports
- Team AKD Research
EPCL_Analyst Briefing Takeaway, (AKD Off the Analyst's Desk Aug 11, 20...
EPCL: Analyst Briefing Takeaway Engro Polymer & Chemical Limited (EPCL) conducted its analyst briefing today to brief investors on its 2QCY23 results and future outlook. Here are the key highlights from the briefing: To recall, EPCL recorded earnings of PkR1.5bn (EPS: PkR1.39) in 2QCY23, marking a 33%YoY decline compared to PkR2.3bn (EPS: PkR2.45) in SPLY. The drop in earnings was primarily attributed to an annual decrease in core delta margins and huge taxation charges. PVC sales vol...
- IMS Research Team
Lotte Chemical Pakistan: 2QCY23 Review - Lower volumes lead to sharp u...
LOTCHEM has posted NPAT of PKR0.3bn (EPS: PKR0.21) in 2QCY23, down 89% YoY and 88% QoQ. The result came much below our expected NPAT of PKR1.7bn (EPS: PKR1.18) due to lower sales volume amid plant shutdown during 2QCY23 and higher one –off effective tax due to super tax. This takes 1HCY23 NPAT to PKR2.8bn (EPS: PKR1.88), down 47% YoY. The company did not declare any dividends against our expected payout of PKR1/sh. KEY HIGHLIGHTS FOR 2QCY23 RESULT: * Revenue clocked in at PKR16.4bn, down 45%...
- Team AKD Research
EPCL - 2QCY23 Result Review - Super tax erodes the earnings growth, (A...
EPCL - 2QCY23 Result Review - Super tax erodes the earnings growth Engro Polymer & Chemicals Limited (EPCL) announced its 2QCY23 results, where the company posted earnings of PkR1.6bn (Basic EPS: PkR1.4), marking a 32%QoQ increase compared to PkR1.2bn (EPS: PkR1.3) in the previous quarter. This growth is primarily attributed to availability of local gas and uptake growth during the quarter. The company also announced an interim dividend of PkR1.5/sh, bringing the 1HCY23 payout to PkR2.5/sh. ...
- IMS Research Team
Engro Polymer & Chemicals Ltd: 2QCY23 Review - Elevated finance cost a...
EPCL has posted consolidated NPAT of PKR1.5bn for 2QCY23 (EPS: 1.39), down 33% YoY but up 32% QoQ. The result came slightly lower than our 2QCY23 expected EPS of 1.52, where the major deviation stemmed from higher than expected finance cost and one-off high effective tax due to super tax. This takes 1HCY23 total consolidated NPAT to PKR2.7bn (EPS: 2.69), down 61% YoY. The company has announced an interim cash dividend of PKR1.50/sh taking 1HCY23 total payout to PKR2.50/sh. We expected a payou...
- 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
Engro Polymer & Chemicals Ltd: 1QCY23 Review - Depressed demand and ma...
EPCL has posted NPAT of PKR1.2bn for 1QCY23 (EPS: PKR1.31), down 75% YoY/45% QoQ. The result came largely in-line with our expected NPAT of PKR1.2bn (EPS: PKR1.41). The company has announced an interim cash payout of PKR1.0/sh. Also in line as we expected. KEY TAKEAWAYS FROM 1QCY23 RESULT: * Net Sales clocked in at PKR17.9bn, down 22% YoY and 11% QoQ. This is lower than our expected topline of PKR20.9bn. We believe, the major deviation came from the lower-than-expected sales volume of PVC du...
- IMS Research Team
Lotte Chemical Pakistan: LOTCHEM - Higher realized primary margins and...
LOTCHEM posted NPAT of PKR2.5bn (EPS: PKR1.68) in 1QCY23, up 26% QoQ, but down 3% YoY. The result came above our expected NPAT of PKR1.5bn (EPS: PKR1.01) due to higher-than-expected gross margins. The result was accompanied with PKR2.0/sh interim dividend, above our expected payout of PKR1.0/sh. Key highlights for 1QCY23 result: * Revenue clocked in at PKR22.1bn, up 7% QoQ and 9% YoY, largely in-line with our expectation of c.PKR21.8bn. The revenue growth is mainly attributable to significan...
- IMS Research Team
Pakistan Chemicals: March'23 Result Previews
ONE-OFF LCI GAIN TO OVERSHADOW CORE DISCREPANCIES We expect the IMS Chemicals Universe (LOTCHEM, EPCL and LCI) to post combined core NPAT of c.PKR3.6bn in the quarter ended March 31st, down 40%QoQ /64%YoY. However one-off capital gain of PKR8.3bn on the sale of NutriCo Morinaga stake will elevate LCI profits to PKR9.1bn and therefore, will take reported sector profits to PKR11.9bn up 21% YoY and 2.2x QoQ. On a more granular level, sales volumes are likely to decline amid reduced textile expor...
- Team AKD Research
LOTCHEM_3QCY22 Analyst Briefing, (AKD Off the Analyst's Desk Nov 16, 2...
LOTCHEM: 3QCY22 Analyst Briefing Lotte Chemical Pakistan Limited (LOTCHEM) held its corporate briefing for 9MCY22 today, wherein the following was discussed: LOTCHEM is the only manufacturer of PTA in the country, with an annual capacity of 500KT. The annualized market is estimated at ~750KT. To recall, NPAT was recorded at PkR8.1bn in 9MCY22 (higher by 151%YoY), on net sales of PkR79.5bn (higher by 65%YoY). The bottomline growth is attributable to better PTA-PX margins during the per...
- Ali Aziz Soorty
Lotte Chemical Pakistan: 3Q22 Result Review: Strong earnings but no pa...
LOTCHEM posted NPAT of PKR2.7bn (EPS: PKR1.79) in 3QCY22, up c.3.0x YoY and 91% QoQ. The result is in line with our expected NPAT of PKR2.6bn (EPS: PKR1.74). The management opted out of a payout this quarter against our expectation of a PKR1.0/sh. Key highlights: * Revenues clocked in at PKR29.6bn, up 71% YoY (flat QoQ), and beating our expectation of c.PKR27.5bn. The strong YoY revenue growth is likely due to better textile demand, coupled with strong PTA-PX spreads. * The company post...
- Ali Aziz Soorty
Engro Polymer & Chemicals Ltd: 3QCY22 Review: Depressed core delta led...
EPCL has posted consolidated NPAT of PKR2.3bn for 3QCY22 (EPS: PKR2.48); down 27% YoY and 3% QoQ. The result came in-line with our expected EPS of PKR2.40. The company also announced an interim cash dividend of PKR2.50/sh vs. our estimated DPS of PKR2.25. * Net Sales down 24% QoQ and 10% YoY to PKR16.9bn (broadly in-line with our estimated topline of PKR17.4bn), owing to lower sales volume amid muted construction activity during the quarter. * Gross margin came in at 29.4%, down by 4.4p...
- 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...
- Ali Aziz Soorty
Engro Polymer & Chemicals Ltd: 2QCY22 Result Review - Earnings beat dr...
EPCL has posted NPAT of PKR2.3bn for 2QCY22 (EPS: PKR2.57); down 25% YoY and 50% QoQ. The result came in higher than our expected EPS of PKR1.25, with deviation stemming from higher-than-expected gross margins and lower effective tax rate. The company also announced an interim cash dividend of PKR2.5/sh vs. our estimated DPS of PKR1.25. * Net Sales clocked in at PKR22.3bn (lower than our estimated topline of PKR23.6bn), down 4% QoQ but up 50% YoY, owing to higher demand and international PVC...
- Ali Aziz Soorty
Lotte Chemical Pakistan: 2QCY22 review – Earnings beat amid higher top...
Beating street estimates, LOTCHEM posted NPAT of PKR2.79bn (EPS: PKR1.84) in 2QCY22, up a sharp 189% YoY and 7% QoQ. This is against our estimate of PKR1.2bn (EPS: PKR0.81), where the major deviation stemmed from higher-than-expected PTA-PX spreads and topline growth. The company also announced a surprise healthy payout of PKR 4/sh against its normal payouts in 3Q each year. KEY HIGHLIGHTS: * Revenues clocked in at PKR29.6bn, beating our expectation of c.PKR26.2bn, up 82% YoY and 46% QoQ. T...
- 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...
- Team AKD Research
- Ali Aziz Soorty
Lotte Chemical Pakistan: 1QCY22 Result Review: All time high GMs lead ...
LOTCHEM has reported NPAT of PKR2.6bn (EPS: PKR1.73) in 1QCY21, up a sharp 60% yoy and 85% qoq. This is a strong earnings beat vs. our estimated NPAT of PKR1.3bn (EPS: PKR0.87), where the major deviation stemmed from higher-than-expected PTA-PX spreads. The result accomplished without any payout, in line with our expectation, as the company has track record of paying dividends in 3Q. KEY TAKEAWAYS FROM 1QCY22 RESULT INCLUDE: * Revenues have clocked in at PKR20.3bn, in line with our expectati...
- IMS Research Team
Engro Polymer & Chemicals Ltd: 1QCY22 review – higher-than-expected vo...
EPCL has posted NPAT of PKR4.7bn for 1QCY22 (EPS: PKR5.19), up 14% yoy and 1% qoq, against our expected EPS of PKR4.17. The major deviation came from higher-than-expected PVC volumes and better spreads. The company also announced an interim cash dividend of PKR5/sh vs. our estimated DPS of PKR4. Along with the result, the company has announced the approval of Capex US$4.0mn de-bottlenecking project (VCM production to 300KT per annum). We await the company’s analyst briefing to shed more light...
- Ali Aziz Soorty
Pakistan Chemicals: Earnings to sequentially lower amid normalized spr...
* We expect IMS Chemicals universe (LOTCHEM and EPCL) to post combined net profits of PKR5.1bn for 1QCY22, mainly led by healthy international spreads. Spreads of both PTA and PVC benefited from global macroeconomic uncertainty (Russia - Ukraine conflict and China power crisis). * LOTCHEM is expected to post 1QCY22 EPS of PKR0.87, where PTA-PX spreads averaged US$115/ton during the quarter. Spreads were slightly lower from their recent peak due to consistently rising PTA prices; while n...
- Azan Memon
Engro Polymer & Chemicals Ltd: High oil prices can trigger a down-cycl...
> PVC-Ethylene spreads have corrected 40% from its recent peak level since Nov’21. Amid the Russia-Ukraine crisis and the prospect of oil prices remaining above US$100/bbl for long, we flag the risk of further compression in spreads. Historically, PVC demand and spreads compressed sharply when oil prices were above US$100/bbl. * EPCL’s stock price suggests implied PVC-Ethylene spreads of c.US$450/ton for CY23f onwards, already pricing in a decline of 40% from present levels, in our view. Th...
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