IGI Securities Limited – Flash Note
Karachi, January 09, 2018 (PPI-OT): Cement – ACPL: 1.2mn ton per annum expansion plant becomes operational
Attock Cement Pakistan Limited (ACPL) has notified the Pakistan Stock Exchange Limited (PSX) the successful commissioning of its 1.2mn ton per annum brownfield expansion plant.
This has enhanced the Company’s existing cement capacity of 1.83mn ton per annum to new levels of 3.03mn tons per annum.
We estimate the new plant to provide earnings accretion of PKR 8/share for FY18 (representing 28% of FY18E earnings) for the Company.
ACPL is currently trading at a FY18 P/E 6.4x and an estimated dividend yield of 5.7%. We currently have a ‘BUY’ call on the scrip with our Dec-18 target price of PKR 358/share, providing an upside of +95% from its last close of PKR 183.67/share.