IGI Securities Limited - Flash Note (September 02, 2022)

FLASHNEWS:

Sindh Government Commits PKR 14.7 Billion to K-IV Water Project

Snow Leopards Threatened by Road Construction in Gilgit-Baltistan

Punjab Government Subsidizes Agricultural Equipment to Boost Rice Farming Efficiency

Engro Fertilizers and Engro Polymer Expect Declines in Quarterly Earnings as per AKD Securities

Japan Grants $9.8 Million for Development Projects in Islamabad

PSX Experiences Minor Downturn Amid Varied Sector Performances

Technical Indicators Suggest Caution in Karachi Stock Market Trading

Exchange Rates Fluctuate Slightly in Pakistan’s Currency Market

KSE-100 Sees Minor Retreat Amidst Trading Caution

Fauji Cement and DG Khan Cement Anticipate Mixed Financial Outcomes for Q3 FY24

Spotify and Coke Studio Pakistan Announce Continued Collaboration for Music Season 15 in Karachi

SITE President Calls for Action as Rising Production Costs Threaten Factory Operations

FPCCI Criticizes Recent Increases in Petroleum Prices Despite Favorable Economic Indicators

Shabbir Mansha Churra Named Chairman of Pakistan-China Business Council

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IGI Securities Limited – Flash Note (September 02, 2022)

September 2, 2022

Karachi, September 02, 2022 (PPI-OT): Cement – Maple Leaf Cement Factory Limited

Earnings: Maple Leaf Cement Factory Limited (MLCF) announced its’ full year Fy22 financial result, whereby the company reported earnings of PKR 3,626mn or PKR 3.3/share, down by 42%y/y. For the 4qFy22 alone the company reported earnings of PKR 35mn or PKR 0.03/share down by 95% q/q). Quarterly earnings decline depicts implementation of new taxes in budget FY23.

Dividends/Payouts: The Company did not announce dividend.

Operating performance: During the 4qFy22, company’s sales clocked in at PKR 14,408mn up by a +37%y/y on the back of higher retention prices. Moreover, company’s gross margins stood at 25% during the period compared to 21% in the same period last year. This takes full year gross margins to 25%. Improved gross margins symbolize efficient cost and coal inventory management by the company. During the period under review, company reported EBIT of PKR 8,925mn up by 2%y/y and 1xq/q. Margins wise, Company’s net margins clocked in at 7% during the year compared to previous year net margins of 18%. Effective tax for the company came in at 98% for the quarter mainly due to the higher tax measures imposed during the FY23 budget, including Super Tax and Poverty Alleviation Tax.