Morning Call about FCCL and UBL – Arif Habib Limited

Karachi, October 30, 2012 (PPI-OT): FCCL; Profitability is likely to jump by ~5x YoY

Arif Habib Limited previews the financial result of 1QFY13 for Fauji Cement Company Limited (FCCL) with profit after tax of PKR 516 million (EPS: PKR 0.39), a massive 5x YoY growth, when compared with PKR 104 million (EPS: PKR 0.08) in the corresponding quarter last year.

According to Arif Habib Limited, this was mainly on account of lower base effect of last year, when company capitalized its trial production. In addition to this, strong pricing environment coupled with cooling off coal prices is likely to widen gross margin to 34% in 1QFY13 compared to 15% in 1QFY12. Furthermore financial charges are expected to swell by 4.5x to PKR 308 million in 1QFY13 as the company was capitalizing its finance cost in the same quarter last year.

Financial Highlights      
PKR million

1QFY13

1QFY12

YoY

Net Sales

3,509

1,602

119%

Gross profit

1,197

237

404%

Admin expenses

36

28

26%

Selling expenses

36

13

169%

EBIT

1,103

195

466%

Financial charges

308

68

351%

PBT

794

126

529%

Profit after tax

516

104

397%

Earnings per share (PKR)

0.39

0.08

Sources: Company Accounts and AHL Research

UBL is expected to post earnings growth of 25%YoY in 9MCY12

United Bank Limited (UBL) is scheduled to announce its 3QCY12 results on October 31, 2012. The bank is expected to post net earnings of PKR 4,334 million (EPS: PKR 3.54) compared to PKR 4,453 million (EPS: PKR 3.64) in 2QCY12, a decline of 3% QoQ. However, UBL net earnings is expected to clock in at PKR 13,652 million (EPS: PKR 11.15) in 9MCY12 compared to last year’s same period earnings of PKR 10,952 million (EPS: PKR 8.95), registering a rise of 25% YoY. The bank’s total provisioning against NPLs is expected to witness a decline of 72% YoY to stand at PKR 1,667 million in 9MCY12 against PKR 5,922 million in 9MCY11. UBL’s Non mark-up income is expected to jump by 5% QoQ to reach PKR 3,769 million compared to PKR 3,586 million in the 2QCY12. Arif Habib Limited expects UBL to announce an interim dividend of PKR 1.5 in 3QCY12.

Financial Highlights            
PKR million

9MCY12

9MCY11

YoY

3QCY12

2QCY12

QoQ

NII

29,021

29,582

-2%

9,808

9,613

2%

Provisions against NPLs

1,667

5,922

-72%

618

443

40%

Non Interest income

11,449

8,920

28%

3,769

3,586

5%

Admin Expenses

17,178

14,690

17%

5,892

5,760

2%

PBT

20,476

16,752

22%

6,668

6,578

1%

PAT

13,652

10,952

25%

4,334

4,453

-3%

EPS

11.15

8.95

3.54

3.64

Source: Company financials and AHL Estimates

Today’s News

• The Lahore High court on Thursday cancelled a notification issued by Pakistan Telecommunication Authority (PTA) imposing additional tax on incoming international phone calls. Justice Ijaz ul Ahsan of LHC also ordered the PTA chairman to submit his reply in a petition filed against the levy till November 5. (BR)

• US energy giant ConocoPhillips and Pakistan’s SSGC are expected to sign a MoU for import of LNG from Qatar to meet pressing energy needs. The Qatari govt has designated ConocoPhillips, which has a stake in North Field- a big gas field along the Qatar-Iran border, to strike an LNG supply deal with Pakistan. (Tribune)

Margin Trading System   October 25, 2012
  Day Vol Day Value Wght Avg Op. Vol Op. Value %open
  (million) (PKR million)     (million) (PKR million)  
FATIMA 1.46 31.61 13.0% DGKC 6.18 268.11 17.1%
DGKC 0.59 26.03 11.8% LUCK 1.57 179.45 11.4%
PTC 0.93 13.88 12.9% ENGRO 2.16 173.44 11.1%
PSO 0.07 12.00 13.4% PSO 0.94 168.93 10.8%
ENGRO 0.13 10.49 12.5% FATIMA 6.82 141.32 9.0%
Total 4.18 143.18 12.6% Total 36.77 1568.50  
Source: NCCPL

 

FIPI (USDm) Net Buy/(Sell) MSCI Index Last Day YTD
25-Oct-12 -2.03 Pakistan 95.2 -0.7% 17.2%
MTD 33.61 Frontier Mkt 475.3 -0.1% 1.8%
FYTD 125.66 Emerging Mkt 999.1 0.5% 9.0%
CYTD 94.97 EM Asia 421.7 0.4% 11.4%
Source: NCCPL Source: MSCI

 

Board Meetings Date Time Location
Aisha Steel Mills Ltd 1Q   30-Oct-12 4:00 PM Karachi
Engro Corporation Ltd 3Q   30-Oct-12 2:00 PM Karachi
WorldCall Telecom Ltd 3Q   30-Oct-12 3:00 PM Karachi
Fauji Cement Company Ltd 1Q   30-Oct-12 12:00 PM Rawalpindi
Fecto Cement Ltd 1Q   30-Oct-12 11:30 AM Karachi
Azgard Nine Ltd 1Q   30-Oct-12 4:00 PM Lahore
Agritech Ltd 1Q   30-Oct-12 5:00 PM Lahore
Source: KSE      

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