Author Topic: KOHC -- Kohat Cement  (Read 126087 times)

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Offline Dr. Economist

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Re: KOHC -- Kohat Cement
« Reply #19 on: April 09, 2012, 09:27:40 PM »
KOHC expected to post eps of 11.2 for FY 2012

That's massive. I think it is going towards 80 by the year end  :skeptic:

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Re: KOHC -- Kohat Cement
« Reply #19 on: April 09, 2012, 09:27:40 PM »

Offline Dr. Economist

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Re: KOHC -- Kohat Cement
« Reply #20 on: April 09, 2012, 09:34:33 PM »
KOHC expected to post eps of 11.2 for FY 2012

Is it your calculations?

Offline Poker Face

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Re: KOHC -- Kohat Cement
« Reply #21 on: April 09, 2012, 09:40:55 PM »
yes

Offline Dr. Economist

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Re: KOHC -- Kohat Cement
« Reply #22 on: April 10, 2012, 06:05:38 AM »
yes

So what is the target price for KOHC comes out to be according to your calculations?

Offline mra901

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Re: KOHC -- Kohat Cement
« Reply #23 on: April 10, 2012, 02:50:59 PM »
Kohat Cement Company Limited is a Pakistani cement manufacturer located in the North Zone of the country, with a factory plant near Peshawar.

Incorporated in 1980, the company manufactures two types of cement, grey and white.

It has a total production capacity of 2,805,000 tons/annum and 148,000 tons/annum respectively and a market share of approximately 10 percent.
INDUSTRY ANALYSIS Between 1HFY11 and 1HFY12, local dispatches in the cement industry

 increased while exports contracted.

The growth of sales for the industry was four percent, below expectations.

One reason for the sub-par results may have been the significant increase in cement prices over the period.

A decrease in Sales Tax and Federal Excise Duty (FED) of one percent along with a complete removal of the 2.5 percent Special Excise Duty (SED) within the government's budget 2011-2012 had reduced the burden on the manufacturers.

Though initially expected by analysts to pass this tax exemption to consumers, the cement producers chose not to in an effort to augment their bottom lines.
OPERATIONS Increment in volumetric sales for Kohat Cement was 19 percent for the half year ended 31st December 2011, which was a significant increase not over just the corresponding year but also above the industry average.

Demand, or lack thereof, had an adverse effect on the cement lines of Kohat.

The old grey line had to remain closed on account of insufficient demand and white cement was not sold in much quantity for the same reason.

Clinker production grew by a paltry 1.58 percent over the corresponding period.Coal is a significant input in the production of cement, accounting for nearly around 60 percent of the cost of cement.

The volatility of coal prices in recent years has led many cement players to look towards alternative sources of fuel.

Kohat is no different; as of 1HFY12, the management was working on a project for alternative energy scheduled to be completed over the next year.
PROFITABILITY The 1HFY12 result for Kohat Cement shows increased profitability over the corresponding period last year.

Net sales increased by 62 percent year on year, while cost of goods sold increased by 37 percent.

As a result, gross profit was augmented by 241 percent and gross margins more than doubled from 12.2 percent in 1HFY11 to 25.7 percent in 1HFY12.Selling and distribution expenses ballooned, but that is expected to accompany surge in sales such as the one the company experienced.

Operating profit increased by over 250 percent percent, and operating margins more than doubled from 11.1 percent in 1HFY11 to 24 percent this period.Despite a significant increase in the taxation over the previous year, profit after tax witnessed an increase of 842 percent and the company saw a change from red to black over the corresponding period last year.

Net margins for 1HFY12 increased from a negative three percent to a positive 13.6 percent.
LEVERAGE The company capitalised upon the good fortunes of increased prices and, in addition to other repayments, pre-paid a long term debt during the six months to the tune of Rs 250 million.

This is good news in an industry which has seen non-performing loans exceed 22 percent, according to a spokesman of the All Pakistan Cement Manufacturers Association.
LIQUIDITY On the liquidity front, there has been relative improvement in Kohat Cement's accounts.

From a current ratio of 0.43 in the FY10, the ratio improved to 0.7 in the most recent annual report of FY11.

Such a ratio underscores a prevalent trend in the cement industry as many players have current ratios below one.

The cash flows in 1HFY12 suffered on account of Rs 711 million worth of long-term finance being repaid in the period.
LOOKING FORWARD The government has been increasing public expenditure funds in recent months, and the export market might bode better as well.

Having seen a reduction in exports over the past couple of months, the reconstruction activity in Afghanistan bodes well for the North Zone while Gulf nations showing signs of increasing trade with Pakistan regarding cement is good news for players in the South Zone.Source: Company accounts

Offline Poker Face

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Re: KOHC -- Kohat Cement
« Reply #24 on: April 10, 2012, 08:59:58 PM »
yes

So what is the target price for KOHC comes out to be according to your calculations?

around 50 is possible with current speed

Offline naveed

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Re: KOHC -- Kohat Cement
« Reply #25 on: April 11, 2012, 06:46:59 PM »
what will be the target price for year end
Seniors plz advise.  Is it wise to invest now

Offline Ali135

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Re: KOHC -- Kohat Cement
« Reply #26 on: April 11, 2012, 08:12:01 PM »
what will be the target price for year end
Seniors plz advise.  Is it wise to invest now

Poker Bhai will it be wise to hold cement script for long?

and secondly must advise when u feel that its now time to exit KOHC.

i have took a fresh entry today at upper lock.

will appreciate ur advise.  :biggthumpup:

Offline naveed

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Re: KOHC -- Kohat Cement
« Reply #27 on: April 11, 2012, 09:48:57 PM »
@ali135
Dude we have a lot in common on this forum.  We both are jr members, we both have posted 50 posts and we both have bought kohc on upper lock today with the intention of long term.  What coincidence

Offline Ali135

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Re: KOHC -- Kohat Cement
« Reply #28 on: April 11, 2012, 10:18:26 PM »
@ali135
Dude we have a lot in common on this forum.  We both are jr members, we both have posted 50 posts and we both have bought kohc on upper lock today with the intention of long term.  What coincidence
now we both have 51 posts. lol  :thumbsup_anim:

and INSHAH ALLAH we both will gain something good out of this script.  :fingerscrossed1:

Offline naveed

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Re: KOHC -- Kohat Cement
« Reply #29 on: April 11, 2012, 10:26:47 PM »
inshaAllah very good gains

Offline Poker Face

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Re: KOHC -- Kohat Cement
« Reply #30 on: April 11, 2012, 10:30:06 PM »
what will be the target price for year end
Seniors plz advise.  Is it wise to invest now

Poker Bhai will it be wise to hold cement script for long?

and secondly must advise when u feel that its now time to exit KOHC.

i have took a fresh entry today at upper lock.

will appreciate ur advise.  :biggthumpup:

I think holding for long term {more than 52 weeks} will not be very beneficial since the profits of 2012 are not expected to growth further. Secondly, price has already appreciated from 8 to these levels and it may not be able to show consistent growth in years ahead because of the topsy turvy nature of business and irregular cement demand. Sell at good profits is all what I would suggest.
50 would be good level to exit.

Offline Ali135

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Re: KOHC -- Kohat Cement
« Reply #31 on: April 11, 2012, 10:53:44 PM »
what will be the target price for year end
Seniors plz advise.  Is it wise to invest now

Poker Bhai will it be wise to hold cement script for long?

and secondly must advise when u feel that its now time to exit KOHC.

i have took a fresh entry today at upper lock.

will appreciate ur advise.  :biggthumpup:

I think holding for long term {more than 52 weeks} will not be very beneficial since the profits of 2012 are not expected to growth further. Secondly, price has already appreciated from 8 to these levels and it may not be able to show consistent growth in years ahead because of the topsy turvy nature of business and irregular cement demand. Sell at good profits is all what I would suggest.
50 would be good level to exit.

 :biggthumpup:

i will exit at 50 INSHAH ALLAH.

and thnx alot Poker Face. ur words have value for me.  :biggthumpup:

Offline mraza

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Re: KOHC -- Kohat Cement
« Reply #32 on: April 12, 2012, 01:08:14 AM »
when do expect  it to hit 50

Offline naveed

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Re: KOHC -- Kohat Cement
« Reply #33 on: April 12, 2012, 08:07:42 PM »
BM 14 April
What to do sell or hold??

Offline Ali135

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Re: KOHC -- Kohat Cement
« Reply #34 on: April 13, 2012, 04:15:54 AM »
as market was going down so i sold it on lock... but then bought it again on lock...  :arrowhead:

let c holding till monday...  :thumbsup_anim:

Offline naveed

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Re: KOHC -- Kohat Cement
« Reply #35 on: April 13, 2012, 01:36:03 PM »
board meeting k baad count down na shuroo ho jaey

Offline Ali135

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Re: KOHC -- Kohat Cement
« Reply #36 on: April 13, 2012, 02:35:09 PM »
board meeting k baad count down na shuroo ho jaey

bas nazer rakho. jesy nechay janay lagay ura do.  ;)

Offline Farzooq

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Re: KOHC -- Kohat Cement
« Reply #37 on: April 16, 2012, 10:05:45 AM »
kohc eps 7.77 for 9months
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Offline Poker Face

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Re: KOHC -- Kohat Cement
« Reply #38 on: April 16, 2012, 11:14:21 AM »
awesome