Author Topic: CHCC -- Cherat Cement Company Ltd.  (Read 43062 times)

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Offline M&M

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CHCC -- Cherat Cement Company Ltd.
« Reply #-1 on: October 20, 2012, 12:56:43 PM »
             CHERAT CEMENT                            research@taurus.com.pk


1QFY13 Results Review ? First rate beginning!

CHCC has posted a first rate profit after tax of PKR 268 million (EPS: PKR 2.81) which completely outclasses the company’s results in the corresponding period last year (i.e.
when it registered a loss). CHCC’s remarkable growth in earnings is largely fuelled by:

? impressive cement prices up north which haven't broken much sweat even in the recent monsoon season
? Consistent exports to Afghanistan
? Lowering of coal prices

Margins escalate substantially

Price led topline growth (+24% YoY) coupled with decline in input costs (?11% YoY) has led substantial escalation in primary margins which resultantly has translated positively both in the company’s operational earnings and the bottomline.

Abrasion in financing costs provide additional support to net earnings

Bottomline growth has been further supported by significant attrition in financing costs (?53% YoY). Decline in financing costs would not only be due to SBP’s discount rate easing cycle but also owing to debt repayments made in FY12 which would have brought down both the long term debt and the markup on it.

Furthermore, we anticipate the company would have resorted to relatively lesser
short term debt in the wake of notable earnings seen in the final quarter of the last fiscal
year which would have enabled to company to remain self reliant with respect to its working capital needs.

Future Outlook

Going forward, we anticipate CHCC to build on its remarkable performance shown for the
first quarter and hence foresee the company’s full year earnings to remain in line with our
projections of PKR 732 million (EPS: PKR 7.66)

Profit & Loss
                         1QFY13             1QFY12             ?
Sales                   1,453                 1,167            24%
Cost of sales         981                  1,099            ?11%
Gross profit           472                    68               594%
Admin expenses      28                     25                14%
Selling expenses      38                     32                20%
Operating profit      405                    11             3484%
Other expenses       19                      1              2268%
Financing costs        46                     98               ?53%
Other income           7                        9               ?27%
Profit before tax      347                  (78)             ?545%
Tax                          78                    11                630%
Profit after tax         268                  (67)             ?499%
EPS                         2.81                (0.70)
Gross margin           32%                  6%
Operating margin      28%                 1%
Net margin               18%                 ?6%

Source: Company notice

http://www.gfg.com.pk/cheratcement/cc.html
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CHCC -- Cherat Cement Company Ltd.
« Reply #-1 on: October 20, 2012, 12:56:43 PM »

Offline Ali135

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Re: CHCC -- Cherat Cement Company Ltd.
« on: December 21, 2012, 11:43:10 AM »
FS Report
Cherat Cement Company: Still offering decent upside (From the sales Desk)

Outlook

 

Earnings to remain strong in 2QFY13

Going forward, we expect 2QFY12 results for the company to remain robust as well on the back of 8% QoQ improved exports retention prices. For 2QFY12, we roughly expect Cherat cement to post 76% YoY improvement in after tax earnings to PKR276mn (EPS: PKR2.89) mainly driven by, 1) expected 4% QoQ growth in volumetric sales of the company, 2) strong domestic cement prices despite winter, 3) 8% QoQ increase in exports retention prices in Afghanistan.
 
Healthy operating cash flows (OCF) will help in deleveraging of balance sheet

The operating cash flows of the company have improved significantly over the past several quarters.  In FY12, the company generated OCF of around 1.4bn (translating into OCF/share of PKR14/share), which the company exclusively used to retire its long term debt obligations. We estimate the company to record OCF of around PKR19.8/share in FY13. Strong cash flows will help the company to completely retire its debt, which will augment earnings in coming period.
 
Action and Recommendation

Though CHCC has provided decent returns during the past 1 year, we feel that stock will continue to fare well due, 1) improving cement sector dynamics, 2) geographical advantage (i.e. proximity to its key exports destination Afghanistan) and 3) higher export prices in Afghanistan. The company has also made an arrangement of coal imports from Afghanistan which is expected to reduce company’s freight costs in the coming years.
 
We remain fairly confident that the company will report double digit top-line and bottom line growth this year. Cherat cement in our opinion can post EPS in the range of 12.5-13.0/share, we feel that an ideal accumulation range would be in the P/E of 3.75-4.0x i.e. 45-50 rupees and deserves a target multiple of 5.0x, which is approximately PKR65/share. We also expect the company to announce total cash payout of around PKR5-6/share, which offers the highest dividend yield of 10-12% in the cement sector. Cherat Cement is one of the top picks at Foundation Securities sales desk.

Offline SBM

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #1 on: February 19, 2013, 12:36:13 PM »
nice interim dps 1 pkr

6.35 eps half year
3.54 for this quarter
http://www.kse.com.pk/notices-updates/detail2.php?id=4&nid=041340&pagesize=1&pageno=2
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Offline sAr

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #2 on: February 19, 2013, 04:21:33 PM »
I have a conviction that FECTC will also give interim dividend .. ::)

Offline stalker

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #3 on: March 19, 2013, 06:29:11 PM »
STRONG BUY CALL!!!

Offline PK

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #4 on: March 19, 2013, 06:40:49 PM »
STRONG BUY CALL!!!
target mein du ? asam  :D
Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.

Online sanwar

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #5 on: March 19, 2013, 07:01:47 PM »
STRONG BUY CALL!!!
target mein du ? asam  :D

@PK bhai, target aap he de dain... abhi tak to ye hi dekha hay kay app kay target zaroor hit hotay hain...  :$:

Offline PK

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #6 on: March 19, 2013, 07:09:13 PM »
STRONG BUY CALL!!!
target mein du ? asam  :D

@PK bhai, target aap he de dain... abhi tak to ye hi dekha hay kay app kay target zaroor hit hotay hain...  :$:
Sanwar sb actually i m asking asam k target b batao plz ... ma sha allah pioc aur acpl ki strong call to bari achi rahi hai mere bhai ki ... asam plz share target also thanks for ur effort bro  ;)
Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #7 on: March 19, 2013, 07:10:53 PM »
@PK
short term mai inshAllah 60.. :)

Offline PK

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #8 on: March 19, 2013, 07:17:16 PM »
@PK
short term mai inshAllah 60.. :)
Forum hai smc nahi jo @ laga raha hai target sab k liye hai  :thumbsup_anim:
Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.

Offline Saiti

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #9 on: March 19, 2013, 10:13:43 PM »
STRONG BUY CALL!!!
Cement Specialist!  :D

Offline PK

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #10 on: March 19, 2013, 10:30:52 PM »
STRONG BUY CALL!!!
Cement Specialist!  :D
Saiti isiliye to i say asam cement wala  :D Rising star hai bhai forum ka ye ..
Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #11 on: March 20, 2013, 01:38:10 PM »
1m + volume ... WoW...

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #12 on: March 21, 2013, 11:37:11 AM »
chchchchchchchchchchchchchchhhhhhhhhhhhh   :shoaby:

Offline 007

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #13 on: March 21, 2013, 11:44:50 AM »
 :biggthumpup:

Offline 007

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #14 on: March 22, 2013, 01:24:07 AM »
Scs Walay baray positive hain iss main

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #15 on: March 22, 2013, 03:01:17 AM »
Scs Walay baray positive hain iss main

scs ki report share karsaktay ho?

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Offline PK

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Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years.

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Re: CHCC -- Cherat Cement Company Ltd.
« Reply #18 on: April 02, 2013, 02:06:14 PM »