Author Topic: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)  (Read 45559 times)

1 Member and 2 Guests are viewing this topic.

Offline Farzooq

  • Administrator
  • Senior Member
  • *****
  • Posts: 19924
  • Thanks Received: 196
    • View Profile
POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #-1 on: November 18, 2012, 10:24:44 AM »
Cement manufacturer: Timely investments bring Al-Abbas back to profitability
By Farhan Zaheer
Published: November 18, 2012

 The company has increased its production capacity by 20% to 900,000 tons annually by investing in a vertical cement-grinding mill. PHOTO: FILE

KARACHI: 
It is one of the smallest cement manufacturers in the country, but Al-Abbas Cement is determined to become one of Pakistan’s most efficient, investing in new machinery and increasing its capacity utilisation to well-above the market average, a strategy that is already beginning to pay off for the company.
 
At 900,000 tons, the installed annual production capacity of Al-Abbas Cement is a tiny fraction of the nearly 45-million-ton installed capacity of the cement industry as a whole, according to the All Pakistan Cement Manufacturers Association, a lobbying group. Yet the company appears to be determined to make the best of its capacity utilisation.
 
“We are currently at between 80% and 85% utilisation rates of our total capacity,” said Kashif Habib, CEO of Al-Abbas Cement, and son of Arif Habib, the chairman of the Arif Habib Corporation, the conglomerate that owns about 75% of the company.
 
The company appears to have benefited from timely investments in machinery, investing in a vertical cement-grinding mill, which caused production capacity to increase by about 20%, from 750,000 tons annually to around 900,000 tons annually. “The new investment will make it easier for the company to produce finished cement,” said Habib.
 
That expansion allowed Al-Abbas to capitalise on a revival in local demand. Revenues jumped by nearly 32% during the financial year ending June 30, 2012 to reach just over Rs2.9 billion. That increase was enough to drag the company out of a Rs927 million loss in 2011 to a Rs153 million profit.
 
Although the company derives about 30% of its revenues from exports, Habib did not seem particularly keen on tapping foreign demand for growth. “Small cement companies do not have much attraction in export markets owing to low profit. Export markets are more attractive to bigger cement companies of Pakistan,” he said. “The export market is very competitive right now. Supply outpaces demand so it is a buyer’s market internationally.”
 
The situation in the domestic market seems to be the inverse. A sharp surge in demand has resulted in local cement prices going up by close to 35% over the past year, which the company attributes as one of the major reasons its revenues increases in 2012. And demand is only expected to go up over the next few months, as the government increases spending on construction and development projects ahead of an election.
 
While the cement sector is largely seen as an export-driven sector, the market appears to like Al-Abbas’ domestic-focused strategy. The stock closed at Rs6.00 in trading on the Karachi Stock Exchange on Friday, up 140% since the beginning of the calendar year.
 
“A company that has capacity utilisation of 85%, which is significantly higher than the industry average of 70-72%, will see its stock price rise in the stock market,” said Atif Zafar, a research analyst at JS Global Capital, an investment bank.
 
Part of the reason for the domestic focus may be Arif Habib Corporation’s recent moves into real estate development. The group, along with the AKD Group, has started Naya Nazimabad, a 1,200-acre middle-class residential development in the heart of Karachi as well as several other real estate projects, all of which, Habib said, will be using cement from Al-Abbas.
 
The successful turnaround of Al-Abbas Cement must come as a relief to the Arif Habib Corporation, which previously had to sell off its 80% stake in another, smaller cement company – Thatta Cement – in 2009 after the company began losing money. Thatta Cement only had a capacity to produce about 450,000 tons of cement per year.
 
That previous bitter experience in the cement sector explains the group’s cautious approach with Al-Abbas. Despite the turnaround, the company will not be going for ambitious rounds of expansion. “We now want to reduce our long-term liabilities,” said Habib.
 
The company owes about Rs1.7 billion in long-term debt and another Rs1.1 billion in short-term debt, a burden that weighs down Al-Abbas’ profitability. In 2012, the firm paid nearly Rs402 million in just interest costs, which comes to about 58% of Al-Abbas’ operating profits for the year.
 
As a result, Habib said that the company will not be paying out any dividends in the near future and focus on reducing its debts.
« Last Edit: May 14, 2013, 07:34:05 PM by M&M »
TOP PICKS
Engro fatima ogdc pol pso dgkc mlcf kapco npl ubl atrl nml efoods aicl hcar searl

Pakinvestorsguide

POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #-1 on: November 18, 2012, 10:24:44 AM »

Offline umair vohra

  • Senior Member
  • *****
  • Posts: 1503
  • Thanks Received: 3
    • View Profile
Re: AACIL -- Al-Abbas Cement Industries Limited
« on: January 22, 2013, 10:30:09 PM »
kiya bolty ho bahi log al abbas cement k baray mai ?

Offline sAr

  • Active Member
  • ***
  • Posts: 551
  • Thanks Received: 6
  • 90% Value Investor, 10% Sattai-Baaz
    • View Profile
Re: AACIL -- Al-Abbas Cement Industries Limited
« Reply #1 on: January 24, 2013, 01:59:13 PM »
This quarter will be dangerous. You should exit if holding any position in this scrip. Annual result and 1st Quarter result had one off items which bring the bottom line into profitability. This time in absence of these 1 time items, the bottomline will be red and will depict around PKR 0.30/share Loss in 2Q. Exit should be made at current levels as after result, the scrip is expected to trade around 3.5/share

Offline ab_hassan

  • New Member
  • *
  • Posts: 81
  • Thanks Received: 0
    • View Profile
Re: AACIL -- Al-Abbas Cement Industries Limited
« Reply #2 on: April 30, 2013, 10:36:24 PM »
Seniors thori help karain
http://dps.kse.com.pk/notices-updates/detail2.php?id=4&nid=043902&pagesize=1&pageno=2

reduction in share capital ko thora clear kr dain or is k share price py kia impact ho skta ha
 :skeptic: :skeptic:

Offline SBM

  • Master Troll
  • Administrator
  • Senior Member
  • *****
  • Posts: 10797
  • Thanks Received: 100
  • Ouulman :)
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #3 on: June 25, 2013, 03:58:33 PM »
9months eps of PKR 1 has been boosted by dodgy accounting.
out of operating income of 636 mio 300 is 'otherincome'
I hate waking up.

Offline SBM

  • Master Troll
  • Administrator
  • Senior Member
  • *****
  • Posts: 10797
  • Thanks Received: 100
  • Ouulman :)
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #4 on: June 25, 2013, 05:14:56 PM »
9months eps of PKR 1 has been boosted by dodgy accounting.
out of operating income of 636 mio 300 is 'otherincome'

on q3 gross margins and 20% imrpovement in util rate 8.5-9 seems fair price for next year. q3  gross margin is 23%. GMs  have to improve for re-rating. at 30% gm fair value can increase to 13.5
I hate waking up.

Offline SBM

  • Master Troll
  • Administrator
  • Senior Member
  • *****
  • Posts: 10797
  • Thanks Received: 100
  • Ouulman :)
    • View Profile
I hate waking up.

Offline SBM

  • Master Troll
  • Administrator
  • Senior Member
  • *****
  • Posts: 10797
  • Thanks Received: 100
  • Ouulman :)
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #6 on: October 31, 2013, 11:07:39 AM »
http://www.kse.com.pk/notices-updates/detail2.php?id=4&nid=048498&pagesize=1&pageno=2

lps 0.42

lower gp, higher distribution and admin costs pushing company towards loss
I hate waking up.

Offline AIS

  • Junior Member
  • **
  • Posts: 112
  • Thanks Received: 5
  • oh bhai poora lao...
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #7 on: February 10, 2014, 10:40:42 AM »
Have you heard something like Power Cement is going to be acquired by another Cement producer?
Keep an eye on the market but focus on the companies.

Offline babar4289

  • Senior Member
  • *****
  • Posts: 1092
  • Thanks Received: 20
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #8 on: February 11, 2014, 11:55:36 PM »
Have you heard something like Power Cement is going to be acquired by another Cement producer?

attock cement @ rs 11

Offline AIS

  • Junior Member
  • **
  • Posts: 112
  • Thanks Received: 5
  • oh bhai poora lao...
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #9 on: February 12, 2014, 08:23:43 AM »
Have you heard something like Power Cement is going to be acquired by another Cement producer?
attock cement @ rs 11

babar, do you mean that attock cement is going to acquire power cement at 11?
Keep an eye on the market but focus on the companies.

Offline AIS

  • Junior Member
  • **
  • Posts: 112
  • Thanks Received: 5
  • oh bhai poora lao...
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #10 on: February 14, 2014, 09:47:01 AM »
I mean in that case shouldn't Power Cement be creeping up towards 11 in coming days?
Keep an eye on the market but focus on the companies.

Offline ammad_ansari

  • Junior Member
  • **
  • Posts: 174
  • Thanks Received: 0
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #11 on: February 14, 2014, 04:26:50 PM »
There must be something in Power cement that it is not going below even in this mandi.

Offline AIS

  • Junior Member
  • **
  • Posts: 112
  • Thanks Received: 5
  • oh bhai poora lao...
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #12 on: March 03, 2014, 12:10:42 PM »
There must be something in Power cement that it is not going below even in this mandi.
Perhaps Power Cement is next to move after today's rally in DCL insha Allah  :biggthumpup:
Keep an eye on the market but focus on the companies.

Offline AIS

  • Junior Member
  • **
  • Posts: 112
  • Thanks Received: 5
  • oh bhai poora lao...
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #13 on: March 11, 2014, 02:23:49 PM »
Power Cement has been finding it hard to move above 7.10 in recent sessions. But today, though reluctantly, it crossed 7.20. Buyers do not seem to be in a hurry.
Keep an eye on the market but focus on the companies.

Online hero167

  • Junior Member
  • **
  • Posts: 182
  • Thanks Received: 1
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #14 on: March 11, 2014, 05:52:38 PM »
Power Cement has been finding it hard to move above 7.10 in recent sessions. But today, though reluctantly, it crossed 7.20. Buyers do not seem to be in a hurry.

power ke tp hy

Offline AIS

  • Junior Member
  • **
  • Posts: 112
  • Thanks Received: 5
  • oh bhai poora lao...
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #15 on: March 12, 2014, 10:01:07 AM »
a tp is hard to pin point unless there is some news...like news of Power Cement being acquired by another larger producer. However, based on the perception that the sector is generally optimistic in foreseeable future, the stock of Power Cement may be hoped to be performing well if the broader market maintains its current strength. Ballooning volumes will be harbinger of good things ahead  :D
Keep an eye on the market but focus on the companies.

Offline umair vohra

  • Senior Member
  • *****
  • Posts: 1503
  • Thanks Received: 3
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #16 on: April 14, 2014, 10:52:39 AM »
is yateem item ko saab bhool gahy kiya

Offline Hamid Mamraiz

  • Active Member
  • ***
  • Posts: 638
  • Thanks Received: 17
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #17 on: April 14, 2014, 01:52:57 PM »
is yateem item ko saab bhool gahy kiya
Kaisay bhool saktay hain ... 8.50 kee average ka portfolio mein para hua hai  huhu
Trend is your friend. Never go against the Trend.

Offline jamalakhter

  • Active Member
  • ***
  • Posts: 760
  • Thanks Received: 0
    • View Profile
Re: POWER -- Power Cement Ltd. (Formerly Al-Abbas Cement)
« Reply #18 on: April 15, 2014, 12:05:51 AM »
is yateem item ko saab bhool gahy kiya
Kaisay bhool saktay hain ... 8.50 kee average ka portfolio mein para hua hai  huhu
                                                                                                               
there r 2 r 3 cement items which r still showing loss