Author Topic: DINT -- Din Textile Mills  (Read 2043 times)

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DINT -- Din Textile Mills
« Reply #-1 on: December 16, 2013, 02:01:53 AM »
All about Dint

Financials
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DINT -- Din Textile Mills
« Reply #-1 on: December 16, 2013, 02:01:53 AM »

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Re: DINT -- Din Textile Mills
« on: December 16, 2013, 02:03:25 AM »
anyone has this share ?
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Offline MZ

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Re: DINT -- Din Textile Mills
« Reply #2 on: December 18, 2013, 05:19:58 PM »
DIN TEXTILE MILLS LIMITED with an untapped potential


Synopsis:

In this report we would like to highlight Din Textile Mills Limited (DINT) for exceptional performance in 1QFY14. The company has been consistently improving performance over the years with significant improvement seen in FY13 due to core-operational enhancements. Timely performance upgrading will allow the textile manufacturer to benefit from Duty-Free access to European markets. In FY13, the company managed to improve export sales substantially by 134% YoY, primarily due to increased direct export of yarn to China and EU. Din Textiles, a subsidiary of the Din Group, focuses primarily on the spinning and dyeing segments, producing premium quality yarn for domestic and international markets.

Better Financial management:

Effective cost control measures allowed the company to generate cash flow of PKR 307mn before working capital changes in 1QFY14, up by 18% YoY from cash flow generation of PKR 261mn in the corresponding term last year. Distribution costs declined in the period under review with a cost of PKR 27mn, down by 10% YoY.

Outlook:

Elevated operational performance has allowed the company to become notable by investors. We can see the firm’s increased popularity by the sharp increase in stock trade price by 155% YoY over a 52-week period. Our anticipations are on the company maintaining level of strong performance, better cash flow and other operational enhancements will gear the company to benefit from GSP+ status of trade with EU nations. According to our calculations and considering DINT’s market share of 0.5% of the textile industries exports, our projection is on sales enhancement of USD 10-11mn  to exports annually goring forward. Based on last year practice, we assume that the company might repeat the last payout ratio history and announce PKR6.42 as cash dividend with the 10%-15% bonus dividends. The scrip offers an attractive discount of 32% from the Target Value of PKR115. Buy

Pearl Securities Limited
« Last Edit: January 19, 2014, 04:21:13 AM by SBM »

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Re: DINT -- Din Textile Mills
« Reply #3 on: December 27, 2013, 07:19:46 PM »
Merger of subsidiary Ihsan Raiwind Mills into DINT
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Re: DINT -- Din Textile Mills
« Reply #5 on: May 09, 2014, 10:19:06 PM »
Din Textile Mills Ltd (KSE: DINT) is a subsidiary of the Din group of companies that was incorporated three decades ago in 1987 and in a very short time became an icon for the spinning industry in Pakistan. It is headquartered in Lahore and has previously been awarded twice "The top 25 Companies award" by KSE.

Available company information shows that the firm is engaged in the manufacturing and export of cotton, mélange, core spun and slub yarn. It has four state-of-the-art spinning units and one dyeing unit located at Chunian and Lahore with an annual capacity of yarn 31.90 million kilograms. Also, it has a wholly-owned subsidiary, Ihsan Raiwind Mills (Pvt) Ltd. Furthermore, DINT has its own power plant to generate electricity for the spinning and dyeing units.

Latest information shows that DINT had a consolidated annual turnover of Rs 8.31 billion in last fiscal year, and it employed over 3,066 employees. DINT has an encouraging export sales mix and it has overall industry export market share of 0.5 percent. The company supplies its products to Europe, Middle East and other Asian countries. Its clients include brands such as H&M, C&A, Dockers, Tommy Hilfiger to name but a few.

PERFORMANCE FOR 1H FY14 The turnover of the company is constantly improving as compared to the corresponding period of the preceding year. During the first half of the ongoing fiscal year, net sales of Rs 4.4 billion improved significantly by 13 percent year on year against net sales of Rs 3.89billion attained in the same period of last year.

The improvement in the revenues was achieved by meeting the strong demand for premium quality yarn in the European and the local markets. Also, DINT managed the timely purchases of raw material at competitive prices. But, the company's cost of sales grew out-of-step with the top line growth, by 17.8 percent year on year. Consequently, these costs consumed 87 percent of net sales in 1H FY14.

Profit after tax clocked in at Rs 206 million due to increased top line and reduced provisions for tax. However, notable pressure to bottom line was witnessed from increased non-core operating costs (a summation of distribution, administrative and finance costs) of Rs 309 million, which were up significantly by 23 percent year on year.

The administrative and finance costs increased year on year by 7.4 percent and 41.6 percent, respectively. The increase in administration cost was likely due to continuous increase in wages because of inflationary economic conditions. There was a 6.5 percent decrease in distribution cost in 1H FY14, which is attributed to the better negotiation in prices of logistic and other means of distribution in spite of increases in oil prices and logistics rates.

During the period under review, DINT's current ratio increased by 1.28 and quick ratio also improved to 0.85, signifying that the company is meeting its short-term liabilities efficiently. DINT has been raising its long-term borrowings over the years, an upsurge of 355 percent year on year in 1H FY14. The loans were used to stay competitive in foreign markets by buying modern technology. With a decline in the company's profits in 1H FY14, the EPS fell to Rs 9.2, a decline of 27 percent for the same period in previous financial year.

FUTURE OUTLOOK The EU, the US and China represent the most important destinations for Pakistan exports. However, the textile industry of Pakistan continues to face various challenges in the shape of rising energy prices, political unrest and sharp movement in raw material prices that would not allow the local industry to fully reap benefits of higher volumes and keep the profitability margins under pressure.

Although the overall economy continues showing downward profitability, the management of DINT is aware of the challenges that are ahead. It expects that it will remain successful in improving the situation in the 2H FY14 by strategic planning, modernisation and diversification of yarn market from local to export and reduce the per unit input cost.

Moreover, the DINT management hopes to procure the cotton at lowest possible rates that will gear the company to benefit from GSP+ status of trade with EU nations.

==============================================================
                                          1HFY12      1HFY13      1HFY14
==============================================================
Profitability
Gross profit margin             -13.4%       16.1%       12.7%
Operating profit margin      -16.7%       13.2%       10.2%
Net profit margin                -19.2%        7.2%        4.7%
ROE                                    -49.1%       17.1%        9.5%
ROA                                   -12.1%        5.8%        2.6%
Liquidity
Current ratio                        1.01        1.13        1.28
Quick ratio                           0.36        0.74        0.85
Turnover
Total asset turnover            0.63        0.81        0.55
Fixed asset turnover           2.02        2.34        2.51
Market
EPS - Rs                              (32.82)      12.53         9.2
==============================================================

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Re: DINT -- Din Textile Mills
« Reply #6 on: October 03, 2014, 05:48:55 PM »
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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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