Author Topic: ACPL -- Attock Cement Pak Ltd  (Read 94675 times)

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Offline ZafarAAA

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #359 on: April 16, 2018, 10:01:41 AM »
Result Previews ACPL: 3QFY18 earnings to drop by 28% YoY

Attock Cement Pakistan Limited (ACPL) is scheduled to unveil its 9MFY18 result on 16th Apr’18. We expect the company to post a PAT of PKR 1,768mn (EPS: PKR 15.44) in 9MFY18 compared to PKR 2,238mn (EPS: PKR 19.55) in SPLY, depicting a downturn of 21% YoY. Prime reason behind the decline remains margin attrition to 34% (41% in 9MFY17) amid rising coal prices (+17% YoY to USD 91.44/ton) tagged with PKR devaluation against the USD (3% YoY). While 3QFY18 profitability is projected to arrive at PKR 615mn (EPS: PKR 5.37) vis-à-vis PKR 860mn (EPS: PKR 7.51) in 3QFY17. Although robust offtake during the quarter should support topline growth of 8% YoY (624k tons vs. 547k tons), it may not translate into a smilar bottom-line growth which is expected to pull back by 28% YoY. Pertinently, margins would continue to come under pressure (32% in 3QFY18 compared to 43% in 3QFY17) in light of higher input costs (coal prices jumped up by 13% YoY) alongside devaluation in the PKR-USD parity (6% YoY).
Source: Company Accounts, AHL Research
« Last Edit: April 16, 2018, 10:04:57 AM by ZafarAAA »

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #359 on: April 16, 2018, 10:01:41 AM »

Offline Farzooq

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #360 on: April 16, 2018, 11:55:30 AM »
The Board of Directors of Attock Cement Company Limited (ACPL) is scheduled to meet on April 16, 2018 to announce its 9MFY18 financial results.
We expect ACPL to announce earnings of Rs6.11/share for 3QFY18, down 19% YoY, primarily due to (1) 16ppts YoY drop in gross margins, and (2) augment in distribution costs due to 24% YoY rise in exports sales. We have incorporated Rs200mn as tax credit pertaining to new plant.
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Offline SBM

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I hate waking up.

Offline Oddest

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #362 on: June 28, 2018, 05:51:45 PM »
Should be kept in focus now.  :fingerscrossed1:

Offline karehman

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #363 on: June 28, 2018, 07:20:13 PM »
Aaj ki pitaye ki koi khas reason???? Pora cement sctor UP ya phir lock tha.

Offline Farooq Qadir

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #364 on: July 30, 2018, 05:50:36 PM »

Can anybody share 4th quarter result expectations.
POL, PSO,AICL,SEARL,NRL,FFC,FFBL,UBL,OGDC,MUGHAL

Offline Farzooq

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #365 on: August 18, 2018, 11:25:08 AM »
Attock Cement Pakistan Limited: Downgrade to ‘Neutral’ on price run up, estimates revision

We tweak our earnings estimates for Attock Cement Pakistan Limited (ACPL) by -8/-5/-14% for FY19/20/21E incorporating; (i) actual FY18 results, (ii) change in sales mix, (iii) increasing distribution cost, and (iv) delay in operational enhancement projects.
Our revised DCF-based TP for ACPL stands at PKR182/sh, offering 15% upside from current levels. We downgrade our stance on the scrip by one notch from Buy to Neutral based on recent price performance (30% run-up in 1mth).
ACPL posted above-expected earnings of PKR38.42/sh in FY18 (up 45% YoY) driven by one-off tax income of PKR2bn (PKR 17.50/sh) booked in 4QFY18.
We expect FY19 earnings for ACPL to drop by 22% YoY on before tax basis, mainly driven by (i) delay in 15MW WHR project, and (ii) 0.9mn tons expansion in Iraq (both projects now expected by Sep’18).
Key upside/ downside risks include: (i) better than expected contribution from Iraq project, (ii) higher than expected price drop in South region, and (iii) currency volatility.
Estimates revised; downgrade to Neutral: We revise our earnings estimates for Attock Cement Pakistan Limited (ACPL) by -8/-5/-14% for FY19/20/21E to PKR15.96/16.70/18.06/sh. Our revised estimates incorporate (i) actual FY18 results, (ii) change in sales mix assumption with rising proportion of exports, (iii) increase in  distribution cost primarily due to higher exports, (iv) delay in commencement of 15MW Waste Heat Recovery (WHR), and (v) delay in Iraq expansion project.  Our revised DCF-based TP for ACPL stands at PKR182/sh, offering 15% upside from current levels. The scrip has outperformed KSE-100 index by 24% (absolute performance 30%) in 1mth, mainly driven by expectations of strong earnings for FY18. We downgrade our stance on the scrip by one notch from Buy to Neutral. ACPL currently trades at a forward P/E of 9.9x (vs industry average of 8.7x).

FY19- Project delays may drag earnings growth: We expect FY19 earnings for ACPL to drop by significant 58% YoY to PKR15.96/sh. Barring the tax one-offs seen in FY18, earnings are expected to drop by 22% YoY on before tax basis, mainly driven by project delays, details of which are as follows:

#1 ACPL is in the process of installing 15MW WHR on its new cement line, which is now expected to be operational by Sep/Oct’18 (previously expected by Jul/Aug’18). We have incorporated the delay in project commissioning into our estimates, where the WHR is expected to provide 20-25% cost saving on production from the new line. To recall, ACPL already runs a 12MW WHR on its existing plant that fulfills ~30% of company’s power requirement. With addition of another WHR, the power mix will become more efficient with ~45-50% reliance on WHR for power generation while the rest will be fulfilled through grid.

#2 Company’s USD40mn grinding mill expansion project in Iraq is also expected to see some delay, where the first phase of the project was initially expected to be online by Jul/Aug’18 (now expected by end Sep’18). We expect the project to be value-accretive for the company as it shall serve as a shield against soft earnings patch in domestic core business through translation gains. ACPL’s domestic operations face challenges from currency devaluation and higher coal cost. The project contributes PKR45/sh to our valuations.

Changing sales mix bear mixed implications: ACPL commands premium over its peers in the local market (particularly South) based on its strong brand value. Nevertheless with rising supplies in the region post commencement of Lucky Cement and DG Khan Cement’s plants, ACPL’s management has rightly tilted their focus towards exports. To this end, the company has already started to explore new export avenues to ensure efficient plant utilization including destinations such as India, UAE, South Africa, and Sri Lanka (visible through 11% YoY jump in exports during 2HFY18). While margins per ton (USD-based) on exports are 25% below local margins, currency translation gains in the backdrop of weakening PKR is expected to provide support to margins. We expect exports to make up 21-22% of the sales mix going forward vs 20.5% in FY18.

Key risks: Key upside/ downside risks to our thesis include: (i) better than expected contribution from Iraq project, (ii) better than expected sales volume, (iii) more than expected price drop, (iv)sharp surge in coal prices, and (v) greater than expected PKR/USD devaluation.

FY18 Bumper earnings led by tax one-offs: ACPL recently announced FY18 earnings of PKR38.42/sh, up 45% YoY. In 4Q alone, the company posted an EPS of PKR22.47, up 3.8x QoQ. The major surprise in the bottom-line came in the form of one-off tax credits (PKR2bn or PKR17.50/sh tax income booked in 4Q) stemming from (i) PKR924mn or 10% tax credit under section 65(b) of Income Tax Ordinance on plant and machinery cost of its 1.25mn tons capacity expansion project, and (ii) booking of differential tax asset resulting from reduction in deferred tax liability (amounting PKR1.45bn as of 9MFY18) given change in corporate tax regime. During FY18, topline of the company grew 15% YoY led by 10% YoY growth in sales volume as company’s new plant commenced operations from 2HFY18 along with 3% jump in average retention price to PKR384/bag. Cost pressures, however, remained elevated during the year (up 16% YoY on per bag basis), thereby dragging gross margins by 9.3ppt YoY to 31% in FY18 (36% on cash-basis). Financial charges of the company swelled significantly during FY18 on account of fresh borrowings secured for expansion project (35% debt financed). Along with the result, ACPL announced a final cash dividend of PKR8/sh and 20% bonus shares issue for FY18.

bma
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Offline Farzooq

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #366 on: October 11, 2018, 12:34:02 PM »
ACPL: Earnings to display a decline of 22% YoY in 1QFY19

Attock Cement Pakistan Limited (ACPL) is scheduled to announce its 1QFY19 financial result on 12th Oct’18. We expect the company to post a profit after tax of PKR 439mn (EPS: PKR 3.83), down by 27% YoY from PKR 605mn (EPS: PKR 5.28). During the quarter under review, revenue is expected to escalate by a massive 75% YoY on the back of 85% YoY jump in total dispatches to 963k tons (local sales: 499k tons). Albeit, margins are forecasted to settle at 24% (down by 10% YoY) in light of an 18% surge in coal prices together with an identical depreciation of the Pak Rupee against US Dollar. In addition, we project selling expenses to undergo a jump of 96% YoY to PKR 557mn with exports depicting a 4x growth YoY in 1QFY19 to 464k tons (1QFY18: 131k tons). Moreover, an 11x upturn YoY in finance costs to PKR 118mn may be witnessed on account of higher interest expense on loan drawn for the company’s 1.2mn tons plant at Hub which commenced operations earlier this year in Jan’18.

Ahl
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Offline Farzooq

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #367 on: October 13, 2018, 11:46:37 AM »
Result Review: 1QFY19 EPS @ PKR 3.69, down by 30% YoY

Attock Cement Pakistan Limited (ACPL) announced its 1QFY19 financial result today, where the company posted a profitability decline of 30% YoY to PKR 423mn (EPS: PKR 3.69) compared to PKR 605mn (EPS: PKR 5.28) in SPLY.

Key Highlights

·         The company’s top-line in 1QFY19 clocked-in at PKR 5.8bn, up by 63% YoY on the back of an 85% YoY jump in total dispatches to 963k tons (local sales: 499k tons).

·         Albeit, gross margins of ACPL dropped by 10ppts YoY to 23% during the period under review in light of an 18% surge in coal prices together with an identical depreciation of the Pak Rupee against US Dollar.

·         Selling expenses rose by 120% YoY during 1QFY19 to PKR 627mn, in-line with higher offtake (exports witnessed a growth of 4x YoY to 464k tons (1QFY18: 131k tons).

·         In addition, finance costs rose by a massive 12x YoY to PKR 123mn on account of higher interest expense on loan drawn for the company’s 1.2mn tons plant at Hub which commenced operations earlier this year in Jan’18.

·         ACPL booked effective taxation at 17% in 1QFY19 owed to a bigger quantum of exports vis-à-vis 23% in SPLY.

Recommendation

·         Currently we have a Buy stance on ACPL with a Dec’18 DCF-based target price of PKR 139.7/share.
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Offline Farzooq

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #368 on: January 17, 2019, 11:59:47 AM »
ACPL: Earnings to decline by 30% YoY in 2QFY19

Attock Cement Pakistan Limited (ACPL) is scheduled to announce its 2QFY19 financial result on 21st Jan’19 whereby we expect the company to post earnings of PKR 386mn (EPS: PKR 2.81), down by 30% YoY. Topline of the company is projected to jump up by 21% YoY during the quarter led by 27% growth is dispatches to ~700k tons. Albeit, margins are set to recoil by 11ppts to 24% amid cost pressures during the quarter vis-à-vis last year including 26% deprecation in the Pak Rupee against USD and 10% YoY higher average coal prices. Additionally, we forecast selling expenses to witness a surge of 97% to PKR 397mn in-line with 2x higher exports (~221k tons in 2QFY19). With that said, cumulative profitability during 1HFY19 would arrive at PKR 809mn (EPS: PKR 5.89), down by 30% YoY from PKR 1,153mn (EPS: PKR 8.39) in 1HFY18. Similar observations were made during 1HFY19; despite topline growth of 41% YoY in lieu of 54% growth displayed by offtake (~1,652k tons), margins would take a beating to 24% in 1HFY19 (1HFY18: 34%) given PKR depreciation and higher coal prices.
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Offline Farzooq

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #369 on: April 10, 2019, 01:43:59 PM »
ACPL: Earnings to recoil by 21% YoY in 3QFY19

Attock Cement Pakistan Limited (ACPL) is scheduled to announce its 3QFY19 financial result on 11th Apr’19 whereby we expect the company to post earnings of PKR 529mn (EPS: PKR 3.85), depicting a decline of 21% YoY. Topline of the company is projected to grow by 14% YoY during the quarter led by a robust 32% growth is dispatches to ~821k tons. Albeit, margins are set to recoil by 5ppts to 25% amid 6% dip in domestic dispatches to 482k tons together with 20% deprecation in the Pak Rupee against USD. Additionally, we forecast financial charges to witness a surge of 151% YoY to PKR 185mn in 3QFY19 given higher interest rates and increased borrowing. We do highlight that profitability appears healthy on a QoQ basis (+34%) in lieu of improved margins (25% vs. 21% in 2QFY19) amid reversal in coal prices and higher retention prices tagged with volumetric growth. With that said, cumulative profitability during 9MFY19 would arrive at PKR 1,346mn (EPS: PKR 9.79), down by 26% YoY from PKR 1,827mn (EPS: PKR 13.29) in 9MFY18. Similar observations were made during 9MFY19; despite topline growth of 32% YoY at the back of 48% growth displayed by offtake (~2,515k tons), margins are set to take a beating to 23% in 9MFY19 (9MFY18: 33%) given PKR depreciation and higher coal prices.
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Offline Farzooq

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #370 on: April 16, 2019, 12:50:21 PM »
Attock Cement Pakistan Limited: Price performance belies fundamentals; reiterate BUY!

We slightly tweak our earnings estimates for ACPL by 1-2% over FY19-21E as we incorporate (i) actual 9MFY19 earnings, (ii) better than expected volumetric growth, (iii) increased financial charges due to rising interest rate, and (iv) delay in Iraq expansion.
ACPL posted EPS of PKR4.07 during 3Q (up 42% QoQ) driven by improvement in margins courtesy a combination of favorable cost and product price during the quarter.
ACPL’s 0.9mn tons Iraq expansion remains a key near-term trigger where trial production has already begin. The company is currently seeking approval for import of clinker that may take 3-4weeks before commercialization of operations. Our estimates now incorporate the project from FY20 (earlier 4QFY19).
ACPL’s stock price has underperformed by 25% in past 3-mnths where the concerns on possible supply glut and pricing pressure seems unjustified given ACPL is a pure South-based player where (i) prices in the region have remained stable, (ii) demand remains robust (courtesy exports), and (iii) company’s strong brand equity allows premium pricing compared to peers.
We maintain our DCF-based TP of PKR144 and reiterate our Buy call on the company. ACPL currently trades at a forward P/E of 6.0x, reflecting 13% discount to industry average.
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Offline aatradekhi

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #371 on: October 15, 2019, 12:49:36 PM »
Financial Announcements
Attock Cement Pak. Ltd. 1st Quarter Results September 2019
EPS 1Q = Rs 2.60
Qty Growth = (15%)
Last 1Q EPS = Rs 3.08 (Restated)

Offline Farzooq

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #372 on: October 15, 2019, 05:06:51 PM »
ACPL: 1Q results better than expected

Attock Cement Pakistan Limited (ACPL) announced its results for 1QFY20 wherein the company posted EPS of PKR3.06 for 1QFY20, which is flat compared to last year and is down 37% compared to previous quarter.
The results were better than expectations due to higher volumes 30/8% up QoQ/YoY while improved retention prices, better positioning of the company and respite in international coal prices also helped sustaining the margins. Resultantly, margins remained flat over the previous quarter at around 25%.
ACPL’s sales revenue witnessed an increase of 16/5% YoY. In light of the lack luster local demand and concerns of supply glut the company has improvised its sales mix where exports now account for 59% compared to 24% in the same quarter last year.
The uptick in sales revenue on quarterly basis is driven by higher retail prices per bag, as cement prices witnessed an increase of 4% in southern region.
Distribution costs are up by 4/55% YoY/QoQ owing to aforementioned change in sales mix and the ongoing axle load condition. Finance Cost is up/down by 29/3% on YoY/QoQ owing to higher short term borrowing (PKR3.4bn) utilized on yearly basis and repayment of long term loans on quarterly basis
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Offline psx Learner

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #373 on: November 03, 2019, 03:16:02 PM »
Clinker export to Qatar

Attock Cement Pakistan Ltd (ACPL) will export 55,000 tonnes of clinker to Qatar. A ship Jabel Shams has arrived at the Karachi Port to start loading of clinker from Monday, a company official said.

“It is first time in the country’s history that Pakistani clinker will find its way to Qatar,” he claimed. He said the total value of the shipment is around $1.5 million.

Pakistan had exported 2.147 million tonnes of clinker to various countries in FY19.

Published in Dawn, November 3rd, 2019


Offline psx Learner

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Re: ACPL -- Attock Cement Pak Ltd
« Reply #374 on: November 04, 2019, 09:43:59 AM »
 :fingerscrossed1: