Author Topic: ISL -- International Steel Limited  (Read 54011 times)

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Offline Farzooq

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ISL -- International Steel Limited
« Reply #-1 on: March 07, 2011, 09:47:31 PM »
The company and its products
International Steels limited (ISL) is a subsidiary company of International Industries Limited
(IIL). The company imports steel in the form of hot rolled coils (HRC) from Japan paying 0%
duty, coverts HRC into cold rolled coils (CRC). Total capacity of International Steels Limited
is 250k tons of steel (CRC). A total of 100k tons are planned to be sold to the parent
company, International Industries Limited, for making pipes whereas remaining 150k tons
will be further processed, where it will be galvanized with zinc after which a protective
coating of chromium will be added. The final product will be sold to distributors. The facility
is spread over 32 acres of land. The company has its own gas-fired power generation plant
that produces ~18MW of electricity, out of which 8-10MW are lent to KESC. So, ISL is immune
to gas curtailment as the power generation is continuous. ISL also enjoys a healthy
partnership with Sumitomo Corporation, which happens to be of the largest steel
manufacturers in Japan.

Demand situation, supply unable to keep up
Current domestic demand for CRC stands at 400k tons/annum out of which, only 110k tons
are met by local production. Similarly, galvanized coils (HDGC) have an estimated annual
demand of 300k tons whereas only 30k tons are produced locally. This makes ISL very
attractive for business, as it would be catering to local demand. The whole business model
is demand-driven, this provides ISL with somewhat pricing power. However, ISL prices for
the majority of the time will be determined by international prices. ISL faces virtually no
competition on domestic front as CRC and HDGC produced by Pakistan Steel Mills are of
low quality and are produced in very less quantity (18% CRC and 10% HDGC). However,
imported coils will always give ISL tough competition, especially on the basis of price. The
company will massively benefit from the construction activities. Pakistan has witnessed
double-digit construction growth in recent past, and in near future, construction activities
are expected to be on the rise once again, especially in the flood-hit areas coupled with
construction of dams (Basha Dam has received green light recently).

Outlook
ISL is planning to offer 61.880mn (6.32%) common shares with proposed floor price at Rs12.9/
sh (14.23% shares through book-building process). As per company projections, topline of
ISL is expected to grow by 3.4% CAGR, while EBITDA growth is predicted at 3.3% CAGR
coupled with bottomline that is expected to grow by 8.5% CAGR. ISL's debt to equity ratio
stands at 1.22x, their target is to reach the level of 0.12x by 2020. As par the top
management, ISL will pay out 2/3 of its earnings, and during times of expansion (planned in
2014) company will pay share (bonus) dividend at the same rate.

Investcap
« Last Edit: February 22, 2014, 04:48:28 PM by M&M »
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ISL -- International Steel Limited
« Reply #-1 on: March 07, 2011, 09:47:31 PM »

Offline Farzooq

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Re: ISL -- International Steel Limited
« on: March 07, 2011, 09:48:16 PM »
ISL PROJECT COST
(Rs mn)
Land 860
Building 800
Plant & Machinery 5,640
Power Plant 600
Financial Charges 500
Pre-operating expenses 300
Total 8,700
Source: ISL, InvestCap Research
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Offline Farzooq

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Re: ISL -- International Steel Limited
« Reply #1 on: March 08, 2011, 08:49:49 AM »
International Steels to offer 6.32pc common shares
 our correspondent
Tuesday, March 08, 2011
 KARACHI: International Steels Limited (ISL), which commenced operations in January, has planned to raise Rs798.252 million through bourses by offering 6.32 percent or 61.88 million common shares, a company statement said on Monday.

ISL, a subsidiary of International Industries Limited, has proposed a floor price of Rs12.90 per share. The company is yet to announce the date of public offering.

ISL imports steel in the form of hot rolled coils from Japan and coverts them into cold rolled coils.

“Total capacity of ISL is 250,000 tons of steel. Nearly half or 100,000 tons of the output will be sold to the parent company for making pipes, whereas the remaining 150,000 tons will be processed further, where it will be galvanised with zinc and a protective coating of chromium will be added,” said Asad Siddiqui, an analyst at Invest Capital.

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Offline M&M

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Re: ISL -- International Steel Limited
« Reply #2 on: March 09, 2011, 03:02:26 PM »
International Steel Limited - A Primer

    * ISL has been established to engage in the business of manufacturing Cold Rolled Coils (CRC) and Hot Dipped Galvanized Coil (HDGC) and is a subsidiary of International Industries Limited, one of the private sector pioneers in the steel sector of Pakistan.

    * The company has a capacity to produce 100k Tons of CRC and 150k tons of HDGC annually.

    * The Project has been setup with an outlay of PKR 8.7bn. It includes an in house 18 MW combined cycle captive power plant with surplus electricity sold to KESC, an Acid regeneration plant, a Hydrogen and Nitrogen gas generation plant.

    * Book building process is expected to close in Mar11 wherein the company intends to offer 62mn ~ 14.2% to institutional investors. The offer for sale to General Public investors is expected to follow in Apr11.

IGI Research
Research Department | IGI Securities
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Offline co2

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Re: ISL -- International Steel Limited
« Reply #3 on: April 05, 2011, 04:47:40 PM »
 
International  Steel  Limited  (ISL)  is  a  fully  owned  subsidiary  of  International
Industries  Limited  (INIL),  which is  one  of the  pioneers  in  the  steel  sector  of
Pakistan. Besides steel the INIL group has successfully ventured in cables and
chemical business. INIL is planning to divest 45% of its holding in ISL through an
offer for sale, which comprised a book building process (14.32%) at a floor price of
PKR 12.9/share, a general public offering (6.23%) and a private placement to
foreign investors (4.74%). Moreover, 10% and 9.7% stakes are being offered to
IFC and Sumitomo Corporation, respectively at a 20% discount to the Strike Price.
The Company
The project of ISL was initiated by INIL in November 2006 with the cost of PKR
8.7bn having debt to equity ratio of 50%. The project has an installed capacity to
produce 250,000 tons of cold rolled coils (CRC) and 150,000 tons of Hot Dipped
Galvanized Coils (HDGC). The Company will use 150,000 tons of CRC to further
process and convert it into HDGC. To ensure continued and cheap power supply,
ISL has built an 18MW co-generation power plant. ISL has achieved commercial
production in January 2011.     
The Products
Cold Rolled Coil is produced through rolling of hot rolled flat steel to the required
final  thickness. The  resultant  provides  superior  ductility  and  strength.  CRC  is
mainly  used  in  Automotive  Parts,  Electrical  Motors,  Lighting  Ballasts,
Racking/Shelving, Doors and Drums etc.
Hot Dipped Galvanized Coil is manufactured through the further processing of
CRC. Typical applications of HDGC include household peripherals, roofing, pipe
manufacturing and electrical appliances.
                      Demand Dynamics
The country is facing a severe shortage of steel as domestic production only
meets 40% of the total demand, which stands around 6.2mn tons per annum.
Pakistan is amongst the lowest steel consumer in the region with per capita
consumption of 37kgs compared to 207.8kgs in the region and 178.9kgs globally.
In CRC segment, FY11 demand is expected around 507,000 tons, where as
domestic production can only fulfill 21.7% (110,000 tons), leaving a sufficient
enough room for ISL’s 250,000 tons capacity. Similarly in HDGC, FY11 demand is
approximated around 315,000 tons compared to domestic production of 30,000
tons, creating the supply deficiency of 90%. Besides huge supply deficit, domestic
manufacturers enjoy an import duty cover of 10% on CRC and HDGC, giving the
Company an opportunity to charge premium on its products.
  Conclusion
We believe that the ISL posses huge potential to generate returns for the investors.
 
However, slow recovery in GDP and LSM growth do raise some risks, though
 
considering huge demand deficit we expect that ISL would not face a low capacity
  utilization threat going forward. We will be coming up shortly with an investment
case for the ISL.
An investor without investment objectives is like a traveler without a destination.  ~Ralph Seger

Offline co2

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Re: ISL -- International Steel Limited
« Reply #4 on: April 06, 2011, 01:09:46 PM »
INTERNATIONAL STEEL LTD BOOK BUILDING APRIL 12 TO 15 :clap1: :clap1:
An investor without investment objectives is like a traveler without a destination.  ~Ralph Seger

Offline co2

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Re: ISL -- International Steel Limited
« Reply #5 on: April 06, 2011, 07:20:36 PM »
An investor without investment objectives is like a traveler without a destination.  ~Ralph Seger

Offline SK

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Re: ISL -- International Steel Limited
« Reply #6 on: April 07, 2011, 08:59:43 PM »
International Industries Limited (“INIL” or “Sponsors”) intends to offer upto 45% of its shareholding in its wholly owned subsidiary International Steels Limited (“ISL”) via listing on Karachi Stock Exchange through Book Building (“Transaction”). The transaction is structured in a way that the Company intends to offer 61,875,500 (14.23% of the total paid-up capital) Ordinary Shares to the financial institutions and High Net worth Individuals at a floor price of PKR 12.90 per share through the book building process whereas 27,506,000 (6.32% of the total paid-up capital) Ordinary Shares will be offered to the general public at the strike price determined through the Book Building phase. INIL intends to offer approximately 10% of total paid-up capital to IFC and 9.71% of the total paid-up capital to Sumitomo at a discount of 20% to the premium determined via the book building process. Furthermore, around 4.74% of the total paid-up capital has been reserved for a selected group of foreign investors, which will subscribe to shares at the strike price determined through the Book Building.

The following is the shareholding structure of ISL pre and post Offer for Sale assumed at floor price:



Overview of the Company – International Steels Limited

International Industries Limited, the sponsor of ISL is a premium producer of steel and associated products in the country. ISL is the most recent addition to the family and has been established to engage in the business of manufacturing Cold Rolled Coils (“CRC”) and Hot Dipped Galvanized Coils (“HDGC”). The following is the breakup of the Project cost:



The facility is spread over an area of 32 acres in Karachi near port Qasim. The facility is equipped with state of the art technology to manufacture CRC and HDGC. The Company has achieved Commercial Operations in January 2011. ISL is the largest private investment in the value-added flat-rolled and coated steel industry in Pakistan. The project is likely to unlock the dormant potential for developing the country’s engineering and hi-tech manufacturing industries. Salient features of the project include:

Pakistan’s first large scale cold rolling and galvanizing plant with a capacity to produce 250,000 tons of CRC (upto 150,000 tons will be converted to HDGC  (galvanized sheets) and the remaining 100,000 tons will be sold as CRC
An 18MW combined cycle captive power plant to cater to the energy requirements of the plant
Acid regeneration plant to recycle plant inputs thereby significantly adding to the operational efficiency
Hydrogen and Nitrogen Gas Generation plant to reduce dependency on external inputs
The facility has been awarded ISO 9001, ISO 14001 and OHSAS 18001
The book building dates are as under:

Book Building dates       : Tuesday 12th April, 2011 to Thursday 14th April, 2011 (both days inclusive)

 

Furthermore please note that Preliminary Offer for Sale Document and Bidding forms can be downloaded from the websites www.akdsecurities.net and www.akd-trade.com.


Offline co2

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Re: ISL -- International Steel Limited
« Reply #7 on: April 22, 2011, 04:21:23 AM »
ipo for public 3 to 4 may 2011
An investor without investment objectives is like a traveler without a destination.  ~Ralph Seger

Offline JAWAD

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Re: ISL -- International Steel Limited
« Reply #8 on: April 22, 2011, 10:59:22 AM »
ipo price kiya hoo gi and kiya trading phela shuru ho jai gi ka nahi .....?

Offline hasanzaidi

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Re: ISL -- International Steel Limited
« Reply #9 on: May 26, 2011, 11:48:33 AM »
when ISL trading will start at KSE??

Offline Farzooq

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Re: ISL -- International Steel Limited
« Reply #10 on: January 09, 2012, 01:58:12 PM »
Industrial Metals & Mining : International Steel (ISL) - Margins at 1 Year Low

   At the time of IPO and book-building we termed this company as the Golden Goose. However, unfortunately since then, this golden goose has faced various challenges, the foremost being low margins in the international market

   HDGC-HRC price spread has experienced continuous declining trend over the past year, primarily due to declining CRC-HRC price spread. HDGC-HRC price spread currently stands at USD205/ton compared to year high of USD410/ton and historic average of ~USD300/ton

   As the supply demand dynamics disrupt due to slow-down in global economy, pressure on CRC-HRC price spread continues to rise. As a result CRC-HRC price spread currently stands at negative USD12/ton compared to year high of USD179/ton in Mar11 and historic mean of ~USD100/ton

   Expected continuing slow-down in global economy led by decelerating growth in India and China and volatility in commodity prices anticipated to remain on the higher side would keep company under a lot of price risk

   With current valuations, where PER is still negative with low or no dividend yield coupled with slower than expected ramp-up in operations and no major improvement in company’s business risk, we expect stock to face pressure in the short-term to medium-term

   ISL remains a long-term growth story and its inflection point may lay at-least a year ahead. At this point we advice investors to look for other avenues and take long position in ISL when inflection point is near
 
bma
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Offline ysbq

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Re: ISL -- International Steel Limited
« Reply #11 on: April 11, 2012, 11:33:03 AM »
Upper Lock ----   :banana: :banana: :banana:

 :shoaby: :shoaby: :shoaby: :shoaby: :shoaby:

 :clap1: :clap1: :clap1: :clap1: :clap1: :clap1:

Any new information regarding this script.
Nothing fails like a safe bet

Offline ysbq

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Re: ISL -- International Steel Limited
« Reply #12 on: April 11, 2012, 11:48:08 AM »
Upper Lock ----   :banana: :banana: :banana:

 :shoaby: :shoaby: :shoaby: :shoaby: :shoaby:

 :clap1: :clap1: :clap1: :clap1: :clap1: :clap1:

Any new information regarding this script.

Upper lock not sustained...... :confused1:
Nothing fails like a safe bet

Offline salman679

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Re: ISL -- International Steel Limited
« Reply #13 on: October 25, 2012, 03:39:47 PM »
Karachi, October 16, 2012 (PPI-OT): International Steel has announced 1QFY13 results posting loss after tax of PKR 12.64 mn (LPS: PkR 0.03) which is better as against loss after tax of PkR 92.65 mn (LPS: PKR 0.21) in 1QFY12.

According to Alfalah Securities Limited, the revenues surged by 4.3% to PkR 3,228 mn in 1QFY13 while the gross profit was higher by 49.15% to PkR 298.87 mn which led to lower the losses of the company. The financial charges jumped by 39.15% to PkR 268.12 mn in 1QFY13 which eroded the profits of International Steel. The stock is currently at PkR 12.75 in the market.


Offline salman679

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Re: ISL -- International Steel Limited
« Reply #14 on: October 25, 2012, 03:55:37 PM »
Usually it ranges around 13-14.Please commnet ,is it worth buying at current rate under 12 ?when already ISL earnings are getting better.looks attractive here !

Offline SBM

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Re: ISL -- International Steel Limited
« Reply #15 on: January 28, 2013, 04:06:40 PM »
http://www.kse.com.pk/notices-updates/detail2.php?id=4&nid=040609

loss of 0.16 per share for the half year ending dec 2012 v -0.62 for the same period last year

good increase in sales ...
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Offline Abdul Qadir

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Re: ISL -- International Steel Limited
« Reply #16 on: January 28, 2013, 07:01:10 PM »
Sales improved as well as GP Margin but Finance cost eroding the profits.

Offline drrizwan

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Re: ISL -- International Steel Limited
« Reply #17 on: February 16, 2013, 11:12:07 PM »
Now that csap is performing, what about other steel stocks like international steel, aisha steel, siddiquesons tin plate, etc

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Re: ISL -- International Steel Limited
« Reply #18 on: February 17, 2013, 11:00:30 AM »
Now that csap is performing, what about other steel stocks like international steel, aisha steel, siddiquesons tin plate, etc

isnt siddiquesons just tin ?  :skeptic:
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