DGKC -- DG Khan Cement Company

[aatradekhi]

HALF YEAR BM
Tuesday 26-02-2019 12pm

[nma]

88 tak pull down or phr slingshot 101 lagta hai mere ko 

Sab kuch Rangebound hai Bhai.. Jo upperlock band hota hai aglay din -1% open aur Jo lower cap band hota woo +1% open hota hai.. issi liay parsoo DOL nahin khareeda upper cap k pass aur Kal DGKC ke short position cover Kari lower cap se 10 Paisa ooper..

But 10% down and 13% up banta hai is mein. 83 se 101 kiya hai, kuch tou spread banaenge before a double top is made.

Bois, 88 par support dena before BM. 

[aatradekhi]

. Pakistan’s imports of goods
and services amounted to USD1.7bn from India in 2017 while exports totaled only USD0.4bn in the same period, implying balance of trade of USD1.4bn in India’s favor. While Pakistan is yet to announce retaliatory trade measures, imposition of duty is a big negative for cement and soda ash export. Pakistan exports ~USD54mn of cement to India (25% of the industry cement exports in terms of quantity), mainly to Indian Punjab region. The increase in duty has effectively priced out Pakistan’s cement exports to India. Nevertheless, we highlight that in past five years, cement exports have shrunk significantly as % of total sales and hence the impact on cement manufacturers will be limited (2?8% of companies earnings, with MLCF and DGKC being most impacted and LUCK & KOHC being least impacted).

[Farzooq]

DGKC: 1HFY19 earnings to decline by 74% YoY

DG Khan Cement Company Limited (DGKC) is scheduled to announce its financial result on 26th Feb’19, whereby we expect the company to post earnings of PKR 549mn (EPS: PKR 1.25) in 2QFY19, down by 39% YoY from PKR 896mn (EPS: PKR 2.05) in SPLY. We forecast topline of the company to arrive at PKR 11bn, depicting a noteworthy growth of 36% YoY on the back of 31% YoY jump in dispatches to 1.7mn tons together with higher retention prices. Albeit, margins are projected to compress to 13% vis-à-vis 32% in SPLY led by 26% depreciation in the Pak Rupee against US Dollar, 10% YoY uptick in average coal prices as well as higher depreciation charge post operationalization of its new line in South. In addition, finance costs are projected to undergo a massive hike of 6x to PKR 669mn in 2QFY19, in-line with higher borrowings. This will take the cumulative PAT for 1HFY19 to PKR 967mn (EPS: PKR 2.21) compared to PKR 3,734mn (EPS: PKR 8.52), down by 74% YoY. Although company sales remained robust at PKR 19bn (up by 23% YoY given 22% growth in dispatches), weaker gross margins at 13% (1HFY18: 33%) tagged with higher finance costs adversely effected the bottom-line in 1HFY19.

[Farzooq]

Elevated cost structure outweigh substantial increase in clinker export sales; pushes EBIT down by 32%YoY… However positive tax impact and accounting anomaly present a positive case

 ·         D. G. Khan Cement Company Limited (DGKC) announced its financial results for 2QFY19 with unconsolidated earnings clocking in at PKR 1.32bn (EPS: PKR 3.02), up by a substantial +48%YoY, as compared to PKR 896mn (EPS: PKR 2.05) reported in the same period last year. However, the results are impressive on a sequential basis, reflecting a two fold increase.

·         The inclined percentage of +48%YoY is subject to anomaly with respect to its base figure. To recall, DGKC in 1QFY18 had recorded early recognition of tax incentives due on its Hub Plant, which it subsequently reversed in 2QFY18 probably on recommendations of its external auditors. This eventually led to declined PAT in 2QFY18, thus propelling an apparent YoY increase.

·         Net Sales of the Company have increased by +41%YoY, likely due to substantial export clinker exports from South plant.

·         Gross profits of the Company have been washed away by 17%YoY, largely due to rise in input prices and more so due to inclusion of substantial depreciation expense pertaining to recently inaugurated Hub Plant of the Company.

·         EBIT of the Company has collapsed by a significant 32%YoY, driven by +64%YoY increase in Selling, Distribution and Admin costs of the Company, which in turn was subject to incremental freight costs incidental to export sales.

·         Finance cost of the Company leaped up by 7 folds, largely on account of unwinding of finance cost to income statement post inauguration of DGKC Hub Plant.

·         The downside impact was arrested by a positive tax reversal, likely on account of unused tax credits available on investments made in DGKC Hub Plant

[Salammembers]

Dgkc main abhi bhi kafi houses ke buying positions phasi hue Hain..
Issay bhi sell on strength karna chaheay

good idea as mansha in trouble

[Farzooq]

DGKC: Earnings revised to reflect changes in accounting estimates; maintain ‘Hold’

·         We have revised our earnings estimates and target price for D.G Khan Cement Company Limited (DGKC) and reiterate our ‘Hold’ call.

·         To recall the company reported 2QFY19 earnings of PKR 3.02/share (1HFY19 EPS: PKR 3.98), significantly higher to our and consensus expectations, which was totally uncalled for given weak cement sector fundamentals during the period and more so because of its poor 1QFY19 earnings display of PKR 0.95/share.

·         As per the interim report, the management of the Company has extended the useful lives of majority of its fixed assets resulting in a lower depreciation charge of PKR 988mn during 1HFY19.

·         The change in depreciation estimate has resulted in revised earnings forecasts. Our revised earnings forecasts for FY19E/20F/21F/22F have inched up by +30%/19%/16%/12% respectively to (PKR 8.91/11.03/11.13/12.73) /share. However, our Dec-19 based target price drops by 6% to PKR 94/share.

·         We reiterate a “Hold’ call on the scrip with a decline of 6% in our Dec-19 based target price of PKR 94/share. Though reduced depreciation will lift accounting earnings upwards, it will have a negative impact on valuation. However, this will allow the scrip to trade at an improved P/E.

[aharoon]

Dgkc main abhi bhi kafi houses ke buying positions phasi hue Hain..
Issay bhi sell on strength karna chaheay

good idea as mansha in trouble

DGKC Mai aik house nay apni more than 700000 shares ke buying position Friday SELL Kari...
DGKC Mai bara LAFRA chal Raha hai 
Our strategy would be remained SELL ON STRENGHT

[Farzooq]

DGKC: Earnings expected to dip by 34% YoY during 3QFY19             

We preview the financial result of DG Khan Cement Company Limited (DGKC), scheduled for announcement on 24th Apr’19. The company is expected to unveil earnings of PKR 818mn (EPS: PKR 1.87) in 3QFY19 compared to PKR 1,236mn (EPS: PKR 2.82) in SPLY, depicting a decline of 34% YoY. Primary reason behind this has been weaker margins which tumbled to 20% in the quarter under review (3QFY18: 25%). Despite a strong 50% growth in topline amid 33% jump in total dispatches with the addition of South plant together with higher retention prices, 20% depreciation in the Pak Rupee eroded margins. Albeit, margins are projected to show slight improvement on a QoQ basis (2QFY19: 19%) led by coal prices tapering off. Moreover, in 3QFY19, finance costs are expected to escalate by 7x YoY given higher borrowing and interest rate upcycle. On a cumulative basis, profitability in 9MFY19 will arrive at PKR 2,559mn (EPS: PKR 5.84), down by 48% YoY. Similar observations can be drawn; revenue jumped up by 33% to PKR 31bn as dispatches underwent a growth of 26% whereas higher coal prices and PKR depreciation against the USD eroded margins in 9MFY19 to 17% from 31% in SPLY.

 

[onlybulls]

DGKC: Earnings expected to dip by 34% YoY during 3QFY19             

We preview the financial result of DG Khan Cement Company Limited (DGKC), scheduled for announcement on 24th Apr’19. The company is expected to unveil earnings of PKR 818mn (EPS: PKR 1.87) in 3QFY19 compared to PKR 1,236mn (EPS: PKR 2.82) in SPLY, depicting a decline of 34% YoY. Primary reason behind this has been weaker margins which tumbled to 20% in the quarter under review (3QFY18: 25%). Despite a strong 50% growth in topline amid 33% jump in total dispatches with the addition of South plant together with higher retention prices, 20% depreciation in the Pak Rupee eroded margins. Albeit, margins are projected to show slight improvement on a QoQ basis (2QFY19: 19%) led by coal prices tapering off. Moreover, in 3QFY19, finance costs are expected to escalate by 7x YoY given higher borrowing and interest rate upcycle. On a cumulative basis, profitability in 9MFY19 will arrive at PKR 2,559mn (EPS: PKR 5.84), down by 48% YoY. Similar observations can be drawn; revenue jumped up by 33% to PKR 31bn as dispatches underwent a growth of 26% whereas higher coal prices and PKR depreciation against the USD eroded margins in 9MFY19 to 17% from 31% in SPLY.

Again spot on Farzooq bhai. So accurate.
Eps 5.99 announced today result out now.


Ma to kehta hon Farzooq bhai aap sub shares ki expected earning lga dia krain. If possible.

 

[Farzooq]

Earnings decline by 47% YoY in 9MFY19

D.G. Khan Cement Company Limited (DGKC) released its 3QFY19 financial result today, posting a profit after tax (PAT) of PKR 883mn (EPS: PKR 2.02), down by 29% YoY / 33% QoQ during the period under review. This took the 9MFY19 profitability to PKR 2,625mn (EPS: PKR 5.99), down by 47% YoY.

Result Highlights

·         Topline during 3QFY19 witnessed a jump of 39% YoY to PKR 10.6bn led by 26% YoY jump in total offtake to 1.6mn tons (addition of new line in South). During 9MFY19, revenue took off by 30% YoY to PKR 30.4bn given 24% jump in dispatches to 4.6mn tons.

·         Gross margins in 3QFY19 were eroded by 8ppts to 17% compared to 25% in 3QFY18 due to 20% depreciation in the PKR-USD parity and augmented costs with respect to the company’s new line in South. We do highlight that margins squeezed on a QoQ basis (2QFY19: 19%) amid 8% volumetric decline and price cuts in North. In 9MFY19, gross margins compressed by 14% to 16% owed to higher coal prices and PKR depreciation.

·         Finance costs escalated by 7x YoY to PKR 912mn in the quarter attributable to higher borrowing in lieu of the expansion in South as well as interest rate hikes.

·         In addition, selling expenses displayed a rise of 55% YoY to PKR 358mn in 3QFY19 with exports climbing up by 122% to 274k tons.

·         DGKC booked a tax credit of PKR 71mn in 3QFY19 vis-à-vis normalized taxation at 26% recognized in SPLY.

Recommendation

·         Currently we have a BUY stance on DGKC with our SoTP based Dec’19 target price of PKR 112.71/share.

 

[Thelma]

DGKC: Earnings expected to dip by 34% YoY during 3QFY19             

We preview the financial result of DG Khan Cement Company Limited (DGKC), scheduled for announcement on 24th Apr’19. The company is expected to unveil earnings of PKR 818mn (EPS: PKR 1.87) in 3QFY19 compared to PKR 1,236mn (EPS: PKR 2.82) in SPLY, depicting a decline of 34% YoY. Primary reason behind this has been weaker margins which tumbled to 20% in the quarter under review (3QFY18: 25%). Despite a strong 50% growth in topline amid 33% jump in total dispatches with the addition of South plant together with higher retention prices, 20% depreciation in the Pak Rupee eroded margins. Albeit, margins are projected to show slight improvement on a QoQ basis (2QFY19: 19%) led by coal prices tapering off. Moreover, in 3QFY19, finance costs are expected to escalate by 7x YoY given higher borrowing and interest rate upcycle. On a cumulative basis, profitability in 9MFY19 will arrive at PKR 2,559mn (EPS: PKR 5.84), down by 48% YoY. Similar observations can be drawn; revenue jumped up by 33% to PKR 31bn as dispatches underwent a growth of 26% whereas higher coal prices and PKR depreciation against the USD eroded margins in 9MFY19 to 17% from 31% in SPLY.

Again spot on Farzooq bhai. So accurate.
Eps 5.99 announced today result out now.


Ma to kehta hon Farzooq bhai aap sub shares ki expected earning lga dia krain. If possible.

 

Yes Farzooq bhai please share your expertise ....Please Netsol ka bata dain ...hold for long term or just kill the cockroach ..

[Aahaf]

Strongest cement company during fall of last 2000 points today close above its resistance of 46 in my view

[salmankaramat]

10 Rs EPS wala Cherat Cement 25 par zaleel ho raha hai tou 6 Rs EPS wala DGKC 45 kaisay justify kar sakay ga.  DGKC will eventually fall below 30, it's just matter of time.

[ajeebkhan]

10 Rs EPS wala Cherat Cement 25 par zaleel ho raha hai tou 6 Rs EPS wala DGKC 45 kaisay justify kar sakay ga.  DGKC will eventually fall below 30, it's just matter of time.

It's not earning time it's just learning time 
2.75rs Wala BAnk of Punjab 7rs par " Ghazwa E Hind Selling power'

[ajeebkhan]

10 Rs EPS wala Cherat Cement 25 par zaleel ho raha hai tou 6 Rs EPS wala DGKC 45 kaisay justify kar sakay ga.  DGKC will eventually fall below 30, it's just matter of time.

It's not earning time it's just learning time 
2.75rs Wala BAnk of Punjab 7rs par " Ghazwa E Hind Selling power'

I mean to say 2.75rs Annual EPS Wala BOP

[Investonly]

10 Rs EPS wala Cherat Cement 25 par zaleel ho raha hai tou 6 Rs EPS wala DGKC 45 kaisay justify kar sakay ga.  DGKC will eventually fall below 30, it's just matter of time.

Bhai sab tmari tezi aygi 40,000 index per.  Ap 40k per buying krna abi nahi

[salmankaramat]

Saying this since 40,000 level and you are questioning it since then, never mind keep on questioning and time is proving. Market has come down from 40,000 level to 29,000 but few of us are in denial, let it be.

[salmankaramat]

Kachray kachray hi rahain gay. When market will make a recovery ( at least it will take 3 months) shares with solid fundamentals will count.

[Ali]

 

Kachray kachray hi rahain gay. When market will make a recovery ( at least it will take 3 months) shares with solid fundamentals will count.

Salman BH for example if market touches 27k  then what are the good shares which we need to grab? Please share companies with buying rates.