Author Topic: DGKC -- DG Khan Cement Company  (Read 475208 times)

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Offline ajeebkhan

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Re: DGKC -- DG Khan Cement Company
« Reply #2439 on: November 14, 2019, 11:14:08 AM »
Dg ko izzat Doo dg ko izzat doo :dance :dance :dance

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Re: DGKC -- DG Khan Cement Company
« Reply #2439 on: November 14, 2019, 11:14:08 AM »

Offline Aahaf

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Re: DGKC -- DG Khan Cement Company
« Reply #2440 on: November 14, 2019, 11:34:10 PM »
Dg ko izzat Doo dg ko izzat doo :dance :dance :dance
tabdeeli kai daur main bhi pathan tabdeel nahi hota huhu ajeeb khan ne izzat de di dg khan ko  :laugh: on lighter note

Offline zelmc

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Re: DGKC -- DG Khan Cement Company
« Reply #2441 on: November 15, 2019, 12:02:24 AM »
Dg ko izzat Doo dg ko izzat doo :dance :dance :dance
Bhai kal DG ko short kar k izzat daingay.

Offline Salammembers

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Re: DGKC -- DG Khan Cement Company
« Reply #2442 on: November 15, 2019, 01:00:12 AM »
Dg ko izzat Doo dg ko izzat doo :dance :dance :dance
B careful with Heavy equity Portfolio investment  walaay scrips  :rtfm:p

Offline nma

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Re: DGKC -- DG Khan Cement Company
« Reply #2443 on: November 15, 2019, 01:32:30 AM »
Dg ko izzat Doo dg ko izzat doo :dance :dance :dance
Bhai kal DG ko short kar k izzat daingay.

short kr ke zaleel kr do.

Offline winner11

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Re: DGKC -- DG Khan Cement Company
« Reply #2444 on: November 15, 2019, 03:07:15 PM »
Tycoon Plans Expansion to Become Pakistan’s Biggest Cement Maker

D.G. Khan seeks approval to add 12,000 tons a day of capacity
PM Khan is looking at ways to boost the construction sector
By Faseeh Mangi

(Bloomberg) --

Tycoon Mian Muhammad Mansha’s D.G. Khan Cement Co. is aiming to become Pakistan’s largest cement maker by expanding capacity.

The company has sought permission from the provincial government to boost its current facility by 12,000 tons a day, according a letter seen by Bloomberg. Javed Iqbal Malik, a senior economic adviser at Punjab province’s industries department confirmed getting the letter but did not give any other details.

The approval process could take 6 to 12 months and a final decision on expanding capacity will be taken after considering the demand and economic situation, Inayat Ullah Niazi, Chief Financial Officer at D.G. Khan Cement said by phone.

The proposed expansion will help D.G. Khan topple Bestway Cement Ltd. as the nation’s biggest producer of the building material. Its capacity addition plan comes as Pakistan’s Prime Minister Imran Khan tries to kick-start the construction sector to increase economic growth and create employment following its 13th loan from the International Monetary Fund since the late 1980s.

D.G. Khan’s capacity will jump to 10.7 million tons following the expansion, exceeding Bestway’s 10.3 million tons capability, according to data on the cement association’s website.

The South Asian nation’s economy is looking to stabilize its economy after securing a $6 billion bailout from the International Monetary Fund. The rescue package is expected to require Pakistan to boost tax revenue, reduce energy debt and identify state-owned companies to privatize.

In the year ended June, domestic cement sales dropped for the first time in eight years. They have increased 2.3% to 13.3 million tons in the four months to October.

Offline Valueestimator

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Re: DGKC -- DG Khan Cement Company
« Reply #2445 on: November 15, 2019, 08:57:04 PM »
Tycoon Plans Expansion to Become Pakistan’s Biggest Cement Maker

D.G. Khan seeks approval to add 12,000 tons a day of capacity
PM Khan is looking at ways to boost the construction sector
By Faseeh Mangi

(Bloomberg) --

Tycoon Mian Muhammad Mansha’s D.G. Khan Cement Co. is aiming to become Pakistan’s largest cement maker by expanding capacity.

The company has sought permission from the provincial government to boost its current facility by 12,000 tons a day, according a letter seen by Bloomberg. Javed Iqbal Malik, a senior economic adviser at Punjab province’s industries department confirmed getting the letter but did not give any other details.

The approval process could take 6 to 12 months and a final decision on expanding capacity will be taken after considering the demand and economic situation, Inayat Ullah Niazi, Chief Financial Officer at D.G. Khan Cement said by phone.

The proposed expansion will help D.G. Khan topple Bestway Cement Ltd. as the nation’s biggest producer of the building material. Its capacity addition plan comes as Pakistan’s Prime Minister Imran Khan tries to kick-start the construction sector to increase economic growth and create employment following its 13th loan from the International Monetary Fund since the late 1980s.

D.G. Khan’s capacity will jump to 10.7 million tons following the expansion, exceeding Bestway’s 10.3 million tons capability, according to data on the cement association’s website.

The South Asian nation’s economy is looking to stabilize its economy after securing a $6 billion bailout from the International Monetary Fund. The rescue package is expected to require Pakistan to boost tax revenue, reduce energy debt and identify state-owned companies to privatize.

In the year ended June, domestic cement sales dropped for the first time in eight years. They have increased 2.3% to 13.3 million tons in the four months to October.

that will be the worst decision for minority shareholders.
Top Pick: NBP, AKBL, AGIC

Offline aatradekhi

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Re: DGKC -- DG Khan Cement Company
« Reply #2446 on: December 02, 2019, 02:47:46 PM »
In ACCUMULATION process
someone give me TP 101

Let c

Offline Salammembers

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Re: DGKC -- DG Khan Cement Company
« Reply #2447 on: December 02, 2019, 04:40:37 PM »
In ACCUMULATION process
someone give me TP 101

Let c

aharoon -88
another guru-91
 :fingerscrossed1:

Offline nma

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Re: DGKC -- DG Khan Cement Company
« Reply #2448 on: December 03, 2019, 01:52:02 AM »
In ACCUMULATION process
someone give me TP 101

Let c

aharoon -88
another guru-91
 :fingerscrossed1:

100 par sell
In ACCUMULATION process
someone give me TP 101

Let c

In ACCUMULATION process
someone give me TP 101

Let c

aharoon -88
another guru-91
 :fingerscrossed1:

100 par sell or phr short sell lagta hai  :o

Offline aatradekhi

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Re: DGKC -- DG Khan Cement Company
« Reply #2449 on: December 04, 2019, 12:19:58 PM »
#dgkc is running in inverse head & shoulder pattern and breakout is 81 Rs.

Trading @ 74 Rs.

#Accumulate TP 101 Rs.

Offline nma

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Re: DGKC -- DG Khan Cement Company
« Reply #2450 on: December 04, 2019, 11:31:47 PM »
#dgkc is running in inverse head & shoulder pattern and breakout is 81 Rs.

Trading @ 74 Rs.

#Accumulate TP 101 Rs.

Agreed!
#dgkc is running in inverse head & shoulder pattern and breakout is 81 Rs.

Trading @ 74 Rs.

#Accumulate TP 101 Rs.


In ACCUMULATION process
someone give me TP 101

Let c

aharoon -88
another guru-91
 :fingerscrossed1:

100 par sell
In ACCUMULATION process
someone give me TP 101

Let c

In ACCUMULATION process
someone give me TP 101

Let c

aharoon -88
another guru-91
 :fingerscrossed1:

100 par sell or phr short sell lagta hai  :o


Offline aatradekhi

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Re: DGKC -- DG Khan Cement Company
« Reply #2451 on: December 05, 2019, 01:53:14 PM »
#dgkc is running in inverse head & shoulder pattern and breakout is 81 Rs.

Trading @ 74 Rs.

#Accumulate TP 101 Rs.

 :clap1: :shoaby:

Offline Farzooq

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Re: DGKC -- DG Khan Cement Company
« Reply #2452 on: February 12, 2020, 01:10:56 PM »
DGKC: Loss in 1HFY20 expected at PKR 2.6bn

DG Khan Cement Limited (DGKC) is scheduled to unveil its 2QFY20 financial result on 13th Feb’20 whereby we expect the company to post negative earnings of PKR 1,176mn (LPS: PKR 2.68) compared to a PAT of PKR 1,324mn (EPS: PKR 3.02) in SPLY and a Loss after Tax (LAT) of PKR 1,428mn (LPS: PKR 3.26) during the last quarter. Company topline is forecast to undergo a decline of 6% YoY to PKR 10.9bn in the period under review led by weaker retention prices which offset the impact of a robust 25% growth in total dispatches to 2.2mn tons. This, alongside steep depreciation in the Pak Rupee against USD is expected to post negative gross margins of 3.7% vs. a gross profit margin of 18.5% in SPLY. We do highlight that on a QoQ basis, margins will depict slight improvement (1QFY20: -5.9%) led by 25% jump in offtake (1QFY20: 1.7mn tons) together with lower coal prices. Meanwhile finance costs are set to climb up by 2x YoY in 1QFY20 attributable to rate hikes by the SBP as well as augmented borrowing. This is expected to take the 1HFY20 bottom-line to a negative PKR 2,604mn (LPS: PKR 5.94) vis-à-vis PAT of PKR 1,742mn (EPS: PKR 3.98) in SPLY. We foresee revenue to remain stable YoY in 1HFY20, despite a 30% jump in offtake to 3.9mn tons (1HFY19: 3.0mn tons) as retention prices took a beating. Albeit, margins are expected to turn red at 4.5% vs. GP margin of 16.1% in 1HFY19 amid aforementioned reasons.
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Offline Farzooq

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Re: DGKC -- DG Khan Cement Company
« Reply #2453 on: February 13, 2020, 09:40:01 PM »
DGKC: Earnings surprise likely led by higher retention

DG Khan Cement Company (DGKC) announced its results earlier today, posting a loss of PKR 847mn (EPS: PKR -1.93) during 1HFY20 against earnings of PKR 1,742mn (EPS: PKR 3.98) during 1HFY19. On a quarterly basis, the company registered earnings of PKR 581mn (EPS: PKR 1.33) during 2QFY20 against a loss of PKR 1,428mn (EPS: PKR -3.26) during 1QFY20.
Earnings registered overshot our estimates likely due to a higher than anticipated retention. Consequently, gross margins for DGKC recovered to 13% during 2QFY20 against -6% the preceding quarter.
Distribution costs escalated by 54% YoY to 1,009mn likely due to a considerable increase in DGKC’s exports.
The company’s financial charges ballooned up by 83% YoY on account of a levered balance sheet amid high interest rates.
We continue remaining neutral towards cements as we feel Pakistan’s phase of low economic growth may continue for a prolonged period, and consequently keep the industry’s sales and pricing power under check.
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Offline ABNEIQBAL

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Re: DGKC -- DG Khan Cement Company
« Reply #2454 on: February 14, 2020, 07:25:19 PM »
Nishat group's DG Khan Cement (PSX: DGKC) which has fast become a major contender for the top spot in the cement industry has incurred a loss in the first half of the fiscal year. The interplay of demand, prices and costs of production has worked mostly against the company's profitability — though most of it was expected. Loss per share of Rs1.93 (after-tax profit: Rs847 million) comes despite a 6 percent growth in the company's topline.

Due to greater capacity, the company has been able to sell-off more cement than last year. In the first quarter, volumetric dispatches grew 11.9 percent (local: up 15 percent, cement exports: down 15.6 percent, clinker exports: up 329.6 percent). Indian countervailing duties have slashed exports to nil which affected overall cement exports. But DGKC managed to sell-off substantial volumes of clinker which has helped with capacity utilization and cover its fixed costs. According to the first quarter report, sales utilization improved to 98 percent (Q1 2019: 71 percent) against the industry's 75 percent (Q1 2019: 80 percent).

DGKC: Unconsolidated Half Year      
   
Rs (mn)    1HFY20   1HFY19   YoY
Sales   20,888   19,767   6%
Cost of Sales   19,867   16,582   20%
Gross Profit   1,021   3,185   -68%
Administrative expenses   358   312   15%
Selling and distribution   1,009   654   54%
Other operating expenses   55   431   -87%
Other income   1,185   1,145   4%
Finance costs   2,456   1,343   83%
Profit (Loss) before tax   (1,722)   1,590   
Taxation   875   152   476%
Profit (Loss) for the period   (847)   1,742   
Earnings per share (Rs)   (1.93)   3.98   
GP margin   5%   16%   -70%
NP margin   -4%   9%   
 Source: PSX notice         

Price war in the domestic markets due to supply glut and slowing demand, together with clinker fetching much lower prices in the foreign markets compared to cement, revenues growth was not on the same level as volumetric growth. Costs of production on the other hand rose from 83 percent to 95 percent of revenue. Clearly lower coal prices in the international markets did not do much for DGKC as rupee depreciated. Higher electricity prices and other fuels have also experienced inflationary pressures.

The company managed to keep all other expenses in check — which remained 7 percent of revenues. The 54 percent increase in selling expenditure came around due to higher clinker exports but the company managed to cut down on other indirect expenses. One major expense coming into play is finance cost due to considerably higher cost of borrowing — that includes short-term working capital needs as well as expansion related loans. In 1HFY20, finance cost as a share of revenue grew to 12 percent against 7 percent the corresponding period last year.

Thanks to its new production line in Hub, Baluchistan, DGKC can keep selling off clinker to markets overseas though it is more of a consolation prize than a gift horse. Domestic demand must recover considerably for the substantial capacity the industry has recently added, without which price pressures will continue and excess cement will be ever more difficult to off-load. The result would be idle capacity and more losses.

Monetary policy loosening may loosen the noose a little on the cost perspective, while the groundbreaking of the Naya Pakistan Housing Program projects may also provide the impetus the industry requires.