FCCL - Fauji Cement Company Limited

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Apr 11, 2017
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#21
Fauji Cement Company Limited (FCCL): 9MFY18 EPS to clock in at PKR1.60, up by 12% YoY

11 April 2018
Aba Ali Habib Securities (Private) Limited



  • FCCL is scheduled to announce its 9MFY18 result on 17th Apr’18. We expect the company to post 3QFY18 EPS of PKR 0.68, up 41% YoY, taking 9MFY18 EPS to PKR1.60, up by 12% YoY.
  • The growth in 3QFY18 bottom-line is mainly attributed to 16% YoY increase in total dispatches and 8% YoY decline in COGS. The decline in COGS is on account of resumption of line II which leads to in house production of clinker. Moreover, 3QFY18 topline is expected to grow by meagre 2% YoY due to uptick in cement prices during the period.
  • Selling and Distribution is expected to surge by 42% YoY due to increase in export dispatches. Moreover, Effective tax rate is expected to clock in at 29% during 9MFY18.
  • We maintain our ‘BUY’ recommendation on FCCL with Dec-18 PT of PKR34/share which offers an upside of 8% along with a dividend yield of 4.8%. FCCL is currently trading at FY18 PER of 14x.
 
Apr 11, 2017
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#22

Fauji Cement Limited (FCCL): Lower cost to lift EPS by 10%YoY in 9MFY18


13 April 2018
Pearl Securities Limited




  • The board meeting of Fauji Cement Limited is scheduled on Apr 17th, 2018 to announce its 9MFY18 financial results.
  • We expect the company to post profit after tax of PKR2,160mn (EPS PKR1.57) during 9MFY18 as against PKR1,972mn (EPS PKR1.43) in the same period of last year, exhibiting an increase of 10%YoY.
  • The increase in earnings is mainly due to lower cost of production following the recommencement of Line-II in Oct’17. Recall, Line-II of FCCL had been non-operational since May’16 on account of the Silo incident which led the company to procure costly clinker from other manufacturers causing the gross margins to decline notably.
  • On a quarterly basis, we anticipate FCCL’s bottom-line to escalate by 33%YoY to PKR892mn largely in the backdrop of margin recovery as a result of decline in cost of production by 24%YoY.
 
Apr 11, 2017
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#23

Fauji Cement Company Limited (FCCL): Result Preview: FCCL


13 April 2018
Azee Securities (Pvt.) Ltd.




  • In our today's morning report we will discuss the Fauji Cement Company Limited (FCCL) result preview for 9MFY18 which is scheduled on April 17, 2018.
  • We expect company to post double digit growth in earnings as bottom-line to surge by 10% translating into profit after taxation (PAT) of Rs 2.17 billion (EPS: Rs 1.57) in 9MFY18 against to Rs 1.97 billion (EPS: Rs 1.43) in 9MFY17. This is expected due to start of clinker line, higher volumetric sales and lower financing cost. However fall in cement prices and higher coal prices restrict growth. For 3QFY18 we anticipate company to post 35% YoY growth with profit after taxation of Rs 905 million (EPS: Rs 0.66) as against PAT of Rs 669 million (EPS: Rs 0.48) in 3QFY17 likely due to higher volumetric sales which up by 11% YoY to 887k tons in 3QFY18 and re-start of new line.
  • Despite lower cement prices, net sale is expected to increase by 1% to Rs 15.88 billion against Rs 15.76 billion in 9MFY17 due to higher volumetric sales. We foresee volumes to increase by 12% to 2.51 million tons in 9MFY18 against 2.24 million tons in 9MFY17. This is mainly due to higher local volumetric sales which increase to 2.29 million tons in 9MFY18 against 2.13 million tons in 9MFY17, depicting hike of 8%. Similarly, export sales up by 98% YoY to 223k tons in 9MFY18 from sales of 113k tons in 9MFY17 due to lower base effect.
 
Apr 11, 2017
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#24
Fauji Cement Company Limited (FCCL): Result Preview


16 April 2018
WE Financial Services Limited



  • In our today's morning briefing we would present our forecast on the upcoming corporate results of Fauji Cement Company Limited (FCCL) and Bank Alfalah Limited (BAFL) as the meetings of their board of directors is scheduled to be taken place on April 17 & April 19 respectively.
FCCL: PAT to grow 14% YoY
  • Primarily on back of higher volumetric sales, commencent of clinker production from silo line II, and lower effective taxation, the profit after taxation (PAT) of FCCL is expected to grow by 14% YoY in 9MFY18 to Rs 2,243 million (EPS: Rs 1.63) as against a PAT of Rs 1,972 million (EPS: Rs 1.43) in 9MFY17. The net revenue is expected to grow by 1% YoY in 9MFY17 to Rs 15,921 million as against Rs 15,760 million in the identical period in FY17 owing to higher volumetric sales however the growth remains restricted owing to lower cement prices. The sales volume of the company is likely to reach 2.51 million tons in 9MFY18 which is 12% YoY up from 2.24 million tons of cement sold in 9MFY17.
BAFL: Decline in earning foreseen
  • Owing to provisions and surge in non-interest expenses, the PAT of the bank is anticipated to decrease by 4% YoY in 1QCY18 to Rs 2,665 million (EPS: Rs 1.66) as against a PAT of Rs 2,788 million (EPS: Rs 1.73) in 1QCY17. The net interest income (NII) is expected to grow by 6% YoY in 1QCY18 to Rs 7,684 million as compared to a PAT of Rs 7,262 million in 1QCY17 on back of higher investments and advances. The non-interest income is also expected to remain higher as it is likely to grow by 3% YoY in 1QCY18 to Rs 2,623 million as against Rs 2,553 million in 1QCY17. However bank is anticipated to observe provisions worth Rs 270 million during the period under review as against reversals worth Rs 82 million in 1QCY17.
 
Apr 11, 2017
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#25
FAUJI CEMENT COMPANY LIMITED (FCCL): 9MFY18 EPS CLOCKED IN AT PKR 1.54, UP 8% YOY

18 April 2018
ABA ALI HABIB SECURITIES (PRIVATE) LIMITED




  • FCCL announced its 9MFY18 result where the company posted an EPS of PKR 1.54, up by 8% YoY. Similarly, 3QFY18 EPS increased by 28% YoY to PKR 0.62/sh. The result was below our expectations due to lower than expected increase in topline and higher production cost. Moreover, the company announced an interim cash dividend of PKR1.00/sh.
  • FCCL’s 3QFY18 topline slid by 0.5% YoY, where 9MFY18 topline remained flat on YoY basis owing to weaker retention prices during the period.
  • COGS declined by 9% YoY on account of in-house production of clinker which has resulted in 6.5pps improvement in gross margins to clock in at 27% during 3QFY18, where 9MFY18 gross margins expanded by 1.2pps to clock in at 23% during the same period.
  • Selling and Distribution expense surged by 60% YoY during 3QFY18 due to increase in export dispatches
 
Apr 11, 2017
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#26
FAUJI CEMENT COMPANY LIMITED (FCCL): WHR OF 9MW BECOMES OPERATIONAL

18 April 2018
PEARL SECURITIES LIMITED


  • Fauji Cement in its recent communiqué to PSX conveyed that its new Waste Heat Recovery plant for Line-1 and Wartsila Captive Power Plant has now been commissioned.
  • The new WHR plant has a capacity of generating 9MW of electricity which now takes the total WHR capacity of FCCL to 21MW in addition to the already installed 12MW WHR on Line-II.
  • As per our calculation, the new WHR plant has an annual EPS impact of PKR0.15 which has already been incorporated in our earnings estimates.
 
Apr 11, 2017
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#27
FAUJI CEMENT COMPANY LIMITED (FCCL): EARNINGS RISE AS FULL IMPACT OF LINE OPERATIONALIZATION REALIZED

18 April 2018
SHAJAR CAPITAL PAKISTAN (PRIVATE) LIMITED




  • FCCL announced the results for 3QFY18 on 17th April 2018, the company posted a PAT of PkR854mn (EPS: PkR0.62) against a PAT of PkR824mn (EPS: PkR0.60) in 2QFY18 and a PAT of PkR669mn (EPS: PkR0.48) in 3QFY17, up 4%QoQ/28%YoY. The company’s margins have continued to improve this quarter as compared to last year since it’s Line II that had been damaged in an accident came back online during 2QFY18; gross margins have expanded to 27.1% in 3QFY18 from 20.5% in 3QFY17. Along with the result, the company announced a dividend of PkR1/sh.
  • On a cumulative basis, the company posted a PAT of PkR2,122mn (EPS: PkR1.54) in 9MFY18 against a PAT of PkR1,972mn (EPS: PkR1.43) in 9MFY17; revenue growth was flat however costs exhibited an attrition of 2% mainly because of lower clinker purchases this fiscal year. A lower tax rate and improved margins have led to the 8%YoY increase in earnings.
  • FCCL currently trades at a 1 year P/E of 14.5(x) against an industry P/E of 9.1(x).
 
Apr 11, 2017
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#28
FAUJI FERTILIZER COMPANY LIMITED (FFC): EPS FOR 1QCY18 LIKELY AT PKR 1.85

18 April 2018
ISMAIL IQBAL SECURITIES (PVT.) LIMITED



  • Fauji Fertilizer Company Limited’s (FFC) Board of Directors is scheduled to meet on Wednesday, April 25, 2018 to announce the results for 1QCY18. We expect the company to post an EPS of PKR 1.85 (up 7.50% YoY) for 1QCY18.Our expectation of increase in earnings is based on higher expected volumetric sales of Urea and slight increase in retention prices. Other than that, we expect the company to announce dividend of PKR 1.50/share. Our December 2018 target price for FFC is PKR 97, which implies an upside of 0.85% to its last day’s closing price. Hence, we are maintaining a neutral stance on the scrip.
  • We expect the company’s volumetric sales of Urea to record a growth of 51.23% in 1QCY18 to clock in at around 569.8k MT compared to 376.9k MT in the same period last year. Our expectation of increase in volumetric sales is based on NFDC’s data for the first two months of the quarter and uptick in farmer income due to attractive crop prices in the previous quarter as reported by SBP.
  • According to NFDC, the company has made sales of around 380k MT of Urea in first two months of the quarter. Other than that, we expect the average retention price for 1QCY18 to stand at around PKR 1,395/bag as opposed to PKR 1,350/bag in 1QCY17.
 

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