- Attock Cement Private Limited: Revenue improved by 4%YoY to PKR 13bn in FY15 on the back of 9%YoY rise in local net retention price to PKR 340/bag.
- Gross margin improved by 407bpsYoY to 34% in FY15 on the back of lower coal and energy cost.
- Selling and admin expenses hopped up by 20%YoY to PKR 1.33bn in FY15 on the back of 11%YoY growth in exports to 763kT.
- Effective tax rate for the period has gone up by 794bpsYoY to 32% owing to imposition of 3%super tax and higher proportion of export sales.
- ACPL declared final dividend of PKR 10.50/share, taking the total payout for FY15 to PKR14.50/share.
- The company in its meeting also approved the proposal of enhancing its production capacity by 3300T/day (0.99mnT) with an estimated cost of USD 120mn.
The scrip is currently trading at FY16 P/E of 9.7x. With TP of PKR 265/share, the stock offers upside of 32% and we maintain a ‘BUY’ call on the scrip.
|Exhibit: Financial Highlights|
|Selling and Admin||1,334||1,113||20%|
|Effective Tax Rate||32%||24%|
|Source: IGI Research, Company Financials|