AKD Daily October 28, 2013 LUCK: 1QFY14 Result Preview The board of LUCK is scheduled to meet on October 29, 2013 to finalize the companys 1QFY14 result. On an unconsolidated basis, we expect the company to post earnings of PkR2,309mn (EPS: PkR7.14) , depicting a growth of 15%YoY. Growth is expected to be led by i) an 8%YoY increase in topline owing to higher exports as well as increased domestic prices and ii) lower distribution expenses. While local dispatches remained flat on a YoY basis at 857k tons, exports witnessed a 13%YoY increase to stand at 639k tons. PkR depreciation is likely to be a double edged sword where the benefit of PkR depreciation on export revenues is likely to be offset by higher coal costs and increase in gas price. We will be updating our financial model post announcement of 1QFY13 results and will get back to investors shortly. . NML: 1QFY14 Result Preview Nishat Mills Limited (NML) is set to announce its 1QFY14 result on Tuesday October 29, 2013. In this regard, we expect NML to post NPAT of PkR1,332mn (EPS: PkR3.79) compared to earnings of PkR1,063mn (EPS: PkR3.02), depicting an increase of 25%YoY. On the flipside, earnings are down 23% on a sequential basis primarily due to lower dividend income. During the review period, dividend income is expected to have clocked in at PkR489mn (EPS impact: PkR1.25/share) compared to PkR682mn (EPS impact: PkR1.74/share) recorded the previous quarter. While topline is expected to grow by 9%QoQ to stand at 14.75bn owing to sharp depreciation witnessed in the PkR against the greenback coupled with volumetric increases, margins are likely to witness a slight decline QoQ owing to increase in power as well as inventory costs as NML procures higher priced fresh cotton. At current levels, NML trades at an FY14F P/E of 5.0x and offers an upside of 41% to our TP of PkR131/share - Buy!
Posted on: Mon, 28 Oct 2013 08:52:54 +0000
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