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Karachi, February 08, 2013 (PPI-OT): DGKC will be announcing its 1HFY13 results on Feb 11’13.
According to AKD Securities, AKD Securities expects the company to post an NPAT of PKR2,977mn (EPS: PKR6.79) during the period under review, more than doubling 1HFY12 profitability (NPAT PKR1,279mn, EPS PKR2.92).Earnings rise during 1HFY13 is expected on the back of i) 16%YoY increase in net sales, helped by higher cement retention prices and domestic offtake and ii) expansion in GMs (+545bpYoY to 38%) on lower coal prices. For 2QFY13, AKD Securities expects the company to post a sequential earrings growth of 7% to PKR1,538mn (EPS:PKR3.51), helped primarily by higher domestic offtake (domestic dispatches in the North Zone up by 18%QoQ) although exports are expected to record a sequential decline (exports of North zone down by 16%QoQ). AKD Securities currently have an Accumulate stance on DGKC which offers 16% upside to AKD Securities’ Target Price of PkR65/share.
ABL: CY12 Result Preview
Allied Bank Ltd (ABL) is scheduled to announce its CY12 result on Feb 14’13. On a consolidated basis, AKD Securities expects ABL to announce NPAT of PKR12.16bn (EPS: PKR12.85) in CYI2 vs. NPAT of PKR10.26bn (EPS: PKR10.84) in CY11, translating into 19%YoY growth. Alongside the result, AKD Securities expects ABL to announce a final cash dividend of PKR1/share to bring full-year payout to PKR5.5/share (payout ratio: 43%) as well as a10% bonus issue. Key drivers of CY12 profitability are expected to be 1) a 66%YoY decline in total provisions and 2) near doubling of non-interest income on the back of higher dividend income and capital gains, with these resulting in a likely lower effective tax rate. As a result, the bank should be able to weather the impact of sharply tower NII (lower NIMs amidst greater focus on dividend bearing securities vs. interest-bearing assets). In 4QCY12, AKD Securities expects ABL to post NPAT of PkR2.52bn (EPS: PKR2.66), up 2%YoY/down 13%QoQ. Regarding the latter, the sequential decline will likely emanate from lower non-interest income. ABL trades at a CY13F P/B of 1.23x and P/E of 6.5x where AKD Securities’ target price of PkR78/share offers case post release of detailed CY12 accounts.