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Karachi, April 16, 2013 (PPI-OT): EFOODS will be announcing its IQCYI3 result on Apr 1813.
According to AKD Securities expects the company to post NPAT of PkR723mn (EPS: PkRO.95) in IQCYI3, which would represent a growth of 49%YoY over 1 QCYI2, however sequentially AKD Securities expects the earnings to fall by 26%QoQ following record high profitability and margins in 4QCY12. On a YoY basis, AKD Securities estimates higher margins (GMs forecast to rise by 272bps YoY to 26%) to be the major driver behind the YoY profitability growth. Sequentially, earnings are forecast to fall by 26% following a 8%QoQ decline in revenues to PKR 10bn as well as 200bps fall in GMs, which are expected to normalize following record high margins in 4QCYI2. At current levels EF000S provides 24% upside to AKD Securities Dec’13 TP of PkRl5Btshare. Buy!
HBL: 1QCY13 Result Preview
HBL is scheduled to announce its `tQCY13 result on Apr1913. On a consolidated basis, AKD Securities expects HBL to post NPAT of PkR5.Olbn (EPS: PkR3.75) in I OCYI 3 vs. NPAT of PkR6.O2bn (EPS: PkR4.51) in I QCYI2, translating into a decline of 17%YoY although earnings are expected to be flattish on a Q0Q basis. In this regard, key highlights of upcoming results are expected to be:
6%YoY decline in Nil with NIM compression countering asset growth
15%YoY increase in loan provisions as previously availed FSV benefit comes in for expiry
6%YoY decline in non-interest income as fx income and capital gains depict a drop
1O%YoY increase in non-interest expenses.
While HBL does not have a consistent track record of quarterly dividends, AKD Securities believes the bank may attempt to alleviate 1QCY13 results with a PkR1/share interim payout. Having shed 14%CYTD, underperforming the KSE-100 Index by 24% in the process, HBL trades at a CY13F P/B of OQUx and PIE of 5.6x. In this regard, although banking sector dynamics are likely to remain soft across the next quarter as well, AKD Securities believes the same should depict an uptick in 2HCY1 3 where AKD Securities eyes margin expansion as interest rates rise. At current levels, AKD Securities Dec’13 target price of PkR1I2/share for HBL implies a Buy stance where AKD Securities advises investors to build positions in the stock on dips with a view to play an anticipated 2HCY1 3 banking sector rally.