Karachi, February 25, 2014 (PPI-OT): Indus Motor Company (INDU) is scheduled to announce its IHFYI4 result tomorrow.
According to AKD Securities, they expect the company to post NPAT of PkRI, 446mn (EPS: PkRI8.39) in IHFVI4 versus NPAT of PkR9l8mn (EPS: 12.44) in IHFYI3, a growth of 47.8%VoY. Alongside the result, AKD Securities expects an interim dividend of PkR6lshare.
AKD Securities’ estimates are based on 3.3%YoY higher unit sales (growth has arisen following the ban on import of used vehicles on more than 3 years applied in Dec’13) coupled with estimated gross margins of 9.76% (due to higher currency gains from PkR/JPV parity) in I HFVI4.
On a sequential basis, AKD Securities estimates the company to post NPAT of PkR5G6mn (EPS: PkR7.20) in 20FV14 versus NPAT of PkR88Omn (EPS: PkRII.19) in IQFVI4, a decline of 36%QoQ based on lower sales volumes which recorded at 6,760 units, down by 20%QoQ. At current levels, AKD Securities has a Neutral stance on the scrip with target price of PkR384/share.
PSMC: CV13 Result Preview
Pak Suzuki Motor Company (PSMC) is scheduled to announce its CYI3 financial result on Mar 514. AKD Securities expects the company to post NPAT of PkRI,853 mn (EPS: PkR22.52) in CYI3 versus NPAT of PkR9l8mn (EPS: PkRII.88) in CYI2, a stellar growth of 89%YoV. Alongside the result, AKD Securities expects a dividend announcement of PkR4.5/share.
AKD Securities cuts down AKD Securities’ CVI3 NPAT estimate from AKD Securities’ previous projections due to lower than estimated sales volumes of 76.818 units in CYI3 even as GP margins are seen at 6.3% following the gains in PkR/JPY parity and increase in average unit prices (AUP).
On a sequential basis, AKD Securities expects 4QCVI3 NPAT of PkR325mn (EPS: PkR3.95) versus 30CY13 NPAT of PkR37lmn (EPS: PkR4.51), a decline of 12.5%Q0Q with recorded 2.4% decline in sales volumes and estimated GP margins of 6% in 40CY13. At current levels, AKD Securities has an Accumulate stance on the scrip with target price of PkRI73/share.
LUCK: 1HFY14 Result Preview
LUCK is scheduled to announce its 2QFVI4 result tomorrow where the company is expected to post NPAT of PkR2,633mn (EPS: PkR8.14), up by 16%YoY/3%QoO. In this regard. expected volumetric growth coupled with a 15%YoY/5%QoQ increase in average prices is likely to allow the company to post sales growth of 14%YoY/6%QoQ to PkRO,90lmn during 2QFV14.
That said, sequential increase in coal prices as well as a weaker PkR versus the US$ is likely to result in slight gross margin erosion. That said, a cash rich balance sheet will likely provide support to the bottom line resulting in higher “other income” for the quarter, expected to clock in at PkRl9lmn, up by 197%YoY.
As a result, IHFYI4 earnings are expected to clock in at PkR5,178mn (EPS: PkRI6.O1), up by a strong 21%YoY mainly driven by volumetric growth, increase in domestic prices and 1O%YoV lower coal prices. LUCK is currently trading at a FYI4F PIE of 9.5x on a standalone basis and 8.8x on a consolidated basis where AKD Securities retains AKD Securities’ preference for the stock.