Lucky Cement Limited announced that it had won the NFEH’s 15th Corporate Social Responsibilities Awards 2023 in the “Green Energy Initiatives” category. This award recognises the company’s unwavering commitment to sustainable development and reducing its carbon footprint through implementing renewable energy solutions in its operations.… Continue

In collaboration with The Citizen Foundation, Lucky Cement Limited has completed the state-of-the-art school near our Pezu plant premises. The “Abdul Razzak Tabba Block Lucky Cement Limited Pezu Campus-I” will be for primary classes, while the “Muhammad Yunus Tabba Block Pezu Campus-II” will be for secondary classes.… Continue

Cement despatches declined by 7.10% in Feb 2023. Total Cement despatches during Feb 2023 were 4.040 million tons against 4.348 million Tons despatched during the same month of last fiscal year. According to the data released by All Pakistan Cement Manufacturers Association, local cement despatches by the industry during the month of February 2023 were 3.590 million tons compared to 3.943 million tons in February 2022, showing a decline of 8.96%.… Continue

Agha Steel Industries Limited (AGHA) announced the financial result for 2QFY23 today whereby earnings arrived at PKR 249mn (EPS: PKR 0.41) against PKR 619mn (EPS: PKR 1.02) last year, down by 60% YoY. Whereas bottom-line posted a 62% jump QoQ primarily due to higher margins as the company relied on cheaper domestic scrap.… Continue

MUGHAL is scheduled to announce its 2QFY23 result on Monday, where we expect the company to record NPAT of PkR812mn (EPS: PkR2.42), down by 7%QoQ vs NPAT of PkR872mn (EPS: PkR2.60) in the previous quarter. It is worth noting that the resilience in earnings is majorly attributed to readily available low-cost scrap inventories from the previous quarter, which helped to offset some of the challenges associated with supply chain and raw material procurement issues.… Continue

Cement despatches increased by 1.15%in January 2023. Total Cement despatches during January 2023 were 4.005 Million tons against 3.960 Million Tons despatched during the same month of last fiscal year.

According to the data released by All Pakistan Cement Manufacturers Association, local cement despatches by the industry during the month of January 2023 were 3.587 million tons compared to 3.409 million tons in January 2022, showing an increase of 5.24%.… Continue

Pakistan’s cement industry sales in Jan-2023 is likely to clock in at 3.6-3.8mn tons, down 5-9% YoY. However, the same is alkely to decline by 3-7% MoM.

§ Local sales are expected to be down by 2-6% YoY to 3.2-3.4mn tons amid slowdown in construction activity, overall economic slowdown and higher construction cost.… Continue

Lucky Cement Limited announced its 2QFY23 result with a PAT of PKR11.391bn (EPS: 35.23), up by 64%QoQ, against PKR6.933bn (EPS: 21.44) in the last quarter. This takes 1HFY23 earnings to PKR18.324bn (EPS: 56.66) as compared to the PAT of PKR17.154bn (EPS: 53.05) in SPLY.… Continue

Sindh Engro Coal Mining Company (SECMC) and Power Cement has signed a memorandum of understanding (MOU) for a trial run of Thar coal for cement production in their manufacturing unit. The memorandum was signed by Sindh Engro Coal Mining Company CEO Amir Iqbal and Power Cement CEO Kashif Habib.… Continue

Cherat Cement Company Limited (CHCC) is expected to announce 2QFY23 results sometime in late Jan/early Feb’23. We expect the unconsolidated EPS for the quarter to clock in at PkR9.3, up by 22%/52% on QoQ/YoY basis. On the topline front, sales are expected to clock in at PkR10.85bn (up 20%/52% QoQ/YoY), majorly on the back of increased offtakes as demand recovered from low-base of 1QFY23, with offtakes expected to settle at 850k tons for the quarter.… Continue

Maple Leaf Cement Factory Limited (MLCF) is expected to announce 2QFY23 results sometime in late Jan/early Feb’23, where we expect the unconsolidated EPS for the quarter to clock in at PkR1.38, changing by 22%/-20% on QoQ/YoY basis. On the topline front, revenue is expected to settle at PkR15bn (↑ 17%/20% QoQ/YoY), majorly due to increased offtakes during the outgoing quarter (up 29%QoQ) vs.… Continue

· Even with the winter season beginning to settle (seasonal construction slowdown), scrap has rallied 22% from lows of US$340/ton in Nov’22, to currently hover around ~US$418/ton compared to FYTD/ CYTD avg. of US$377/402/ton.

· Although, the said bull-run may be short lived as routine virus controls, the ongoing property crisis, and the winter pollution curbs are expected to keep the construction/engineering on the back foot in the near term

· With depressed LSM activity, cuts in PSDP, ever rising inflation and supply chain problems (LC/raw material issues), it appears that both long/flat steel demand during the full year may remain suppressed

· Domestically, local rebar prices have also increased by some PkR15k/ton in the past month to stand at ~PkR220k/225k per ton for North/Southern markets, in response to shortage of raw material (scrap/billets) and currency depreciating by ~11% (unofficial open market).… Continue

According to the data released by All Pakistan Cement Manufacturers Association, total cement despatches (domestic and exports) were 21.764 million tons during the first six months of current fiscal year, that is 20.73% lower than 27.456 million tons despatched during the corresponding period of last fiscal year.… Continue

· International scrap prices have shown major weakness since peaking in mid-April’22, declining by 39% since then, to currently hover around ~US$385/ton compared to FYTD/ CYTD avg. of US$373/447/ton

· CRC-HRC spreads have long contracted from their super-cycle highs of US$145/ton, down 58% from the said peaks, now currently trading at US$61/ton

· More specifically, Vietnamese hot rolled coil index saw price gains, with the last traded price standing at US$565/ton vs.… Continue

All Pakistan Cement Manufacturers Association Cement (APCMA) has released the cement dispatches date for November 2022. The dispatches declined by 16.82% during November 22. Total Cement dispatches during November 22 were 4.009 million tons against 4.820 Million Tons dispatched during the same month of last fiscal year.… Continue

The management of AGHA held an analyst briefing today to discuss the recent financial performance and give an outlook of the company going forward. Below are the key takeaways.

Brief Takeaways

· Company has a 5% market share with annual capacity of 250k tons per annum.… Continue

To recall, company posted consolidated PAT of PkR5.4bn (EPS: PkR16.12) for FY22 against PAT of PkR3.4bn (EPS: PkR10.22) SPLY, up 58% YoY.

The main markets of the company are domestic housing sector both in urban (rebar) and rural areas (girder), and the international market for copper ingots, which is majorly exported to China.… Continue

Amreli Steels Limited (ASTL) held its analyst briefing earlier today, wherein the following was discussed:

· To recall, the company posted PAT of PkR1.3bn (EPS: PkR4.46) for FY22, lower by 3%YoY compared to the same period last year. ASTL’s Net sales for the year were PkR58.1bn, higher by 48%YoY.… Continue

Maple Leaf Cement Factory Limited (MLCF) has informed Pakistan Stock Exchange (PSX) that an additional dry process clinker production line of 7,000tpd grey clinker, a brownfield expansion at the Company’s existing site in Iskanderabad, Punjab, has successfully started production on November 03, 2022, according a bourse filing of Company Secretary Muhammad Ashraf of the same date.… Continue

Pioneer Cement Ltd (PIOC) has posted NPAT of PKR0.6mn (EPS: PKR2.58) for 1QFY23 up 22% YoY, higher than our estimated NPAT of PKR0.5bn (EPS: PKR2.12). A higher-than-expected top line led to the deviation.

Key observations

Net sales have increased by 34% YoY but are down 11% QoQ to PKR8.3bn in 1QFY22, higher than our expected revenue of PKR7.9bn.… Continue

Agha Steel Industries Limited (AGHA) announced the financial result for 1QFY23 today, whereby earnings arrived at PKR 153mn (EPS: PKR 0.25) against PKR 558mn (EPS: PKR 0.92) last year, down by 73% YoY. Whereas the bottom line posted a 33% jump in QoQ primarily since, in the previous quarter, State Bank restrictions to open LCs forced the company to rely on domestic scrap, which was more expensive compared to imported DRI.… Continue

On a consolidated basis, Lucky Cement Limited has reported a profit after tax of PKR 6.9 billion, for Q1 FY23, of which PKR 1.5 billion is attributed to non-controlling interests. The resultant earnings per share (EPS) for the quarter comes out to PKR 16.85.… Continue

Lucky Cement Limited (LUCK) announced the financial result for 1QFY23 today whereby unconsolidated earnings arrived at PKR 3,852mn (EPS: PKR 11.91) against PKR 3,284mn (EPS: PKR 10.15) last year and PKR 3,990mn (EPS: PKR 12.34) in 4QFY22.

Result Highlights           

·        During 1QFY23, sales arrived at PKR 19.7bn (+17% YoY), as a result of over 65% jump in local retention prices which countered the impact of a 30% YoY decline in offtake to 1,577k tons given monsoon rains and flooding across the country.… Continue

Kohat Cement Company Limited (KOHC) announced the financial result for 1QFY23 today whereby earnings arrived at PKR 1,785mn (EPS: PKR 8.89) against PKR 1,398mn (EPS: PKR 6.96) last year and PKR 394mn (EPS: PKR 1.96) in 4QFY22. Primary reason behind the massive 5x jump in QoQ earnings is recognition of super tax to the tune of 10% on full year PBT in the last quarter, which axed earnings, compared to 4% in this quarter.… Continue

D.G. Khan Cement Company Limited (DGKC) announced the financial result for 1QFY23 whereby earnings arrived at PKR 389mn (EPS: PKR 0.89) against PKR 908mn (EPS: PKR 2.07) last year, down by 57% YoY. Whereas the company posted a loss in the last quarter primarily due to hit from super tax.… Continue