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    Company Profile - POWER: Key Data

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    Anas Adnan
    Power Cement manufactures and sells cement and clinker in Pakistan. It has seen high margins ranging from 30-45% in recent years due to lower costs from captive power generation, waste heat recovery units, and falling coal prices. Cement demand is also expected to grow as capacity expands to 55 million tons by 2018. The future outlook for both the company and industry is positive due to improving economic conditions and government construction initiatives such as the China-Pakistan Economic Corridor projects.

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    Company Profile - POWER: Key Data

    Uploaded by

    Anas Adnan
    33 views1 page
    Power Cement manufactures and sells cement and clinker in Pakistan. It has seen high margins ranging from 30-45% in recent years due to lower costs from captive power generation, waste heat recovery units, and falling coal prices. Cement demand is also expected to grow as capacity expands to 55 million tons by 2018. The future outlook for both the company and industry is positive due to improving economic conditions and government construction initiatives such as the China-Pakistan Economic Corridor projects.

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    POWER Profile

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    Power Cement manufactures and sells cement and clinker in Pakistan. It has seen high margins ranging from 30-45% in recent years due to lower costs from captive power generation, waste heat recovery units, and falling coal prices. Cement demand is also expected to grow as capacity expands to 55 million tons by 2018. The future outlook for both the company and industry is positive due to improving economic conditions and government construction initiatives such as the China-Pakistan Economic Corridor projects.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views1 page

    Company Profile - POWER: Key Data

    Uploaded by

    Anas Adnan
    Power Cement manufactures and sells cement and clinker in Pakistan. It has seen high margins ranging from 30-45% in recent years due to lower costs from captive power generation, waste heat recovery units, and falling coal prices. Cement demand is also expected to grow as capacity expands to 55 million tons by 2018. The future outlook for both the company and industry is positive due to improving economic conditions and government construction initiatives such as the China-Pakistan Economic Corridor projects.

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    Company Profile POWER

    KEY DATA
    KATS CODE
    Reuters Code
    *Current Price PKR
    Year 2015 High, Low PKR
    Market Cap (PKRmn)
    Market Cap (USmn)
    Share Outstanding (mn)
    Free Float (%)

    POWER
    RAPOWER
    11.11
    12.59, 8.09
    4062.82
    40.628
    365.69
    127.99

    Chart for: POWER for the Year: 2015

    and FY16), it is also very much a game of lower cost


    of sales that margins have soared. And it's not just the
    big players, the smaller cement producers such as
    Cherat, Pioneer and Kohat whose existing capacities
    range from 1.1 million tons to 2.7 million tons have
    kept up with the bigger players - with Cherat's
    margins at 36 percent, Pioneer at 41 percent and
    Kohat at 46 percent in 9MFY16.
    Several factors are contributing to these lower overall
    cost efficiencies. The sector has proactively pursued
    captive power generation to contribute to their energy
    needs, installed waste heat recovery (WHR) units that
    uses existing plants heat to generate power while coal
    prices in the global market have been falling in
    tandem with oil prices since December 2014 that have
    together brought down energy costs.
    At the back of prospective growing demand, cement
    players are also expanding their production facilities
    to bring in further capacity - by 2018, capacity will
    likely go from its existing 45.6 million tons to 55
    million tons of cement and capacity utilization that
    stands at 85 percent in FY16 will also be extended
    given demand is expected to go up by 8-15 percent in
    the next few years.

    Source: PSX Data Portal

    Introduction
    Power Cement Limited manufactures, markets, and
    sells cement and clinker in Pakistan. The company
    was formerly known as Al Abbas Cement Industries
    Limited. Power Cement Limited was founded in 1981
    and is headquartered in Karachi, Pakistan. Power
    Cement Limited is a subsidiary of Arif Habib
    Corporation Limited.
    Industry Overview
    A dominant theme when we talk about the cement
    sector are the very high margins the sector continues
    to enjoy - the sector's major players have reported
    margins ranging from 30 percent to 45 percent in
    FY15 and on average, margins stood at 42 percent in
    9MFY16. This average was about 20 percent in FY10
    so it would seem the sector has jumped through
    hoops. And even though dispatches have grown
    substantially over the years (10 percent between FY15

    Future outlook.
    Future of both the company and industry looks bright,
    with improving economic indicators, increasing
    foreign investment and government initiative to
    strengthen construction sector, projects such as CPEC,
    mega housing projects all indicate towards stable
    domestic demand.

    EPS (PKR)
    Book Value
    (PKR/Share)
    DPS (PKR)
    P/E (x)
    P/BV (x)
    Dividend
    Yield (%)

    2011
    4.27
    4

    2012
    0.42
    3

    2013
    1.01
    4

    2014
    0.20
    4

    2015
    1.19
    5

    0
    -

    0
    -

    0
    -

    0
    -

    0
    9.34
    2.22
    0

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