Saif Power Initial Public Offering

Investment Analysis Document*

Prepared by: Muhammad Ali Taufiq, CFA, FRM, ERP

SUBSCRIBE!

* Document is prepared for Retail Investors

1

Introduction
36 , 8% 12 , 3%
19 , 4%

Saif Power offered 48.6 million shares to the public (12.5% of paid-up capital)

36 million shares were offered through book building which was oversubscribed by

3.17 times at maximum price of Rs. 30/share

Saif Power is going to offer 12 million shares through Initial Public Offering (IPO)

Price Rs.30/share

Tentative date of Saif Power IPO is 11th November, 2014

You can subscribe for the issue in a multiple of 500 shares

386 , 85%
No. of Shares

Private Placement

Book Building

IPO

Application Procedure:

One application/CNIC

Attach attested CNIC Copy of applicant

Applicant should have account in CDC or Sub Account with a Broker.

Verify Bank Account Details

Pay order is preferred mode of payment.

Results will be announced in month.

About the Group

Saif Holdings Limited ("SHL") was incorporated on February 4, 1993, and is the parent
company of Saif Power Limited. SHL defines and reviews the business and investment
activities of the Saif Group and provides consultancy and other related services to
associated companies.

About the Company

SPL was incorporated on 11 November, 2004 as a public limited company under the
Companies Ordinance 1984.

The Company operates a 225 MW combined cycle thermal power project, with a net
capacity of 209 MW, under the government of Pakistan's ("GOP") power policy 2002 on a
build, own and operate basis in the Sahiwal District of Punjab

The Company is selling electricity to NTDCL through a power purchase agreement dated
30th April 2007 (the "PPA") which has a tenor of thirty (30) years

Plant operates on dual fuel, Gas and HSD allowed operation for 12 months whenever gas
is not available through out the tenor of the PPA

The plant has two gas turbines and one steam turbine. Gas Turbines are 6 FA machines
from GE which have one of the highest fuel efficiency compared to all turbines in Pakistan

Steam Turbine is from Siemens and the Complex fuel efficiency on Gas is 51.2% and
48.5% on HSD. Again, the Complex Efficiency is among highest in Pakistan

Investment Perspective
We believe the sector currently trades at an undemanding FY15F P/E of 7.0x offering attractive average dividend yield of 13%. Our
bullish stance on sector is based on

Dollar based return guaranteed by the Government of Pakistan

PKR depreciation
Continued energy deficiency in the country

On the basis of heavy oversubscription during the book-building process. We expect Saif Power to touch prices in the vicinity of
Rs. 40-45/share in the short-run! SUBSCRIBE*Blue highlighted figures in the table are expectations

Year End
EPS
BVPS
DPS
Price
P/E
P/BV
Div Yld

LPL
Dec-13
1.70
31.81
2.50
17.75
10.44
0.56
14%

HUBC
Jun-13
8.11
28.20
8.00
63.23
7.80
2.24
13%

KAPCO
Jun-13
8.35
29.07
7.50
62.37
7.47
2.15
12%

PKGP
Dec-13
2.98
38.48
2.50
18.38
6.17
0.48
14%

NCPL
Jun-13
7.45
19.79
6.00
39.95
5.36
2.02
15%

NPL
Jun-13
7.74
26.01
3.00
37.00
4.78
1.42
8%

SPL
Dec-13

Average of Peers

4.55
16.38
3.50
30.00
6.59
1.83
12%

NA
NA
NA
NA
7.00
1.48
13%

For more information:

Naeem Ahmed Bhatti

Equity Trader
Cell:03332866775
Email: naeem.bhatti@igi.com.pk
Arsalan Ahmed

Head Office
Floor 7, The Forum,
Suite 701-713, G-20, Block 9,
Kahayan-e-Jami, Clifton,
Karachi - 75600, Pakistan.

Customer Support Officer

Cell:03323775020
Email: int.arsalan@igi.com.pk
6