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