STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Feb 28, 2003

 

The market remained directionless during the week. Investors preferred to stay on sidelines due to the mounting threat of attack on Iraq. It seems certain that the US will succeed in getting the desired resolution approved by the Security Council. The break out of war in the Middle East will not only skyrocket crude oil prices but will also cause interruptions in Pakistan's international trade.

 

 

 

HUBCO

The Board of Directors meeting has been scheduled for March 5, 2003. Approval of interim dividend is the key item on agenda. Analysts forecast announcement of 30% dividend. According to the information available the company has free reserves of over Rs 3.6 billion which is sufficient to accommodate payment of this dividend. According to an analyst, a point of concern is non-availability of insurance cover on two of the company's generator-transformer may prompt the lenders to ask the company to keep some cushion and pay lesser dividend. The likely over 50% dividend for the full year translates into an attractive yield of over 15%. This offers an attractive opportunity to institutional investors to accumulate the scrip. Saying this much one must keep a fact in mind that going forward the payout by the company will normalize. The company has received the last installment from WAPDA, completely settling the receivables.

PAKISTAN TELECOMMUNICATION COMPANY

The company has posted Rs 9.9 billion profit for the July-December 2002 period as compared to Rs 8.5 billion profit for the corresponding period of year 2001. The profit is below the expectations of equities analysts. The revenue of the company amounted to Rs 32.916 billion, up from, Rs 31.623 billion. Healthy growth in domestic revenue was the positive impact of downward revision in NWD calls and installation charges. The continued decline in financial charges also contributed towards higher profitability of the company. Addition of more landlines is expected to bring more revenue. Going forward, the international revenue growth is likely to be marginal due to rupee getting stronger against dollar.

MARI GAS COMPANY

The company has registered 580% increase in profit after tax during the first half of year 2003 as compared to the corresponding period of last year. The company also announced its first ever-interim dividend of Rs 2 per share. According to some analysts this is an initial payout from the guaranteed return of 30% per annum effective July 1, 2001. Gross sales crossed one billion rupee mark during the first half of the year. Net gas sales of company that was Rs 358 million for the first quarter that went up to Rs 918 million during the second quarter. The company has undertaken exploration and production programme. Work on development phase IV of Habib Rahi Reservoir is in progress. This would boost the company sales in future and can lead to glaring profit in full year. Analysts forecast over one billion rupee profit after tax and 30 to 35 per cent dividend for the year 2003.

INDUS MOTORS

The company has posted Rs 417 million profit after tax for July-December 2002 period as compared to a profit of Rs 71 million for the corresponding period of year 2001. This improvement can be attributed to a number of factors that include a 79% increase in sales, a 1514% increase in other income and rupee gaining strength against dollar. The Board of Directors approved distribution of 20% interim dividend. Sales went up from Rs 3.4 billion to Rs 6.1 billion. The increase in sales is attributable to the recent relaunching of Daihatsu Coure. Besides that, increases in per unit sale of new Corolla along with entry of new car financing institutions have boosted sale. Operating profit shot up by 261% to Rs 520 million. Analysts forecast Rs 9.67 to Rs 9.92 earnings per share for the full year ending June 30, 2003 and final dividend of 15 to 20 percent, in addition to interim dividend.

 

 

HONDA ATLAS CARS

For the first half of year 2003 sales of the company stood at Rs 3.3 billion as compared to that of Rs 3 billion for the corresponding period of last year. Profit after tax improved from Rs 144 million to Rs 222 million. Growing strength of rupee against rupee helped in reduction in cost of production. Gross margin registered a 33% improvement. Other income for the company portrays rising trend and financial charges significantly reduced by 57% resulting in a sound financial base for the company. The growth in revenue was lower compared to its peers and historical growth mainly due to direct competition faced by the company from Indus Motors. Analysts forecast for Rs 345 million to Rs 365 million profit after tax for the full year. They also forecast for around 50% dividend for the year 2003. The company has recently changed the financial year from July 01-June 30 to April 01-March 31, in line with that of the Honda Motors, Japan.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

HUBCO

35.15

33.90

34.45

130,778,000

P.T.C.L.A

21.10

20.20

20.35

52,855,000

PAK.PTA LTD.

7.85

6.75

7.45

39,956,000

I.C.I.

49.25

42.85

43.70

13,741,700

NATIONAL BANK

26.00

24.10

24.75

4,221,000

DEWAN SALMAN

13.45

12.35

12.65

3,300,500

ADAMJEE INS

43.50

37.90

39.05

2,343,500

M.C.B.

33.70

32.00

33.10

1,485,500

IBRAHIM FIB

17.20

16.50

16.75

531,000

UNION BANK

8.95

8.55

8.95

38,000