CPPL - Cherat Packaging Limited

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xResearch

Active Member
Apr 9, 2017
1,537
1
38
#2
CPPL: 1HFY17 Result Review
Tuesday, 18 April 2017

By: Abbasi Securities (Private) Limited

CPPL reported 1HFY17 profit after tax of Rs379.81mn (EPS: Rs12.83) as compared to Rs446.35mn (EPS: Rs15.08) in the same period last year, down by 15% YoY. The decline in earnings was mainly due to lower sales revenue despite increase in sales volume as the company adjusted its selling price downwards in line with the market
CPPL is the largest supplier of cement bag to the cement industry; we expect strong demand from the cement sector to continue moreover, CPPL has entered into a new segment of PP bags and now supplies PP bags for Sugar, chemical and wheat, etc. Furthermore, PP prices are expected to normalize after an increase in previous quarters along with stable Euro against PKR, we expect gross margins to maintain in the range of 18 to 20 percent going forward
Keeping in view the significant cement demand and expansion plan announced by various cement manufacturers, CPPL’s management planned to add another line of sack paper having capacity of 135mn bags (taking total capacity from 265mn bags to 400mn bags) at a cost of Rs900mn which is expected to be commissioned by Oct,17. In addition to the expansion in paper sack CPPL is in process of expanding its PP bags line by 50mn bags, taking total capacity of PP bags to 245 bags which is expected to be completed by June’17. With the addition of both the PP and sack paper line CPPL’s total production capacity will increase from 410mn bag to 645mn bags per annum (57% capacity increase). Moreover, Thal ltd. (competitor in sack paper bag) is also exploring opportunity to install PP line however, the plan is in initial stage
 

xResearch

Active Member
Apr 9, 2017
1,537
1
38
#3
Cherat Packaging Limited.
(CPPL)

August 23rd, 2017

FINANCIAL RESULT FOR THE YEAR ENDED 30/06/2017
PROFIT/LOSS BEFORE TAXATION RS. IN MILLION 972.943
PROFIT/LOSS AFTER TAXATION RS. IN MILLION 702.049

EPS = 23.71
DIVIDEND = 70%

ANNUAL GENERAL MEETING WILL BE HELD ON 24/10/2017
BOOK CLOSURE FROM 10/10/2017
BOOK CLOSURE TO 24/10/2017
 

xResearch

Active Member
Apr 9, 2017
1,537
1
38
#4
Cherat Packaging Limited.
(CPPL)

August 23rd, 2017

RIGHT ISSUE = 13.50% AT A PREMIUM OF Rs.115/= PER SHARE
BOOK CLOSURE FROM 20/09/2017
BOOK CLOSURE TO 26/09/2017