HCAR - Honda Atlas Cars (Pakistan) Limited

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xResearch

Active Member
Apr 9, 2017
1,537
1
38
#11
AHL Research
22 November 2017


Honda Atlas Cars Pakistan Limited
Profitability Declined by 22% QoQ


As per latest result announcement, Honda Atlas Cars Pakistan Limited (HCAR) has posted earnings of PKR 3,704mn (EPS: PKR 25.94), a stunning 47% growth YoY in 1HME (March End) 18 compared to 2,524mn (EPS: PKR 17.67) in SPLY. On quarterly basis, company registered a growth of 10% YoY to PKR 1,618mn (EPS: PKR 11.33) whereas down by 22% QoQ.

hcar-ahl-22112017.jpg

Result Highlights
  • HCAR recorded a net revenue of PKR 22,890mn during 2QME18. The volumes of Civic and City grew by 31% YoY and 12% QoQ while BR-V volumes fell by 4% QoQ to 2,070 units compared to 2,159 units.
  • Pertinently, margins dropped to 11.9% in 2QME18 vs. 16.2% in 2QME17 (1QME18: 14.2%. The decline in margins is attributable to higher steel prices up by 23% QoQ and decline in selling price of BR-V.
  • Meanwhile, other income depicted a growth of 5% QoQ to PKR 488mn as the company continues to accumulate treasury bills and mutual fund units.
  • Effective taxation clocked-in at 38% as the company booked super tax during the period under review (1QME17: 28%).
Recommendation:

Currently, we have a ‘BUY’ call on the stock with a Jun’18 target price of PKR 752/share.
 

xResearch

Active Member
Apr 9, 2017
1,537
1
38
#12
Honda Atlas Cars (Pakistan) Limited
(HCAR)


November 22nd, 2017

FINANCIAL RESULT FOR THE HALF YEAR ENDED 30/09/2017

PROFIT/LOSS BEFORE TAXATION RS. IN MILLION 5,507.396
PROFIT/LOSS AFTER TAXATION RS. IN MILLION 3,704.038
EPS = 25.94