SHEZ - Shezan International Limited

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xResearch

Active Member
Apr 9, 2017
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ABA ALI HABIB RESEARCH
12 December 2017


Shezan International Limited.

Business Profile
Shezan is public listed company and comes under Food & personal care product sector. It is primarily engaged in the manufacturing, trading and sale of juices, pickles, jams, ketchups and other related products. Total paid up and authorized capital stands at PKR 100mn and PKR 79mn with total outstanding shares and free float of 7.98mn and 3.84mn. Company has recorded it 52 week high and low of PKR 511.4 and PKR 370.0 per share. Book value per share stood at PKR 253/share with P/B of 1.78x. During FY17 production capacity and actual production was:

Financial performance
During FY17 topline of the company witnessed a growth of 5.0% YoY to PKR 7.1bn against 6.8bn in SPLY mainly due to rise in volumetric sales primarily contributed by Tetra pack and pickles segment, which in turn led the gross margins to improve by 1.3pps YoY from 27.64% in FY16 to 28.9% in FY17. Additionally, other income declined by 26.1% YoY owing to lower interest income from banks saving. Finance cost also drop by 30.2% YoY due to decline in long-term finance. Resultantly, EPS of the company clocked in at PKR 32.47 (PAT PKR 259mn) up by 33.4% YoY against EPS of PKR 24.33 (PAT PKR 194mn) in SPLY. During FY17 DPS was 13.50 and company is trading at P/E of 14x.

Future Outlook
Going forward Company’s future outlook of the company seems to be stable as company’s focus on cost optimization and increased penetration in key markets. Moreover, currently management is emphasizing to increase their export share by exploring new markets which we believe would positively contributed in revenues of company.