PRO 24-10-2012_Layout 1 10/24/2012 1:47 AM Page 1
Wednesday, 24 October, 2012
‘CNG price in Pakistan highest in region’ ISLAMABAD
T
ONLINE
HE All Pakistan CNG Association (APCNGA) on Tuesday said price of Compressed Natural Gas (CNG) in Pakistan is highest in the region therefore it must brought down in line with other countries in the national interest. Decisions affecting CNG sector are not taken on merit but on the whims of powerful oil lobby which wants to boost its business, said Ghyas Abdullah Paracha, Chairman, Supreme Council of APCNGA. Speaking at a hurriedly-called meeting here, he said that CNG sector needs immediate attention of authorities as billions have been invested in it, 3.5 million cars have been converted while millions are directly and indirectly employed in this sector. Prices of CNG in Pakistan should match other
Let’s follow Europe Mango exporters asked to follow regulations of European countries MULTAN APP
The mango exporters will have to follow regulations to boost mango export in European market so that maximum foreign exchange could be earn. Addressing a seminar titled ‘Export of Mango to French Market’ here on Tuesday, Mango Growers Association, Multan president, Major (Retd) Tariq said that only disease-free mango should be sent to the French market or other European countries by taking special care of the rules and regulations of theirs. Agriculture experts from Faisalabad and Multan informed the progressive mango growers that Pakistan was the fifth largest mango producer in the world and its mango export earning was far below than its potential due to the issues involved in the post-harvest handling of the fruit. A kilogram of mango can fetch Rs 350 from French market if all requirements of the importing country are met, they added. Multan Chamber of Commerce and Industry (MCCI) president Muhammad Khan Saddozai said that mango exporters must avail the advisory services of MCCI to enhance exports.
countries where buying power of the masses is more or less the same, it said. He said that gas is an indigenous resource which economical and clean as compare to imported fuels which are costly and unfriendly to environment. Ghyas Abdullah Paracha informed that price of CNG in Thailand in 76.70 per cent less as compare to price of petrol. Similarly, in Bangladesh, CNG is available at 68.61 per cent lesser price, Indonesia 51.65 per cent and in India it is 58.84 per cent of the cost of petrol. Many countries including India and
Bangladesh don’t have any indigenous substitute for gasoline; they lack proper gas infrastructure but they sell CNG at low price as compare to Pakistan despite importing Liquefied Natural Gas (LNG) and paying for conversion to enable it for use in vehicles. As a policy, US and many EU countries have been promoting use of gas to reduce dependence on imported fossil fuels due to uncertainty in supply chain, volatility in prices, and save foreign exchange, he said adding that many countries are doing away with expensive LPG but here CNG sector is being closed to
boost import of costly fuel. Total consumption of CNG sector is Pakistan not more than 8 per cent, it is paying more taxes as compare to any other sector using gas, yet it is being victimized while some other influential sectors are promoted despite the fact that immediate conversion of those sectors on other fuels in the national interest, Paracha observed. He informed that before 2002, there was a ban on running thermal power plants on CNG. It was Musharraf era when country started running power stations on clean fuel despite scarcity. This decision resulted in depletion of precious gas reserves which took toll on masses and economy, deprived industry of economical fuel, and contributed to rapid environmental degradation, he added. Government can consider reversing that decision, demanded Ghyas Paracha.
Food imports shrink 6.35 % in first quarter ISLAMABAD APP
Food imports decreased by 6.35 percent during the first quarter of the current fiscal year as compared to the corresponding period of last year. The over all imports of food group were recorded at US$1.179 billion during July-September (2012-13) against the imports of US$1.259 billion in JulySeptember (2011-12), according to the data of Pakistan Bureau of Statistics (PBS). The products that witnessed decrease in trade included sugar, imports of which fell from US$6.671 million last year to US$1.641 million. Similarly, the imports of spices and tea decreased by 26.30 percent and 19.47 percent respectively, the PBS data revealed. The imports of spices were recorded at US$19.118 million against the imports of US$25.939 million while the imports of tea were recorded at US$68.549 million against the imports of US$85.119 million. Imports of dry fruits and nuts decreased from US$21.068 million last year to US$1.938 million, showing neg-
ative growth of 2.60 percent. Palm oil imports also decreased by 10.34 percent during the period under review by going down from US$653.603 million to US$586.021 million while the imports of all other food products witnessed negative growth of by 3.28 percent by declining from US$289.933 million to US$280.424 million. The food products that witnessed positive growth in trade included milk, cream and milk food for infants, imports of which increased by 9.87 percent by going up from US$ 40.315 million to US$44.293 million. Imports of soyabean oil increased
from US$26.457 million to US$37.208 million, showing growth of 40.64 percent. Imports of pulses (leguminous vegetables) increased by 10.33 percent by going up from US$110.401 million last year to US$121.806 million. It is pertinent to mention here that the overall exports from the country witnessed positive growth of 4.26 percent while the imports decreased by 2.37 percent during the first quarter of the current fiscal year, indicating a positive trends in the overall trade volume of the country. Exports from the country during July-September (2012-13) were recorded at US$6.187 billion against the exports of US$5.934 billion during the same period of last year. On the other hand, the imports into the country decreased from US$11.117 billion last year to US$10.853 billion during the current fiscal year, the data revealed. Based on these figures, the overall trade deficit has been recorded at 9.9 percent as it shrunk reduced from the deficit of US$5.183 billion last year to US$4.666 this year.
Another 5 billion please? PSM wants government to release Rs 5 billion more of bailout package
KARACHI STAFF REPORT
Chief Executive Officer of Pakistan Steel Mills (PSM) Major General (R) Muhammad Javed has called upon the federal government to release another Rs 5 billion of the bailout package so the consistency in PSM’s production could be maintained. The request was made by the CEO PSM while addressing a function at the office of Pakistan Steel People’s Workers Union (CBA) for the announcement of Charter of Demand of the workers for the year 2010-12. He said the production capacity of the Mills would be increased after the arrival of raw material till mid November and would reach up to 45pc in January 2013. He said the first installment of bailout package, Pakistan Steel opened three LCs of raw material two coal ships and one iron ore ship which would be utilized to boost the production up to 45pc, and next shipments would be purchased soon after the second installment of bailout package. He said the PSM management would request the federal government to release another Rs 5 billion so that the consistency in production could be maintained. He expressed satisfaction that the Mills plants were in good condition. The CEO announced that the Mills would be able to repay to the government after two years when its production capacity would be enhanced to 1.5 million tones per year. He warned that the misuse of PSM resources should be stopped as the Mills cannot afford any further embezzlement or waste of resources when it was already in crisis. Jawed assured the workers that he would not fire any single person from the PSM saying there must be accountability at every level. “We should start accountability from our own,” he remarked. The chief executive pledged that the PSM would be revived and made profitable within next 12 to 18 months as per approved business plan and its expansion would also be made soon.
NBP likely to report Rs 13.3b profit after tax g
NML to register PAT to Rs 1.1b (EPS Rs3.06) in 1QFY13 g LUCK to post bottomline growth of phenomenal 46%YoY KARACHI STAFF REPORT
Following the general performance of the banking sector in current environment, the National Bank of Pakistan is expected to show a growth of 16%YoY in its bottom line by reporting after tax profit of Rs13.3bn for 9MCY12 against a profit after tax of Rs11.4bn in 9MCY11. This translates into EPS of Rs7.17. “This significant increase in earnings is due to higher non-interest income that is anticipated to grow by 33%YoY along with decline in provisioning of 17%,” said the analysts at InvestCap Research. The non-interest expense is expected to rise by 13%YoY. However, Net interest
income (NII) of the bank is expected to decline by 4%YoY from Rs33bn in 9MCY11 to Rs32bn in 9MCY12. Fee, commission, brokerage income and dividend income are expected to remain major supporter for the bottomline of the bank and are foresee to grow by 6%YoY and 135%YoY respectively. On sequential basis, NBP is expected to post after tax profit of Rs5.07bn (EPS: Rs2.74) for 3QCY12 as against the PAT of Rs3.3bn reported during the same period of last year, translating into a growth of 53%YoY. Currently NBP trades at CY12 PBV and P/E of 0.61x and 4.32x respectively and we recommended ‘Buy’ stance with Dec-12 target price of Rs65/shares. Nishat Mills Limited (NML) is sched-
uled to announce its first quarter fiscal year 2013 results on Thursday, 25th Oct12. NML is expected to post PAT of Rs1.1bn (EPS Rs3.06) in 1QFY13 as compared to Rs1.0bn (EPS Rs2.93) in 1QFY12, posting a modest growth of 4.5%YoY in the bottomline. The increase in bottomline is expected on the back of improving gross margins as low cotton prices on local front are expected to improve margins of different value added products during 1QFY13. We expect gross margins to clock in at 17% in 1QFY13 as against 10.7% in same period last year. Likewise, 8.9%YoY depreciation in PKR against USD is likely to help the company in improving its export sales’ margins. Furthermore, dividend income from MCB
and PakGen power is anticipated to add significant amount to the other income head coupled with low financial charges due to decline in working capital requirements. With Dec-12 TP of Rs65/share on SOTP basis, we recommend ‘Hold’ on NML. The company is currently trading at PE ratio of 6.4x with dividend yield of 6.3% on FY13 earning expectations. Lucky Cement Company (LUCK) is scheduled to announce its quarterly accounts for the first quarter of fiscal year 2013 onThursday, October 25, 2012. We expect the company to post profit after tax (PAT) of Rs2,201mn (bottomline up by massive 46%YoY), translating into EPS of Rs6.81. The phenomenal rise wit-
nessed in the bottomline of the company is to be primarily supported by handsome 7%YoY escalation in the retention price of the commodity coupled with expectation of attractive 13%YoY volumetric growth in the company’s dispatches. Positivity is seen to be further supported by 28%YoY dip in the global coal prices that in effect are foreseen to have enhanced gross margins of the company. The gross margins during the period under review are expected to be bolstered by 2pps in comparison against the corresponding period previous year. We have ‘Buy’ recommendation on LUCK, as currently the share is offering potential upside of colossal ~28% against our per share target price of Rs179.
PRO 24-10-2012_Layout 1 10/24/2012 1:47 AM Page 2
Business 02 ICI PakIstan
Bears enter Lahore
Lucky’s purchase offer KARACHI
F
STAFF REPORT
OLLOWING Lucky Group also known as Yunus Brothers management takeover of ICI Pakistan from AzgoNobel, the acquirers have made public announcement to purchase shares of ICI Pakistan, said the analysts at Topline Research. This announcement is in line with the Listed Companies Ordinance or commonly termed as Takeover Law or Substantial Acquisition Law. The good development for minority shareholders is that this announcement is made ahead of its schedule providing hope that the tender offer and final payment will also be completed before the maximum timeline of 90 days after the public announcement. Though, we do not cover this thinly traded stock, but we believe that with emergence of arbitrage-like investment opportunity the stock is likely to catch investors’ interest in coming days in line with similar trend seem in other stocks in which tender offer was issued to minority shareholders. Takeover Ordinance in Pakistan was issued in 2002 called Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance, 2002. According to that all listed companies acquiring more than 25% shares has to issue a public announcement of offer mainly to provide fair and equal treatment to all shareholders. Many amendments have been made in this rule since its issue in 2002. The acquirer has to acquire at least 50% of the remaining share. The public offer price should not be less than the acquisition price or higher price arrived
through few other formulas as mentioned in the regulation. In this case the agreement between ICI Omricron/Agzo Nobel and Lucky Group was signed on July 27, 2012 and the public announcement was now been made according to which Lucky Group has shown its interest to buy 11.2mn shares which is 50% of float available in the market at a price of Rs186.42 while the market price is Rs173.16 lower, 7.1% than the acquisition price. After the public offer, the process of tendering the shares will be completed in 60 days or before while another 30 days or before the shareholders will receive their payment. In this case the minority shareholder who will accept the offer will get money back by mid January or earlier. Historically it has been observed that all minority shareholders do not tender and thus the chance of acceptance is more than 50%. In Byco 100% of shares tendered were bought by the acquirer while in case of Network Micro Finance it was 60%. Taking into consideration the historical trend and the fact that many old shareholders, employees funds and those having physical shares normally don’t tender, there is high probability that all 22mn shares may not be tendered . In case 77% of shares are accepted that is minority shareholders tendering 14mn out of 22 mn, the scenario translate into breakeven for the investors assuming the share to trade at close to our fair price of RS120-130. In alternative scenario, with 100% acceptance it translate into a gain of 8% for holding period of less then 3-months. While 50% acceptance in worst case will result in negative return of 10% in the next 3-months.
LSE down by 29.71 points
Major Gainers COMPANY D.G.K.CementXD Jah.Sidd. Co. Pace (Pak) Ltd. P.T.C.L.A Lucky CementXD
OPEN 51.22 14.93 3.27 19.14 140.18
HIGH 52.45 14.99 3.56 19.46 144.49
LOW 51.31 14.41 3.27 19.00 138.55
CLOSE 51.77 14.49 3.52 19.20 139.33
CHANGE 0.55 -0.44 0.25 0.06 -0.85
TURNOVER 7,173,000 6,002,500 5,453,500 4,519,500 3,935,500
1370.00 364.00 450.00 880.00 199.75
1320.00 341.87 450.00 880.00 187.49
1349.55 341.87 450.00 880.00 187.49
-20.45 -17.99 -16.91 -10.00 -9.86
3,500 28,800 400 50 14,800
52.45 14.99 3.56 19.46 144.49
51.31 14.41 3.27 19.00 138.55
51.77 14.49 3.52 19.20 139.33
0.55 -0.44 0.25 0.06 -0.85
7,173,000 6,002,500 5,453,500 4,519,500 3,935,500
Major Losers
LAHORE APP
Bearish trend prevailed in Lahore Stock Exchange on Tuesday as it shed 29.71 points, following the LSE-25 index opened with 4045.85 and closed at 4016.14 points. The market’s overall situation also did not correspond to an upward trend as it remained at 1.547 million shares to close against previous turnover of 2.849 million shares, showing a downward move of 1.301 million shares. While, out of the total 104 active scrips 28 moved up, 17 shed values and 59 remined equal. Treet Corporation Limited, Attock Refinery Limited and Atlas Insurance Limited were Major Gainer of the day by recording increase in their per share value by Rs 2.99, Rs 2.66 and Rs 1.77 respectively. Lucky Cement Limited, Engro Foods Limited and J.K. Spinning Mills Limited lost their per share value by Rs 1.02, Re 0.54 and Re 0.50 respectively. The volume leader of the day included NIB Bank Limited with 284,500 shares, Silk Bank Limited (Saudi) with 190,500 shares and The Bank of Punjab Limited with 164,500 shares.
Colgate Palmolive National FoodsXD Shezan Inter.XDXB Wyeth Pak Limited Tri-Pack Films
1370.00 359.86 466.91 890.00 197.35
Volume Leaders D.G.K.CementXD Jah.Sidd. Co. Pace (Pak) Ltd. P.T.C.L.A Lucky CementXD
51.22 14.93 3.27 19.14 140.18
Interbank Rates US Dollar UK Pound Japanese Yen Euro
95.4904 152.8896 1.1956 124.4908
Dollar East BUY US Dollar Euro Great Britain Pound Japanese Yen Canadian Dollar Hong Kong Dollar UAE Dirham Saudi Riyal Australian Dollar
95.20 122.00 150.10 1.1739 94.57 12.03 25.67 25.07 96.26
SELL 95.60 123.72 152.18 1.1901 96.39 12.25 26.00 25.36 99.05
CORPORATE CORNER HEC, IBA jointly host Harvard University in E-Seminar KARACHI: An informative and well organized ESeminar took place here at the Institute of Business Administration (IBA), Karachi by Harvard University. This event was part of Social Enterprise Seminar Series organized by South Asia Initiative at Harvard University in collaboration with Aman Foundation. The title was “Spurring Entrepreneurship: A Case for Inclusive Innovation in Emerging Markets—Lessons For Pakistan from China and India” The seminar featured Dr. Tarun Khanna live from Harvard University in Cambridge, Massachusetts USA. Dr. Khanna is a professor at the Harvard Business School, Director of South Asia Initiative and Faculty Chair for Harvard Business School activities in India. He is also the author of the book, “Billions of Entrepreneurs: How China and India are Reshaping Their Futures and Yours”. The event was attended by faculty and students of 20 universities including IBA, KSBL, Sukkar IBA, COMSATS and others across Pakistan through video conferencing. The seminar was moderated by Dr. Shahid Qureshi, Associate Director for the Center for Entrepreneurial Development at IBA, with technical facilities provided by Higher Education Commission in Pakistan.
KARACHI:The President Pakistan Srl Lanka Business Forum, Mr.Tarek M.Khan, hosted a dinner in honour of the visiting Srilankan delegation for 7th Expo Pakistan at a restaurant. Picture shows, host presenting a shield to leader of the delegation Mr.Rohitha Thilakaratne, Consul General of Sri Lanka Mr.D.W.Jinadasa, founder chairman PSBF, Mr.Majyd Aziz, former Polish Consul General Mr.Ireneuz Makles, Mrs.Adeela Tarek Khan, also present on the occasion.
NSR out with stunning Eid collection LAHORE: The dynamic duo of Nousheen and Shabnam Rana is a new name making waves in the fashion industry. Formally known as NSR, the label has made a following for themselves with their unique style, cutting edge aesthetics and vibrant color palette. NSR is out with their new EID collection that utilizes different tones of the same color, and plays with a family of beiges, oranges, reds and golds. The cuts are clean, simple and based on a sleek silhouette. The new collection is dominated by bright colors and
a pleasing color palette such as greens, blues and golds. The fabrics used for this collection are pure velvet, jamawar, chiffon, plushy, grip and satin, and the designer has used “rich fabrics for an opulent and grand feel.”
Chef Gulzar’s first cook book launched
Get free calls, SMS and mobile ITH, WB collaborate internet with Warid Sim Jagao Offer KARACHI: Warid once again brings an amazing ‘SIM Jagao Offer’. Those customers who have not used their Warid SIM since 15th September 2012 can reactivate their SIM and enjoy 1000 Warid to Warid free minutes, 1000 SMS on any network and 100 MB Mobile Internet without any recharge for a week’s time. Not only this, Warid customers can also enjoy free calls from Warid to Warid after the first 2 minutes for the remainder of their call and 100 free SMS after the first sent SMS and this again without any recharge. To avail this spectacular offer Warid users can reactivate their SIMs and simply SMS “FREE” to 3733.
Dawlance continues ‘Ehsaas’ journey
KARACHI: The book launching ceremony for chef Gulzar Hussain’s first cookbook ‘Live @ 9 with chef Gulzar’ was held here at Sheraton Hotel. The launch was well-attended with a large number of prominent journalists and dignitaries present. The event was hosted by seasoned journalist Shanaz Ramzi, General Manager Public Relations and Publications at HUM Network. She introduced the book to the attendees, followed by a presentation on ‘Live @ 9 with chef Gulzar’. The chef himself took the stage after the presentation. He thanked President HUM Network, Sultana Siddiqui and CEO, Duraid Qureshi for publishing his work. Gulzar also acknowledged the efforts of the entire editorial team at HUM Network for putting in months of hard work in compiling the cookbook that features recipes in both English and Urdu.
KARACHI: Dawlance held a series of cooking competitions for the families of its dealers in Punjab. The first competition took place in Islamabad on 12th October, the second in Gujrat on 14th October and the third in Sargodha on 16th October, 2012. The competition titled ‘Microwave Oven Cooking Competition’ was Dawlance’s way of thanking the dealers’ community for the efforts it has put into making Dawlance the No. 1 home appliances brand in Pakistan and to celebrate the strong bonding which has been in place since the company was founded. Praising the efforts of dealers, Mr. Hassan Jamil said, “We, at Dawlance, appreciate the contribution of our dealers towards achieving sales growth over the years and it is only fitting that, in return, we show our gratitude for their commitment. This competition is just a small way of letting the dealers know how much Dawlance values them.”
Germany-Pakistan training initiative
Alibaba.com, PSGI form strategic partnership to support Pakistani SMEs KARACHI: Pearl Shine Group International (PSGI), a nationally & internationally recognized diversified group of companies, recently entered into a strategic partnership with one of the world’s largest B2B portals, Alibaba.com. The platform provides an online space that brings together buyers and sellers to communicate, collaborate and carry out global trade. More than 650,000 Pakistani SMEs are currently members of Alibaba.com, and the new local partnership will help grow and solidify new potential for local suppliers to enjoy more exposure in the global market. “Pakistani exporters need a stronger online presence because the world has turned into a global village,” said PSGI CEO, Irfan Haider Awan. “Local business owners should explore and avail the opportunities beyond our national territory by making intelligent use of e-commerce mechanisms in this new technological era. Such steps will not only help Pakistani SMEs benefit from economies of scale but will also contribute to better balance of trade.”
KARACHI: Leading Pakistani artisan stakeholders have been invited to dialogue with successful regional players to develop a well-rounded strategy for promoting artisan livelihoods in Pakistan. The Indus Heritage Trust (IHT) and the World Bank have been working together to bring stakeholders from the region together with Pakistani organizations for a dialogue that will lead to greater learning and understanding of the ‘Creative Industries’. This has been with a view to establishing greater impetus for Pakistan’s ‘Creative Industries’ and the artisans who are struggling to make two ends meet.
Energy efficiency seminar by Changhong Ruba KARACHI: A seminar on ‘Energy Efficiency’ is organized with the support of Changhong Ruba. Eminent scholars, experienced professionals and government officials from the energy management sector attended this seminar as panelists and speakers. The seminar was very well attended by the corporate sector and it further highlights the interest of the business segment. This topic of being efficient on energy resources is of great importance, especially reference the current scenarios. It was interesting to note that speakers while highlighting about the challenges related to today’s energy management laid special emphasis on the relevant solutions and opportunities associated to all these solutions. It was felt that a wave of optimism has been created thru this initiative.
House of Chenab in Lahore KARACHI: For the first time in Pakistan, the German Consulate General in Karachi together with eight German companies and two vocational training institutes AMANTECH & iACT - launch the Germany-Pakistan Training Initiative (GPATI). The program is founded on the renowned concept of Dual Training System that is implemented effectively throughout Germany and is also successfully applied internationally. GPATI is being supported by the German Ministry for Economic Development and Cooperation (BMZ) through Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ). The objective of this unique training initiative is to produce workforce that after going through this vocational program is immediately productive and ready to take on the challenges of the industry.
LAHORE: Chenab Group Limited, whose name is synonymous with high end life style products for the discerning customers, added a new feather in their cap with the launch of their flagship store HOC (House of Chenab), in Lahore, the other day in an impressive ceremony held at the HOC.
Wednesday, 24 October, 2012