Transcript
HUB POWER COMPANY LTD. ASIA PACIFIC TEAM
First & the largest power station in South Asia
Largest private power projectsin industrialized world
Largest market capitalization in Pakistan among privatecompanies
Listed in all 3 stock exchanges of Pakistan
Backed by World bank & commercial banks
GDR listed in Luxembourg stock exchange
HUBCO
PAKISTAN’S POWER GENERATION CAPACITY (19420 MW)
Wapda 59%IPP’S 32%
PAEC 9%
IPP’S 32%
PAEC 9%Wapda 59%
HUBCO FINANCES BREAKDOWN
$175 Million from local & international equity investors
$589 million from world bank
$189 million from other international banks
HUB POWER PLANT
•Most efficient oil fired thermal plant•Provision of 9+ percent of country's electricity demand•Available at a short notice during high demand period•Switch to flexible operations during low demand period
RECOMMENDATION
Current Price 36.54
Target Price 42.4
Upside Potential 16%
Hubco’s 52 week stock price
FINANCIAL HIGHLIGHTS
FY09A FY10A FY11E
Turnover 82,783,924 99,694,264 120,058,893
Gross Profit 6,096,811 7,687,945 9,673,166
Net Profit 3,780,991 5,556,122 7,593,551
EPS 3.27 4.80 6.96
DPS* 2.00 2.50 2.8
P/E 7.46 6.97 6.09
Generation (GWH)
EARNING PER SHARE
DIVIDEND YIELD
RATIOS 2009A 2010A 2011E
Current Ratio 1.03 1.00 Worst off
Debt To Asset Ratio 67.25% 75.64% Worst off
Long Term Debt To Equity 38.6% 78.64% Worst off
Inventory Turnover 12.02 6.18 Better off
Total Asset Turnover
91.7% 81.25% Better off
INVESTMENT MERITS 16% Upside Potential
Constant Dividend Growth
Hedge against rupee devaluations
Financing Availability
Laraib Energy ltd.
Open door Policy
Politically stableIncreasing Demand
Economic
1
UNRESOLVED CIRCULAR
2
Increase in per capita consumption of electricity
3 4
Shortage Of Oil Supply
Hydrological Risk
5
Lack Of Operational Efficiency
6
UNDERVALUED GEM
Earnings in US dollarsIncrease in overall capacity and load factor
1 2
91.7% increase in dividend payments.
Increased investments in domestic renewable
3 4
Increased Productivity Development Stage
5 6
Hubco Power Co. LTD.
INVEST
RECOMMENDATION
Upside Potential:16%
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