DAWOOD HERCULES CORPORATION LIMITED
49th Annual General Mee=ng Presenta=on
For the year ended December 31, 2016
2
2016!REVIEW - DHCL
MV -‐ INVESTMENTS PKR 83 bn
15% higher than 2015
INCOME TAX 2016 PKR 0.82 bn
DIVIDEND PAID PKR 8.4 bn
PACRA RATING (STABLE)
Long Term AA-‐ Short Term A1+
NEW CEO APPOINTED Mr. Inam Ur Rahman (effec've 1st December, 2016)
PROFIT FOR THE YEAR (PAT)
PKR 5.5 bn
DIVIDEND INCOME PKR 7.4 bn
3
2016!FINANCIALS - DHCL
69.46 57.34
Dec 2016 Dec 2015
Market Capitaliza=on (PKR bn)
30.8
33.8
Dec 2016 Dec 2015
Shareholders equity (PKR bn)
[VALUE]
[VALUE]
Dec 2016 Dec 2015
EPS (Rs.)
6.7
[VALUE]
Dec 2016 Dec 2015
EBIT (Rs. bn) 7.1
5.1
Dec 2016 Dec 2015
Liabili=es (Rs. bn)
Dec 2016 Dec 2015
Assets (Rs. bn)
38
39
4.56
37.43
PROFIT AND LOSS SUMMARY
4
2016 2015
Dividend income 7,422 21,932
Administra've expenses (746) (1,290)
Gross Profit 6,675 20,642
Other opera'ng expenses (2) (7)
Other income 14 291
EBIT 6,687 20,926
Finance cost (393) (219)
Profit before taxa'on 6,294 20,707
Taxa'on (824) (513)
Profit aOer taxa'on 5,470 20,194
Earnings per share (Rupees) 11.37 41.96
5
RETURN ON INVESTMENT – FOR THE YEAR ENDED DECEMBER 31, 2016
• Return on investment for the shareholders of DHCL for the financial year 2016 is 28.6% of the closing market value. Dividend yield is 10.7% of the closing market value.
• In contrast, the return on i n ve s tmen t on o the r investment avenues were as follows:
• mutual fund 5% to 6% • bank deposits 4% to 5%.
28.6
5.5 4.5
0
5
10
15
20
25
30
35
Investment Return ReturnonMutualFunds ReturnonBankDeposit
ReturnonInvestment
DAWOOD HERCULES CORPORATION LIMITED STOCK MARKET PERFORMANCE (DHCL, ENGRO & HUBCO)
For the year ended December 31, 2016
DHCL
7
20000
22000
24000
26000
28000
30000
32000
34000
90
100
110
120
130
140
150
160
170
1-‐Jan-‐16 1-‐Feb-‐16 1-‐Mar-‐16 1-‐Apr-‐16 1-‐May-‐16 1-‐Jun-‐16 1-‐Jul-‐16 1-‐Aug-‐16 1-‐Sep-‐16 1-‐Oct-‐16 1-‐Nov-‐16 1-‐Dec-‐16
DAWH -‐ PSX Share Share Price Trend
DAWH KSE ALL SHARE
FINANCIAL RESULTS Q1 DIVIDEND DECLARED @ Rs. 2.5/share.
FINANCIAL RESULTS Q1 DIVIDEND DECLARED @ Rs. 9/share.
FINANCIAL RESULTS Q1 DIVIDEND DECLARED @ Rs. 2/share.
MATERIAL INFORMATION DAWH DEEMED HOLDING COMPANY OF ECORP AS PER IFRS 10.
APPOINTMENT OF MR. INAM UR RAHMAN AS CEO OF DAWH
The share price of DAWH is largely influenced by the share price movements of its subsidiary (ENGRO) and associate (HUBCO). During the year the KSE All share index grew by 40.72% where as the DAWH showed a growth of 19.71%.
ENGRO
8
284.85 316.09
20000
22000
24000
26000
28000
30000
32000
34000
200
220
240
260
280
300
320
340
360
1-‐Jan-‐16 1-‐Feb-‐16 1-‐Mar-‐16 1-‐Apr-‐16 1-‐May-‐16 1-‐Jun-‐16 1-‐Jul-‐16 1-‐Aug-‐16 1-‐Sep-‐16 1-‐Oct-‐16 1-‐Nov-‐16 1-‐Dec-‐16
ENGRO -‐ PSX Share Share Price Trend
ENGRO KSE ALL SHARE
EFOODS PR ON BENEFITS OF UHT MILK
FINANCIAL RESULTS 2015, (driven by EFERT) DIVIDEND DECLARED @ Rs. 7/share.
SECMC AND EPTL ACHIEVE FINANCIAL CLOSE
ECORP AND GE SIGN DIGITAL INDUSTRIAL ALLIANCE
ECORP ENTERS INTO STRATEGIC PARTNERSHIP WITH RFC
TELENOR AUTOMATES MILK COLLECTION NETWORK IN PARTNERSHIP WITH ECORP
SECMC & EPTL PARTNER WITH WATEEN FOR DATA SERVICEs AT THAR COAL PLANT
ACQUISITION OF MAJORITY STAKE IN EFOODS BY RFC (F.D.I $450 million)
SECMC AND DESCON SIGN AGREEMENT FOR CIVIL WORKS TRAININGS AT THARPARKAR
During the year the KSE All share index grew by 40.72% where as the ENGRO share performed at a growth of 10.95% (DAWH 19.71%).
HUBCO
9
103.6
123.48
20000
22000
24000
26000
28000
30000
32000
34000
90 95
100 105 110 115 120 125 130 135
1-‐Jan-‐16 1-‐Feb-‐16 1-‐Mar-‐16 1-‐Apr-‐16 1-‐May-‐16 1-‐Jun-‐16 1-‐Jul-‐16 1-‐Aug-‐16 1-‐Sep-‐16 1-‐Oct-‐16 1-‐Nov-‐16 1-‐Dec-‐16
HUBCO -‐ PSX Share Share Price Trend
HUBCO KSE ALL SHARE
MATERIAL DISCLOSURE ON POSSIBLE CURTAILMENT OF 2x660MW PROJECT TO 1x660MW.
FINANCIAL RESULT ANNOUCEMENT. DIVIDEND DECLARED @ Rs. 1.5/share.
THAR ENERGY LIMITED RECEIVED A LETTER OF SUPPORT FROM PPIB TO DEVELOP 330MW MMPP AT THAR. FURTHERMORE PPIB CALLED FOR A MEETING TO SIGN 2X660MW IMPORTED COAL BASED POWER PLANT AT HUB
FINANCIAL RESULT ANNOUCEMENT. DIVIDEND DECLARED @ Rs. 4.5/share.
FINANCIAL RESULT ANNOUCEMENT. DIVIDEND DECLARED @ Rs. 3/share.
During the year the KSE All share index grew by 40.72% where as the HUBCO share performed at a growth of 19.19%. (DAWH 19.71%).