Author: Ali Qasim

LAHORE(NUT-DESK)

• BOI OFFICIALS INTERACT WITH CHINESE COMPANIES AT THE PAKISTAN INDUSTRIAL EXPO 2021 TO FACILITATE CHINESE INVESTMENT IN PAKISTAN

Despite the Covid-19 situation, Pakistan and China have been able to sustain a healthy economic and investment partnership and it is high time to join hands for a much-needed economic and investment rebound. More than 100 Chinese companies are participating in the Expo through both physical and online mode of participation.

This is the best possible solution to bring businesses from both countries together for rejuvenation of bilateral investment cooperation. These views were expressed the Additional Secretary/Executive Director General, Board of Investment, Mr. Khashih ur Rehman while inaugurating the Pakistan Industrial Expo 2021 which was arranged by the Everest International Expo.

This is the 5th edition of this expo being arranged by the Chinese company in Lahore to promote business relations between Chinese and Pakistani investors. The expo will continue till October 31 (Sunday), 2021 and being held in offline-online mode.

The Expo was attended by Mr. Asim Ayub, Project Director, CPEC-Industrial Cooperation; Mr. Xiang Zhiqiang, Deputy Director of China-Shanghai Cooperation Organization Local Economic and Trade Cooperation Demonstration Area Management Committee; Mr. Wang Zihai, Executive Director of Pakistan China Center; Mr. Badar uz Zaman, Commercial Counsellor, Embassy of Pakistan in China; Mr. Peng Zhengwu, Acting Consul General of Consulate General of the People’s Republic of China in Lahore; Mr. Xu Daqun, Director of Foreign Trade of Department of Commerce of Henan Province; Mr. Ren Weijun, Director of Foreign Exchange and Cooperation Department, representatives of local Chambers of Commerce, and Everest International Expo. Pvt. Ltd.

Separate breakout rooms have been set up for effective interaction and meaningful participation of investors from Shandong and Henan provinces of China. The suggestions received from the investor community and stakeholders were highly appreciated and noted by the BOI officials with the commitment to take them up at appropriate level.
The Henan province, being the largest province of China has immense potential for future investment projects with Pakistan, and scope for high-quality investment activities between the businesses of the two countries.

Mr. Wang Zihai, Honorary Investment Counsellor (HIC) of Pakistan from China appreciated the role of Board of Investment (BOI), Islamabad, and stated that the Pakistan Industrial Expo 2021 is a unique opportunity to showcase the Chinese projects to Pakistani businesses for joint collaboration.

Mr. Badar uz Zaman, Commercial Counsellor in Pakistan’s Embassy in Beijing, addressed the participants while stating that Pakistan’s economy stands at a crucial point with the potential to steer the nation towards an industrialized future underscored by economic prosperity. For this, Pakistan must attract new investments which will help the country to create jobs and foster economic growth. In this regard, China is the biggest FDI contributor and there is immense capacity for further bilateral investment endeavors.

The Additional Secretary BOI stated that with the commencement of the second phase of CPEC, which mainly focuses on people-to-people and business-to-business (B2B) cooperation, BOI is continuing to take lead on investment promotion, facilitation, and industrial cooperation.

He expressed that the Pakistan industrial Expo 2021 will play a pivotal role in achieving the goals of the second phase of CPEC. He informed the audience that in terms of facilitation of innovation and B2B ties between the two countries, the establishment of a Pakistan-China B2B Investment Portal by BOI in collaboration with its Chinese counterpart, the China Council for International Investment Promotion (CCIIP), will enable the matchmaking prospects of Chinese, local and third-party investors.

***********

Lahore (NUT-DESK)

Pakistan State Oil (PSO) net profit shot up 133 percent to Rs11.994 billion during the first quarter ended September 30, 2021, translating into earnings per share (EPS) of Rs25.55, a bourse filing said on Thursday.

PSO earned Rs5.144 billion net profit with EPS of Rs10.96 during Q1FY21. Topline Securities said the earnings were better than expected due to inventory gains.

The oil company’s market share increased across its diverse portfolios, achieving substantial volumetric growth compared to the same period last year. A cumulative volume growth of 22.4 percent in white oil and 40.5 percent in black oil was witnessed during the period.

The group collectively posted a net profit after tax of Rs11.7 billion (Q1FY21: Rs5.2 billion).

SCBL Q3 profit rises 52pc

Standard Chartered Bank (Pakistan) Limited net profit increased 52 percent to Rs3.126 billion during the three-month period ended September 30, 2021, translating into EPS of Rs0.81, a bourse filing said.

The bank earned Rs2.057 billion with EPS of Rs0.53 during the same quarter last year. The board did not recommend any entitlement to the shareholders, the notice said.

Total income of the bank increased 10 percent to Rs9.391 billion during July-September 2021, compared to Rs8.566 billion in the same quarter last year.

Bank’s CEO Rehan Shaikh said, “I am pleased to announce our results for the third quarter 2021. Our results demonstrate strong foundations and a clear path towards delivering on our strategic priorities as we stand committed to the socio-economic prosperity of the people of Pakistan. Over the course of last few months, we have made steady progress on our accelerated transformation journey, further enabling us to take advantage of the opportunities that lie ahead.”

BOP Q3 profit grows 43pc

Bank of Punjab net profit increased 43 percent to Rs3.120 billion during the third quarter of this calendar year, translating into EPS of Rs1.18, a bourse filing said.

BOP earned Rs2.178 billion with EPS of Re0.82 during the same period last year. The bank did not announce any dividend. Total income of the bank fell 6 percent to Rs9.686 billion during the period under review, from Rs10.270 billion during Q3CY21. Analyst Sana Tawfik of Arif Habib Limited in her note said earnings posted a sequential uptick led by higher net interest income and lower provisioning.

Bank’s total assets as at September 30, 2021 increased to Rs1,121.55 billion as against Rs1,095.45 billion on December 31, 2020, a statement said. Deposits grew to Rs884.39 billion as against Rs835.07 billion as on December 31, 2020. Investments stood at Rs544.08 billion as against Rs567.79 billion on December 31, 2020. Similarly, gross advances improved to Rs495.27 billion as against Rs442.76 billion as on December 31, 2020 registering a growth of 12 percent, it added.

K-Electric profit spikes 161pc

K-Electric net profit rose 161 percent to Rs2.902 billion during the first quarter of the fiscal year 2021-22, with EPS of Re0.11, as company revenue surged on tariff adjustment.

The power company earned Rs1.111 billion with EPS of Re0.4 during the first quarter of the previous fiscal. The company skipped cash dividend.

Net sales of energy increased 27 percent to Rs86.921 billion during Q1FY22 from Rs68.401 billion in Q1FY21. Tariff adjustment went up 59 percent to add Rs27.218 billion to KE’s revenue, compared to Rs17.149 billion in Q1FY21. These resulted in sharp growth of 33 percent in total revenue, which clocked in at Rs114.139 billion, up from Rs85.55 billion during the same quarter last fiscal. Cost of sales grew 36 percent to Rs97.449 billion, against Rs71.681 billion during the same period last year. Operating expenses increased 435 percent to Rs1.81 billion for the quarter ended September 30, up from Rs338 million during Q1FY21.

BankIslami Q3 profit inches up

BankIslami Limited net profit inched up less than one percent to Rs693.270 million during the third quarter of the current year, with EPS of Re0.6253, a bourse filing said.

The bank earned Rs688.571 million with EPS of Re0.6211 during the same quarter last year. The bank did not announce any dividend.

Keeping in view the growth in domestic demand underpinned by supportive fiscal budget and accommodative monetary policy, BankIslami Pakistan expanded its Islamic Financing book by 19.6 percent via growing its exposure towards corporate and consumer segments on the back of its robust risk underwriting framework, a statement said.

Owing to this, infection ratio of the bank also reduced to 10.7 percent at September 2021 vis-à-vis 12.1 percent at December 2020, consequently improving the credit health of the overall financing portfolio.

PSMC posts Rs993.71mln Q3 profit

Pak Suzuki Motor Co (PSMC) posted a net profit of Rs993.71 million for the quarter ended September 30, with EPS of Rs12.07, a bourse filing said.

The auto company posted a loss of Rs546.95 million during the same quarter last year, with loss per share of Rs6.65, notice to the PSX said. The company skipped a dividend for the quarter under review. The company said its sales for the quarter rose to Rs50.26 billion, compared with Rs22.60 billion a year earlier. The cost of sales remained at Rs47.59 billion, up from Rs21.43 billion a year ago.

For the nine-month period ended September 30, the company recorded a net profit of Rs2.19 billion, up from losses of Rs2.59 billion during the same period last year.

Ismail Iqbal Securities in its note said, “The result is above our estimate of Rs9.99/share, where the deviation mainly arose from lower-than-expected distribution and finance cost; however, the impact was partially offset due to lower than estimated gross margins.”

FCCL profit jumps 96pc

Fauji Cement Company Limited (FCCL) net profit surged 96 percent to Rs1.359 billion during the first quarter of the current fiscal, translating into EPS of Re0.98, a bourse filing said.

The company earned a profit of Rs695.584 million with EPS of Re0.5 during the same quarter last year.

Net revenue of the company went up 26 percent to Rs6.936 billion compared to Rs5.5 billion during Q1FY21. This was led by a notable jump in retention prices alongside a major one percent increase in total sales (three percent jump in domestic dispatches and 21 percent dip in exports), a note by Arif Habib Limited said. Operating profit of FCCL climbed up 83 percent to Rs1.782 billion, compared to Rs976 million during the same quarter last year.

During Q1FY22 gross margins settled at 30 percent vis-à-vis 22 percent in the same period last year aided by volumetric growth, higher retention prices as well as rupee appreciation, which offset the impact of higher coal prices.

Lucky Cement Q1 profit mounts 47pc

Lucky Cement Limited net profit went up 47 percent to Rs3.284 billion during the first quarter ended September 30, 2021, translating into EPS of Rs10.15, a bourse filing said.

The company earned Rs2.226 billion with EPS of Rs6.89 during Q1FY21.

Analyst Misha Zahid of Arif Habib Limited in her note said the rise in profit was led by strong topline growth. Company’s topline witnessed a surge of 18 percent YoY to Rs16.9 billion in Q1FY22 amid significant hike in retention prices in north and south tagged with four percent uptick in domestic offtake.

Gross margin underwent a slight decline of 568bps to 27.3 percent during Q1FY22 (Q1Fy21: 27.9 percent), largely led by higher coal, energy and packaging costs, while rupee appreciation and strong topline growth provided cushion, the note added.

 **********************