The document summarizes Maple Leaf Cement's (MLCF) 1HFY15 results and future outlook. MLCF reported a 9% increase in revenue due to higher local sales demand. Profit after tax declined 3.3% mainly due to taxation, while profit before tax grew 30.6%. Earnings per share before tax were Rs. 3.67. MLCF also announced an interim cash dividend of Re. 1/share, enabled by its continuous repayment of long-term debts over the past two years. The company represents a good investment opportunity at its low PE of 6.6-7x for FY15.

1. Disclaimer: This report has been prepared by Standard Capital Securities (Pvt) Ltd and is provided for information purposes only. The information and data on which this report is based are
obtained from sources which we believe to be reliable but we do not guarantee that it is accurate or complete. Standard Capital Securities (Pvt) Ltd accepts no responsibility whatsoever for
any direct or indirect consequential loss arising from any use of this report or its contents. Investors are advised to take professional advice before making investments and Standard Capital
Securities (Pvt) Ltd does not take any responsibility and shall not be held liable for undue reliance on this report. This report may not be reproduced, distributed or published by any recipient
for any purpose.
MLCF Statictics
Avg Vol (12 M) 8,606,229.84
52 Week Low 24.31
52 Week High 52
Market Cap 26.50 B
Beta 1.21
Face Value 10
Total No. Shares 527.73mn
Source: Standard Capital Research
Future Outlook
 PSDP development projects are still
in pipeline. The budgeted
expenditures are not met in the
1HFY15 due to low government
income. It is expected the
governtment to float the revised
budgeted funds for the development
projects across the country.
 Construction of Dasu dam and
bhasha dam are the calls of the time.
 The real estate projects and the
housing scemes are also the lights in
the dark for the industry.
 MLCF holds a unique standing in the
industry with huge production
capacity and have an edge in
monopoly of white cement.
Analyst:
Ubaid Hashmi
Tell: +92-213-5290267
Mobile: +92-332-4654874
www.scstrade.com
Supervised by: Faisal Shaji (Research Head)
Maple Leaf Cement ~ Positive developments materialized
Transfer of coverage - Maple Leaf Cement (MLCF) is one of the top
players in the northern zone, operating with the production capacity of
3.37mn tons/annum. MLCF announced 1HFY15 results wherein company
posted EPS of Rs 2.72/sh as against Rs 2.81/sh reported in the same period
last year. The company sponsors sprung up surprise by passing on interim
cash dividend of Re1/sh after a very long time.
Triggers
 Aggrandised sales given good local & export demand
 Accelerated payments of loan & lowering finance cost
 Cap removed by the creditors to pay dividend
1HFY15 1HFY14 %Change
Sales 9,674,772 8,843,887 9%
Cost Of Sales (6,187,246) (5,847,988) 5.8%
Gross Profit 3,487,526 2,995,899 16.4%
Distribution Cost (638,812) (477,165) 33.9%
Admin Cost (179,672) (139,535) 28.8%
Other Charges (120,740) (92,087) 31.1%
(939,224) (708,787) 32.5%
Other Income 25,658 45,537 -44%
Profit from Operations 2,573,960 2,332,649 10.3%
Finance Cost (640,682) (852,495) 24.8%
PBT 1,933,278 1,480,154 30.6%
Taxation (499,723) 2,303
PAT 1,433,555 1,482,457 -3.3%
EPS Before Tax 3.67 2.81
EPS After Tax 2.72 2.81
Summary P&L
The thrust of increase in revenue is due to the increase in the local
dispatches. The upward movement of the demand resulted in an increase in
revenue by 9%. The Profit aftar tax declined by 3.3% compare to last year.
This decrease in PAT is mainly due to incidence of taxation. However, PBT
shows accelerated growth of 30.6% compared to the same period last year.
The earnings per share before taxes comes to Rs.3.67/sh compared to the
Rs.2.81/sh in the same period last year.
January 29, 2015
Pakistan Research| Cement

2. Disclaimer: This report has been prepared by Standard Capital Securities (Pvt) Ltd and is provided for information purposes only. The information and data on which this report is based are
obtained from sources which we believe to be reliable but we do not guarantee that it is accurate or complete. Standard Capital Securities (Pvt) Ltd accepts no responsibility whatsoever for
any direct or indirect consequential loss arising from any use of this report or its contents. Investors are advised to take professional advice before making investments and Standard Capital
Securities (Pvt) Ltd does not take any responsibility and shall not be held liable for undue reliance on this report. This report may not be reproduced, distributed or published by any recipient
for any purpose.
Continuous re-payments of long-term debts.....real commendable
MLCF also annouced an interim cash dividend at 10% (Re.1/sh). This is due to the continuous re-payments of the long-
term debts. In the end of FY14 the long-term debts were standing at Rs.7.84bn.
Given aggrandised sales, MLCF started wiping out debts, which the company is doing since two years.
The covenent of non payment of dividend removed with this robust display of accelerated payments of long term debt.
This indeed is a good news for investors & Islamic funds.
Valuations: low PE
MLCF deciphers FY15 PE of 6.6x to 7x (still a good option for investment) albeit EV/sh Rs. 65.