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Value Call- KEL Aug 13'2015
- 1. Value Call August 13, 2015 Electricity TSL Research K‐Electric Limited Best exposure in the revamping energy sector We initiate coverage on Pakistan’s only vertically integrated power utility, K‐Electric (KEL), with ‘BUY’ rating. KEL offers a unique blend of opportunities across the power sector chain, comprising of i) Generation, ii) Transmission and iii) Distribution. Moreover, the company’s monopolistic posi‐ tion in serve Pakistan’s largest city and industrial hub, Karachi, places KEL in an excellent position to benefit from upcoming economic upturn led by reforms in energy sector. We estimate earnings to grow at a 27% CAGR (during FY14‐19), stemming from 1) reducing T&D losses, 2) rising metropolis electricity needs, 3) improving bill recoveries, 4) absence of tax pay‐ ments, 5) partial immunity to circular debt and 6) company’s ambitious capex plans to enhance capacities & efficiencies. Over the negative side, sponsors are planning to handover management control to new strategic investor by 2016, which might pinpoint question marks on the compe‐ tency of the new management. Our Free Cash Flows based TP of PKR11.2/share depicts 37% price upside while the stock is trading at an attractive FY16F PE of 6.3x vs. average PE of 8.8x for TSL IPP Universe. Such low price multi‐ ple is unjustified, given earnings CAGR of 27% for KEL (FY14‐19) vs. 10% for TSL IPP Universe. T&D losses and cash recoveries to pick pace in FY16: In 9MFY15, KEL has been able to reduce T&D losses by 1.95pps to 23.35% from 25.3% in FY14. We foresee T&D losses to further reduce to 15.9% by FY20, on the back of ongoing ’Operation Burq’ against electricity theft and other loss minimizing measures taken by KEL. The company is on the path to make major investments (in TP ‐1000 project, Aerially Bundled Cables, replacement of electro‐mechanical meters with electro‐ static meters & Smart Grids) in power transmission and distribution system. Recently, it has awarded a contract of USD400mn (under TP‐1000 project) to Siemens and Shanghai Electric for execution of major transmission system up gradation. Rising generation fleet efficiency to help in profits: As multi‐year tariff (MYT) allows KEL to re‐ tain any fuel savings, the company has taken many initiatives to improve its generation capacity/ efficiency from 30.4% in FY09 to 37.3% in 9MFY15. Conversion of its open cycle power plants (KGTPS and SGTPS) to combined cycle by installing steam turbines would increase fuel efficiency and overall generation. Now, KEL is going to convert 2 units of 420MW (out of 6 units of BQPS 1) to coal by leasing them out to a newly incorporated company k‐energy. Past tax losses to protect from future tax payments: Long history of making loss is now acting as a boon for KEL as it would be utilized to offset tax incurrence in coming years. This would bode well for the cash flows of the company at time of rising profits and capex requirements. Immunity to circular debt: KEL is different from conventional IPPs in Pakistan in the sense that it has partial immunity to circular debt. KEL can cancel out receivables (subsidy from the Govt. and electricity bill receivables from SOEs) against the payments (to SSGC and NTDC). ’MYT’ renewal is an uncertainty: The company operates under a ‘Multi Year Tariff’ framework under which the company’s tariff is set as per agreed benchmarks at the start of each financial year. This agreement is set to be renegotiated in FY16, may be with the tough clauses. Claw‐back Mechanism limits gains: Under KEL’s MYT tariff, the company has to return a portion of its profits (if EBIT is above 12% of average Regulatory Assets) to consumers in the form of lower tariffs. These amounts may become more significant given rising profitability. For next 5 years, this amount is likely to remain in the range of PKR1.4‐5.5bn (PKR0.05‐0.20 per share), which is incorpo‐ rated in our projections. Please refer to the last page for Analyst Certification and other important disclosures. Usman Riaz AC Research Analyst Usman.riaz@taurus.com.pk Direct: +92‐21‐35216403 Syed Khurram Mohiuddin Research Associate s.khurram@taurus.com.pk Continued on page 2 KEL PA BUY Stock price 8.2 Target Price (Dec‐15) 11.2 Upside/ (downside) 37% Outstanding shares (m) 27,615.2 Market Cap (PKRbn) 225.6 Free float 10% 3M Avg. daily value traded (PKRm) 192.0 3M Avg. daily volume (m) 26.8 3M High 8.9 3M Low 7.2 Key Financials PKRbn Year end FY13A FY14A FY15F FY16F Total Revenue 189 195 189 212 Cost of sales 160 162 146 160 Gross Profit 29 32 43 52 Op. Profit 18 21 28 35 Finance Costs 14 11 10 6 PAT 7 13 25 36 Key metrics KEL Year end FY13A FY14A FY15F FY16F EPS 0.2 0.5 0.9 1.3 DPS* ‐ 0.5 ‐ 0.2 BVPS 2.6 3.2 3.4 4.5 P/Ex 33.1 17.5 9.1 6.3 P/BVx 3.2 2.6 2.4 1.8 Dividend Yield 0% 6% 0% 2% Earnings growth 160% 89% 91% 44% ROA 13% 18% 26% 28% ROE 13% 18% 26% 28% Debt/Equity 155% 109% 77% 51% * FY14A Dividend was only declared for minority shareholders Price Performance 6 7 8 9 10 11 12 Jul‐14 Aug‐14 Sep‐14 Oct‐14 Nov‐14 Dec‐14 Jan‐15 Feb‐15 Mar‐15 Apr‐15 May‐15 Jun‐15 Rel. KSE100 KEL
- 2. Value Call TSL Research Initiating coverage with ‘BUY’ Earnings to grow at 27% CAGR in FY15‐19 In upcoming 5 years, we expect revenues of the company are set to rise by 8% CAGR (FY15‐19) to PKR281.1bn, on the back of (i) modest 4% per annum growth in energy demand and (ii) successful drive to reduce T&D losses/increase billable units. We foresee T&D losses to decline by an average of 1.3% per annum to 15.9% by FY20. Just to mention, revenues of KEL are determined under ‘Multi Year Tariff’ agreement which improve when KEL beats inherent efficiency benchmarks. This creates a strong incentive for the utility (KEL) to improve its operational performance. The same can be witnessed where KEL has reduced its T&D losses to 23.4% in 9MFY15 from 35.9% in FY09, while, efficiency of its power generation fleet has escalated to 37.3% in 9MFY15 from 30.6% in FY09. Moreover, reduction in T&D losses would expand the margins as revenue growth would outpace COGS with higher units billed. As a result, gross margins of KEL would reach 24% in FY19 Vs. 17% in FY14. In addition, finance cost is likely to reduce in the coming periods amid lower interest rates while strong cash flows would enable company to timely retire its debt. As on Jun’14, the company’s to‐ tal interest bearing debt stood at PKR77bn with debt‐equity ratio at 52%, which would reduce to PKR35bn (14%) by FY19. Furthermore, KEL has been booking tax reversals to account for deferred tax asset which has jacked up it’s after tax earnings. It is pertinent to highlight that KEL has massive unutilized tax losses and unabsorbed depreciation of PKR147bn and PKR128bn, respectively, which would be utilized over next 5‐6 years. Incorporating all, we project PAT to grow at an annualized rate of 27% CAGR in next 5 years and climb up to PKR43.2bn (EPS PKR1.57) by FY19. We value KEL at PKR11.2 per share We have valued KEL using Free Cash Flow methodology (in contrast to the DDM based valuation usually done for power sector companies) since we assert that the company’s earnings growth story is more compelling than dividend payouts. For this, we have used 16% cost of equity under FCFE valuation method to calculate present value of cash flows of the company. Our Dec’15 TP of PKR11.2/share offers a 37% upside from last closing price. The stock is trading at an enticing FY16F PE of 6.3x as compared to 8.8x for TSL IPP Universe. Taurus research is available on Bloomberg under TAUR & Capital IQ Revenue Breakdown % 35% 34% 16% 15% Industrial Residential GoP Commercial Customers by Type 5% 71% 2% 22% Industrial Residential GoP Commercial Net Sales/ Gross Profits (PKRbn) 0 20 40 60 80 0 50 100 150 200 250 300 350 FY12A FY13A FY14A FY15F FY16F FY17F FY18F FY19F FY20F Net Sales Gross Profits (RHS) Net Profits (PKRbn)/ Gross Margins % 0% 5% 10% 15% 20% 25% 30% 0 10 20 30 40 50 60 FY12A FY13A FY14A FY15F FY16F FY17F FY18F FY19F FY20F Net Profits Gross Margins (RHS) Continued on page 3
- 3. Value Call TSL Research Taurus research is available on Bloomberg under TAUR & Capital IQ KEL: Financial Snapshot Income Statement PKRmn FY12A FY13A FY14A FY15F FY16F FY17F FY18F FY19F Revenues 162,816 188,999 194,709 189,085 212,206 234,315 249,982 281,081 COGS 146,556 160,179 162,290 146,023 159,753 177,191 193,024 215,371 Gross Profit 16,260 28,820 32,419 43,062 52,453 57,125 56,958 65,710 Consumer Services & Admin. Exp. 12,218 15,302 16,247 17,625 19,780 21,841 23,301 26,200 Other Exp. 911 647 1,484 3,537 3,970 4,383 4,676 5,258 Other Income 7,140 5,090 6,163 6,045 6,784 8,489 9,848 11,725 Operating Profit 10,271 17,962 20,851 27,945 35,488 39,390 38,829 45,977 Finance Cost 7,702 13,960 11,275 9,690 5,875 5,036 4,139 3,225 PAT 2,620 6,826 12,888 24,676 35,613 37,354 36,190 43,252 EPS 0.09 0.25 0.47 0.89 1.29 1.35 1.31 1.57 DPS* ‐ 0.53 ‐ 0.19 0.41 0.39 0.47 *FY14 EPS was only announced for Minority shareholders Balance Sheet PKRmn FY12A FY13A FY14A FY15F FY16F FY17F FY18F FY19F Total Assets Non Current Assets 170,610 165,332 173,144 189,435 196,277 199,576 201,743 203,288 Operating Fixed Assets 170,423 164,681 170,287 176,066 179,908 181,707 183,375 184,919 Others 187 651 2,857 13,369 16,369 17,869 18,369 18,369 Current Assets 101,668 113,547 133,171 137,210 154,791 180,369 206,002 240,398 Stores, Spares & Loose Tools 4,415 4,607 5,968 6,217 6,869 8,151 9,651 11,630 Trade Debts 49,381 62,844 75,704 85,486 90,260 102,771 114,849 131,377 Others 47,872 46,096 51,499 45,508 57,661 69,448 81,502 97,391 Total Assets 272,278 278,879 306,316 326,646 351,067 379,946 407,746 443,686 Total Equity & Liabilities Equity 41,642 53,714 70,967 94,685 125,051 151,083 176,503 206,775 Share Capital 92,958 96,262 96,262 96,262 96,262 96,262 96,262 96,262 Other Reserves (51,316) (42,547) (25,294) (1,576) 28,790 54,821 80,241 110,514 Non Current Liabilites 84,308 64,505 60,114 66,276 59,553 55,447 51,365 46,965 Long Term Financing 43,183 24,902 18,231 23,888 17,166 13,059 8,978 4,578 Others 41,124 39,603 41,883 42,387 42,387 42,387 42,387 42,387 Current Liabilities 146,329 160,660 175,234 165,684 166,463 173,416 179,878 189,946 Current Maturity of Long Term Debt 14,217 14,965 9,928 5,404 6,847 4,781 4,429 4,400 Trade Payables 98,892 96,215 110,406 110,354 113,424 125,805 137,047 152,914 Short Term Borrowing 23,421 37,608 43,286 37,390 33,655 30,294 25,866 20,096 Others 9,799 11,872 11,613 12,536 12,536 12,536 12,536 12,536 Total Liabilites 230,636 225,165 235,348 231,960 226,016 228,863 231,243 236,911 Total Equity & Liabilities 272,278 278,879 306,316 326,646 351,067 379,946 407,746 443,686 Continued on page 4
- 4. Value Call TSL Research T&D losses to reduce from 25.3% in FY14 to 15.9% in FY20 Over the past six years, KEL’s T&D losses have gone down from a high of 35.9% to a low of 23.4%. The primary reasons behind the continuous drop in T&D losses are i) removal of illegal connec‐ tions, ii) revamping of a weak distribution network, iii) overhauling of transmission lines and iv) recoveries based ‘load‐shedding’. Just to mention, under the recoveries based load‐shedding, KEL has segregated the entire city into smaller administrative zones called ‘Internal Business Centre (IBC)’. Wherein, high loss areas are subject to greater ‘load‐shedding’ as opposed to medium loss areas and absence of load‐shedding for low loss areas. Further, each IBC is responsible for performance of its service area and achieving targets of bill recovery as well as T&D losses. In addition, the company also took bold steps to im‐ prove in‐house administrative efficiencies by laying off staff members who were involved in mal‐ practices. Going forward, successful implementation of Operation Burq is likely to drag T&D losses further down and, we have taken T&D losses for FY15 at 23% and gradual 1.3% reduction per annum thereafter to 15.9% by FY20, in our estimations. Moreover, KEL is likely to reap benefits on account of (i) efforts to reduce technical losses and (ii) rise in load handling capacity under TP‐1000 project in upcoming tenure. Future Projects in Transmission and Distribution: Ongoing Operation Burq is a resounding success Previously, prevention of electricity theft was extremely difficult due to a lack of effective legisla‐ tion. Thanks to the approval of ‘Electricity Act’, the company is now effectively pursuing electricity thieves and has launched Operation Burq, under which joint raid of KEL and law enforcement per‐ sonnel is conducted against electricity thieves. During the first month of the operation, the distri‐ bution company has removed 84,000 illegal hook connections, having a combined weight of 28 tons. Plus, it has also resulted in significant recoveries of past outstanding dues. TP‐1000 project Under this project, KEL would set‐up additional 132kV grid stations and make investment in trans‐ mission network in order to; 1) reduce technical losses and 2) increase the load handling capacity of KEL’s distribution network. As per a recent notice sent to KSE, the company has awarded contracts worth USD400mn to Siemens (Germany and Pakistan) and Shanghai Electric for execution of a major transmission improvement project. We expect this project to advance KEL’s earnings in shape of higher billed units along with improved public image with the reduction in tripping and technical faults. Aerially Bundled Cables The company also plans to install ‘Aerially Bundled Cables’ (ABC) which are overhead power lines using several insulated phase conductors bundled tightly together, usually with a bare neutral con‐ ductor. These are more sturdy cables and less susceptible to theft, pilferage or technical fault caused by adverse weather conditions. Installation of these would make electricity theft more diffi‐ cult and reduce electricity disruption caused by adverse weather conditions. Smart Grid Project Another project that the company plans to embark on is switching to ‘smart grids’. Rollout of this technology would allow the company to monitor customer electricity usage and to disconnect con‐ nections, if needed be, without having physical presence on the ground. Management estimates that it would make an initial investment of USD6mn to cover a customer base 10,000 then raise it tenfold over the next 2 years. Taurus research is available on Bloomberg under TAUR & Capital IQ Transmission & Distribution Losses (Historical) 15% 20% 25% 30% 35% 40% FY09A FY10A FY11A FY12A FY13A FY14A Transmission & Distribution Losses (Forecasted) 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% FY15F FY16F FY17F FY18F FY19F FY20F Units Sent Out Vs. Units Billed (GWh) 8,000 10,000 12,000 14,000 16,000 18,000 20,000 FY12A FY13A FY14A FY15F FY16F FY17F FY18F FY19F FY20F Units Sent Out Units Billed Continued on page 5
- 5. Value Call TSL Research Rising generation fleet efficiency to help in profits As Multi‐Year Tariff (MYT) allows KEL to retain any fuel savings, the company has taken many ini‐ tiatives to raise its generation efficiency over the years. As a result, KEL has managed to boost the weighted average fuel efficiency of its generation fleet to 37.3% in 9MFY15 from 30.6% in FY09 by way of timely maintenance and investment, thereby reducing fuel losses. At present, KEL’s own generation fleet consists of five power stations with total capacity of 1,827MW. Four plants use gas and HSD as primary fuel while the fifth unit (Bin Qasim Power Sta‐ tion 1) relies on Gas/FO as its primary fuel with an efficiency level of 32.5%. Though generation from gas is relatively cheaper (results in lesser fuel losses), company has to run its plant (BQPS 1) on FO which causes high fuel losses. Now, KEL would lease out two out of six units of BQPS 1 to a newly created entity K‐Energy (led by the ’Titan Mining Group’ of Indonesia) which would convert these units to coal. In addition, KEL’s future projects to convert its open cycle power plants to com‐ bined cycle by installing steam turbines would increase fuel efficiency and total units available for sale to consumers. Future Projects in power generation: Closing Open Cycle of KGTPS and SGTPS The company is on track to convert two more units of KGTPS and SGTPS (176MW combined de‐ pendable capacity), which are currently operating at 36% efficiency level, into combined cycle which would allow 20MW higher electricity generation with the same amount of fuel, thus result‐ ing in fuel savings during upcoming quarters. We calculate incremental impact of PKR1.0‐1.5bn on revenues for the additional 20MW. 420MW coal fired power plant to come online in 2018 KEL has signed an agreement with Titan Mining Group of Indonesia to lease out some of its exist‐ ing power stations to a newly established entity K‐energy. Titan Mining Group, as part of agree‐ ment, would convert the existing gas fired boilers plant to coal. Resultantly, the project would 1) allow higher availability of power to be sold to consumers since gas shortages impeded full capac‐ ity utilization and 2) accretion in earnings due to lease payments from K‐Energy. Taurus research is available on Bloomberg under TAUR & Capital IQ Generation Fleet Efficiency 29% 30% 31% 32% 33% 34% 35% 36% 37% 38% FY09A FY10A FY11A FY12A FY13A FY14A Power Generation Equipment Bin Qasim Power Station 1 (BQPS 1) Korangi CCPP Capacity 1,260 MW Capacity 247 MW Gross Dependable Capacity 920 MW Gross Dependable Capacity 215 MW Year 1983 ‐ 1997 Year 2008‐09 Fuel HFO/ Gas Fuel Gas Efficiency 32.5% Efficiency 45.0% Supplier Hitachi, Ansaldo ‐ Steam Turbines Supplier General Electric ‐ LM 6000 GT Bin Qasim Power Station 2 CCPP (BQPS 2) GE Jenbacher SITE & Jenbancher Korangi Capacity 560 MW Capacity 180 MW Gross Dependable Capacity 517 MW Gross Dependable Capacity 176 MW Year 2012 Year 2009 Fuel Gas Fuel Gas Efficiency 45.5% Efficiency 36.0% Supplier General Electric ‐ Frame 9E GT Supplier General Electric ‐ Gas Engines Continued on page 6
- 7. Value Call TSL Research Key Risks to investment: Reduction in T&D losses Reduction in T&D losses, along with rise in generation fleet efficiency, has been the most impor‐ tant driver of earnings growth for the company. In our model, we have estimated T&D losses to reduce by an average of 1.3% per annum in the next five years. Any slowdown in the current T&D efficiency drive could adversely affect our TP on the scrip. Change in management/ Divestment by sponsors KEL’s main sponsor is a private equity firm (Al Abraaj Group) which is planning to exit KEL after significantly improving the operations of the company. There might be a slight possibility that the new owners/management of KEL may not be able to make further reduction in T&D losses of the company. ‘MYT’ Agreement slated for renewal in 2016 KEL’s MYT agreement is set to expire in FY16 and a new agreement would be inked in turn. There are fears that Govt. may influence some stricter terms for KEL under the new agreement. How‐ ever, we rule out this possibility, since Govt. has planned to privatize other power distribution com‐ panies along with WAPDA’s thermal power stations. Any awful example set in dealing with KEL would not only deteriorate profitability of KEL but would also discourage other potential investors. About the Company KEL is the only vertically integrated utility (generation, transmission & distribution) of Pakistan. It has exclusive licensing rights to sell electricity to Karachi which is a metropolis of over 20 million residents and one of the most populous cities in the world. The company serves an area of 6,500 sq. km and has a customer base of 2.5mn which includes industrial, commercial and domestic us‐ ers. The company was formed in 1913 and is one of the oldest companies operational in Karachi. The entity was nationalized in 1952 but re‐privatized on November 29, 2005 by selling it to a consor‐ tium, KES Power, led by Al Jomaih Group of Saudi Arabia. However, in 2008, Abraaj acquired a controlling stake (50%) in KES Power (“KESP”) from Al Jomaih Group and National Industries Group. At present, KES Power holds 66.4% shareholding in Karachi Electric (Formally known as Karachi Electric Supply Company) whereas GoP holds 24.36% holding in KEL. Ever since the takeover of Al Abraaj Group, KEL has seen a significant turnaround in its operations with the company coming out of losses and making its first profit after several years in FY12. The generation capacity has been enhanced by ~1,000 MW through a combination of new plants and the rehabilitation of worn‐out units. Recently, KES Power Limited sold some of its shares which have reduced its holding in the company to 66% from 69% previously. This increased the free float of the company to 10%. At present, KE is operating with the generation capacity of 2,247MW while it purchases 650MW from NTDC and 366MW from different IPPs. Over the transmission side, the power utility is han‐ dling 64 grid stations, 130 power transformers and 1,249KM of overhead and underground cable network. With the customer base of 2.5mn, residential users contribute 1.85mn while 0.57mn con‐ nections are given to commercial entities. However, over the revenues side, domestic consumer contributions remain at 33.6% while industries and commercial entities chip to 35.6% and 14.9%. Remaining 15.9% is earned through billing to Govt. entities. Taurus research is available on Bloomberg under TAUR & Capital IQ Shareholding Pattern 66% 24% 10% KES Power GoP Others
- 8. Analyst Certification The research analyst(s), denoted AC on the cover of this report, who exclusively reports to the research department head, primarily involved in the preparation, writing and publication of this report, certifies that (1) the views expressed in this report are unbiased and independent opinions of the Research Analyst which accurately reflect his/her personal views about all of the subject companies/securities and (2) no part of his/her compensa‐ tion was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report. The research analyst or any of its close relatives do not have a financial interest in the securities of the subject company aggregating more than 1% of the value of the company and the research analyst or its close relative have neither served as a director/officer in the past 3 years nor received any compensation from the subject company in the past 12 months. The Research analyst or its close relatives have not traded in the subject secu‐ rity in the past 7 days and will not trade in next 5 days. Disclaimer This report has been prepared by Taurus Securities Ltd (hereinafter referred as TSL) and is provided for information purposes only. Under no circum‐ stances is to be used or considered as an offer to sell or solicitation of any offer to buy. While all reasonable care has been taken to ensure that the information contained therein is not untrue or misleading at the time of publication, we make no representation as to its accuracy or completeness and it should not be relied upon as such. This report is provided solely for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report. Statements regarding future prospects may not be realized while all such informa‐ tion and opinions are subject to change without notice. TSL recommends investors to independently evaluate particular investments and strategies and it encourages investors to seek the advice of a financial advisor. Investments in capital markets are subject to market risk and TSL accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents. In particular, the report takes no account of the investment objectives, financial situation and par‐ ticular need of individuals, who should seek further advice before making any investment or rely upon their own judgment and acumen before mak‐ ing any investment. The views expressed in this document are those of the TSL Research Department and do not necessarily reflect those of TSL or its directors. TSL may, to the extent permissible by applicable law or regulation, use the above material, conclusions, research or analysis in which they are based before the material is disseminated to their customers. TSL, as a full‐service firm, has/intends to have business relationships, including investment‐banking relationships, with the companies in this report. Value Call TSL Research Taurus research is available on Bloomberg under TAUR & Capital IQ Taurus Contact Details CORPORATE OFFICE Address: Suite # 604, 6th Floor, Progressive Plaza, Beaumont Road, Karachi, Pakistan. UAN : (021) 111 82 87 87 Fax : (92) 021‐3568‐6279 Syed Zain Hussain Chief Executive Officer 021‐35683728 zain@taurus.com.pk Asif Jan Mohammad Head of Broking 021‐35682690 asifjan@taurus.com.pk Tauseef Ladak Head of Sales 021‐35662731 tauseefladak@taurus.com.pk Adeel Ahmed Head of Online Trading 021‐35684228 adeel.ahmed@taurus.com.pk RESEARCH Zeeshan Afzal Head of Research Strategy, Economy 021‐35216403 zeeshan.afzal@taurus.com.pk Rohit Kumar Senior Equity Analyst Banks, Cements 021‐111828787 Ext: 202 rohit.kumar@taurus.com.pk Usman Riaz Equity Analyst E&Ps, OMCs, Automobile 021‐111828787 Ext: 203 usman.riaz@taurus.com.pk Syed Khurram Research Associate Textiles & Power 021‐111828787 Ext: 203 s.khurram@taurus.com.pk Summaiya Amin Equity Analyst Fertilizers 021‐111828787 Ext: 203 sumaiya@taurus.com.pk Mehwish Zafar Research Associate 021‐111828787 Ext: 203 mehwish@taurus.com.pk Hasan Azhar Equity Analyst FMCGs 021‐111828787 Ext: 202 hasan.azhar@taurus.com.pk URL: http://www.taurus.com.pk E‐mail: research@taurus.com.pk