By: Azee Securities Pakistan Private Limited
The board meetings of Hub Power Company Limited (HUBC) and National Bank of Pakistan (NBP) are planned to hold their board meetings on October 28, 2015.
Hubco likely to earn Rs 2,202mn in 1QFY16: We expect earnings of the company to marginally increase by 5% YoY to Rs 2.20 billion (EPS: Rs 1.90) compared to Rs 2.09 billion (EPS: RS 1.81) for the corresponding period last year. This rise in earnings is expected due to rise in indexation while rehabilitation works carried out in one boiler would limit profitability growth. Net sales likely to surge by 6% to Rs 48.70 billion versus Rs 45.75 billion due to stable load factor of around 65%. In line with its historic payout policy, we do not expect the company to announce any dividends with results.
NBP to show Earning per share of Rs 5.28 in 9MCY15: The bottom-line of NBP is expected decline by 7% YoY to Rs 11.22 billion (EPS: Rs 5.28) in 9MCY15 compared to Rs 12.06 billion (EPS: Rs 5.67) in the same period last year. Higher provisions and surge in effective taxation likely a key reason which would decline in earnings growth. The bottom-line however would be supported by 22% YoY rise in net interest income (NII) to Rs 36.51 billion in 9MCY15 as against Rs 29.82 billion in 9MCY14 on back of increased earning assets and better yields on long tenor assets. Non-interest income is expected to increase by 24% to Rs 27.45 billion against Rs 22.11 billion in 9MCY14 due to higher gain from sale of securities.