Arif Habib Corporation Limited
Analyst Briefing - November 2023
Disclaimer
THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL ANY SECURITIES OR ANY INVESTMENT.
This presentation has been prepared by Arif Habib Corporation Limited ("AHCL") solely for information purposes. No representation or warranty express or implied is made thereto, and no reliance should be placed on, the fairness, accuracy, sufficiency, completeness or correctness of the information or any opinion contained herein or any opinion rendered thereto. The information contained in this presentation should be considered in the context of the circumstances prevailing at the time and will not be updated to reflect any developments that may occur after the date of the presentation. Neither AHCL nor any of its respective subsidiaries, affiliates, officials, advisors, associates, employees or any person working for, under or on behalf, shall have any responsibility and/or liability of any nature whatsoever (in contract or otherwise) for any loss whatsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.
This presentation does not constitute or form part of a prospectus, offering circular or offering memorandum or an offer, solicitation, invitation or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of, or be relied upon in connection with, or act as any inducement to enter into any arrangement, agreement, contract, commitment or investment decision in relation to any securities. This presentation shall not at all be intended to provide any disclosure upon which an investment decision could be made. No money, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted.
The presentation may contain statements that reflect AHCL's own beliefs and expectations about the future. These forward-looking statements are based on a number of assumptions about the future, which are beyond AHCL's control. Such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. AHCL does not undertake any obligation to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation and it does not make any representation, warranty (whether express or implied) or prediction that the results anticipated by such forward-looking statements will be achieved. In addition, past performance should not be taken as an indication or guarantee of future results.
Certain data in this presentation was obtained from various external data sources that AHCL believes to its knowledge, information and belief to be reliable, but AHCL has not verified such data with independent sources and there can be no assurance, representation or warranty as to the accuracy, sufficiency, correctness or completeness of the included data. Accordingly, AHCL makes no assurance, representation or warranty as to the accuracy, sufficiency, correctness or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors.
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Arif Habib Corporation Limited
Arif Habib Corporation Limited is the flagship company of the Arif Habib Group. The company took over the sole proprietorship business set up by Mr. Arif Habib in 1990 and was incorporated in 1994 as a public limited company with a paid-up capital of PKR 40 million.
In 2001, AHCL achieved a significant milestone by becoming a publicly listed company, with an initial public offering (IPO) of one million shares aimed at raising PKR 80 million to fuel its growth trajectory. Since its IPO, the company has demonstrated a strong commitment to its shareholders, distributing a total of PKR 16 billion as dividends (including specie dividends). Moreover, AHCL conducted two buybacks of its share having face value of PKR.10; first in 2005-06 amounting to PKR 720 million at prices of PKR 360 per share, and second in 2019-20 amounting to PKR 1.225 billion at prices of PKR 27 per share.
As of June 30, 2023, AHCL has strong equity base of PKR 20 billion built through retained earnings. This remarkable journey has translated into a compounded annualized return of 23% for the initial investors who participated in the IPO back in 2001. The Arif Habib brand is widely recognised as synonymous with unwavering commitment to best practices and a paramount dedication to prioritising its stakeholders. These principles have become ingrained in the company's identity, setting a standard that stakeholders have grown to anticipate from an organisation relentlessly pursuing excellence within its industry.
Long term Investments as on 30th June 2023
S. No. | Strategic Investments | Shareholding (%) |
1 | Arif Habib Limited | 72.92 |
2 | Sachal Energy Development Private Limited | 85.83 |
3 | Fatima Fertilizer Company Limited | 15.19 |
4 | Globe Residency REIT (GRR) | 55.18 |
5 | Silk Islamic Development REIT (SIDR) | 20 |
6 | Naya Nazimabad Apartment REIT (NNR) | 16.54 |
7 | Black Gold Power Limited | 100.00 |
Key Highlights
Revenue
Standalone | Consolidated |
FY'23: 2,902 million | FY'23: 7,950 million |
+67.46% | +47.00% |
FY'22: 1,733 million | FY'22: 5,408 million |
(Loss) /Profit after tax
Standalone | Consolidated |
FY'23: (972) million | FY'23: 3,816 million |
-125.86 % | -4.86% |
FY'22: 3,758 million | FY'22: 4,011 million |
EBITDA
Standalone | Consolidated |
FY'23: 192 million | FY'23: 8,902 million |
-95.20% | +29.01% |
FY'22: 4,003 million | FY'22: 6,900 million |
(Loss)/ Earnings per Share
Standalone | Consolidated |
FY'23: (2.38) | FY'23: 8.37 |
-125.87% | -1.53% |
FY'22: 9.20 | FY'22: 8.50 |
Key Highlights
Total Assets
Standalone | Consolidated |
FY'23: 23,814 million | FY'23: 57,780 million |
-8.63% | +6.50% |
FY'22: 26,064 million | FY'22: 54,251 million |
Total Equity
Standalone | Consolidated |
FY'23: 20,469 million | FY'23: 37,187 million |
-14.12% | +4.43% |
FY'22: 23,834 million | FY'22: 35,610 million |
Breakup Value per Share
Standalone | Consolidated |
FY'23: 50.12 | FY'23: 91.06 |
-14.12% | +4.43% |
FY'22: 58.36 | FY'22: 87.20 |
Long Term Liability to Equity
Standalone | Consolidated |
FY'23: 2.59% | FY'23: 31.46% |
FY'22: 0.56% | FY'22: 29.01% |
Current Ratio
Standalone | Consolidated |
FY'23: 2.07x | FY'23: 1.90x |
FY'22: 3.21x | FY:22: 2.37x |
Subsidiaries
72.92% | 72.92 % |
100%
85.83%
Arif Habib Limited and its subsidiaries
Arif Habib Limited (AHL) took over the Group's securities brokerage business in 2005 and has since then raised the flag even higher.
AHL is one of the largest listed securities brokerage and investment banking firms in Pakistan that has won accolades both in Pakistan and abroad from reputed ranking firms such as Asiamoney, The Asset, Finance Asia, CFA Society, SAFE, Financial Market Association of Pakistan and others over the years. Central Depository Company of Pakistan (CDC) has bestowed the "Top Brokerage House for Opening Roshan Digital Accounts" to the Company and AHL is also eight times recipient of Pakistan Stock Exchange's (PSX) "Top 25 Companies Award".
The firm offers financial services in the domains of equity, fixed income, money market & forex brokerage, investment banking corporate advisory services. AHL holds significant market share in brokerage and investment banking segments and enjoys a strong relationship with top international financial institutions. Besides Equity market, AHL offers Commodities Brokerage through its wholly owned subsidiary, Raayan Commodities Pvt Limited providing commodities futures brokerage services.
Contribution in AHCL's P&L
Standalone
FY'23: 250 million | |
Operating revenue | -39.85% |
FY'22: 415 million | |
Gain / (loss) on sale of | FY'23: Nil |
-100% | |
securities: | |
FY'22: (37) million | |
Contribution in AHCL's P&L
Consolidated
FY'23: 1,616 million | |
Operating revenue | +33.79% |
FY'22: 1,208 million | |
FY'23: 151million | |
Profit after tax | -82.49% |
FY'22: 864 million |
Sachal Energy Development (Pvt.) Limited (SEDPL)
Sachal Energy Development (Pvt.) Limited (SEDPL) has commissioned and operates a 50 MW wind farm at Jhimpir, Sindh.
Contribution in AHCL's P&L
Standalone
The Group believes that alternate sources of energy are the way forward. SEDPL is contributing to the national development by reducing dependence on imported fossil fuels and producing 136.5GWh of clean energy per annum. The groundbreaking ceremony of SEDPL was performed by
Operating revenue
FY'23:1,247 million
+11,834.56%
FY'22: 10 million
the Chinese President as it is part of the CPEC-Energy Priority Projects. SEDPL is the first Pakistani owned Wind project under CPEC to have achieved commercial operations. SEDPL also holds the honour of being the first privately owned Pakistani project to receive SINOSURE backed financing and the first such project to receive financing from ICBC, China. The company is committed to supply clean energy to the national grid through the National Transmission and Dispatch Company for 20 years.
Contribution in AHCL's P&L
Consolidated
FY'23: 5,673million | |
Operating revenue | +41.83% |
FY'22: 4,000 million | |
FY'23: 2,464 million | |
Profit after tax | +25.97% |
FY'22: 1,956 million |
Black Gold Power Limited (BGPL)
BGPL has been incorporated with the objective to set up a 660MW mine mouth coal power plant at Thar Coal Block II, Phase IV, Sindh. The company has obtained coal allocation for 660 MW from Sindh Engro Coal Mining Company. The Company started feasibility for commercial viability and bankability of the project by engaging internationally renowned consultants. However, due to change in circumstances more particularly energy needs of the Country and consequently existing Power Policy, the management decided to hold the feasibility study and to reconsider this project in future once Power Policy attains stability.
Contribution in AHCL's P&L
Standalone
Operating revenue | FY'23: Nil |
FY'22: Nil | |
Contribution in AHCL's P&L
Consolidated
FY'23: 0.03 million | |
Operating revenue | +38.71% |
FY'22: 0.02 million | |
FY'23: (0.12)million | |
Loss after tax | -71.18% |
FY'22: (0.4) million |
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Arif Habib Corporation Ltd. published this content on 24 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2023 06:09:15 UTC.