Initiation: Pakistan International Bulk Terminal Limited

Jun 03, 2021

Pakistan International Bulk Terminal

Look beyond the past

Best Equity research report (Runner up) – 2020

Best Equity Trader (Runner up) – 2019

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited
Look beyond the past Jun 03, 2021

We initiate coverage on Pakistan’s sole dirty cargo handling terminal, PIBTL, with a “BUY” stance. Bloomberg Ticker: PIBTL PA
Although the stock has recovered sharply from recent lows, the stock has underperformed the broad Target Price PKR/sh 13.8
market by 22% CYTD and offers a decent entry point. Our June-22 DCF based target price of PKR Closing price PKR/sh 11.3
13.8/share offers an upside of 22% from the last closing. The TP does not incorporate a potential
Upside % 22%
expansion scenario, which could further add PKR 2.5/share to the valuation (upside: 44%).
Stance Positive
3M Avg. daily value traded PKR mn 78.7
The company has overcome the initial challenges, where low utilization levels created problems, amid
No of shares mn 1,786
high fixed costs and hefty debt repayments. Now, with the improvement in balance sheet strength (debt
Market Cap PKRbn 20.2
to assets at 33%), the company is set to ride the country’s economic growth cycle. We expect company’s
Market Cap USDmn 130.7
accumulated losses to turn green by FY22, which would enable dividend payouts from FY23 (even after
accounting for 25% equity investment for expansion). Reducing leverage is also expected to make PIBTL Free float Market Cap PKRbn 10.1
eligible for addition in the Islamic index (KMI) in Jun-21 revision, which would broaden the investor base Free float Market Cap USDmn 65.4
and could lead to a re-rating. Source: Bloomberg, PSX, IIS Research

Capacity utilization set to max out in FY22: Although, the terminal achieved COD in Jul-17, capacity Key highlights FY20 FY21E FY22E FY23E
remained underutilized at 23% in FY18 due to competition from Karachi Port Trust (KPT) which offered Coal handled-mn tons 8.6 10.5 12.0 12.0
significantly cheaper rates. The radical shift in terminal utilization was witnessed after the Supreme Terminal utilization 72% 88% 100% 100%
Court decision to ban coal handling at KPT in June-18, citing environmental concerns. Ever since this EPS 0.6 1.2 0.9 1.1
decision, PIBTL has seen a steady rise in its utilization, where it is set to achieve ~88% utilization in FY21 DPS - - - 0.8
vs 72% in previous two years. We estimate PIBTL to reach full capacity in FY22 after the commissioning FCFE/share (0.0) 0.4 0.8 1.0
of Lucky Electric Power Company Limited (LEPCL) having annual coal demand of ~2.2mn tons and BVPS 7.8 12.7 13.7 14.8
expected increase in cement demand. P/E 17.6 9.2 12.1 10.0
P/BV 1.4 0.9 0.8 0.8
Expansion scenario looks more plausible now: The talks around expansion of coal handling capacity Dividend Yield 0.0% 0.0% 0.0% 6.6%
from 12mn tons to 16mn tons has been surfacing for quite sometime. However, now with the economic Earnings growth n.m 91.5% -23.8% 20.7%
trajectory becoming more clear, we believe the expansion looks more plausible. As per our channel ROE 8.5% 11.9% 7.1% 7.9%
checks, LECPL has not developed its jetty for coal handling and is likely to acquire services of PIBTL. We ROA 3.8% 6.4% 4.4% 5.2%
understand that eventually LECPL would shift to local coal; however, the development is expected to Source: Company Accounts, IIS
take ~4 years. In our view, the company has sufficient balance sheet strength to avoid a right issue. Research

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited
Valuation snapshot Jun 03, 2021

Since the project has a limited life (40 years), we have not assumed any extension beyond that
FY23 earnings sensitivity to Tariff increase & Coal handled
and have calculated cashflows up to FY40. We have used a 15% cost of equity for our DCF
Tariff increase (%)
based valuation, yielding June-22 DCF based target price of PKR 13.8/share offering an upside
1.1 0.0% 0.5% 1.0% 1.5%
of 22%.

Coal handled (mn

8 0.2 0.2 0.2 0.2
9 0.4 0.4 0.4 0.5
In the next year, company earnings growth is not very attractive due to presence of net

tons)
10 0.6 0.7 0.7 0.7
exchange gain on foreign debt in FY21 (~PKR610mn or PKR0.34/share) vs expected exchange
11 0.9 0.9 0.9 0.9
losses in coming years on the back of PKR devaluation. The P/E might also seem stretched on
12 1.1 1.1 1.2 1.2
the current operations; however, it is important to note that depreciation accounts for
PKR0.7/share in annual earnings. Thus, a P/E based analysis might not be reflective of the
improvement in company’s performance.

We have not incorporated expected capacity expansion by the company in our base case
valuation. However, as an upside case, we have discussed the impact (please refer to page 6).

Key risks to valuation: i) Reversal of Supreme Court decision on coal handling ban from KPT, ii) PKR
appreciation, and iii) Lower utilization due to terminal congestion in case of higher LNG imports at
Port Qasim, iv) delay in COD of Lucky Electric power plant.
Valuation-PKR mn FY23E FY24E FY25E FY26E FY27E FY28E FY29E FY30E FY31E FY32E FY33E FY34E FY35E FY36E FY37E FY38E FY39E FY40E
FCFE 1,629 1,866 2,098 2,343 2,598 2,897 4,429 5,156 5,387 5,623 5,865 6,112 6,365 6,624 6,886 7,153 7,423 10,112
PV- FCFE 1,417 1,411 1,379 1,339 1,291 1,251 1,664 1,684 1,530 1,388 1,259 1,141 1,033 935 845 763 689 816

Sum of PV 21,834
Plant scrap value 3,044
Discounted value of scrap 246
Cash 2,623
Total Equity Value 24,703

FCFE based June-22 target price (PKR/share) 13.8

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited
A look at Pakistan’s coal consumption Jun 03, 2021

In the last five years, Pakistan coal consumption has grown from mere 8.7mn tons in Pakistan coal demand & supply- seaborne trade
FY15 to 25.7mn tons consumption in FY20. The radical shift in the coal demand
continue to dominate consumption basket
witnessed after installation of 4,620MW coal-based power projects under the umbrella
30.0
of CPEC. At the same time, another major chunk of growth was seen from the cement
25.7
sector, where sector consumption recorded at 10.2mn tons in FY19 compared to 3.5mn
25.0
tons in FY15. During this period, the cement industry expanded its capacity from 46mn in 21.1
FY15 to 56mn tons in FY19, reflecting new capacity addition of 10.38mn tons.
20.0 18.0

Out of the total coal imported in the country during FY20, PIBTL handled 53% of the 15.0
volume due to availability of IPPs own jetties. Contrary to the last 5-year growth in coal 11.2
consumption due to the power sector, we believe that country’s coal consumption would 10.0 8.7 9.0
be driven by the cement sector more profoundly once local & imported coal-based
power projects are completed. 5.0

PIBTL sector wise coal handling demand-Mn tons 0.0

16.0 14.0 14.5 FY15 FY16 FY17 FY18 FY19 FY20E
13.6 Unit: Mn Tons
14.0 12.0 Local coal Land route imports Seaborne imports Total demand
12.0 10.2
10.0 8.6 Source: IIS Research, Energy year book, PBS
8.0
6.0
4.0
2.0
0.0
FY20 FY21E FY22E FY23E FY24E FY25E

Cement Power Textile Chemical Trader Others Total

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited
Demand outlook suggests capacity to exhaust in FY22 Jun 03, 2021

The uptick in coal handling demand in FY21 on the back of resumption in economic
activities indicates terminal capacity exhaustion in the next two years. During 2QFY21,
Industry wise volume handled in FY20
PIBTL has already achieved 98% coal terminal utilization (2.95mn tons). After 6%
incorporating 3.34mn cargo in 4QFY21 (based on the vessel schedule up to June 15, 6% CEMENT
2021), full-year coal handling is expected to reach 10.5mn tons (88% utilization). POWER
8%
TRADER
Currently, capacity utilization is largely driven by the demand push from the cement Coal handled TEXTILE
industry. The cement sector constituted 55% of the company’s total handled volumes in 7%
~8.6mn tons
CHEMICAL
FY20. Post Covid-19 lockdown, the cement sector's pent-up demand resulted in a 19% 55%
YoY increase in cement offtake in 10MFY21. Foreseeing the exhaustion of current OTHERS
capacity, the local cement industry has announced 22mn tons of capacity expansion
18%
which is likely to come online in FY24. This additional cement capacity is expected to
result in 3.3mn additional coal demand by FY24 (PIBTL can cater 1.5mn tons out of this).

Another major quantum of demand (2.2mn tons) is expected to materialize from the
commissioning of the Lucky Electric power plant in FY22. Coincided with the demand
push from the local cement industry, terminal capacity of 12mn tons is likely to exhaust
in FY22, hinting towards capacity expansion in the near term.
Cement Industry Coal Demand FY20 FY21E FY22E FY23E FY24E FY25E Lucky Electric Power plant will add further 2.2mn tons in FY23
Cement Industry Capacity-mn tons 65.6 71.1 71.1 76.3 93.0 93.0 Plant Capacity-MW 660
Cement dispatches 47.8 57.8 63.6 68.0 72.8 77.9 Plant efficiency 39%
Cement industry utilization 73% 81% 89% 89% 78% 84% Plant Heat rate-btu/kwh 8,749
Estimated Coal Demand from Cement 10.4 12.6 13.9 14.8 15.9 17.0 Coal heating value-btu/kg 22,860
PIBTL coal handling-Cement 4.7 5.7 6.3 6.8 7.2 7.7 Coal req. per unit-kg 0.38
PIBTL share in cement coal demand 46% 46% 46% 46% 46% 46% Coal Req-Mn tons 2.2
Incremental volumes potential vs FY21 0.6 1.0 1.5 2.0

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited
Expansion to add PKR2.5/share to the valuation Jun 03, 2021

In view of the terminal capacity exhaustion in the near term, the possibility of capacity Capacity expansion layout assumptions
expansion cannot be ruled out. Recently, company has also booked PKR 9.2bn surplus of Capacity expansion 4 Mn Ton
revaluation of assets in 3QFY21 which has strengthened the balance sheet further, hinting Capex 60Mn USD
towards capacity expansion. Currently, terminal coal handling capacity can be extended up to
Year FY22
16mn tons by incurring USD 50-60mn CAPEX. As per our discussions with the management, the
CAPEX financing in PKR Mn 9,672
majority of CAPEX will be incurred for equipment purchase. We have estimated this expansion
Equity (%) 25%
to add PKR 2.5/share to the company value.
Equity 2,418
Debt (%) 75%
Lucky Electric Power plant is expected to use terminal for four years: After getting generation
license based on imported coal as a primary fuel source in 2016, Lucky Electric applied for a Debt 7,254
modification in the license due to change in primary fuel from imported coal to Thar coal (as Debt to Assets after new debt 37%
directed by PPIB) which was duly accepted by NEPRA. Mark up rate K+3%
Tenure (Semi annual) 10
Considering the COD & expansion timeline of SECMC Phase I & Phase II, the third phase is likely Source: IIS Research
to take a minimum of four years for development along with the transport infrastructure to
Port Qasim from Thar. As per our channel checks, multiple requests filed by Lucky Electric for
developing their jetty at Port Qasim have not been entertained by the PQA.

SECMC Phase-II SECMC Phase-III

SECMC Phase-I
COD: Sep-22 COD: N/A
COD: July-19
Plants: Thal Plants: Siddique
Plants: Engro
Nova, Thar Sons Energy,
Thar Power
Energy Lucky Electric

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited
Healthy cashflows would enable dividends payout from FY23 Jun 03, 2021

Due to a major turnaround in PIBTL's earnings this year on the back of higher utilization, PICT payout history CY15 CY16 CY17 CY18 CY19 CY20
EPS 23 25 26 20 20 24
the company's free cash flows to equity is expected to turn positive in FY21. However, DPS 27 27.5 23.8 17.6 18 25
due to likely expansion in sight, we have assumed a dividend payout in FY23 of PKR Payout (%) 120% 109% 93% 90% 92% 102%
0.75/share (i.e., 60% payout).

PIBTL is likely to follow the path of PICT in terms of dividend payout: Pakistan Loans Obtained by PICT Last installment year USD Mn
IFC- Loan A 2013 8
International Containers Terminal Limited (PICT) comes under the umbrella of the IFC- Loan B 2014 2
Marine Group of Companies (sponsors of PIBTL). The company is operating in the IFC- II & III Loan 2015 14
country since 2002 with 21 years concessionary period granted by the Karachi Port Trust. IFC- Loan IV 2018 10
OFID- Loan I 2013 8
Through different foreign lenders, the company had obtained USD 53mn financing for its OFID- Loan II & III 2015 9
project. After 13 years of operations, the company had paid 75% of its total outstanding OFID- Loan IV 2018 3
debt. Resultantly, a healthy payout has been witnessed since CY15. Total 53

PIBTL FCFE/share
Loans Obtained by PIBTL Last installment year USD Mn PKR Mn
1.4 IFC 2027 27
1.3
OFID 2027 26
1.2 1.2 Term financing facility 2029 3,900
1.0 1.0 Musharka financing 2028 3,300
Total 53 7,200
0.8 0.8 Source: IIS Research, company accounts

0.6

0.4 0.4

0.2

- (0.0)
FY20 FY21E FY22E FY23E FY24E FY25E
(0.2)

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited
Inclusion in Islamic index could lead to a re-rating Jun 03, 2021

Sharia Compliant criteria PIBTL position by the end of FY21

Listing in Islamic Index could lead to bull run: After achieving debt to
Interest bearing debt to Total Assets <37% 24%
total Assets ratio of 33% by the end of 3QFY21, the company is all set to Non-compliant investments to Total Assets <33% 0%
be listed under PSX-KMI All Share Index, which comprises all Sharia- Non-compliant income to Total Revenue <5% 0.73%
compliant companies. This listing could lead to a bull run for company Illiquid Assets to Total Assets >25% 88%
stock price in the short run.
Net Liquid Assets/Share < Market Price/Share (6.2)
Free float should be atleast 5% of the total ostanding shares 50%
Ban on Cement/Clinker exports from Karachi Port Trust can be an
upside trigger: As a part of the agreement between Port Qasim & PIBTL,
the company has set up 4mn capacity for cement/clinker exports. This PIBTL Coal Tariff Break up- USD/Ton
capacity remains idle due to the availability of competitive terminal
rates at Karachi Port Trust. Our channel checks suggest that KPT charges
around PKR 350/ton for cement/clinker exports, whereas PIBTL charges 0.2
USD 5.70/ton tariff (PKR 872/ton). The primary reason behind Vessel Handling Tariff-Ship 1.0
to Shore
uncompetitive rates of PIBTL is PQA royalty of USD 2.27/ton (PKR
347/ton). However, the possibility of cement/clinker exports from KPT PQA Royalty charges
Tariff ~ USD
cannot be ruled out, considering the same happened with the coal 6.7/ton 3.2
Ancillary service
imports ban by the Supreme Court of Pakistan in 2018.
Misscellanous charges 2.3
In addition to this, Karachi Port congestion remains a major impediment
in cement/clinker exports, with food imports taking priority in berthing.
This congestion results in 5-7 days of ship discharge which can be
reduced to 1-1.5 days upon using the PIBTL terminal.

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited
Company Background Jun 03, 2021

Pakistan International Bulk Terminal Limited was established in Pakistan on March 22nd, Shareholding Pattern Stake
2010 as a public limited company. The company entered into Build, Operate, & Transfer Marine Group of Companies 50.7%
agreement with the Port Qasim Authority in Nov-10 for 30 years for 12mn & 4mn coal International Finance Corporation 9.5%
and cement handling, respectively. Jahangir Siddiqui Co. Limited 7.1%
Others 32.7%
No. of shares (mn) 1,786
Construction work on the terminal started in 2012 with an initially envisaged amount of
As on June 30th, 2020
USD 175mn and expected COD of 2015 having a total capacity of 12mn tons cargo
handling (coal, cement & clinker). Later on, COD extended to 2017 due to the addition of
4mn capacity with CAPEX increasing to USD 283mn. In the final phase of the project, due
to the installation of additional equipment for automation, COD was delayed further to
finally being achieved on July 3rd, 2017, by incurring ~USD 300mn CAPEX. This increase
in CAPEX caused a burden for the company in its initial years due to higher debt and
depreciation, and led to two right issues.

Supreme Court decision proved to be a game changer for PIBTL: Capacity utilization at
the terminal remained substantially low after achieving COD, with FY18 utilization
recording at 23%. Coal handling at Karachi Port Trust remained a fundamental reason
behind such low utilization of the terminal. However, citing environmental concerns, the
Supreme Court of Pakistan has completely banned imported coal handling at Karachi
Port Trust in June-18. Following this decision, terminal utilization swiftly shoots up, and
PIBTL recorded capacity utilization of 73% in FY19.

Sponsor details: Marine group of companies is one the largest & the most diversified
cargo handling and logistics group operating in the country since 1964. Among nine
companies of the group, two of them are listed on PSX, i.e., PIBTL & PICT.

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited
Financial Snapshot Jun 03, 2021

PIBTL Key ratios FY18 FY19 FY20 FY21E FY22E FY23E FY24E FY25E FY26E FY27E FY28E FY29E FY30E
EPS (1.8) (1.3) 0.6 1.2 0.9 1.1 1.3 1.5 1.7 1.9 2.1 2.3 2.4
DPS - - - - - 0.8 0.8 1.0 1.0 1.3 1.5 2.3 2.8
EBITDA/Ton-PKR (259) 61 466 493 415 447 476 502 531 561 593 625 660
EBITDA/Ton-USD (2.4) 0.4 2.9 3.1 2.6 2.7 2.8 2.8 2.9 2.9 3.0 3.0 3.0
Gross margin -42% 28% 32% 31% 32% 33% 33% 34% 34% 35% 36% 36% 37%
ROE -19% -19% 9% 12% 7% 8% 9% 10% 10% 11% 12% 12% 12%
ROA -9% -8% 4% 6% 4% 5% 6% 7% 8% 9% 10% 11% 11%
Depreciation per share-net of tax 0.6 0.7 0.5 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7
FCFE per share (1.0) (1.5) (0.0) 0.4 0.8 1.0 1.2 1.3 1.5 1.6 1.8 2.7 3.2
Debt to Asset 46% 51% 48% 31% 27% 23% 19% 15% 11% 6% 1% 0% 0%
Debt to Assets ex islamic financing 35% 41% 38% 24% 21% 18% 15% 12% 8% 5% 1% 0% 0%
EV/EBITDA (45.3) 66.4 8.4 6.0 5.6 4.6 3.9 3.3 2.7 2.1 1.6 1.2 0.9
Coal handled-mn tons 2.7 8.6 8.6 10.5 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0
Utilization 23% 71% 72% 88% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Income Statement -PKR mn FY18 FY19 FY20 FY21E FY22E FY23E FY24E FY25E FY26E FY27E FY28E FY29E FY30E
Sales 8,004 9,459 11,234 12,670 13,294 13,895 14,523 15,179 15,865 16,583 17,332 18,115 18,934
Gross Profit (817) 2,232 3,049 3,499 4,027 4,327 4,618 4,903 5,220 5,551 5,898 6,261 6,638
Operating Profit (1,132) 1,805 2,560 2,991 3,464 3,722 3,968 4,203 4,466 4,737 5,020 5,313 5,614
Exchange (loss)/gain (264) (2,749) (159) 610 (209) (181) (150) (116) (80) (40) - - -
Finance cost 1,265 1,823 1,126 965 778 690 555 416 272 124 30 - -
PBT (3,214) (2,531) 1,646 2,710 2,351 2,837 3,320 3,773 4,263 4,774 5,249 5,666 6,083
PAT (2,635) (2,404) 1,144 2,192 1,669 2,014 2,357 2,679 3,027 3,389 3,727 4,023 4,319

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited
Financial Snapshot Jun 03, 2021

Balance Sheet-PKR mn FY18 FY19 FY20 FY21E FY22E FY23E FY24E FY25E FY26E FY27E FY28E FY29E FY30E
Fixed Assets 27,754 27,209 26,254 33,793 32,531 31,249 29,949 28,629 27,290 25,931 24,552 23,152 21,732
Current Assets 1,404 2,695 3,414 4,534 5,805 7,658 8,464 9,543 10,468 11,695 12,829 15,127 16,904
Total Assets 29,158 29,904 29,668 38,327 38,336 38,907 38,412 38,173 37,758 37,627 37,381 38,279 38,636
Non-Current Liabilities 12,476 13,652 12,410 12,485 10,947 9,392 7,765 6,062 4,277 2,486 1,986 1,986 1,986
Current Liabilities 4,360 3,407 3,263 3,105 2,983 3,096 3,211 3,335 3,463 3,520 2,281 1,835 1,891
Total Liabilities 16,836 17,059 15,673 15,590 13,930 12,488 10,976 9,397 7,741 6,006 4,267 3,821 3,877
Share capital 14,860 17,861 17,861 17,861 17,861 17,861 17,861 17,861 17,861 17,861 17,861 17,861 17,861
Accumulated Profit (2,538) (5,016) (3,866) (1,578) 91 2,105 3,123 4,462 5,703 7,306 8,801 10,144 10,444
Total Shareholder's equity 12,322 12,845 13,995 16,283 17,952 19,966 20,984 22,323 23,564 25,167 26,661 28,005 28,305

Free cash flow statement-PKR mn FY18 FY19 FY20 FY21E FY22E FY23E FY24E FY25E FY26E FY27E FY28E FY29E FY30E
Cash flow from operations 510 (329) 1,303 2,788 3,729 4,008 4,320 4,611 4,919 5,241 5,537 5,832 6,127
Capex (2,875) (444) (521) (539) (569) (550) (531) (512) (492) (473) (452) (432) (411)
Add: Interest expense 898 1,295 799 965 778 690 555 416 272 124 30 - -
Free cash flows to Firm (1,467) 521 1,581 3,214 3,938 4,148 4,344 4,514 4,698 4,893 5,115 5,400 5,716
Less: Interest expense (898) (1,295) (799) (965) (778) (690) (555) (416) (272) (124) (30) - -
Change in borrowings 602 (1,955) (785) (1,534) (1,782) (1,668) (1,705) (1,743) (1,783) (1,824) (1,791) (500) -
Free cash flows to Equity holders (1,762) (2,728) (3) 715 1,378 1,789 2,084 2,355 2,644 2,944 3,294 4,900 5,716

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited REP-092

Jun 03, 2021

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Ismail Iqbal Securities (Pvt.) Limited does not warrant the timeliness, sequence, accuracy or completeness of this information. In no event will Ismail Iqbal Securities
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associates or their close relatives might have financial interests in the security(ies) mentioned in this report, including a significant financial interest (1% of the
value of the securities of the subject company). IISPL is doing business, or seeking to to do business, with the company(ies) mentioned in this report, and therefore
receives/has received/intending to receive compensation from these company(ies) in a non-research capacity.
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Recommendations are based on the following conditions:
Rating criteria Stance
(Target Price/Current Price - 1) > 10% Positive
(Target Price/Current Price - 1) < -10% Negative
9% > (Target Price/Current Price -1) > -9% Neutral
Investors should carefully read the definitions of all rating used within every research report. In addition, research reports carry an analyst’s independent view and
investors should ensure careful reading of the entire research reports and not infer its contents from the rating ascribed by the analyst. Ratings should not be used or
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Valuation Methodology
To arrive at our period end target prices, IISPL uses different valuation methadologies including
Discounted cash flow (DCF, DDM)
Relative Valuation (P/E, P/B, P/S etc.)
Equity & Asset return based methodologies (EVA, Residual Income etc.)
Analyst Disclaimer
The author(s) of this report hereby certifiies that this report accurately reflects her/his/their own independent opinions and views as of the time this report went
into publication and that no part of her/his/their compensation was, is or will be affected by the recommendation(s) in this report.
The research analyst or any of her/his/their 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 their close relatives 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 her/his/their close relatives have not traded in the subject security in the past 7 days and
will not trade for 5 days post publication of the report.

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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Initiation: Pakistan International Bulk Terminal Limited REP-092

Jun 03, 2021

Contact Us
Branch Office:
C-132 (B), Miran Mohammed Shah Road,
KDA Scheme 1, Karachi, Pakistan

Stock Exchange Office:

407 Karachi Stock Exchange Building
Stock Exchange Road, Karachi, Pakistan

Executives
Ahfaz Mustafa Chief Executive Officer (92-21) 3430 2182-4 Ext: 101 ahfaz.mustafa@ismailiqbal.com

Equity Research Team

Fahad Rauf Head of Research (92-21) 3432 0375 fahad.rauf@ismailiqbal.com
Ajay Kumar Research Analyst (92-21) 3430 2184 Ext: 403 ajay.kumar@ismailiqbal.com
Abdullah Umer Research Analyst (92-21) 3430 2184 Ext: 406 abdullah.umer@ismailiqbal.com
Talha Idrees Research Analyst (92-21) 3430 2184 Ext: 407 talha.idrees@ismailiqbal.com
Muqeet Naeem Research Analyst (92-21) 3430 2184 Ext: 405 muqeet.naeem@ismailiqbal.com
Osama Polani Research Analyst (92-21) 3430 2184 Ext: 405 osama.polani@ismailiqbal.com
Equity Sales Team
Nazim Abdul Muttalib EVP– Head of Broking (92-21) 3430 2176 nazim.silat@ismailiqbal.com
Jawwad Aboobakar EVP– Head of Business Development (92-21) 3430 2177 jawwad@ismailiqbal.com
Azfar Bin Aman EVP - Head of Sales (92-21) 3430 2173-9 azfar@ismailiqbal.com
Fakhar Z. Khan VP Sales (92-21) 3246 1659 fzkhan@ismailiqbal.com
Muhammad Umair VP Sales (92-21) 3430 2173-9 m.umair@ismailiqbal.com
Adnan Hussain Equity Dealer (92-21) 3430 2173-9 adnan.hussain@ismailiqbal.com

Abdullah Umer abdullah.umer@ismailiqbal.com Phone: (+92-21) 34302184, Ext 406

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