Forecast for the Year 2019 - pbil.com.bd Report/Investment O… · 4 Snippets from 2018 • DSEX fell from 6244 points to 5385 points, a fall of 14% YoY in 2018 against rise of 24%

2

Forecast for the Year 2019

After a lackluster year in 2018, the market is bound to come back strongly in 2019 as apprehension of political uncertainty that

prevails throughout the year 2018 will no longer dent investors’ confidence. Historically, after held of an acceptable national elec-

tion, market usually reacts very positively not only in Bangladesh but also in most of the countries in the sub-continent specially

when market passes depressing time a year before. Bangladeshi stock market saw major leap after the conduction of National

Election as on average 19.82% yearly return observed in the last 5 elections.

Investors’ confidence and sentiment are expected to remain very bullish in 2019 amid some macro-economic challenges such as

rising interest rate and apprehension of further depreciation of BDT against Dollar.

Bangladesh Bank has planned to contain its inflation to 5.5 % and inflation in December’18 has been dropped to 5.35%. Prices

of crude oil has recently fallen from $86 per bbl to $50.6 per bbl. From January- November’2018, private sector credit growth

was 14.7% against 18.63% in the corresponding period of the previous year. This year appetite for taking loan would be higher

compared to last year. Strong remittance, relatively higher balance of Trade compared to the first half of 2018 might ease some

of the macro challenges . Moreover, we expect FDI to flow in Bangladesh in this year in bulk amount (for example, Japanese in-

vestment in Meghna Economic Zone) . In addition, we expect rate of Sanchaypatra to be rationalized (reduction of Sanchaypatra

by 100-200 basis points).

The equity market of Bangladesh is very small as its Market Cap to GDP ratio stood at only 14.60% which is even lower than

that of SriLanka 17.23% the smallest market in Asia. Bangladesh equity market is attractive to the foreign investor as it has zero

correlation with other stock markets that offers diversification benefits. The correlation with domestic macro factors such as

money supply and private credit growth is relatively high. We believe that our market has the potential to provide structural long

term growth opportunity for the potential investors.

Investors should focus on companies driven by good quality management and also having high earnings growth as well as rea-

sonable valuation. Then stock return may mimic earnings growth.

Considering the macro challenges, investors’ sentiments, earnings growth of the listed companies and current valuation multiple

of our market, we believe that DSEX will hover around 6000 point towards the end of the year implying an upside around

12.96%. According to our estimates, in bull case, base case and bear case the DSE market index might be ended up at 6300,

6100 and 5800 points. We are also optimistic about the average daily turnover of DSEX will be increased from BDT 551 cr to

BDT 650 cr in 2019. Returns to be based on both earnings growth and PE expansion. We expect earnings to show double digit

growth in 2019 which will be mainly led by the banking sector.

3

5279

5540

5405

5549

5841

5597

5966

5888

6128

5200

5400

5600

5800

6000

6200

6400

DecNovOctSeptAugustJulyJuneMayAprilMarchFebJan

Monetary Policy Statemnet for Jan-Jun'18 (Jan 30)

ADR ratio decreased (Feb 04)

Begum Zia arrested (Feb 08)

50% of public funds can be deposited in

banks/NBFIs (Mar 31)

BB lowers CRR rate (Apr 04)

Monetary Policy Statement for July -Dec'18 (Jun 28)

DSE suspends trading of KPCL (Nov 8)

Chinese consortium signs strategic parnership deal ( May 14) PM attends Silver Jubilee of BSEC

Eventful 2018 in DSEX Trendline

4

Snippets from 2018

• DSEX fell from 6244 points to 5385 points, a fall of 14% YoY in 2018 against rise of 24% YoY in the previous year. DSEX is

now being traded at 15.12 P/E, 1.79 P/NAVPS and 11.84% ROE at the end of the year 2018.

• Average Daily Turnover (ADTV) fell from 8748.38 BDT million in 2017 to 5510.90 BDT million in 2018 representing a fall of

37% YoY. Last 5 years’ average daily Turnover was 5,684 BDT million.

• Among the different sectors present, Engineering recorded the highest overall turnover for the year, amounting to 217.28

BDT billion (17.24 % of total Turnover) followed by Textile with 199.60 BDT billion ( 15.84% of total Turnover ) and Pharma-

ceuticals and Chemicals with BDT 148.94 BDT billion ( 11.82% of total Turnover).

• Telecom sector suffered the most in terms of market capitalization as it decreased by 22.04% followed by Cement sector with

a decrease of 18.84%. Life Insurance Sector gained the most, as market capitalization increased by 40.10% followed by Fuel

and Power with 23.42%.

• Net Foreign sale was BDT 5.93 billion (BDT 44.96 Bn purchase against sale of BDT 50.90 billion). Foreign Turnover as per-

centage of DSE was 3.59% in 2018 against 2.64% in 2017.

• As on 31st December 2018, the foreign investment in the listed companies of DSE was 221.80 BDT billion which is roughly

6.84% of total market capitalization. Sponsor’s, Institution’s and Public holdings were 55.64%, 14.62% and 18.61% respec-

tively.

• Eleven new companies and one mutual funds entered the market in 2018, raising a total capital of 5,810 BDT million. First

day average IPO return was 221%.

• Exchange rate for USD vs BDT at the end of current year was 83.9 as against 82.7 at the end of the previous year; BDT lost

1.45% value comparted to USD.

• Weighted Average Call Money Rate for the year ended on December, 2018 was 4.61% as compared to the previous year of

2017 December of 3.77%

• Average inflation rate over the twelve months was 5.55%, and on a point to point basis it was 5.35%.

5

Shareholders % of Equity Market Cap. Equity Market Cap. (BDT bn)

Sponsor 55.64% 1804.35

Government 4.30% 139.33

Institution 14.62% 473.97

Foreign 6.84% 221.80

Public 18.61% 603.49

Total 100.00% 3242.94

Free Float 40.06% 1299.26

4003.12

4993.79

4227.04

4944.28

8748.38

5510.9

2013 2014 2015 2016 2017 2018

Average Daily Turnover (mn)

Market Parameters

17.71

17.79

15.05

16.37

14.49

2014 2015 2016 2017 2018

Mkt Cap. to GDP (%)

15.07

17.77

15.23

14.29

17.28

15.12

2013 2014 2015 2016 2017 2018

Market P/E

6

Engineering17%

Textile16%

Pharma & Chem12%

Fuel & Power11%

Bank10%

Miscellaneous7%

NBFI5%

Food & Allied4%

IT Sector3%

Tannery2%

Ceramics2%

Life Insurance2%

Telecom2%

Travel & Leisure2%

Cement2%

Insurance1%

Paper & Printing1%

Services1%

Mutual Funds1%

Jute1%

2018 TURNOVER

Sectoral Market Turnover

Bank18%

Telecom16%

Pharma & Chem15%Fuel & Power

13%

Food & Allied9%

NBFI6%

Engineering5%

Textile4%

Miscellaneous3%

Cement3%

Life Insurance2%

Insurance1%

Mutual Funds1%

Tannery1%

Ceramics1%

Travel & Leisure1%

Services1%

Paper & Printing1%

IT Sector1%

Jute0%

MARKET CAPITALIZATION

Sectoral Market Capitalization

Sectoral Turnover & Market Capitalization

Sector Mkt Cap (mn) %

Bank 567,378 17.7%

Telecom 502,116 15.7%

Pharma & Chem 472,623 14.8%

Fuel & Power 431,168 13.5%

Food & Allied 274,797 8.6%

NBFI 186,102 5.8%

Engineering 176,866 5.5%

Textile 125,744 3.9%

Miscellaneous 105,095 3.3%

Cement 98,982 3.1%

Life Insurance 58,520 1.8%

Insurance 39,822 1.2%

Mutual Funds 33,860 1.1%

Tannery 26,642 0.8%

Ceramics 25,679 0.8%

Travel & Leisure 20,996 0.7%

Services 17,372 0.5%

Paper & Printing 17,707 0.6%

IT Sector 16,229 0.5%

Jute 4,644 0.1%

Total 3,202,341 100%

Sector Turnover (mn) %

Engineering 217,282 17.24%

Textile 199,600 15.84%

Pharma & Chem 148,941 11.82%

Fuel & Power 138,846 11.02%

Bank 123,860 9.83%

Miscellaneous 82,332 6.53%

NBFI 58,997 4.68%

Food & Allied 52,035 4.13%

IT Sector 36,774 2.92%

Tannery 28,162 2.23%

Ceramics 27,623 2.19%

Life Insurance 27,173 2.16%

Telecom 23,818 1.89%

Travel & Leisure 20,882 1.66%

Cement 19,525 1.55%

Insurance 13,714 1.09%

Paper & Printing 12,854 1.02%

Services 10,223 0.81%

Mutual Funds 10,016 0.79%

Jute 7,414 0.59%

Total 1,260,072 100%

7

6,900 BDT million was raised through IPO & Rights Issue

Initial Public Offering in 2018

Sl. Ticker Issue Size (mn BDT)

Issue Price

Price at Opening Day

Opening Day Return %

Price at Year End

YTD Return %

1 KTL 340 10 24.4 144% 25.3 4%

2 IBP 200 10 44.3 343% 31.1 -30%

3 SILVAPHL 300 10 29 190% 30.1 4%

4 MLDYEING 200 10 24.2 142% 29.7 23%

5 VFSTDL 220 10 30.7 207% 57.8 88%

6 SKTRIMS 300 10 40.9 309% 46.3 13%

7 INTRACO 300 10 43.6 336% 26.8 -39%

8 ADVENT 200 10 48.4 384% 40.9 -15%

9 QUEENSOUTH 150 10 32.5 225% 38.1 17%

10 ACFL 800 40 74.3 86% 42.1 -43%

11 BPML 2000 80 130.8 64% 83.8 -36%

Average 221% -1%

10,534 9,894

10,375

9,094

4,424

5,810

2013 2014 2015 2016 2017 2018

IPO Issue Size

20.63

0

3.66

12.73

1.09

2014 2015 2016 2017 2018

Rights Share Issued in 2018 (BDT bn)

Rights Shar Offering in 2018

Name Rights

Offer Ratio Offer Price

(Tk.) Pre Record Date Price

Post Record Date Price

Year End Price

YTD Return

Amount Raised in mn. (Tk.)

ALIF 1R:1 10 20.9 16.1 9.1 -37.83% 1,093.97

A total of 11 new companies and one mutual fund was enlisted on the

DSEX in 2018. Among those, two of them were registered through book

building method.

Amount of capital raised through Initial public offering was 5,810 BDT

million against 4,424 BDT million in 2017.

In 2018,1.09 BDT billion capital was raised compared to that 12.73BDT

billion in 2017 in right share offerings.

*Adjusted for Bonus dividend

9

5

98

10

89

21

2

2014 2015 2016 2017 2018

IPO (Fixed Price v Book Building)

Fixed Price Bookbuilding

8

Currently there are 36 close ended mutual funds being traded on the Dhaka

Stock Exchange, with 9 Asset Management Companies (AMC) managing

those funds. Among the nine companies, Race manages the most number

close-ended mutual funds, 10.

One new closed ended funds was introduced during year, CAPMIBBLMF

managed by CAPMBD. On the other hand, ICB2NDNRB managed by ICB was

terminated as it completed it’s tenure.

Close Ended funds are being trading at a discount of -43.44% to its Mkt NAV

-0.61

-0.60

-0.60

-0.60

-0.60

-0.59

-0.58

-0.56

-0.54

-0.38

-0.36

-0.35

-0.35

-0.35

-0.34

-0.33

-0.31

-0.29

-0.29

-0.29

-0.28

-0.27

-0.27

-0.26

-0.26

-0.26

-0.26

-0.24

-0.24

-0.20

-0.19

-0.12

-0.11

-0.10

-0.09

-0.06

IF IC1STMF

POPULAR1MF

FBF IF

ABB1STMF

PHPMF1

TRUSTB1MF

1JANATAMF

EBLNRBMF

EXIM1STMF

NCCBLMF1

SEMLLECMF

MBL1STMF

LRGLOBMF1

VAMLBDMF1

GRAMEENS2

CAPMBDBLMF

GREENDELMF

PF1STMF

VAMLRBBF

EBL1STMF

RELIANCE1

DBH1STMF

ICB3RDNRB

ICBAMCL2ND

ICBAGRAN I1

AIBL1ST IMF

ICBEPMF1S1

ATCSLGF

PR IME1ICBA

ICBSONALI1

IF ILISLMF1

SEMLIBBLS F

SEBL1STMF

NLI1STMF

CAPM IBBLMF

1STPR IMFMF

MFS (TR

AD

ING

AT A

PR

EMIU

M/(D

ISCO

UN

T) RELA

TIVE TO

ITS MK

T NA

V)

AMCL No. of Close End-

ed Funds Market Share%

Race 10 51.29%

LRGlobal 6 16.73%

ICB 9 10.08%

AIMs 2 7.24%

VIPB 2 3.60%

VAML 2 4.89%

AT-Cap 1 1.34%

CAPMBD 2 2.10%

SEML 2 2.72%

Total 36 100%

Open Ended55%

Close Ended45%

Open Ended v Close Ended

9

Ticker Sector Price Total Turnover

(bn) % contribution

to DSE turnover ADT* (mn)

Year End Return

EPS (trailing)

NAV per share

PE (trailing)

Price/NAV ROE

KPCL Fuel & Power 59.3 37.41 2.8% 154.58 11.50% 6.31 26.2 9.40 2.26 24.08%

UPGDCL Fuel & Power 290.7 37.10 2.8% 153.31 92.62% 12.54 40.8 23.18 7.13 30.74%

BBSCABLES Engineering 96.3 28.35 2.1% 117.17 4.77% 9.77 19.17 9.86 5.02 50.97%

IFADAUTOS Engineering 108.4 27.01 2.0% 111.60 -5.37% 7.66 38.61 14.15 2.81 19.84%

SQURPHARMA Pharma & Chem 254.2 25.08 1.9% 103.63 -9.88% 15.94 71.47 15.95 3.56 22.30%

BEXIMCO Miscellaneous 23.5 24.88 1.9% 102.83 -8.61% 1.59 76.25 14.78 0.31 2.09%

GP Telecom 367.3 21.54 1.6% 89.00 -21.98% 23.75 26.01 15.47 14.12 91.31%

MONNOCERA Ceramics 245.6 21.44 1.6% 88.58 255.94% 4.92 94.32 49.92 2.60 5.22%

BRACBANK Bank 72.7 20.10 1.5% 83.07 -16.17% 5.2 31.1 13.98 2.34 16.72%

DSSL Textile 20.5 18.40 1.4% 76.03 43.86% 2.62 21.95 7.82 0.93 11.94%

ACTIVEFINE Pharma & Chem 28.20 16.84 1.3% 69.58 -3.86% 4.23 24.45 6.67 1.15 17.30%

PTL Textile 65.9 16.14 1.2% 66.70 57.62% 2.39 21.28 27.57 3.10 11.23%

AIL Engineering 63.7 14.29 1.1% 59.03 -51.00% 4.36 24.14 14.61 2.64 18.06%

LANKABAFIN NBFI 22.9 13.55 1.0% 55.98 -48.50% 2.93 26.16 7.82 0.88 11.20%

PHARMAID Pharma & Chem 594.6 12.87 1.0% 53.19 42.15% 15.91 49.53 37.37 12.00 32.12%

WMSHIPYARD Engineering 19.9 12.50 0.9% 51.67 -18.50% 2.65 33.02 7.51 0.60 8.03%

SUMITPOWER Fuel & Power 39.4 12.44 0.9% 51.39 9.75% 4.76 31.22 8.28 1.26 15.25%

NAHEEACP Engineering 58.4 12.28 0.9% 50.73 -12.48% 3.26 15.34 17.91 3.81 21.25%

LEGACYFOOT Tannery 189.8 11.73 0.9% 48.48 289.07% 3.66 18.75 51.86 10.12 19.52%

FORTUNE Tannery 31 11.57 0.9% 47.81 -10.20% 2.14 15.24 14.49 2.03 14.04%

Top 20 Turnover Securities

*ADT: Average Daily Turnover

10

Foreigners were in selling mode in the most part of 2018

Most the regional markets ended lower from where they

started the year, one of the primary reasons beings the in-

creasing tensions between China and United States with

their terms of trade.

36,076 34,056

26,626 26,160 27,887 37,066

42,523

47,881

33,228 32,731

25,504 29,919

22,000 21,914 23,857

2,494 3,307 3,104 3,539 3,234

7,239 11,040 10,177

12,664 11,014

20182017201620152014

Last Five Year's Index Movement of Peers

SENSEX (Bombay) KSE (Karachi)

Hang Seng (Hong Kong) SSE Composite (Shanghai)

-13.93% -14.76%-12.83%

5.93%

-24.59%

-34.43%

DSEX (Dhaka)Hang Seng

(Hong Kong) KSE (Karachi)SENSEX

(Bombay)

SSEComposite(Shanghai)

SZSEComponent(Shenzhen)

Index Return in 2018

The DSEX, HANG SENG, KSE, SSE Composite, SZE Compo-

nent fell by 13.93%, 14.76% 12.83%, 24.59% and 34.43% re-

spectively in 2018; however, the SENEX gained 5.93% during

the same financial period.

Source: Google finance, yahoo finance Source: Google finance, yahoo finance

66

7

39

2

45

6 50

3

34

2

44

7

41

2

17

6

24

8

28

3

32

4

24

7

44

96

48

0

48

7

29

9 52

8

62

4

65

3

44

5

18

2

21

2

48

4

34

6

34

9

50

90

18

7

-95

15

7

-25

-28

2

-20

6

-33 -6

35

-20

1 -23

-10

2

-59

3

Jan

'18

Fe

b'1

8

Ma

r'1

8

Ap

r'1

8

Ma

y'1

8

Jun

'18

Jul'

18

Au

g'1

8

Se

p'1

8

Oct

'18

No

v'1

8

De

c'1

8

YT

D'1

8

Foreign Trade (cr)

Buy Sell Net Investment

Being positive after seven consecutive years , net foreign in-

vestment dipped to negative Tk. 593.47 cr. in 2018. Foreign-

ers bought Tk 4496.24 cr. worth of shares against their share

sales worth of Tk 5089.71 cr. Sharp fall in the DSEX Index,

political uncertainties in election year, depreciation of the Taka

against the US dollar, and irregularities in countries financial

sector influenced the foreign investors to adopt a “wait and

see approach” . In 2019, foreign investment in the country’s

premier bourse was positive only for three months i.e. Janu-

ary, March and September. Foreign Turnover as percentage of

DSE was 3.59% in 2018

11

Regulatory Changes Small & Medium Enterprises to be listed in DSE

According to the new rules, with the introduction of

Small Capital Board, a company can apply for initial

public offering (IPO) if it has a minimum existing paid-up

capital of Tk5 crore, and intends to raise its paid-up cap-

ital by at least Tk5 crore through Qualified Investor Offer

(QIO), and if after QIO its paid-up capital stands below

Tk30 crore.

DSE signs strategic partnership agreement with

Chinese consortium

The Dhaka Stock Exchange (DSE) agreed to sell 25% of

its ordinary shares to a Chinese consortium comprised of

the Shanghai Stock Exchange (SSE) and Shenzhen Stock

Exchange (SZSE). The consortium will hold 25% - equiv-

alent to 450,944,125 ordinary shares - of DSE at Tk21

each in order to partner with the bourse.

50pc of public funds can be deposited in pvt banks

and NBFIs

BB has instructed all the banks to comply with a finance

ministry notification on pulling deposit from government,

semi-government and autonomous entities’ by the private

banks and non-bank financial institutions. In addition,,

private banks and NBFIs would also get the same portion

from annual development program fund that has been

allocated to the entities from the government.

BB cuts banks’ Cash Reserve Requirement

The central bank slashed the cash reserve requirement

(CRR) by 1.0 percentage point to 5.50 per cent, enabling

all the scheduled banks to use Tk 101 billion worth of

additional fund. According to the latest decision, the ex-

isting repo interest rate of the central bank will come

down to 6.00 per cent from the existing level of 6.75 per

cent while the reverse repo rate will remain unchanged at

4.75 per cent

Bangladesh Bank cuts loan-deposit ratio 1.5%

Advance-to-deposit ratio (ADR) for conventional banks

has been fixed at 83.5% instead of the existing 85%,

while investment deposit ratio (IDR) for shariah-

compliant Islamic banks has been set at 89% instead of

the current 90%.

Corporate Governance Code 2018

The Bangladesh Securities and Exchange Commission

(BSEC) issued the corporate governance guideline in

2006, made it mandatory in 2013 and reissued it under

the name “corporate governance code” on June 3, 2018.

13

5.8 6

6.5

6.3

6 6.3 6.

8 7.2 7.4

7.3

7.1

7

2000

-09

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2023

Real GDP (annual % change)

Aver

ag

Forecast

5.6

9.4

11.5

6.2 7.

5

7 6.2

5.7

5.6 6 6.1

5.5

2000

-09

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2023

Inflation ( % )

Aver

ag

Forecast

Bangladesh: A Country with Enormous Growth Potential

Bangladesh 2003 2008 2013 2018 2019 2023 2028 2033

GDP, local currency bn (constant price) 4,143 5,612 7,520 10,557 11,306 14,820 20,786 29,153

GDP, USD bn (constant prices) 83 111 171 280 300 396 553 773

GDP, USD bn (current prices) 63 97 161 286 314 446 685 1,054

Rank 53 60 59 43 41 36 27 24

Source: World Economic Outlook, October 2018, IMF

Source: World Economic League Table, Centre for Economics and Business Research (CEBR)

According to the CEBR Bangladesh Economy is currently the

41st largest in the world and 2nd among the South Asian

Country. By 2033 , Bangladesh economy is expected to be-

come the 24th largest economy in the world.

The growth story of Bangladesh has been accoladed by

many investments banks, analysts, notable economists

and business communities. As forecasted by IMF, we

can safely say that Bangladesh will continue its momen-

tum in GDP growth rate of above 7% at least for the next

few years.

Our resilient economy will be buoyed by the mega infra-

structural work, remittance, export growth, demographic

dividend and many more.

Source: World Economic Outlook, October 2018, IMF

102 115 129 133 150 173 195221

250284

5.05 5.

57 6.46

6.52

6.01

6.06 6.

55 7.11

7.28 7.

86

0

2

4

6

8

10

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

0

50

100

150

200

250

300

GDP Growth Rate (%) vs GDP (bn)

GDP (current USBN$) GDP growth (annual %)

Source: Bangladesh Bank

14

Private sector credit growth hit 26 months’ low

The world Bent crude oil market was unstable throughout

the year. In Jan’18 Bent Crude Oil price was $67.8 per bbl.

Then it went up by 37% from the lows of the start of the

year in February to all the way to $86 per bbl before facing

correction of 40% towards the end of December. The fall of

crude oil price is positive for the economy of Bangladesh.

Looking forward to 2019, USA & Russia are expected to

produce more than KSA. Therefore, supply is expected to

be higher than the demand which may keep the bent crude

oil price lower in the coming year.

67.8

66.1 69.0 75

.9

76.5

77.4

74.2 76.9 82

.7

74.8

57.7

50.6

Jan-

18

Feb-

18

Mar

-18

Apr-

18

May

-18

Jun-

18

Jul-1

8

Aug-

18

Sep-

18

Oct

-18

Nov

-18

Dec-

18

Crude Oil Price ($ per Barrel)

The total projected budget size of 2018-19 is Tk 464,573 cr of

which Tk 305,928 (65.85%) cr will be collected from tax reve-

nue and Tk 33,352 (7.18%) cr will be collected from non-tax

revenue whereas the rest of Tk 125,293 (26.97%) cr is project-

ed to be the budget deficit.

Of the projected budget deficit amount, Tk 54,067 (43.2%)

crore will be financed from external sources while an amount

of Tk 71,226 (56.8)%crore will be financed from domestic

sources i.e.

From domestic sources, TK 42,029 (59%) crore will be bor-

rowed from the banking system and TK 29,197 (41%) crore

from National Savings Schemes and other non-bank sources

while Govt. collected Tk 46,530 (45% higher than projected

amt.) cr from NSC against and borrowed Tk 5,666 (79.91%

lower of projected amt.) cr from the banking channel in FY 17-

18.

Private Sector Credit Growth

18.4

%

18.5

%

18.0

%

17.7

%

17.6

%

16.9

%

15.9

%

14.9

%

14.7

%

14.7

%

Jan'

18

Feb'

18

Mar

'18

Apr'1

8

May

'18

jun'

18

jul'1

8

Aug'

18

Sep'

18

Oct

'18

Private Credit Growth ( Y-o-Y %)

In FY2018-19 Private sector credit growth is downward

sloping since the beginning of the year and hit 26 months

low in Sep’18, mainly due to political uncertainties in elec-

tion year, liquidity crisis in the banking sector, adjustment

of AD ratio and depreciation in of Taka against USD. From

18.4% in Jan’18, Private sector credit growth dropped to

14.7% on Y-o-Y basis in Oct’18 which is 2.1% lower from

the BB’s target of 16.8% for the first-half of the FY2018-19.

Bank Borrowings

Crude Oil

15

From July’18-Sep’18 total export was $9940 mn of which

71.5%% from RMG, 2.2% from Jute manufactures, 2.0%

from Leather and Leather manufactures, 1.3% from fish,

shrimp & prawns,1.2% from home textile, 16.5% from

EPZ export and rest 5.4% is from other sectors.

In FY 2018– 2019, From Jul’18-Sep’18 total import was

$13271 mn which consists of 21.0% of textile and textile

articles , 16.7% of machinery and appliances, 13.1% of

Mineral products, 7.4% of base metals,6.9% of chemical

products,6.9% vehicles and transport equipment, 6.9%

from EPZ and rest 21.5% is from other sectors.

Source: Bangladesh Bank Source: Bangladesh Bank

Foreign Exchange Rate remains volatile

Source: Bangladesh Bank

71.4

%

2.2%

1.3%

2.0%

1.2%

16.5

%

5.4%

RMG Jute &Jute

Manufactures

Fish,Shrimps and

Prawns

Leatherand Leather

Manufactures

HomeTextile

Export fromEPZ

Other

Export by Product (Jul-Sep 2018)

21.0

%

16.7

%

13.1

%

7.4%

6.9%

6.5%

21.5

%

6.9%

Textiles &textilearticles

Machinaryand

Appliances

Mineralproducts

Base metalsand articles

of basemetal

Chemicalproducts

Vehicles &transport

equipment.

other Import fromEPZ

Import by Product (Jul-Sep 2018)

Country 2017 2018 % ∆

Bangladesh (BDT) 82.7 83.9 1.45%

India (INR) 63.85 69.87 9.43%

Pakistan (PKR) 110.65 139.84 26.38%

Srilanka (LKR) 153.5 183 19.22%

The foreign exchange market was volatile most part of

2018 because of the amid high import expenditure and

low export earnings. As on Dec’2018, exchange rate of

(BDT/USD) was Tk 83.9 per dollar which is 1.45% higher

than that of the previous year. In 2019 the USD is further

expected to be stronger against BDT .

There was no significant change in foreign exchange re-

serve throughout 2018. The average Foreign Exchange

reserve was 32.4 Bn USD throughout the year.

Exchange Rate

5.1 6.1 7.5

10.7

10.9

10.4 15

.3

21.5 25

.0 30.2 33

.5

32.9

32.0

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

2012

-13

2013

-14

2014

-15

2015

-16

2016

-17

2017

-18

Dec'1

8

Foreign Exchange Reserve (Bn $)

Local Currency Per USD

Sl. Sector Company

1. Bank BRACBANK

2. Bank CITYBANK

3. Bank DUTCHBANGL

4. Cement CONFIDCEM

5. Engineering BBSCABLES

6. Engineering BSRMLTD

7. Engineering SINGERBD

8. Fuel & Power BARKAPOWER

Sl. Sector Company

9. Fuel & Power MJLBD

10. Fuel & Power SUMITPOWER

11 Miscellaneous BERGERPBL

12. Pharmaceuticals ACMELAB

13. Pharmaceuticals BXPHARMA

14. Pharmaceuticals SQURPHARMA

15. Travel & Leisure UNIQUEHRL

Brac Bank Limited

BRACBANK January 7, 2019

MARKET PROFILE INVESTMENT RATIONALE Net Interest Income (Mn)

52W Range 63.00-108.40

Script BRACBANK • One of the top notch governed banks in Bangladesh; Sponsored by the largest

NGO BRAC and 40.57% foreign holding.

• BRACKBANKs Non-Performing loan (NPL) ratio is in decreasing trend. From the

year 2013 to 2017, NPL gradually decreased from 6.5% to 3.6%.

• BRACKBANKs cost of fund has declined significantly from 8.10% in 2013 to 5.70% in

2017. This enables the bank to have higher net interst income.

• As on Dec'18 its interest rate spread is 7.2% which is also higher than any other

listed banks after Dutch-Bangla bank. Though pressure from regulator to reduce

interest rate spread might take a toll on net interest income of BRACKBANK.

•It has manged to maintain a steady growth in Operating Profit and Net Profit After

Tax (NPAT) since 2013. The 5 year CAGR of Operating Profit and NPAT of BRACBANK

is 11.75% and 51.06% respectively. However as on Sep'18 the YoY growth of

operating Profit and NPAT growth is -1.9% and 0.85% which is expected to bounce

backin 2019.

• BRACBANK holds 51% equity shares of BKash Ltd. Till Sep’2018, Bkash contribution

in Brac Bank’s profit is 4.82%. In first 9 months,earnings of Bkash has declined by

47.22% on YoY basis is a major concern. However, AliPay has purchased total of 20%

share of Bkash which will help Bkash to improve strategically and tecnically.

• BRACBANK has been suffering for its ailing subsidiary BRAC EPL Investment Ltd. It

had already taken hit in 2017 and 2018, as market turn around this would impacted

positively in the bottom-line of BBL.

Sector BANK

Category A

Market Price 75.80

NAVPS 31.10

Price/Nav (Times) 2.44

1Yr ADTV (mn)

Dividend Yield 0.0% Financial Snapshoots at a Glance [Amount in BDT. Mn]

Trailing EPS 4.87 Net Profit After Tax (Mn)

Trailing PE 15.56

12M Return -16.17%

No of Share (Mn) 1,072.50

OPERATING PROFIT (Mn)Paid Up Cap (Mn) 10,725.00

Year End Dec 2017 2016 2015 2014

83

Market Cap (Mn) 81,295.50

Free Float (%) 55.70%

Sponsor (%) 44.30%

KEY FINANCIAL RATIOS' Interest Income 21,734 18,310 17,700 17,254

Net Interest Inc. 13,533 11,721 9,504 8,440 Net Interest Margin 7.1%

Investment Inc. 2,915 2,558 2,496 2,486 Loan to Dep. Ratio 83.4%

NPL (%) Operating Profit 9,422 8,611 7,121 6,590

Yield on Advance 11.5%

Gross NPL Ratio 3.6%

CAR 12.0%

Loans & Advance 203,431 175,841 149,934

NPAT 5,498 4,076 2,340 2,037

124,300

ROE 22.5% Deposit and Other

Accounts 216,930 181,479 149,548

Total Asset 319,550 268,324 231,602 209,719

YoY Deposit Growth 19.5% Total Liabilities 292,950 246,171 211,412 190,468

146,366 ROA 1.9%

YoY Advance Growth 15.7%

NIM 7.1% 7.2% 6.9% 7.1%

EPS 6.07 4.55 3.28 3.08

Cost of Fund (%)SHAREHOLDING (%) CASA 54.7% 54.0% 58.4% 57.5%

Sponsor/Director 44.30 YOY loan Growth 15.7% 17.3% 20.6% 4.0%

Government -

Institute 8.68 YOY Deposit

Growth 19.5% 21.4% 2.2%

Foreign 40.57

Year Cash Stock

15.5%

2013 10.0% 10.0%2014 20.0% 0.0%

Public 6.45

PRICE AND VOLUMEDIVIDEND HISTORY

Year EPS PAYOUT

2015 25.0% 0.0%CAR

2016 10.0% 20.0%

2013 3.20 31%2014 3.08 65%

2017 0.0% 25.0%

DIVIDEND PAYOUT

2017 6.07 0% Source: PBIL and PBSL Research

17

2015 3.28 76%2016 4.55 22%

7,3

37

8,4

40

9,5

04 1

1,7

21

13

,53

3

2013 2014 2015 2016 2017

NII

5,6

87

6,5

90

7,1

21 8

,61

1

9,4

22

2013 2014 2015 2016 2017

Operating Profit

6.5

%

6.0

%

5.9

%

3.4

%

3.6

%

2013 2014 2015 2016 2017

NPL

1,3

39 2,0

37

2,3

40

4,0

76

5,4

98

2013 2014 2015 2016 2017

NPAT

8.1

%

7.4

%

6.6

%

5.3

%

5.7

%

2013 2014 2015 2016 2017

Cost of Fund

11

.3%

14

.7%

12

.2%

12

.3%

12

.7%

2013 2014 2015 2016 2017

CAR %

City Bank Limited

CITYBANK January 7, 2019


52W Range 28.30-48.70

Script CITYBANK • IFC bought 5% stake of City Bank at a price of BDT 28.30 with around BDT 131cr. in 2017. Currently, their costing is around BDT 26.95 considering 5% stock.

Being IFC in the Board, City Bank is emerging as a one of the better governed

banks in the banking Sector.• CITYBANK holds 23.21% share (87,510,575 share) of IDLC Finance . IDLC is

being traded at Tk 74.50 and declared 30% cash dividend in 2017.

• The 5 year CAGR of NPAT of CITYBANK is 34.22%. However in 2018 the

bank’s earnings have been depressed but it is expected to rebound as liquidity

situation will be eased in post-election period. • In Q3’18 consolidated Loan portfolio grew by 17.96 % from Dec’17 where as

Deposit growth was 20.05% from Dec’17 in spite of prevailing liquidity crisis

and intense competition of deposit collection throughout the year.

• Non-Performing Loan (NPL) ratio is in decreasing trend. From the year 2013

to 2017, NPL gradually decreased from 8.1% to 5.4%. We assume it will bereduced further in future.

•CITYBANKs Cost of Fund has declined significantly from 7.0% in 2013 to 4.1%in 2017.

• CITYBANK has a strong capital base with a Capital Adequacy Ratio (CAR) of14.7% against the Basel-III requirement of 10%.

Sector BANK

Category A

Market Price 31.70

NAVPS 28.40


1Yr ADTV (mn)



Trailing PE 10.21

12M Return -40.39%

No of Share (Mn) 967.99


Year End Dec 2017 2016 2015 2014

46



Sponsor (%) 30.29%




NPL (%)Operating Profit 6,802 7,721 6,769 4,866



CAR 12.71%

Loans & Advance 196,596 175,025 143,015

NPAT 3,458 4,004 3,593 1,706

116,490

ROE 13.65%Deposit and Other

Accounts 183,492 174,695 143,505

Total Asset 275,531 254,776 214,205 176,925

YoY Deposit Growth 4.86%Total Liabilities 250,662 234,123 21,136 15,976

118,442 ROA 1.29%


NIM 4.0% 4.1% 4.2% 4.9%

EPS 3.90 4.70 4.10 2.50

Cost of Fund (%)SHAREHOLDING (%) CASA 35.1% 34.0% 36.0% 31.5%

Sponsor/Director 30.29%YOY loan Growth 11.9% 23.1% 22.8% 28.2%

Government 0.00%

Institute 21.89% YOY Deposit

Growth4.9% 21.6% 21.1%

Foreign 12.43%

Year Cash Stock

10.6%

2013 0.0% 20.0%2014 0.0% 5.0%

Public 35.39%


Year EPS PAYOUT

2015 22.0% 0.0%CAR

2016 24.0% 0.0%

2013 0.71 0%2014 1.95 0%

2017 19.0% 5.0%

DIVIDEND PAYOUT


18

2015 4.10 54%2016 4.70 51%

4,8

00

5,0

58

5,4

05 6

,51

1 7,5

39

2013 2014 2015 2016 2017

NII

3,9

55 4,8

66

6,7

69 7,7

21

6,8

02

2013 2014 2015 2016 2017

Operating Profit

8.1

%

5.9

%

7.6

%

6.0

%

5.4

%

2013 2014 2015 2016 2017

NPL

49

0

1,7

06

3,5

93 4,0

04

3,4

59

2013 2014 2015 2016 2017

NPAT

7.0

%

6.3

%

5.9

%

4.8

%

4.1

%

2013 2014 2015 2016 2017

Cost of Fund

10

.6%

14

.3%

13

.2%

13

.2%

14

.7%

2013 2014 2015 2016 2017

CAR %


19

2015 15.10 26%2016 11.00 27%

2013 12.30 33%2014 8.90 45%

2017 30.0% 0.0%

DIVIDEND PAYOUT

Year EPS PAYOUT

2015 40.0% 0.0%CAR

2016 30.0% 0.0%

2013 40.0% 0.0%2014 40.0% 0.0%

Public 8.32


Year Cash Stock

14.8%Institute 4.55 YOY Deposit

Growth12.8% 11.0% 12.0%

Foreign 0.13

SHAREHOLDING (%) CASA 69.1% 66.8% 63.2% 60.7%

Sponsor/Director 87.00 YOY loan Growth 19.5% 13.9% 22.4% 16.9%

Government -

Cost of Fund (%)


NIM 6.0% 612.0% 7.6% 7.2%

EPS 12.28 8.88 15.10 11.00

YoY Deposit Growth 12.80%Total Liabilities 292,425 247,125 227,303 201,476

166,762 ROA 0.80%

ROE 13.20%Deposit and Other

Accounts 233,796 207,234 186,765

Total Asset 311,907 264,797 244,058 215,994


CAR 14.50%

Loans & Advance 207,257 173,398 152,270

NPAT 2,455 1,775 3,020 2,206

124,423


NPL (%)Operating Profit 5,684 5,522 6,434 5,324




2,000.00

Year End Dec 2017 2016 2015 2014

10.98



Sponsor (%) 87.00%



Trailing PE 9.40

12M Return -5.68%


OPERATING PROFIT (Mn)Paid Up Cap (Mn)

Dutch-Bangla Bank Limited

DUTCHBANGL January 7, 2019


52W Range 109 - 155.7

Script DUTCHBANGL • As per our analysis, CASA ratio (current deposit and savings deposit relative to total deposit) of DUTCHBANGL is 69.1% is one of the highest amongst the local

banks.

• Net Interest Income has grown singnificantly from 7337 mn in 2013 to 11,489 mn in 2017. As on Sep'18, YoY growth of Net Interest Income is 29.0%

• Interest rate spread is 7.5% is the highest among the listed banks of capital

market.

•As on Sep'18 DUTCHBANGL has a Net Interest Margin is 6.7% which is also

higher than any other banks after Brac bank. •Instead of liquidity crisis and intense competetion, as on Sep'18” YoY growth

of operating profit and NPAT of DUTCHBANGL is 17.7% and 29% respectively.

• DUTCHBANGL does not have any exposure in the stock market. Therefore,

stock market volatility has no effect on their bottom line. Besides, compared to

other banks its investment income is also less volatile. • Cost of Fund is in decreasing trend. From the year 2013 to 2017, Cost of Fund

gradually decreased from 10.9% to 6.9%.• DUTCHBANGL has a strong capital base with a Capital Adequacy Ratio (CAR)

of 14.5% against the Basel-III requirement of 10%.•The sponsor holding of 87% is highest amongst the privately listed banks.

Sector BANK

Category A

Market Price 143.90

NAVPS 97.41


1Yr ADTV

7,3

37

8,3

34 9,7

88

9,9

64 11

,48

9

2013 2014 2015 2016 2017

NII

4,5

84 5,3

24 6

,43

4

5,5

22

5,6

84

2013 2014 2015 2016 2017

Operating Profit

3.9

% 4.4

%

3.7

%

5.2

%

4.7

%

2013 2014 2015 2016 2017

NPL

2,0

01

2,2

06

3,0

20

1,7

75

2,4

55

2013 2014 2015 2016 2017

NPAT

10

.9%

9.3

%

8.1

%

7.3

%

6.9

%

2013 2014 2015 2016 2017

Cost of Fund

13

.7%

13

.8%

13

.7%

13

.1%

14

.5%

2013 2014 2015 2016 2017

CAR %

Baraka Power Limited

BARKAPOWER January 7, 2019

MARKET PROFILE INVESTMENT RATIONALE REVENUE (Mn)


Script BARKAPOWER Apart from its two ongoing power plants (Baraka Power Ltd and Baraka Patenga Power Ltd)

Baraka Power Limited aggregately holds 46.01% of Baraka Shaikalbaha Power Limited, (a 105

MW powerplant with proportionate ownership of 48.31 MW) and 51.01% of Karnaphuli

Power Limited (a 110 MW powerplant with proportionate ownership of 56.11 MW) and the

prospective date of operation of these power plants are within the year 2019. Both of the

plants are HFO (Heavy Furnace Oil) based IPP power plants and have been granted contract

tenure for 15 years from the commercial operation date (COD). The status of the existing

power plants is as follows:

Sector Fuel & Power

Category A

Market Price 31.10

52W Range

Market Cap (Mn) 6,844

Free Float (%) 81.99

Sponsor (%) 18.01

26.2 - 37.2


Therefore, Baraka Power Limited's total power generation capacity would stand at

180 MW. This would represent an increase of 137% from their existing capacity.

Assuming usual delay in commercial date of operation, we can safely expect that this

power generation would increase the profitability of Baraka Power from the period

of Q1,2018-19.

Trailing EPS 1.77 GROSS PROFIT (Mn)

Trailing PE 17.57

12M Return -15.95%

NAVPS 20.87 *As per DSE News, the expected date of commercial operation of Baraka Shikalbaha Power

and Karnaphuli Power were Nov’18 and May’19. We expect that the power plants will be

under commercial operation within September,2019. Price/Nav (Times) 1.49

1Yr ADTV 632,653


Year End June 2018 2017 2016 2015

Gross Profit 1,100.2 1,115.1 1,121.7 1,042.1 5Y Revenue CAGR 23%

KEY FINANCIAL RATIOS Revenue 3,580.3 3,485.5 2,960.3 3,844.1

5Y NPAT CAGR 6%

Total Asset 10,173.8 8,779.5 8,254.3

NET PROFIT (Mn)Net Profit 349.7 610.6 579.4 568.2

Op. Profit 854.9 988.4 966.6 868.5 5Y Op. Profit CAGR 20%

8,341.6 Gross Margin 31%

Total Debt 4,518.10 3,928.54 4,042.98 4,590.35 Operating Margin 24%

ROE 7.5% 14.2% 14.4% 15.8%ROE 8%

Debt/Equity 97.4% 91.3% 100.6% 127.3%Net Profit Margin 10%

27.1%

Debt to Equity Ratio 97%Operating Margin 23.9% 28.4% 32.7% 22.6%

ROA 3%Gross Margin 30.7% 32.0% 37.9%

PAT Margin 9.8% 17.5%

103.2%Foreign -

19.6% 14.8% ROESHAREHOLDING (%)

Public 50.72


-23.0% 144.3%Government -

Institute 31.27 YoY PAT Gr. -42.7% 5.4% 2.0%

Sponsor/Director 18.01 YoY Revenue Gr. 2.7% 17.7%

2015 8.0% 8.0%2016 15.0% 5.0%

Year Cash Stock

2014 0.0% 17.0%

DIVIDEND PAYOUT

Year EPS PAYOUT

2014 1.63 0%

DEBT/EQUITY2017 5.0% 15.0%2018 10.0% 0.0%

Source: PBIL and PBSL Research

20

2017 2.29 22%2018 1.75 57%

2015 2.56 31%2016 2.52 60%

1,573

3,844

2,960

3,485 3,580

2014 2015 2016 2017 2018

413

868

967 988

855

2014 2015 2016 2017 2018

280

568 579611

350

2014 2015 2016 2017 2018

517

1,0421,122 1,115 1,100

2014 2015 2016 2017 2018

9%

16%14% 14%

8%

2014 2015 2016 2017 2018

147%127%

101%91% 97%

2014 2015 2016 2017 2018

Plant Name Ownership Capacity (MW) Entitle to

Baraka Power (MW)

Fuel Type

Baraka Power Limited 100.00% 51 51.00 Gas

Baraka Patenga Power Limited 50.00% 50 25.00 HFO

Baraka Shikalbaha Power Limited 46.01% 105 48.31 HFO

Karnaphuli Power Limited 51.01% 110 56.11 HFO

Unique Hotel & Resorts Limited

UNIQUEHRL January 7, 2019


Script UNIQUEHRL Unique Hotel & Resorts owns The Westin Dhaka -the pioneer of Five Star hotel in the private sector of

Bangladesh. Its hotel business is carried out through a Management Contract between Unique

Hotel & Resorts Ltd (the Owner) and J.W. Marriott International (the operator). HANSA (a premium

star premium hotel) at Uttara which was inaugurated on March 12, 2018. This new addition of hotel

hospitality and higher hotel occupency rate thanks to political calmness in 2019 will be expected to

drive the bottomline of the company.

The soft opening of the Sheraton Dhaka Banani Hotel is expected at the end of 2019 . The operator of

this hotel will be Marriott International and the interior design has been developed as per the guideline

& compliance of J.W. Marriott International. This hotel is being built with the proceeds of its IPO fund

collected in 2012. The other ongoing projects of the Company are Hyatt Centric Dhaka Hotel at

Gulshan, St. Regis Hotel & Serviced Apartment (7 Star Hotel) (First in Bangladesh) at South Park which is

adjacent to the Westin Dhaka. The implementation of this project may act as the key driver for

generating revenue for the company in coming year.

In order to diversify its business, the company has entered into power generation business. A

consortium involving Unique Hotel was granted the permission to build a 600 MW power plant of Gas

or Re-gasified Liquified Natural Gas at Meghnaghat of Narayanganj. The company owns 65.01%

shareholding in the power plant along with Guayama PR Holding (30%) and Startegic Finance Ltd

(4.99%) and thus 390 MW of power will be added to Unique Hotel. The consortium will sale electricity

at 2.9538/unit (if run by gas) or at 5.4478/unit (if run by LNG). The company will set up necessary

transmission lines and sub-stations at its own cost. After successful completion of the first phase 600

MW project, the consortium will go for the second phase 600 MW capacity power project.

Other proposed important project is Sonargaon Economic Zone Limited (SEZL) at Meghnaghat,

Sonargaon, Narayangong, World Trade Center Dhaka and Sonargaon Economic Zone Ltd. (SEZL).

Sector Travel & Leisure

Category A

Market Price 54.30

52W Range 50.1 - 63.4

OPERATING PROFIT (Mn)Paid Up Cap (Mn)

GROSS PROFIT (Mn)

Trailing PE 26.49

Dividend Yield 3.7%Financial Snapshoots at a Glance [Amount in BDT. Mn]


702,926

Free Float (%)

2,944.00

Market Cap (Mn) 15985.9

Year End June 2018 2017 2016 2015

12M Return -3.72%

54.33

Sponsor (%) 45.67

NAVPS 88.82


1Yr ADTV

Trailing EPS 2.05



5Y NPAT CAGR -13%

Total Asset 32,158.9 32,155.7 29,749.6


Op. Profit 1,010.8 821.6 997.5 1,160.6 5Y Op. Profit CAGR 0%


Total Debt 3,828.04 3,383.19 1,559.63 591.69 Operating Margin 50%

ROE 2.3% 2.0% 2.4% 3.7%ROE 2%


79.7%


ROA 2%Gross Margin 75.9% 75.7% 77.1%


-5.1%Foreign 1.37



Institute 29.88 YoY PAT Gr. 11.7% -15.8% -34.5%

Sponsor/Director 45.67 YoY Revenue Gr. 21.4% -13.6%

Year Cash Stock

2014 0.0% 0.0%

Public 23.08


DEBT/EQUITY2017 20.0% 0.0%2018 22.0% 0.0%

2015 0.0% 0.0%2016 22.0% 0.0%

DIVIDEND PAYOUT

Year EPS PAYOUT

2014 3.44 0%


21

2017 1.80 111%2018 2.01 109%

2015 3.27 0%2016 2.14 103%

1,9242,123

1,942

1,677

2,036

2014 2015 2016 2017 2018

1,004

1,161

998

822

1,011

2014 2015 2016 2017 2018

1,014963

631

531593

2014 2015 2016 2017 2018

1,521

1,692

1,496

1,270

1,545

2014 2015 2016 2017 2018

4%4%

2%2%

2%

2014 2015 2016 2017 2018

2% 2%

6%

13%15%

2014 2015 2016 2017 2018

Beximco Pharmaceuticals Ltd.

BXPHARMA January 7, 2019


1.27




Sponsor (%) 13.19

NAVPS 66.78

Price/Nav (Times)

The Company has already invested around USD 128 million to expand itsproduction capacity and upgrade its existing production facilities. The projects

include Unit III Oral Solids, Semi Solids and Liquid facilities at Tongi site. Once

operational the Unit III facility will have an annual capacity of about 5 billionsolid-dose tablets, capsules and sachets; 70 million semi-solid units, including

creams, ointments, liquid sachets and lotions; and

130 million large- and small-volume bottles of liquid formulations. human

insulin facility is now ready and commercial launch is expected by Q1 of 2019.

New API Unit II - manifacturing facility of API, will also be expected to becompleted soon to sourcing partial requirement of raw materials.

Beximco Pharma acquired 85.22% stake in Nuvista Pharmaceutical in which is a

good strategic fit for the the acquirer as the later has strong position in

hormones and steroid drugs. Beximco Pharma is expected to capitalize thesynergy dervied from the acquisition in coming years.

The Company hasa growing and visible presence in US drug markets with

six products approved by the USFDA and 4 of them being exported. Exportsnow make 8.5% of overall sales which registered 37% YoY growth in 22

countries including USA and Canada in 2017-18.



Script BXPHARMA

Sector

52W Range 71.5 - 112

Pharmaceuticals

Category A

Market Price 84.90

1Yr ADTV 353,935

2016 2015

Trailing PE 14.74

12M Return -18.91%


Year End June 2018 2017



5Y NPAT CAGR 13%

Total Asset 43,738.9 34,084.1 31,148.9

NET PROFIT (Mn)Net Profit 2,532.7 2,226.7 1,965.4 1,954.3

Op. Profit 4,026.2 3,448.2 2,972.2 2,851.3 5Y Op. Profit CAGR 14%



ROE 9.3% 8.9% 8.5% 8.7%ROE 9%


46.3%


ROA 6%Gross Margin 46.8% 46.3% 46.1%


27.9%Foreign 38.14


Public 17.04


3.0% 15.7%Government -

Institute 31.63 YoY PAT Gr. 13.7% 13.3% 0.6%


2015 0.0% 0.0%2016 15.0% 5.0%

Year Cash Stock

2014 0.0% 5.0%

DIVIDEND PAYOUT

Year EPS PAYOUT

2014 3.96 0%

DEBT/EQUITY2017 12.5% 0.0%2018 12.5% 0.0%


22

2017 5.49 23%2018 6.25 20%

2015 5.06 0%2016 4.85 31%

11,207

12,966 13,356

15,509

17,717

2014 2015 2016 2017 2018

2,418

2,851 2,972

3,448

4,026

2014 2015 2016 2017 2018

1,528

1,954 1,965

2,227

2,533

2014 2015 2016 2017 2018

5,104

6,000 6,156

7,185

8,286

2014 2015 2016 2017 2018

7%

9% 9% 9% 9%

2014 2015 2016 2017 2018

23% 21%19% 18%

41%

2014 2015 2016 2017 2018

Free Float (%)

Square Pharmaceuticals Ltd.

SQURPHARMA January 7, 2019


Script SQURPHARMA

Sector Pharmaceutical

Category A

Market Price 256.80

52W Range 247.9 - 310.96


Trailing PE 17.54

12M Return -10.18%

65.57

Sponsor (%) 34.43

NAVPS 78.41


1Yr ADTV 360,101.58

Significant market size and growth rate provides Square Pharma to grab a

huge portion of pharma market in Kenya. The subsidiary in Kenya provides

Square Pharma the opportunity to serve in 16 countries of Eastern and

Southern Africa. Kenya supplies about 50% of total pharmaceuticals products

in this region.

Square Pharmaceuticals EPZ Kenya has started to build a plant in Nairobi

with an initial investment of USD 25 million. The yearly capacity of plant is

2,000 million tablets and capsules and 60 million bottles of liquid

formulations. According to the company, the expected capacity utilization in

the first year of the plant is 25%. Commercial operation of the plant will

generate BDT 1,030 million in the first year of operation. The commercial

operation of the company is expected to begin in July 2019.

The subsidiary in Kenya provides Square Pharma the opportunity to

serve in 16 countries of Eastern and Southern Africa. Kenya supplies

about 50% of total pharmaceuticals products in this region. The

government of Kenya imposes 0% VAT rate on the revenue of

pharmaceuticals products in Kenya. Square Pharma gets the opportunity to

retain larger portion of their revenue due to this policy.



Market Cap (Mn) 189362 Mn


Year End June 2018 2017 2016 2015



5Y NPAT CAGR 25%

Total Asset 61,273.0 52,531.1 44,303.8




Total Debt - - 2.69 916.29 Operating Margin 31%

ROE 18.1% 19.8% 20.4% 16.7%ROE 18%


44.0%


ROA 17%Gross Margin 49.3% 50.0% 48.4%


22.0%Foreign 16.94


Public 35.88





2015 30.0% 12.5%2016 40.0% 10.0%

Year Cash Stock

2014 0.0% 15.0%

DIVIDEND PAYOUT

Year EPS PAYOUT

2014 8.74 0%

DEBT/EQUITY2017 35.0% 7.5%2018 36.0% 7.0%


23

2017 14.43 24%2018 15.72 23%

2015 8.92 34%2016 10.80 37%

23,26826,685

33,07436,543

39,654

2014 2015 2016 2017 2018

5,968

7,050

10,791

12,296 12,481

2014 2015 2016 2017 2018

4,251

5,186

8,287

9,71910,491

2014 2015 2016 2017 2018

10,30811,742

15,991

18,26819,564

2014 2015 2016 2017 2018

16% 17%

20% 20%18%

2014 2015 2016 2017 2018

7%

3%

0% 0% 0%

2014 2015 2016 2017 2018


24

Being the second largest electrical wires and cable manufacturer ofBangladesh, BBS Cables has shown double-digit bottom-line growth in the last

five years. Thanks to growing demand in power and digitalization of the

country, the company should enjoy sustainable demand growth in years tocome. REB, PDB, DESCO and DESA are some of the key customers of the

company. The company has planned to setting up its Factory Unit 2 using state-

of-the-art technology for producing up to 220 (245) kv Voltage Grade HV/EHV

Power Cables.

Utilizing IPO proceeds and the Company is planning to start the commercial

production from the new machineries with effect by the beginning of year

2019. The current installed annual production capacity of the Company is

16,600 MT as on 30.06.2018 as a result of installing the new machineries, the

annual production will increase by 37% (6,100 MT) that will stand up to 22,700MT (approx.) annually, the value of which is about Tk. 1,200 crore approx.

The company has received “Notification of Award (NOA)” from a power

distribution company and a government owned electricity generation companyamounting BDT 176.27 cr in 2018. It is expected that the company's topline will

be stimulated by the growing demand in electric wire in foreseeable future.

2017 4.12 12%2018 8.08 6%

2015 2.01 0%2016 2.46 0%

DIVIDEND PAYOUT

Year EPS PAYOUT

2014 1.22 0%

DEBT/EQUITY2017 5.0% 15.0%2018 5.0% 15.0%

2015 0.0% 0.0%2016 0.0% 0.0%

Year Cash Stock

2014 0.0% 0.0%

65.2%Foreign 1.02

Public 53.69


-




14.0%

9.5% 8.9% ROE

34.3%


ROA 17%Gross Margin 33.8% 34.0% 34.4%

SHAREHOLDING (%)

21.3%Government


ROE 33.2% 18.0% 14.6% 37.1%ROE 33%


5Y NPAT CAGR 74%

Total Asset 6,446.0 5,560.0 4,481.0

NET PROFIT (Mn)Net Profit 1,114.8 413.3 246.1 201.0

Op. Profit 1,885.7 944.5 680.2 602.1 5Y Op. Profit CAGR 44%


Dividend Yield 0.9%Financial Snapshoots at a Glance [Amount in BDT. Mn]

Year End June 2018 2017 2016 2015

Gross Profit 2,225.4 1,195.5 889.0 778.4 5Y Revenue CAGR 37%


Trailing PE 10.94

12M Return 17.36%

66.94

Sponsor (%) 33.06

NAVPS 27.37


1Yr ADTV 1,197,696



Free Float (%)


Sector Engineering

Category A

Market Price 106.90

52W Range 60.6 - 117.7


BBS Cables Limited

BBSCABLES January 7, 2019


Script BBSCABLES

1,8712,269

2,587

3,517

6,588

2014 2015 2016 2017 2018

440

602680

944

1,886

2014 2015 2016 2017 2018

122201

246

413

1,115

2014 2015 2016 2017 2018

592778

889

1,195

2,225

2014 2015 2016 2017 2018

32%

37%

15%18%

33%

2014 2015 2016 2017 2018

459%

385%

126%100%

72%

2014 2015 2016 2017 2018

Script CONFIDCEM

53.99

OPERATING PROFIT (Mn)Paid Up Cap (Mn) 539.92

2.45

Confidence Cement Ltd.

CONFIDCEM January 7, 2019


29.87

Confidence Cement Limited (CCL) produces two types of cement productsnamely Portland Cement and Portland Composite Cement. Confidence

Cement Limited has holdings in its two aassociates; 25% ownership in

Confidence Power Limited and 49% ownership in Confidence ElectricLimited. Other investment has been made to secure 49% holding in

Confidence Batteries Limited and 51% holding in Joint Venture between

Confidence Cement Limited and Confidence Steel Limited.

Investment in new joint venture between Confidence Cement andConfidence Steel (consisting of aggregated 226 MW Power Plants) will give

a huge boost to its top line and bottom line on a consolidated basis after the

commencement of commercial production which is set to happen in the year

of FY 2019-20 Confidence Cement Limited will be holding ownership of

51% in the new joint venture.

Confidence Cement Limited is expected to invest in the new Power PlantProjects located at Bogra, Rangpur and Chittagong. The power plants, under

Confidence Power Holdings Limited, will produce be 339.54 MW electricity.The Bogra power plants will be 226 MW, Rangpur 113 MW and Chittagong

54.363 MW.

Sector Cement

Category A

Market Price 186.10

52W Range 140.4 - 197.25

No of Share (Mn)



Sponsor (%)

NAVPS 76.00

Price/Nav (Times)

1Yr ADTV 238,325

Year End June 2018 2017 2016 2015

GROSS PROFIT (Mn)

Trailing PE 24.81


12M Return 38.36%

Trailing EPS 7.50

Gross Profit 328.6 635.4 791.0 570.2 5Y Revenue CAGR 2%


326.1 5Y NPAT CAGR 14%

Total Asset 8,200.8 7,724.1

NET PROFIT (Mn)Net Profit 374.2 498.1 459.8

Gross Margin 8% 6,234.7 5,568.0

Op. Profit 37.1 166.4 460.8 411.4 5Y Op. Profit CAGR -46%

Debt/Equity 78.5% 84.3% 59.8% 54.9%

1,702.09 Operating Margin 1%

Net Profit Margin 10%

Total Debt 3,219.53 3,190.23 1,982.98

15.7%ROA 5%Gross Margin 8.4% 17.5%

10.5%ROE 9%

21.9%

ROE 9.1% 13.2% 13.9%

11.3%

9.0% ROE

Sponsor/Director 29.87 YoY Revenue Gr. 7.9% 0.4% -0.6% 0.3%

Debt to Equity Ratio 78%Operating Margin 0.9% 4.6% 12.7%

DEBT/EQUITY2017 15.0% 20.0%

-24.9% 8.3%

PAT Margin 9.6% 13.7% 12.7%

41.0%

SHAREHOLDING (%)

Government -

Institute 27.66 YoY PAT Gr. 49.6%

2014 25.0% 0.0%2015 0.0% 0.0%


Year

2015 7.25 0%

Cash Stock

Foreign -

Public 42.47

2016 37.5% 0.0%

2018 15.0% 20.0%

DIVIDEND PAYOUT

Year EPS PAYOUT

2014 4.85 52%

16%2018 6.93 22% Source: PBIL and PBSL Research

25

2016 7.55 50%2017 9.23

3,626 3,6373,614 3,629

3,917

2014 2015 2016 2017 2018

444411

461

166

37

2014 2015 2016 2017 2018

218

326

460498

374

2014 2015 2016 2017 2018

584 570

791

635

329

2014 2015 2016 2017 2018

8%

11%

14%13%

9%

2014 2015 2016 2017 2018

49%55%

60%

84% 78%

2014 2015 2016 2017 2018

Berger Paints Bangladesh Ltd.

BERGERPBL January 7, 2019


Berger Paints Limited is one of the oldest names in the paint industry and the

country’s major specialty paints business with products and ingredients dating

back more than 250 years. Berger is the market leader in the organized and

industrialized paints and varnishing market having around 55% total market share.

Berger Paints Limited Demonstrate a Revenue CAGR of 17% since last 5 years and

Net Profit After tax CAGR of 19%. Higher Return on Equity (ROE) which is reported

to be more than 27% last year. The Debt to Equity Ratio is very low which

indicating the company has a very little or no degree of financial risk. Since a large

proportion of Berger’s raw materials are imported, changes in currency exchange

rates influence the result of the company’s operations.

Berger Paints Bangladesh Limited has entered into a joint venture agreement with

Fosroc International Limited, United Kingdom, for setting up of a joint venture

company with the name “Berger Fosroc Limited” in Bangladesh for the purpose of

carrying on the business of manufacturing and selling construction chemicals.

Berger Paints Bangladesh Limited has 50% share in the Joint Venture. The joint

venture agreement was signed on January 31, 2018 and Berger Fosroc Limited was

incorporated on 19 April 2018.

52W Range 1111.5 - 1465.8



Script BERGERPBL

Sector Miscellaneous

Category A

Market Price 1,372.50


Free Float (%) 5.00

Sponsor (%) 95.00

NAVPS 284.10

GROSS PROFIT (Mn)

Trailing PE 37.10

12M Return 29.91%


1Yr ADTV 11,891

Trailing EPS 36.99


Year End March 2018 2017 2016 2015



5Y NPAT CAGR 19%

Total Asset 9,642.6 8,952.5 6,683.5




Total Debt 52.60 318.45 1.85 109.36 Operating Margin 15%

ROE 27.1% 33.1% 34.5% 32.2%ROE 27%


40.3%


ROA 19%Gross Margin 45.4% 49.6% 43.7%


27.9%Foreign 1.49


Public 1.74



Institute 1.77 YoY PAT Gr. -6.6% 28.3% 29.7%


2015 370.0% 0.0%2016 0.0% 0.0%

Year Cash Stock

2014 220.0% 0.0%

DIVIDEND PAYOUT

Year EPS PAYOUT

2014 19.40 113%

DEBT/EQUITY2017 600.0% 0.0%2018 200.0% 100.0%


26

2017 41.29 145%2018 38.55 52%

2015 24.82 149%2016 32.19 0%

8,799

10,89312,283

14,649

16,533

2014 2015 2016 2017 2018

1,279

1,605

2,087

2,6122,450

2014 2015 2016 2017 2018

900

1,151

1,493

1,9151,788

2014 2015 2016 2017 2018

3,402

4,392

5,371

7,261 7,505

2014 2015 2016 2017 2018

31% 32%35% 33%

27%

2014 2015 2016 2017 2018

2%

3%

0%

6%

1%

2014 2015 2016 2017 2018


27

BSRM Steel Mills Ltd. an associate of BSRM ltd., which is business of makingbillets, had been incurring losses since its inception till the first two quarters of

year 2017-18. However, since then the company has recorded net profit after

tax in each of the successive quarters. The Y-o-Y sales growth is remarkableeven if with off peak period for the company during the period of July to

September.

The increase in COGS due to the soar of raw material "scrap iron" prices in

globally. The level of debt in the capital structure is higher and the company isusing its net income to pay of its debt. However, GP margin is lingering in a

historically low level, so there is good chance GP margin will increase from

here.

A sound revenue growth is expected. The New Year is expected to be backedby huge construction and development work. The diversified product of the

company (i.e. BSRM ULTIMA) will gain the majority market share of theupcoming development work.

Historical Price Earnings Ratio is higher than the current level of Price earnings

ratio reflecting a possible opportunity to increase price level.

2017 3.53 28%2018 12.95 8%

2015 4.78 10%2016 -

DIVIDEND PAYOUT

Year EPS PAYOUT

2014 0.70 143%

DEBT/EQUITY2017 10.0% 10.0%2018 10.0% 10.0%

2015 5.0% 10.0%2016 0.0% 0.0%

Year Cash Stock

2014 10.0% 0.0%

658.7%Foreign 19.37

Public 21.67


-

Institute 18.02 YoY PAT Gr. 267.3% 28.5% -28.9%



24.5%

6.1% 10.6% ROE

5.9%


ROA 4%Gross Margin 14.5% 13.7% 14.0%

SHAREHOLDING (%)

-3.1%Government


ROE 16.3% 5.5% 5.7% 8.4%ROE 16%


5Y NPAT CAGR 125%

Total Asset 76,596.7 60,609.5 31,725.0

NET PROFIT (Mn)Net Profit 2,778.8 756.5 588.7 827.7

Op. Profit 3,865.0 2,571.9 1,057.8 207.2 5Y Op. Profit CAGR 165%


Gross Profit 4,828.3 3,236.9 1,362.0 458.0 5Y Revenue CAGR 43%


Year End June 2018 2017 2016 2015

12M Return -18.15%



Trailing PE 2.26


Sponsor (%) 40.94

NAVPS 63.70





1Yr ADTV 758,835

Category A

Market Price 31.40

Bangladesh Steel Re-Rolling Mills Limited

BSRMLTD

52W Range 28.7 - 39.09

January 7, 2019


Script BSRMLTD

Sector Engineering

8,050 7,8029,714

23,649

33,238

2014 2015 2016 2017 2018

-66

207

1,058

2,572

3,865

2014 2015 2016 2017 2018

109

828

589757

2,779

2014 2015 2016 2017 2018

188458

1,362

3,237

4,828

2014 2015 2016 2017 2018

1%

8%

6% 6%

16%

2014 2015 2016 2017 2018

118%151%

132%

241%282%

2014 2015 2016 2017 2018

Summit Power Limited

SUMITPOWER January 7, 2019


Market Price 41.00

34 - 49.4

No of Share (Mn) 1,067.88

Script SUMITPOWER

Sector Fuel & Power

Category A


Trailing PE 6.45

12M Return 14.53%

NAVPS 31.26


1Yr ADTV 1,266,919

Summit power being the largest Independent Power Producer (IPP) in the

country, has total generation capacity of 1265.55 MW including all of its

subsidiaries and associates. The company supplies electricity to Bangladesh

Power Development Board (BPDB) and Bangladesh Rural Electrification

Board (BREB).

Today SPL owns and operates 15 (fifteen) power plants in different locations

across the country. SPL plants are equipped with world class engines

manufactured by renowned companies such as Wärtsilä – Finland,

Caterpillar - USA, and GE Jenbacher, Austria.

Currently, out of total 1265.55 MW power plants that Summit Power owns

as subsidiaries and associates, 653.26 MW power plants have direct impact

on the bottomline of the company. Two power plants of Summit Power

Limited namely Gazipur II Power Plant (149 MW) and Gazipur I Power Plant

(300 MW) were commissioned on 10 May, 2018 and 12 July, 2018 which had

combinedly 155.36 MW power generation capacity that entitled to Summit

Power and thus enhanced generation capaicty of 31.2% from Q1,2017-18

compared to corresponding period of the previous year.




Sponsor (%) 63.18

52W Range

Dividend Yield 7.3% Financial Snapshoots at a Glance [Amount in BDT. Mn]Year End June 2018 2017 2016 2015



5Y NPAT CAGR 25%

Total Asset 64,346.0 42,810.0 34,697.1




Total Debt 6,430.00 6,895.00 142.00 642.00 Operating Margin 28%

ROE 15.8% 14.0% 12.7% 8.2%ROE 16%


35.5%


ROA 8%Gross Margin 29.3% 26.9% 28.5%


1.6%Foreign 3.65


Public 15.09





2015 12.0% 6.0%2016 0.0% 0.0%

Year Cash Stock

2014 0.0% 5.0%

DIVIDEND PAYOUT

Year EPS PAYOUT

2014 3.69 0%

DEBT/EQUITY2017 30.0% 0.0%2018 30.0% 0.0%


28

2017 4.00 75%2018 4.40 68%

2015 3.26 37%2016 3.36 0%

6,109

10,01311,427

16,214

18,468

2014 2015 2016 2017 2018

3,312 3,156 3,132

4,178

5,248

2014 2015 2016 2017 2018

2,185 2,219

3,610

4,596

5,274

2014 2015 2016 2017 2018

3,8183,556

3,252

4,365

5,405

2014 2015 2016 2017 2018

9%8%

13%14%

16%

2014 2015 2016 2017 2018

12%

2%1%

21%19%

2014 2015 2016 2017 2018

Singer Bangladesh Limited

SINGERBD January 7, 2019


Script SINGERBD

Sector Engineering

Category A

Market Price 230.70

52W Range 165.2 - 242.2

Key revenue drivers are air conditioner (12.07%), television (21.04%) andhome appliance (56.94%) have experienced a five year sales CAGR of

23.6%, 13.7% and 10.3% respectively. Singer Bangladesh has recorded 49%

sales growth of panel television, 47% sales growth of washing machines, 42%sales growth of refrigerators, 40% sales growth of furniture and 36% sales

growth of air conditioner in 2017. With the future growth of consumer durables

industry, profitability of Singer Bangladesh Limited is likely to increase.

International Appliances Limited, a 73.85% owned associate of SingerBangladesh Limited has started commercial operation in July 2016 with a

production capacity of 250,000 units. Singer Bangladesh Limited has earned

BDT 10 million from this associate in this time. It is expected that the associate

will generate more profit in the future.

Organic demand growth due to the country’s increasing Middle and Affluent

Class (MAC) population coupled with higher disposable income levels will likelyto give a boost to the company’s topline for forseeable future. The revenue is

sensitive to seasonality as Q2 (April-June) and Q3 (July-Sep) likely to showbetter figures while historcially Q1 EPS suffers the most.


Trailing PE 19.60

12M Return 19.66%



Free Float (%)


43.00

Sponsor (%) 57.00

NAVPS 27.32


1Yr ADTV 217,447.97


Year End December 2017 2016 2015 2014



5Y NPAT CAGR 18%

Total Asset 7,071.6 5,700.1 3,652.9


Op. Profit 1,185.3 935.1 597.2 572.1 5Y Op. Profit CAGR 19%



ROE 33.6% 28.1% 26.0% 23.7%ROE 34%


25.3%


ROA 11%Gross Margin 28.2% 28.8% 26.7%


-5.2%Foreign 7.52


Public 20.47





2014 195.0% 25.0%2015 65.0% 0.0%

Year Cash Stock

2013 100.0% 25.0%

DIVIDEND PAYOUT

Year EPS PAYOUT

2013 5.00 200%

DEBT/EQUITY2016 70.0% 0.0%2017 100.0% 0.0%


29

2016 7.12 98%2017 9.79 102%

2014 4.72 413%2015 4.81 135%

6,6057,262 6,911

9,008

11,059

2013 2014 2015 2016 2017

586 572 597

935

1,185

2013 2014 2015 2016 2017

382 362 369

546

746

2013 2014 2015 2016 2017

1,785 1,840 1,843

2,594

3,119

2013 2014 2015 2016 2017

15%

24%26%

28%

34%

2013 2014 2015 2016 2017

1%

94% 92%

127%138%

2013 2014 2015 2016 2017

2016 5.14 117%

Source: PBIL and PBSL Research2017 6.91 65%2018 7.00 64%

DIVIDEND PAYOUT

Year EPS PAYOUT

2014 2.94 0%2015 4.40 0%

2016 60.0% 5.0%DEBT/EQUITY

2017 45.0% 0.0%2018 45.0% 10.0%

Year Cash Stock

2014 0.0% 15.0%2015 0.0% 0.0%

Public 11.45



Institute 16.64 52.5%Foreign 0.38

YoY PAT Gr. 7.8% 7.8% 89.1%

Sponsor/Director 71.53 YoY Revenue Gr. 24.0% -5.0%

ROE

23.3%


ROA

PAT Margin 12.3% 14.1% 12.5% 11.2%SHAREHOLDING (%)

8%Gross Margin 24.6% 30.3% 26.5%

ROE 18.5% 19.1% 20.3% 12.2%ROE 18%

Debt/Equity 66.2% 61.7% 56.8%

2,128.7 1,975.2 1,044.6 5Y NPAT CAGR 35%

Total Asset 30,083.8

75.4%Net Profit Margin 12%

25,288.4 20,211.1

5,532.43 6,459.84 Operating Margin 21%

Total Debt 8,229.84 6,884.75

Year End June 2018 2017 2016 2015

1,785.2 5Y Op. Profit CAGR 33%


Op. Profit 3,862.5 3,330.3 2,964.0

15.40

MJL Bangladesh Limited (MJLBD), a Joint Venture in the downstreampetroleum industry between Jamuna Oil Company Ltd. (owns 19.45%) and EC

Securities Ltd (owns 52.06%), subsidiary of the East Coast Group, was

corporated in 1998.

MJL holds 26% of market share of the lubricant market in Bangladesh. During

the year of 2019 Omera Petroleum (OPL) is expected to double its LPG capacity

to 300,000 MTPA. MJL acquired its second and Bangladesh’s largest

oceangoing Aframax oil-tanker of 107,091 DWT in 2017-18 which would helpaccelerate business momentum.

Omera Petroleum Ltd ( OPL- a 62.50% subsidiary of MJLBD) and Omera

Cylinders Ltd (OCL- a 98.77% subsidiary of MJLBD) are two of the major

subsidiaries of MJLBD which are in growing LPG business which contributed26% to consolidated PBT in 2017-18.

MJLs' aframax oil-tanker was out of operation for 60 days which hamperedrevenue collection from oil tanker business. In 2019 its expected to be in full

operation which aid to continue growth in revenue.

Raw material price of MJL is directly correlated with the oil price. Due toincrease in oil price, MJLs' COGS was higher in last year.

Sponsor (%) 71.53

NAVPS 34.93

OPERATING PROFIT (Mn)


NET PROFIT (Mn)Net Profit


12M Return -1.88%


2,294.0

MJL Bangladesh Limited

MJLBD

Market Price 100.90



Paid Up Cap (Mn) 3,167.52

30

January 7, 2019


52W Range 92.8 - 104.51


Script MJLBD

Sector Fuel & Power

Category A


1Yr ADTV 152,880


Trailing PE

8,1419,350

15,83915,052

18,660

2014 2015 2016 2017 2018

1,221

1,785

2,964

3,330

3,862

2014 2015 2016 2017 2018

685

1,045

1,9752,129

2,294

2014 2015 2016 2017 2018

1,497

2,181

4,1934,558 4,594

2014 2015 2016 2017 2018

9%

12%

20%19% 18%

2014 2015 2016 2017 2018

58%

75%

57%62%

66%

2014 2015 2016 2017 2018


31

2017 6.61 53%2018 6.74 52%

2015 5.70 61%2016 6.55 53%

DIVIDEND PAYOUT

Year EPS PAYOUT

2014 5.65 62%

DEBT/EQUITY2017 35.0% 0.0%2018 35.0% 0.0%

2015 35.0% 0.0%2016 35.0% 0.0%

Year Cash Stock

2014 35.0% 0.0%

Public 29.06






3.1%Foreign 0.79


37.4%


ROA 6%Gross Margin 39.6% 40.8% 38.5%


ROE 11.1% 8.2% 6.7% 8.1%ROE 11%


5Y NPAT CAGR 22%

Total Asset 32,624.2 29,947.2 28,889.7

NET PROFIT (Mn)Net Profit 1,954.8 1,397.9 1,101.3 921.9






Year End June 2018 2017 2016 2015

GROSS PROFIT (Mn)

Trailing PE 13.34

12M Return -23.23%


1Yr ADTV 114,535

Trailing EPS 6.59

Acme Laboratories Limited, one of the leading pharmaceuticals company

engaged in manufacturing and marketing of Generic Pharmaceuticals

Formulations Product both for human and animal. Currently, the

company has 22 categories with 798 different types of product. In

2015-16, the company had launched 50 new different project in both

human and veterinary area.

Two of the projects i.e. Steroid & Hormone and Penicillin will be expected to

be completed within June 2019 utilizing its IPO Proceeds. These would add

new product line to its existing portfolio and strengthen topline of the

company.

The company also planned to establish an Active Pharmaceutical Ingredient

(API) plant within June 2022 which will source the required raw materials for

its pharmaceutical operation. Company has applied for three (03) plots in API

Park in Gazaria, Munshigonj. Allocation of API plot will enable ACMELAB to

produce the API as required by Pharmaceuticals markets. It is expected that

the cost of raw material will decrease when the operation of API Park

initiates.



Sponsor (%) 40.12

NAVPS 83.39



Script ACMELAB

Sector Pharmaceuticals

Category A

Market Price 87.90

52W Range

The ACME Laboratories Limited

ACMELAB January 7, 2019


78.6 - 116.6

10,21811,496

12,64513,576

14,814

2014 2015 2016 2017 2018

1,934

2,3582,542

2,963 3,049

2014 2015 2016 2017 2018

894 9221,101

1,398

1,955

2014 2015 2016 2017 2018

3,9804,301

4,874

5,5365,872

2014 2015 2016 2017 2018

8% 8%

7%

8%

11%

2014 2015 2016 2017 2018

83% 83%

61% 60%66%

2014 2015 2016 2017 2018

1

Bio of Research Team

MD.KHURSHED ALAM

Head of Research

Md. Khurshed Alam joined Prime Bank Securities Ltd. in September 2017

with more than 7 years of work experience in the capital market industry.

Prior to joining PBSL, he worked at Royal Capital for two years as head of

corporate fund management advisory service. He started his journey in

the capital market as a Management Trainee at CAPM Company Limited

an asset management company for more than 4 years and gained diverse

knowledge by working on investment management and research arena.

He has completed his BBA from East West University in 2007 and MBA

from United International University. He is the recipient of European Un-

ion Erasmus Mundus scholarship to study research based Master’s pro-

gram at University De Lyon, France in 2010.

ASHFAQUE REZA

Research Associate

Ashfaque Reza is currently working as Research Associate of Prime Bank

Securities Ltd. He joined Prime Bank Securities Limited (PBSL) in February

2018 as an intern in Research department. He currently is covering daily

products like daily market news, market update, weekly market review etc.

Reza completed his BBA in Accounting & Finance from North South

University. He was the member of CFA Equity Research Challenge in Bang-

SHAKAWAT HOSSAIN

Research Associate

Shakawat Hossain started working as a Research Analyst in Prime Bank

Investment Limited since August 2017. He graduated from North South

University with a major in Finance & Accounting and sat for his CFA Level I

exam in December, 2018 and is currently awaiting his results. Shakawat is

passionate about investment research concerning value investing. He cur-

rently overlooks the manufacturing sector of the traded stocks.

SYED REAZUL HAQUE

Research Associate

Syed Reazul Haque has joined PBIL in 2017 and has been working as a Re-

search Associate in the Equity Research Department. He has Completed

his BBA from North South University major in Finance and Accounting. He

is also perusing his MBA from the same university. Reaz has keen interest

in equity research and investment. He currently covers Bank, NBFI and

Macroeconomy.

PBSL Research Team PBIL Research Team

32

RAHAT UL AMIN

Head of Research

Rahat Ul Amin has been working as Head of Research of Prime Bank In-

vestment Limited (PBIL) since July 2017. He started his career in the same

organization in Novemebr,2009. Over nine years of career in PBIL, Mr.

Rahat has worked as both Buy side analyst and sell side analyst. He cov-

ered most of the sectors of the equity market with addition to macro-

economy. He completed his BBA in Finance from North South University

and he was awarded Summa Cum Laude for achieving distinctive CGPA.

He completed his MBA in Finance from Dhaka University. He is a CFA

Level III candidate for 2019 exam. He participated in many trainings at

both home and abroad.

2

Contact Details

PBSL Research Team PBIL Research Team

SYED REAZUL HAQUE

Research Associate

Email: [email protected]

Cell: 01683 522 253

SHAKAWAT HOSSAIN

Research Associate


Cell: 01717 245 675

RAHAT UL AMIN

Head of Research


Cell: 01715078657

MD.KHURSHED ALAM

Head of Research


Cell: 01701 217 860

ASHFAQUE REZA

Research Associate


Cell: 01701 217 871

33

Disclaimer

This Document/Report has been prepared and issued by Prime Bank Investment Limited (PBIL) & Prime Bank Securities Limited

(PBSL) on the basis of the public information available in the market, internally developed data and other sources believed to be re-

liable. Whilst all reasonable care has been taken to ensure that the facts and information stated in the documents are accurate as

on the date mentioned herein. Neither PBIL nor PBSL or any of the director, shareholder, member of the management or employee

in the research team or employee represents or warrants expressly or impliedly that the information or data of the sources used in

the document are genuine, accurate, complete, authentic and correct. It does not solicit any action based on the materials contained

herein and should not be construed as an offer or solicitation to Buy or Sell or Subscribe to any stocks. If any person takes any ac-

tion relying on this document, shall be responsible solely by himself/herself for the consequences thereof any claim or demand for

such consequences shall be rejected outright by PBIL & PBSL or by an court of Law.

Documents

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