Beruflich Dokumente
Kultur Dokumente
DSE: SUMITPOWER
BLOOMBERG: SUMITPOW:BD
Company Overview
Company Fundamentals
The Firm was enlisted with the DSE and the CSE in 2015.
Around 53.50% shares are held by the Sponsors, while 16.10%,
25.96% and 4.44% shares are held by General, Institutional and
foreign investors respectively.
Industry Overview
28,759.3
Market weight
1.0%
826.4
46.5%
8,264.2
16.7
-7.75%
3-month Return
34.8
26-49.8
12.1
2012
2013
2014
2015
(9m Ann)
Sales
5,893
6,192
6,109
6,274
Operating Profit
3,129
3,312
3,157
3,398
2,487
2,830
2,840
3,879
21,231
22,035
27,563
29,846
Assets
Long Term Debt
4,129
2,887
642
450
11,390
20,805
10/5
23,386
0/20
13,875
0/15
Gross Profit
61.5%
61.7%
58.2%
58.6%
Operating Profit
53.1%
53.5%
51.7%
54.2%
Pretax Profit
42.2%
45.7%
46.5%
61.8%
Net Profit
42.2%
45.7%
46.5%
61.8%
Equity
Dividend C/B)%
n/a
Margin:
Growth:
Sales
23.9%
5.1%
-1.3%
2.7%
Gross Profit
28.2%
5.4%
-6.8%
3.4%
Operating Profit
-5.0%
5.9%
-4.7%
7.6%
-19.1%
13.8%
0.4%
36.6%
ROA
12.1%
13.1%
11.5%
13.5%
ROE
23.0%
22.4%
16.4%
17.6%
Debt Ratio
22.2%
14.5%
10.5%
7.4%
Debt-Equity
41.3%
23.0%
13.9%
10.6%
Int. Coverage
4.5
6.3
7.6
14.0
Natural Gas is the prime source of fuel. As per BPDB data, the
generation capacity by fuel type, 61.82% of power producing
plants are natural gas based, 21.72% are HFO based, 8.22%
High speed diesel fuel based, 2.04% Hydro based, 1.77% are
coal based and 4.43% are imported. The Government offers
several facilities for private power companies and foreign
lenders in this sector such as income tax exemption, no custom
duty, VAT or other surcharges on import of plan and equipment
up to 10% of the original value up to 12 years, allowed to
repatriation of equity along with dividends freely etc.
1
Net Profit
Profitability:
Leverage:
Valuation:
15.4
13.2
13.0
9.0
Price/BV*
2.5
2.1
1.4
1.2
2.3
2.6
2.7
3.9
1.0
n/a
16.8
25.2
28.3
Price/Earnings*
DPS (BDT)
Restated NAVPS (BDT)
13.8
Investment Positives
3.9
4.0
3.0
2.3
3.0
Year 2014
Year 2011
Year 2012
Jul-13
Jan-14
Jul-14
Jan-15
Jul-15
Value (BDT)
37
16.4
44
12.1
47
12.6
34
1.7
49
Year 2013
1.0
2.7
2.0
Investment Negatives
The Company is enjoying tax exemption for 15 year
starting from its commercial operation. This expiration of
tax exemption period, if not extended, will reduce the
companys net profit margin significantly in the years to
come. Tax exemption for Summit power Limited will expire
in February 2016. Moreover, the tax exemption period for
st
Summit Narayanganj Power Limited will expire on 1 April
2016.
The Power Purchase Agreement (PPA) with BREB and
BPDB for the four plants of the company comprising of
total 135 MW out of total eleven plants of the company
and its subsidiaries will expire within 2017. Non-renewal of
the tenure of PPA for those plants may significantly affect
the Companys profitably in coming years.
Any policy level changes like, not extending the tenure of
IPP (Independent power producer) may drastically affect
the Companys ability to operate as going concern.
The Company has foreign exchange risk to some extent
due to purchase of spare parts and plant and machinery.
However, this risk is insignificant to the Company.
2.6
Peer P/B
Note: BARKAPOWER, SPPCL, KPCL and GBBPOWER have been considered as the
peer company for valuation purpose.
Concluding Remark
Summit Power Company Ltd. is one of the leading Independent
Power Plant (IPP) in Bangladesh. In its latest 9 month
performance the company reported 3.9%, 4.3% and 40.2% YoY
growth in revenue, operating profit and net profit (excluding
non-controlling interest) respectively. Drop in COGS, as a
percentage of sales is the prime reason for relatively higher
operating profit growth than that of revenue growth. Net profit
increased significantly due to addition of share of profit from
the companys associate concern Summit Meghnaghat power
Company Limited (SMPCL) on which the company subscribed
30% stake in December 2014.