Earnings Report /
Bangladesh

IBN SINA Pharmaceutical: 24% YoY growth in annual earnings, 31% rise in Q4 2022 YoY earnings

  • Annual EPS of BDT 19.4 meets our expectations, growing by c24% YoY

  • c31% dividend payment similar to our expected pay-out level of c30%

  • We reiterate Buy with TP BDT 370.0 (ETR 21.3%)

IDLC Securities
6 September 2022
Published byIDLC Securities
  • Annual EPS of BDT 19.4 meets our expectations, growing by c24% YoY. IBN SINA generated BDT 6.1 EPS in Q4 FY22 against BDT 4.7 in Q4 FY21, implying c31% YoY rise in earnings. In FY22, the government lowered corporate taxes from 22.5% to 22.0%. We think that this decline in tax rate may have had an impact on the accelerated earnings growth in Q4 FY22 on YoY basis. 

  • c31% dividend payment similar to our expected pay-out level of c30%. IBN SINA increased its dividend pay-out level and declared BDT 6.0 dividend per share in FY22 annual declaration compared to BDT 4.7 (c30% dividend pay-out) in FY21.

  • We reiterate Buy with TP BDT 370.0 (ETR 21.3%). Our TP implies 15.8x 2023f P/E, 9.1x 2023f EV/EBITDA, and 1.2x 2023f EV/Sales. IBN SINA is currently trading at 16.0x 2022 P/E and 1.4x EV/Sales 2022e.