Earnings Report /
Bangladesh

IBN SINA Pharmaceutical: Annual FY21: Earnings surpassed expectation by c8%

  • EPS of the company stood at BDT 15.7 (NPAT BDT489mn) in FY21, implying c24% growth over BDT 12.6 (NPAT BDT393mn) in FY20

  • Q4 FY21 EPS stood at BDT 4.7 against BDT 2.9 in Q4 FY20, thus implying c59% earnings growth yoy

  • We reiterate Buy for IBNSIN with an updated TP of BDT 345.0 (ETR 30.2%)

IDLC Securities
24 September 2021
Published byIDLC Securities

EPS of the company stood at BDT 15.7 (NPAT BDT489mn) in FY21, implying c24% growth over BDT 12.6 (NPAT BDT393mn) in FY20. Annual earnings of the company surpassed our expectation by c8% yoy.

Q4 FY21 EPS stood at BDT 4.7 against BDT 2.9 in Q4 FY20, thus implying c59% earnings growth yoy. Earnings in Q4 FY21 surpassed our expectation by c33%.

IBNSIN declared BDT 4.70/share cash dividend (c30% pay-out) in FY21 against BDT 3.85/share cash dividend (c31% pay-out) in FY20. The dividend declaration for FY21 outperformed our expectation by c4%.

IBNSIN will divest its investment from its associate (40% stake) Ibn Sina Consumers Limited, which is yet to start operation as the project being not feasible. Ibn Sina invested BDT 60mn in the company, which is currently valued at BDT c54mn at cost. Please note that our valuation did not incorporate any contribution from the business. For FY22, we incorporated BDT 6mn loss from the investment in this associate company.

We reiterate Buy for IBNSIN with an updated TP of BDT 345.0 (ETR 30.2%). This is a c11% upward revision from earlier TP as we have updated our FY22 EPS expectation from 17.4 to BDT 18.0 (+c4% revision) and changed the investment horizon to June 2022. The TP implies 19.2x FY22 P/E, 1.4x FY22 EV/Sales and 10.7x FY22 EV/EBITDA. Currently, IBNSIN is trading at 17.2x LTM P/E.