<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We maintain our buy stance on APL with a Dec’18 target price
of PKR 714/share. Our conviction on the scrip is premised on i) 15% growth in
High Speed Diesel (HSD) volumes in FY18, ii) secure orders from defense sector
of Pakistan as preferred fuel partner for supply of HSD, MoGas, HOBC and JP-1,
iii) stable gross margins of 5% and above (thanks to deregulated products, high
margin products like bitumen and other non-energy products) compared to giants
like PSO and Hascol, iv) improving infrastructure development and road networks
which will keep APL’s asphalt demand upwards since it became supplier of
Peshawar Karachi Motorway project, and v) escalating storage capacity given
addition of new building facilities at Mehmood kot, Shikarpur a...
