Pakistan Cement: Potential increase in royalty to hurt earnings for KPK-based players - By JS Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We evaluate the potential impact of raising the limestone royalty for KPK-based cement plants to 6% of the ex-factory cement price (following the increase in Punjab) from the current Rs250/ton. This increase is expected to weigh on earnings of companies located in Khyber Pakhtunkhwa (KPK). The final notification by the KPK government for the proposed increase is however still awaited.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The potential increase in royalty will have an impact on four cement players among our cement universe which include Cherat Cement Company Ltd. (CHCC), Kohat Cement Company Ltd. (KOHC), Lucky Cement Limited (LUCK), and Fauji Cement Company Limited (FCCL).</span></li></ul>...