Hub Power Company : Higher Dividend Expectations - AHL Research

<p></p><ul><li><span style="font-size:medium;">We slightly revise upwards our Dec&rsquo;16 TP for Hub Power Company Limited (HUBC) by 1.4% to PKR119.9/share (PKR 118.3/share earlier), led by expectations of higher dividend distribution going forward owed i) anticipation of stable dividend income from Laraib Energy, ii) lower working capital requirement attributable to decreased FO prices and long term debt re-payment of Hub project (could allow the company to further lever its balance sheet if required). At current price levels the company is offering a total return of 13.0% (9.3% DY compared 12-M T-Bill YTM of 6.3%).</span></li></ul><p></p><ul><li><span style="font-size:medium;">Recently declared cash dividend of PKR 3.5/share during 3QFY16 (9MFY16: PKR 8.0/share) highlighted company&rsquo;s healthy cash generation, which we expec...