External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Equity Bottom-Up

Maple Leaf Cement Factory / Equity Bottom-Up

<ul><li>Maple Leaf Cement (MLCF) has notified exchange regarding the acquisition price of a north based cement manufacturer Pioneer Cement (PIOC) at Rs478.43 per share which translates into Enterprise value of US$400mn, EV/Ton of US$76.9 at capacity of 5.2mn tons and EV/EBITDA of 9x at annual LTM EBITDA of Rs12.6bn, as per our calculation.</li><li>Similarly, another recent transaction of south based Attock Cement (ACPL) which is yet to be finalized, the market chatter suggests the pricing around Rs300-350, translating into EV/Ton of US$43-48/ton and EV to EBITDA of 8-9x.</li><li>We estimate, the replacement cost of a new brownfield plant in Pakistan is around US$50-60 per ton while for greenfield the cost is around US$90-100 per ton.</li></ul>

Maple Leaf Cement (MLCF) has notified exchange regarding the acquisition price of a north based cement manufacturer Pioneer Cement (PIOC) at Rs478.43 per share which translates into Enterprise value of US$400mn, EV/Ton of US$76.9 at capacity of 5.2mn tons and EV/EBITDA of 9x at annual LTM EBITDA of Rs12.6bn, as per our calculation.Similarly, another recent transaction of south based Attock Cement (ACPL) which is yet to be finalized, the market chatter suggests the pricing around Rs300-350, translating into EV/Ton of US$43-48/ton and EV to EBITDA of 8-9x.We estimate, the replacement cost of a new brownfield plant in Pakistan is around US$50-60 per ton while for greenfield the cost is around US$90-100 per ton.

Maple Leaf To Acquire Pioneer Cement At EV Of US$400mn; Takes PIOC EV/Ton To US$77, Sector EV/ton At US$54