IDLC Investments - Company Insight

Titas Gas Transmission and Distribution Company Limited

February 26, 2015

Titas Gas Transmission and Distribution Company Limited Company Profile

(DSE: TITASGAS)
Titas Gas Transmission and Distribution Company Limited (DSE: TITASGAS), the
Current Price (February 26, 2015) 75.1
oldest and leading gas supplier company was incorporated in November, 1964.
Total Number of Share (mn) 989.2
Subsequently, it started its commercial operation in April, 1968. The company
Free Float (%) 25.0%
was listed in DSE and CSE in June, 2008 under Direct Listing.
Forward PE* – TITASGAS 8.7x
Trailing PE* – TITASGAS 7.2x TITASGAS is the market leader in gas distribution industry with a customer base
Forward PE – Fuel & Power Sector 12.1x of 1.7 million as of June, 2014. The total customers include 9 power stations of
* Based on earnings of 6M, 2015 PDB, 25 private power stations and 3 fertilizer factories in the bulk category. At
the same time, in June, 2014; TITASGAS had a 63% market share, clearly much
6M, 2015**
Financials (BDT Mn) 2013 2014 ahead of the other five players in the market.
(Unaudited)
Revenue 74,796 78,321 40,541 Key Revenue Drivers & Company Insight
Gross Profit 11,757 13,305 6,090
Operating Profit 8,274 9,601 4,073 The company works under Bangladesh Oil, Gas, & Mineral Corporation
Net Profit After Tax 9,096 10,269 4,272 (Petrobangla) following administrative guidelines from ministry of power,
Total Asset 80,372 90,390 96,522 energy and mineral resources. As a gas transmission and distribution company,
Total Equity 45,757 52,557 53,087 bulk percentage of the sales revenue comes from gas sales, which is 99% of total
**Year ends on June 30 Revenue.
During 2013-2014, the length of pipeline under TITASGAS stood at 12,505.5 km
YoY Growth (%) 2013 2014 6M, 2015
including newly constructed 252.3 km pipeline over the year. But the company
Revenue 5% 5% 8%
had system loss of 0.32% due to illegal connection of some dishonest
Net Profit After Tax 2% 13% 2%
customers.
Per Share (BDT) 2013 2014 6M, 2015 Financial Performance
Restated EPS 9.20 10.38 4.32
Book Value Per Share 46.26 53.13 53.67 TITASGAS had a stable top line growth by 5% in 2014. Gross Profit and
Operating Profit Margins have slightly improved to 17% and 12%, respectively.
Others (%) 2013 2014 6M, 2015 However, the company recorded growth in bottom line of 13% YOY in 2014 due
Gross Profit Margin 16% 17% 15% to Margins improvement and increased Non-Operating Income.
Operating Profit Margin 11% 12% 10%
In 6M, 2015 Revenues posted a YOY growth of 8% while Gross Profit Margin and
Net Profit Margin 12% 13% 11%
Operating Profit Margin declined to 15% and 10%, respectively in 2015 due to
ROA 12% 12% -
higher fixed cost. Consequently, bottom line grew a mere 2% YoY.
ROE 22% 21% -
Stock Dividend - - - Recently, the company has reported net profit after tax of BDT 4,272.10
Cash Dividend 35% 38% - million with EPS of BDT 4.32 for the period of six months (July'14 to Dec'14) as
Source: DSE; Half-Yearly Statements & Annual Reports of TITASGAS against BDT 4,202.97 million and BDT 4.25, respectively for the same period of
and Research, IDLC Investments Ltd. the previous year.

Terminologies
Free Float : % of total shares not owned by Sponsors/
Directors, and Govt.
Forward PE: Based on Annualized Earnings of the latest
declared quarter
Trailing PE: Based on Latest 12 Months Earnings

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