Pak Elektron (PAEL): Earnings dip despite the revenue jump; DPS of PRs1.50 – By IMS Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Pak Elektron (PAEL) announced consolidated 2QCY17 NPAT of PRs1.63bn (fully diluted EPS: PRs3.27), down 6% YoY even though revenues jumped by 14% YoY. PAEL also announced interim cash dividend of PRs1.5/sh (vs. PRs1.25/sh in the same period year).</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The major reason for the earnings decline was the increase in sales discounts (25% of Revenues) to push sales of appliances in a highly competitive market. Major discounts were offered in Split ACs market in which there is greater competition than in refrigerators. Due to heavy sales discounts offered, (i) net sales grew by mere 2%YoY and (ii) GMs clocked in at 30%, down 2ppts YoY.</span></li><li><span style="font-family:A...