Engineer KYK

Political Engineer 😉

[Engineer KYK @EngrKYK]

@Tanveerulhaq75 @theammarsid 1.3m

[🏆 Daniel Raz | Fat Loss for Men over 40 @DanielRaz_Fit]

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[Engineer KYK @EngrKYK]

@MadihaJSk 😂😂👌

[Engineer KYK @EngrKYK]

@PakistanJannatt Bhai this is dual engine aircraft which doesn't belong to Pakistan. I don't know awam Kaha sa videos post Kari ja raha Hain. Be responsible

[Engineer KYK @EngrKYK]

@asimmech Asaan shabdo ma bta dain bhai

[Engineer KYK @EngrKYK]

@Invest_Kardo Would you like to share where do you keep record of this? I mean record of portfolio with date

[Engineer KYK @EngrKYK]

@8bitsteveo Will you share your portfolio

[Engineer KYK @EngrKYK]

@Invest_Kardo Would you please explain for us 😐

[Engineer KYK @EngrKYK]

@WealthWise15992 @Rana75083535 Best ❤️

[Engineer KYK @EngrKYK]

Dear investors please read it.

[Shayan Baig @BaigShayan1234]

Part-3: End of Fertilizer Sector Analysis, Learning Outcomes and Future Outlook👇

UREA is deregulated product. It means a company can set the price of its own unlike the price of petrol or diesel which is set by the Government. But since UREA is very important for country's food security and also sensitive to inflation, companies still need prior approval from govt with proper justification for the price increase.

Engro fertilizer had that proper justification for price increase so they got the approval from govt and passed on the input cost to its customers i.e farmers and land lords.

However, this increase in cost of Urea created large delta in price b/w FFC and Engro Urea. The difference which was historically around 50-60 Rs was increased to 800-1000 Rs. resulting in supply chain disruption of UREA and formation of Black Market.

FFC while observing the situation also increased its UREA Prices by 600 Rs/bag to make it at par with Engro's price under the pretext of Market Stability. Govt had to accept this demand as it did not want any imminent threats from farmers community.

Since then, FFC has been enjoying windfall because their input cost is still cheap and revenues have increased substantially due to price increase which have expanded the margins of FFC from historic average of 33% to 45%. Over time, It has also acquired FFBL and now is in the process of acquiring Agri tech limited.

Mistakes and Learning Outcomes:

Mistake-1:

When Engro fert raised UREA prices, Majority of Investors rushed to invest in Efert with the hope that since Efert plants are more efficient than FFC and that Efert pays 100% as a dividend, the price increase will raise revenues and thus profits and dividends. They literally overlooked FFC which was trading in the same range at that time.

Learning Outcome-1:

Profits are not only driven by Revenues but also costs incurred to earn that revenue called profit margins. In efert case, although revenues increased, but cost also increased correspondingly. This is why understanding of Margins and Income Statment is important (I have explained Income Statement with example, please have a look).

Mistake-2:

Many investors thought that cost of feed gas for FFC will also increase from 580 Rs to 1600 Rs just like Engro. Because investors thought FFC is also getting subsdized gas and IMF will object to it. This thinking resulted in missed opportunity.

Learning Outcome: 2

Whether or not FFC is getting a subsidized gas is a debateable topic. Technically, it is not a subsidy, as I explained earlier, subsidy is when the cost you pay is higher then the payment you receive from supplier. In FFC case, MARI is supplying gas through its dedicated network and according to MARI, they are satisfied with the selling price of 580 Rs because they are producing gas on nearly same price. Also IMF has raised no objection until today, but things may change anytime.

Dear Investors, it is absolutely ok if anyone was not able to enjoy those gains. But important thing is one should learn each and every thing about the business they are intending to invest and think like an owner. This is why Understanding a business like Owner is so so important.

Future Outlook:

You will have to keep a check on feed gas prices available on OGRAs website in addition to fertilizer off takes and payouts.

Any increase on gas price by sui northern gas will be negative for Efert and positive for FFC. Whereas any increase on MARI side will be negative for FFC and positive for Efert.

Do not expect multibagger gains to continue like past because the saga is over and no hefty gas price increase is on cards in future, a limited upside till 450-500 Rupees based on payout ratio of 70% and Dividend Model (Allah Knows the Best) may be seen. But be mindful that if Mari increased the gas prices, that will have a big dent on FFC share price.

I hope, I have been able to explain the concept. If you have any queries, feel free to ask.

Thankyou

[Engineer KYK @EngrKYK]

@WealthWise15992 @Rana75083535 By entry you mean you won't invest in this sector until some package is announced right? If that is the case don't you think share price would have already been gone up? So I heard that we should invest at time when there is fear 😂. Bnda kra Kia ab

[Engineer KYK @EngrKYK]

@WealthWise15992 @Rana75083535 Just hope 🤞

[Engineer KYK @EngrKYK]

@WealthWise15992 @Rana75083535 That is understandable. But what do you think. Is the energy price actually going to decrease as our PM said. And will there be any package from govt for the textile industry as govt cannot put this sector aside. Need Ur thoughts

[Engineer KYK @EngrKYK]

@WealthWise15992 @Rana75083535 What about ILP

[Engineer KYK @EngrKYK]

Damn

[Invest Kar Do @Invest_Kardo]

Bas kardo kitna awaam ko banao gay tum log

Mutual Funds nay MARI !

[Engineer KYK @EngrKYK]

@MadihaJSk @Invest_Kardo @KhazeAkram Ok got it. So, what to expect now? Mari going up or down?

[Engineer KYK @EngrKYK]

@NHMPofficial M2 kB open Hoga LHR sa?

[Engineer KYK @EngrKYK]

@investinpk You really made a beautiful, attention seeking and knowledge giving video. Loved it ....you have the current bro MASHA ALLAH ❤️