Highnoon Laboratories Ltd was incorporated as a private limited company in Pakistan in the year 1984 and converted into an unquoted public limited company in the following year 1985.
It was listed on all stock exchanges in November 1994. On September 4, 2006, the closing price of Highnoon Laboratories shares was recorded at Rs 40 per share which is four times of par value. During the last one year the market value of the share peaked at Rs 52.65 per share exhibiting high trust of the investors in the enterprise.
The company is principally engaged in the manufacture, import and marketing of pharmaceutical and allied consumer products.
The registered office as wall as manufacturing facilities are situated at 17.5 kilometer, Multan Road Lahore. The chairman of the company Jawaid Tariq Khan is an entrepreneur of very high caliber as in the yesteryears when he was a prominent international banker he had to his credit the opening of several financial venture.
The formation of this pharmaceutical company is also the manifestation of his successful initiative.
About future prospects of this company he recorded his opinion and stated that the future of Highnoon look good and rewarding for all its stakeholder which include shareholders and customers.
During the six month ended June 30, 2006 (HY 2005-06), the period under review the company posted net sales at Rs 740.06 mln registering 24.4% growth over Rs 595.14 mln recorded in the same period last year (SPLY).
The growth of almost a quarter of SPLY is highly impressive and this performance is an outcome of the strategic plan of the leadership in the company. Some of the initiative in this direction have been reported. The company significantly increased the size of its field team to take full advantage of the growing health care segment of the country.
Resultantly a large number of customer were covered by its sales team.
The company has also tripled its distribution penetration to ensure product availability on the far flung areas of the country. Highnoon's center of attention has been introduction of new products to fuel the top line.
The company's gross profit margin went up to 40.1% from 34.9% for that it has been reasoned that the management was able to negotiate better input prices. Operating profit at Rs 54.73 mln was more than double of SPLY Rs 25.42 mln.
Administrative and general expenses were contained at the level of SPLY. The company's earning per share was Rs 2.70 which improved by Rs 1.1 per share. At the current market price of the share the price earning ratio is a multiple of 15 which is an excellent ratio.
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Performance Statistics (Mln Rs)
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Balance sheet -As At-
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June 30 December 31
2006 2005
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Share Capital-Paid-up: 130.65 113.61
Reserves: 200.19 194.47
Shareholders Equity: 330.84 308.08
Surplus on Revaluation
of Fixed Assets: 152.96 157.46
L.T. Debts: 50.16 43.94
Deferred Liabilities: 133.01 131.09
Deferred Gain: 6.91 9.47
Current Liabilities: 426.66 427.83
Fixed Assets: 502.69 511.10
Intangible Assets: 41.32 41.99
L.T. Investment: 20.00 20.00
L.T. Deposits: 1.96 0.36
Current Assets: 534.57 504.42
Total Assets: 1,100.54 1,077.87
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Profit & Loss A/c for Six Months Ended June 30
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2006 2005
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Sales-Net: 740.06 595.14
Gross Profit: 296.61 207.58
(Research & Development): (3.74) (3.12)
Finance (Cost): (18.75) (13.75)
Operating Profit: 54.53 25.42
Other Operating Income: 5.09 8.23
Profit Before Taxation: 54.73 31.40
Profit After Taxation: 35.29 20.96
Earnings Per Share (Rs): 2.70 1.60
Share Price (Rs) on 04-09-2006: 40.00 -
Price/Earning Ratio: 14.81 -
Book Value Per Share (Rs): 25.32 26.49
Price/Book Value Ratio: 1.58 -
Current Ratio: 1.25 1.18
Debt/Equity Ratio: 9:91 9:91
Gross Profit Margin (%): 40.08 34.88
Net Profit Margin (%): 4.76 3.52
R.O.A. (%): 3.20 1.94
R.O.E. (%): 10.67 6.80
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