IPO Note on Crystal Insurance Limited (CRYSTALINS) Date: December 20,2020

IPO Issue Size (BDT mn): 160.00

Offer Price (BDT): 10.0 IPO Issue Size (No. of Shares) (mn): 16.00
IPO Information Company Profile:
Face Value 10.0  Incorporation: November 11,1999
Offer Price 10.0  Commercial Operation: November 11, 1999
Authorized Capital (BDT mn) 1,000.0  Key Personnel: Mr. Mia Fazle Karim ( MD & CEO S. M.
Pre IPO Paid up Capital (BDT mn) 240.0 Shahidullah ( Company Secretary).
Post IPO Paid up Capital (BDT mn) 400.0  Corporate Head office Location: DR Tower (14th floor),
Retained Earnings as on 30st June, 2020 65/2/2, Box Culvert Road.
9.7 Business Profile:
(BDT mn)
IPO Issue Size (No. of shares) (mn) 16.0 Crystal Insurance currently has 31 branches. The business
IPO Issue Size (BDT mn) 160.0 environment is very competitive with 46 insurance companies
Oversubscription 41.5x operating in this sector. Marine cargo and hull insurance and
1st Day Free Float Shares (mn) 16.00 Motor Insurance segments contributed the bulk of the revenue
Issue managers Sonar Bangla Capital Management Limited in 2018 and 2019.
Auditor Mahfel Huq & Co. Revenue Composition:
2019 2018
2017 2018 2019 2020 Revenue
Amount Amount
Segments % %
6M An’ (mn) (mn)
Financial Information (BDT mn): Fire Insurance 5.41 5.41% -8.05 -12.38%
Gross Premium 409 431 527 Marine cargo 71.67 71.68% 47.22 72.65%
Gross Profit 73 65 100 67 and Hull
Insurance
Operating Profit 32 34 63 24
Marine Hull -0.93 -0.93% 0.67 1.03%
Profit After Tax 62 62 70 70
Insurance
Assets 892 952 1,056 1,135
Motor 16.48 16.48% 15.77 24.26%
Equity 516 556 586 569
insurance
Cash 23 25 30 45
Margin: Miscellaneous 7.36 7.36% 9.30 14.44%
insurance
Gross Profit 17.9% 15.1% 19.0%
Total 99.99 100% 65.00 100%
Operating
Margin (GPM)Profit 7.8% 7.8% 12.0%
Net Profit
Margin Margin
(OPM) 15.2% 14.5% 13.3%
EBIDTA Margin 20.0% 25.0% 24.5% Competitors:
Listed Companies
Growth (YoY):
EPS 37.7% 0.1% 12.6% 1.0% 1. Agrani Insurance Co. Ltd 6. Central Insurance Company
2. Asia Insurance Limited Ltd.
Gross Premium 4.8% 5.4% 22.3%
3. Asia Pacific General 7. City General Insurance Co. Ltd.
Gross Profit 39.5% -11.2% 53.8% -33.3% Insurance Co. Ltd. 8. Continental Insurance Ltd.
Net Income -8.39% 14.19 1.07% 1.0% 4. Bangladesh General 9. Dhaka Insurance Limited
Profitability: % Insurance Company Ltd. 10. Eastern Insurance Company
ROA 7.0% 6.6% 6.7% 5.3% 5. Bangladesh National Ltd.
ROE 12.1% 11.2% 12.0% 10.6% Insurance Company Limited
EPS (Restated) 1.56 1.56
% 1.75 1.77
IPO Fund Utilization Plan:
NAVPS (Basic) 21.48 23.16 24.42 25.79
*Certain margins from 2020 6m An’ cannot be calculated due to lack of Amount
%
availability of data regarding gross premium. Particulars (mn)
*EPS of 2020 is 9M An’ and NAVPS of 2020 is as of 30th September, 2020. Investment in FDR &
80.00 50.0%
Treasury Bond
Post IPO Securities Holding:
Investment in Capital Market 69.27 43.3%
No. of To meet up IPO expenses 10.73 6.7%
Shareholder Type % Holding Lock In
Shares (mn) TOTAL 160.00 100%
Directors/Sponsors 24.0 60.0% 3 Years
The company intends to invest in the capital market and FDR
Mutual Funds (EIs) 4.8 12.0%
with nationalized commercial bank within the first 3 months of
Other EIs 1.6 4.0% Lock- in
receiving the IPO fund.
Public 8.0 20.0% Free
NRBs 1.6 4.0% Capital Raising History:
Total 40.0 100.0% Allotment Date of Allotment BDT
1st 11-11-1999 60,000,000
Company Overview: 2nd 22-03-2017 150,000,000
Crystal Insurance Limited is a public limited company engaging 3rd* 22-04-2017 30,000,000
in general insurance business mainly in the fire insurance, Total 240,000,000
motor insurance, marine cargo insurance, miscellaneous * The third allotment was in bonus share.
insurance, liability insurance and engineering insurance.

1 EBL Securities Limited Research

 IPO Note on Crystal Insurance Limited (CRYSTALINS) Date: December 20,2020
IPO Issue Size (BDT mn): 160.00
Offer Price (BDT): 10.0 IPO Issue Size (No. of Shares) (mn): 16.00
Lock-In Free Share (Trading Date: December 21, 2020): Comparison among Peer Companies:
Trading Day Lock-In Free Tradable Lock-In for
Paid Up Capital EPS P/E Current
Shares (mn) Shares (mn) Scrips
(mn) (An.) Price*
21st December, 2020 16.00 16.00 1st day
PRIMEINSUR 408.8 1.47 43.91 50.3
21st December, 2023 40.00 40.00 3 Years
BGIC 540.3 1.60 24.88 39.8
Distribution of IPO: CONTININS 381.0 1.84 25.98 47.8
Eligible Investors General Public CITYGENINS 681.7 1.00 31.80 31.8
Mutual Funds Other EIs NRB Others EIL 391.0 1.12 31.80 37.3
(10%) (30%) (10%) (50%) CRYSTALINS 400.0 1.5
Amount (BDT mn) 16.0 48.0 16.0 80.0
Shares (mn) 1.6 4.8 1.6 8.0 Comparison among Recently listed Companies:
Post IPO Issue Re EPS 1st Day P/E Current
Industry Overview Paid Up Size While Closing (listing Price*
Immediately after the liberation of Bangladesh, insurance Scrips
(mn) (mn Listing Price day)
companies were nationalized along with the banks under the Shares)
presidential order no. 95 in 1972. This order was implemented
VFSTDL 847 22 1.5 30.7 20.7 22.5
through creation of five corporations which were further
MLDYEING 1,604 20 1.4 24.2 17.5 50.0
changed by merging these five corporations into two
corporations namely Sadharan Bima Corporation- for SILVAPHL 1,300 30 0.8 29.0 36.7 18.3
conducting general insurance business and Jiban Bima IBP 930 20 1.1 32.4 41.4 19.1
Corporation- for conducting life insurance business. KTL 890 34 1.2 24.4 12.5 10.5
Privatization of Insurance Sector took place in 1984 as a result SSSTEEL 2,450 25 1.3 50.1 39.1 17
of promulgation of Insurance Corporation Ordinance 1984. GENEXIL 816 20 1.4 56.5 38.7 59.7
Currently there are 78 insurance companies including two ESQUIRENIT 1,349 35 3.0 45.9 15.2 25.5
previously mentioned government owned corporation. Among
RUNNERAUTO 1,081 14 4.3 99.8 23.2 49.8
these, 47 are non-life insurance companies and 31 are life
insurance companies. 35 non-life and 12 life insurance NEWLINE 699 30 1.1 19.8 17.7 14.5
companies are listed in the capital market. SILCOPHL 944 30 1.1 25.1 22.6 24.6
SEAPEARL 1150 15 0.7 36.4 54.3 79.1
Insurance Development and Regulatory Authority (IDRA) is the
COPPERTECH 600 20 0.8 44.8 56.0 24.1
sole entity to regulate the insurance business in Bangladesh. It
RINGSHINE 4351 150 1.60 15 8.7 6.4
was formed in 2010 under the Insurance Development and
Regulatory Authority Act 2010, and it is a de-facto and de-jury ADNTEL 647 20 1.76 40.5 23.0 52.3
independent entity after three years of its formation. EIL 652 26.1 0.71 15 21.1 37.3
WALTONHIL 4,000 3 60.9 378 6.2 1,074.5
The supreme governing act for insurance companies of DOMINAGE 950 30 1.0 15 15 38.4
Bangladesh is the Insurance Act 2010. As per Insurance Act
CRYSTALINS 400 16 1.8
2010, minimum paid up capital requirement for non-life *Current price is as on 20th December, 2020.
insurance companies is BDT 400 million, of which 60% would
Investment Insight
be provided by the sponsor rest would be open for public
subscription. Moreover, this act made it mandatory for non-life Investment Positive
insurance companies to invest in Bangladesh Government  With the IPO proceeds, CRYSTALINS is going to invest BDT
Treasury Bond (BGTB) minimum BDT 25 million. IDRA Act 2010 80 million in FDR & Treasury bond and another 69.27
and Insurance Act 2010 has set 15% of gross premium of own million in capital market. Interest income contributed
business as the highest limit for agency commission. It also 36.16% of the total revenue of CRYSTALINS in 2020 and
made minimum 40% of net premium as unexpired risk reserve the contribution may increase further as a result of the
for any category of non-life insurance business except marine upcoming investment.
hull and aviation insurance. In case of marine hull and aviation  Gross premium of CRYSTALINS has achieved 9.61% CAGR
insurance it was set as 100% of net premium. from 2015 to 2019. This indicates healthy growth rate on
the number of clients and insurance policies in a
In 2017 a project was launched in collaboration with World competitive industry.
Bank called, “Bangladesh Insurance Sector Development  Total profit transferred from different insurance segments
Project”. Actual commencement of this project took place in has only witnessed downturn in 2018 from 2015 to 2019
late 2018 and project is expected to be completed within 2022. period. This indicates the diverse nature of CYRSTALINS
Estimated project cost is around USD 80 million. business as despite fire segment reporting negative profit
from 2015 to 2018, it didn’t harm the overall business
profit that much due to continued positive contributions
from other segments.
 CRYSTALINS didn’t raise any capital through private
placement and the directors/sponsors own 60% of the
total share which means the directors/sponsors of the
company may remain committed to the company.

2 EBL Securities Limited Research

 IPO Note on Crystal Insurance Limited (CRYSTALINS) Date: December 20,2020
IPO Issue Size (BDT mn): 160.00
Offer Price (BDT): 10.0 IPO Issue Size (No. of Shares) (mn): 16.00
 With investments made by World Bank and with the exposes CRYSTALINS further to the interest rate risk and
recent regulatory updates by IDRA, the efficiency and the risk of capital market volatility which can have adverse
transparency in the insurance industry can be expected to impact on its earnings given downward macroeconomic,
increase which will have positive impact on the industry. money market and capital market scenario.
 Expense of Management has decreased from being  Currently, there is an ongoing litigation going on where
10.08% to the total gross premium in 2017 to 6.92% in The Commissioner of Customs Excise & VAT
2019 which indicates the company is getting efficient over Commissionerate, Dhaka (South) has demanded a total
the years. amount of BDT 4.1 million from CRYSTALINS and the
 CRYSTALINS has given 7% to 12% cash dividend from 2015 decision of the ongoing litigation has not been given yet.
to 2019. The trend can be expected to continue after the  Marine hull, a new segment introduced in 2018 has
listing in the secondary market. reported -0.93 million profit in 2019 and -1.78 million in
Investment Concern 2020. If the negative earnings continue from this segment,
 The industry is very competitive with new entrants this will hurt CRYSTALINS’s bottom line.
increasing competition over time which can squeeze the  Possibility of earnings and liability management in the
earnings of CRYSTALINS. Also, regulatory mandate for insurance industry is there as management has significant
Insurance companies to include in the capital market will discretion over making provisions which can result in
further intensify this competition. unreliable financial figures.
 CRYSTALINS has currently BDT 70 million investment in
the Treasury bond and in shares which they intend to
increase by another BDT 149 million. However, this also

Profitability Margins of CRYSTALINS Five Year's Restated Post IPO EPS (BDT)
20% GP Margin OP Margin PBT Margin NPAT Margin

1.75 1.77
1.56 1.56
15%

10% 1.13

5%

0%
2016 2017 2018 2019 2016 2017 2018 2019 2020 9M An'

Relative Valuation and Pricing:

Pricing Based on Relative Valuation

Particulars EPS* Multiple Value

Market Forward P/E 1.77 13.36 23.65
Sector Forward 1.77 21.10 37.35
Sensitivity Analysis
Price @15(x)PE 1.77 15.00 26.55
Price @20(x)PE 1.77 20.00 35.40
Price @25(x)PE 1.77 25.00 44.25
Price @30(x)PE 1.77 30.00 53.10
NAV Based Pricing
NAVPS Multiple Value
NAVPS (Market) 25.79 1.57 40.49
NAVPS (Sector) 25.79 1.90 49.00
*EPS is 2020’s 9M Annualized EPS. NAVPS is as on 30th September, 2020.

3 EBL Securities Limited Research

 IPO Note on Crystal Insurance Limited (CRYSTALINS) Date: December 20,2020
IPO Issue Size (BDT mn): 160.00
Offer Price (BDT): 10.0 IPO Issue Size (No. of Shares) (mn): 16.00
HIGHEST PRICE RANGE AND P/E FOR THE FIRST 3 TRADING DAYS:
Day Circuit Breaker Price P/E
1st 50% 15.0 8.47
2nd 50% 22.5 12.71
3rd 10% 24.8 14.01

CURRENT PRICE OF COMPANIES WITH SIMILAR EPS:

Particular ISLAMINS TAKAFULINS MERCINS JANATAINS BGIC
EPS (2020 An’) 1.88 1.49 1.53 1.48 1.6
Current Price 75.2 45.3 46.1 39.7 39.8

STATEMENT OF COMPREHENSIVE INCOME (IN BDT)

Particulars Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 6m
An’
Expenses of management 19,965,926 41,196,832 31,310,893 36,517,120 42,599,370
Advertisement & Publicity 434,525 129,066 170,350 882,657 793,300
Audit fees 275,000 300,000 400,000 405,000
Bank Charges 483,164 387,755 351,130 468,721 167,484
Bima Mela 927,444
Credit Rating Fee 150,000 223,850
Excise Duty 237,494 266,300 402,321 522,917 367,900
Depreciation 14,497,900 26,533,231 28,103,330 28,654,382 35,950,138
Director’s meeting attendance fees 115,000 150,000 310,500 414,000 264,000
Donation & Subscription Fees and 956,212 269,000 230,500 2,694,000 2,570,000
Charges
Bangladesh Insurance Association 200,000 300,000 100,000 100,000
Business Development Expenses 40,000 42,222 48,889 36,667 73,334
(SBC)
Renewal & Registration 2,726,631 12,819,258 1,043,873 2,114,926 1,485,770
Profit transferred to profit & loss 50,499,862 53,796,227 79,571,490 105,777,187 80,375,730
appropriation account
Total 70,465,788 94,993,059 110,882,383 142,294,307 122,975,100
Profit/(Loss) transferred from: 52,485,536 73,221,973 65,000,849 99,990,114 66,684,848
Fire (13,705,989) (13,373,328) (8,048,702) 5,410,616 39,359,334
Marine Cargo 43,313,654 61,878,146 47,223,338 71,670,497 26,340,248
Marine Hull 672,280 (933,115) (1,777,652)
Motor 11,489,951 14,322,865 15,769,106 16,480,476 255,370
Miscellaneous 11,387,920 10,394,290 9,384,827 7,361,640 2,507,548
Interest Income 15,745,306 18,061,968 24,570,974 36,158,542 19,360,072
Other Income 2,234,946 3,709,118 11,019,060 6,145,651 36,930,180
Gain from sale of Assets 10,291,500
Total 70,465,788 94,993,059 110,882,383 142,294,307 122,975,100

STATEMENT OF PROFIT AND LOSS APPROPRIATION ACCOUNT (IN BDT)

Particulars Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 6m
An’
Opening balance of Appropriation 41,866,129 40,558,748 24,273,559 32,180,451 24,613,792
Account
Net profit for the period brought down 50,499,862 53,796,227 79,571,490 105,777,187 80,375,730
Transfer from General Reserve 6,000,000 5,000,000
Total 92,365,991 94,354,975 109,845,049 137,957,638 109,989,522
Reserve for exceptional losses 51,807,243 70,081,416 77,664,599 113,343,845 60,146,281

4 EBL Securities Limited Research

IPO Note on Crystal Insurance Limited (CRYSTALINS) Date: December 20,2020
IPO Issue Size (BDT mn): 160.00
Offer Price (BDT): 10.0 IPO Issue Size (No. of Shares) (mn): 16.00
General Reserve during the year 39,035,412 40,866,169 43,130,117 52,732,530 20,722,860
Provision for Companies Income Tax 1,500,000 500,000 500,000 1,000,000 500,000
Provision for WPPF 5,271,831 4,795,169 10,998,368 17,485,073 7,844,590
Provision for deferred tax 5,037,009 1,913,707
expenses/(Income)
Dividend paid from last year profit (13,279,922) 6,236,114 13,089,233 365,124
Balance transferred to balance sheet 40,558,748 24,273,559 32,180,450 24,613,793 49,843,241
Total 92,365,991 94,354,975 109,845,049 137,957,638 109,989,522
Net Profit Tax After Year 45,228,031 62,280,980 62,337,008 70,165,872 70,252,309
EPS Restated 1.13 1.56 1.56 1.75 1.77
STATEMENT OF FINANCIAL POSITION (IN BDT)
Particulars Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 6m An’
Non-Current Assets: 374,454,309 426,801,350 430,895,844 418,250,632 458,437,820
Property, Plant and 64,185,142 51,066,994 293,457,012 298,748,116 319,808,503
Equipment
Advance against land & 261,828,000 275,926,900 12,000,000 12,000,000 12,000,000
office Space
Investments 20,935,888 60,397,519 78,825,117 70,087,619 90,291,924
Investment Property 27,505,279 26,130,015 39,569,906 37,414,897 36,337,393
Deferred Tax Assets 13,279,922 7,043,809
Current Assets : 98,484,792 107,032,887 125,540,640 135,517,740 151,771,859
Insurance Stamps 1,197,046 1,361,593 1,173,391 1,259,956 1,844,002
Sundry Debtors 27,675,500 25,010,970 28,080,557 30,018,904 34,289,187
Interest receivable 5,096,514 6,194,197 10,292,328 17,360,798 17,842,970
account
Amount due from other 64,515,732 74,466,127 85,994,364 86,878,082 97,795,700
persons or bodies carrying
on insurance business
Cash and Cash 281,290,405 358,399,213 395,890,384 502,117,535 524,301,809
Equivalents :
Cash in hand 1,890,970 2,723,455 2,818,141 231,729 258,372
Cash In BO A/c 16,180,629 6,061,085 455,543 1,876,289
Cash and Bank Balances 106,187,601 23,387,680 25,164,988 29,612,902 45,113,768
Cash at Banks on CD 5,661,834 4,707,449 3,246,170 1,267,361 4,803,380
accounts
Fixed Deposit Receipt 167,550,000 311,400,000 358,600,000 470,550,000 472,250,000
(FDR) with Banks
Total Assets 754,229,506 892,233,450 952,326,868 1,055,885,907 1,134,511,488
Issued, Subscribed and 60,000,000 240,000,000 240,000,000 240,000,000 240,000,000
Paid up Capital
Reserve & Surplus: 334,681,937 275,609,707 315,957,016 346,175,394 329,006,652
Reserve for Exceptional 193,085,967 233,952,136 277,082,253 329,814,783 350,537,643
Losses
Profit & Loss 40,558,748 24,273,559 32,180,451 24,613,792 9,655,376
Appropriation Account*
Share money deposit 88,000,000
Investment Fluctuation 2,537,222 6,384,012 1,194,312 (14,753,181) (33,186,367)
Fund
General Reserve 10,500,000 11,000,000 5,500,000 6,500,000 2,000,000
Total Shareholders Equity 394,681,937 515,609,707 555,957,016 586,175,394 569,006,652
Balance of fund and 118,233,490 120,581,415 122,231,476 157,910,934 145,840,390
accounts
Fire Insurance Revenue 47,415,832 49,202,775 49,513,474 63,295,852 55,010,989
accounts
Marine Insurance 47,110,302 48,912,750 51,168,460 73,405,808 66,814,089
Revenue accounts
Marine Hull Insurance 2,627,050 1,953,223 2,589,156 1,927,478
Revenue accounts

5
EBL Securities Limited Research
 IPO Note on Crystal Insurance Limited (CRYSTALINS) Date: December 20,2020
IPO Issue Size (BDT mn): 160.00
Offer Price (BDT): 10.0 IPO Issue Size (No. of Shares) (mn): 16.00
Motor Insurance Revenue 14,103,630 15,258,639 14,147,495 15,094,398 17,043,095
accounts
Misc. Insurance Revenue 9,603,726 4,580,201 5,448,824 3,525,720 5,044,739
accounts
Deposit Premium 11,535,948 13,496,717 21,621,653 69,592,387 109,101,087
Deferred Tax Liability 6,045,424 6,410,548
Estimated liability in 52,835,149 75,124,182 99,321,911 32,119,989 57,218,536
respect of Outstanding
claims whether due or
intimated
Amounts due to other 132,436,165 128,537,541 110,926,278 132,810,042 149,662,356
persons or bodies carrying
on insurance business:
Sundry Creditors 44,506,817 38,883,888 42,268,534 66,194,728 90,321,203
Provision for WPPF 5,037,009 6,950,716
Total Liabilities and 754,229,506 892,233,450 952,326,868 1,055,885,907 1,134,511,488
Provisions
Net Asset Value (NAV) 65.78 21.48 23.16 24.42 25.79
per share
No. of Share Outstanding 6,000,000 24,000,000 24,000,000 24,000,000 24,000,000
*FY’20 data are as on 30th June, 2020.
RATIO ANALYSIS
Particulars Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 6m
An'
Liquidity Ratios
Current Ratio 1.09 1.37 1.45 1.45 1.20
Quick Ratio 1.09 1.37 1.45 1.45 1.20
Operating Efficiency Ratios
Accounts Receivable Turnover 6.05 5.49 5.02 6.07
Ratio
Inventory Turnover Ratio 0.003 0.003 0.003 0.002
Total Asset Turnover 0.52 0.46 0.45 0.50
Operating Profitability Ratios
Gross Profit Margin (GPM) 13.45% 17.92% 15.07% 18.96%
Operating Profit Margin 8.33% 7.84% 7.81% 12.04%
(OPM)
Net Profit Margin 11.59% 15.24% 14.45% 13.31%
EBIDTA Margin 16.65% 19.66% 24.97% 24.54%
Return on Total Assets (ROA) 6.00% 6.98% 6.55% 6.65% 5.30%
Return on Equity (ROE) 11.46% 12.08% 11.21% 11.97% 10.57%
Growth Rates
EPS Growth Rate 10.39% 37.70% 0.09% 12.56% 0.90%
Sales Growth Rate 6.85% 4.69% 5.54% 22.26%
Gross Profit Growth Rate 7.73% 39.51% -11.23% 53.83% -33.31%
Net Income Growth Rate 10.39% 37.70% 0.09% 12.56% 0.12%
Valuation Ratios
NAVPS (Basic) 65.78 21.48 23.16 24.42 25.79
EPS (Restated, Post IPO) 1.13 1.56 1.56 1.75 1.50
Other Data
Number of shares outstanding 6,000,000 24,000,000 24,000,000 24,000,000 24,000,000

6
EBL Securities Limited Research
 IMPORTANT DISCLOSURES
Disclaimer: This document has been prepared by the Research Team of EBL Securities Limited (EBLSL) for information purpose
only of its clients residing both in Bangladesh and abroad, on the basis of the publicly available information in the market and
own research. This document does not solicit any action based on the material contained herein and should not be taken as an
offer or solicitation to buy or sell or subscribe to any security. Neither EBLSL nor any of its directors, shareholders, member of the
management or employee represents or warrants expressly or impliedly that the information or data or the sources used in the
documents are genuine, accurate, complete, authentic and correct. However all reasonable care has been taken to ensure the
accuracy of the contents of this document. Being a broker, EBLSL may have a business relationship with the public companies
from time to time. EBLSL and its affiliates, directors, management personnel and employees may have positions in, and buy or
sell the securities, if any, referred to in this document. EBLSL disclaims liability for any direct, indirect, punitive, special,
consequential, or incidental damages related to the report or the use of the report.
This document is not directed to, or intended for distribution to or use by, any person or entity that is citizen or resident of or
located in any locality, state, country, or other jurisdiction where such distribution, publication, availability or use would be
contrary to law or regulation. The information and data presented herein are the exclusive property of EBLSL and any
unauthorized reproduction or redistribution of the same is strictly prohibited. No part of this report should be copied or used in
any other report or publication or anything of that sort without proper credit given or prior written permission taken from the
authorized publisher of this report. This disclaimer applies to the report irrespective of being used in whole or in part.
Analyst Certification: The person or persons named as the author(s) of this report hereby certify that the recommendations and
opinions expressed in the research report accurately reflect their personal views about the subject matter(s) discussed. The views
of the author(s) do not necessarily reflect the views of the EBL Securities Limited (EBLSL) and/or any of its salespeople, traders
and other professionals and are subject to change without any prior notice. All reasonable care has been taken to ensure the
accuracy of the contents of this document and the author(s) will not take any responsibility for any decision made by investors
based on the information herein.
Compensation of Analyst(s): The compensation of research analyst(s) is intended to reflect the value of the services they provide
to the clients of EBLSL. The compensation of the analysts is impacted by the overall profitability of the firm. However, EBLSL and
its analyst(s) confirms that no part of the analyst’s compensation was, is, or will be, directly or indirectly, related to the specific
recommendations, opinions or views expressed in the research reports.
General Risk Factors: The information provided in the report may be impacted by market data system outages or errors, both
internal and external, and affected by frequent movement of market events. The report may contain some forward looking
statements, projections, estimates and forecasts which are based on assumptions made and information available to us that we
believe to be reasonable and are subject to certain risks and uncertainties. There may be many uncontrollable or unknown factors
and uncertainties which may cause actual results to materially differ from the results, performance or expectations expressed or
implied by such forward-looking statements. EBLSL cautions all investors that such forward-looking statements in this report are
not guarantees of future performance. Investors should exercise good judgment and perform adequate due-diligence prior to
making any investment. All opinions and estimates contained in this report are subject to change without any notice due to
changed circumstances and without legal liability. However, EBLSL disclaims any obligation to update or revise any such forward
looking statements to reflect new information, events or circumstances after the publication of this report to reflect the
occurrences and results of unanticipated events.
For U.S. persons only: This research report is a product of EBL Securities Ltd., which is the employer of the research analyst(s) who
has prepared the research report. The research analyst(s) preparing the research report is/are resident outside the United States
(U.S.) and are not associated persons of any U.S. regulated broker-dealer and therefore the analyst(s) is/are not subject to
supervision by a U.S. broker-dealer, and is/are not required to satisfy the regulatory licensing requirements of FINRA or required
to otherwise comply with U.S. rules or regulations regarding, among other things, communications with a subject company, public
appearances and trading securities held by a research analyst account.
This report is intended for distribution by EBL Securities Ltd. only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4)
of the U.S. Securities and Exchange Act, 1934 (the Exchange Act) and interpretations thereof by U.S. Securities and Exchange
Commission (SEC) in reliance on Rule 15a 6(a)(2). If the recipient of this report is not a Major Institutional Investor as specified
above, then it should not act upon this report and return the same to the sender. Further, this report may not be copied,
duplicated and/or transmitted onward to any U.S. person, which is not the Major Institutional Investor.

EBLSL Rating Interpretation

Overweight : Stock is expected to provide positive returns at a rate greater than its required rate of return
Accumulate : Stock is expected to provide positive inflation adjusted returns at a rate less than its required rate of return
Market weight : Current market price of the stock reasonably reflect its fundamental value
Underweight : Stock expected to fall by more than 10% in one year
Not Rated : Currently the analyst does not have adequate conviction about the stock's expected total return
About EBL Securities Ltd.: EBL Securities Ltd. (EBLSL) is one of the fastest growing full-service brokerage companies in Bangladesh
and a fully owned subsidiary of Eastern Bank Limited. EBLSL is also one of the top five leading stock brokerage houses of the
country. EBL Securities Limited is the TREC-holder of both exchanges of the country; DSE (TREC# 026) and CSE (TREC# 021). EBLSL
takes pride in its strong commitment towards excellent client services and the development of the Bangladesh capital markets.
EBLSL has developed a disciplined approach towards providing capital market services, including securities trading, margin loan
facilities, depository services, foreign trading facilities, Bloomberg Terminal, online trading facilities, research services, panel
brokerage services, trading through NITA for foreign investors & NRBs etc.

EBLSL Key Management

Md. Sayadur Rahman Managing Director sayadur@eblsecurities.com
Md. Humayan Kabir SVP & Chief Operating Officer (COO) humayan@eblsecurities.com

EBLSL Research Team

M. Shahryar Faiz SAVP & Head of Research shahryar@eblsecurities.com
Mohammad Asrarul Haque Research Analyst asrarul@eblsecurities.com
Mohammad Rehan Kabir Senior Research Associate kabir@eblsecurities.com
Arif Abdullah Research Associate arif@eblsecurities.com
Md Rashadur Rahman Ratul Junior Research Associate ratul@eblsecurities.com

EBLSL Institutional & Foreign Trade Team

Asif Islam Associate Manager asif@eblsecurities.com

For any queries regarding this report: research@eblsecurities.com

EBLSL Research Reports are also available on www.eblsecurities.com > Research

Our Global Research Distribution Partners

To access EBLSL research through Bloomberg use <EBLS>

Our Locations

Head Office:

Jiban Bima Bhaban, HO Extension:

10 Dilkusha C/A, 1st Floor,
Bangladesh Sipping Corporation
Dhaka-1000
(BSC) Tower
+8802 9553247, 9556845 2-3, Rajuk Avenue (4th floor),
+8802 47111935 Motijheel, Dhaka-1000
FAX: +8802 47112944 +880257160801-4
info@eblsecurities.com

Dhanmondi Branch: Chattogram Branch:

Sima Blossom, House # 390 (Old), 3 (New), Suraiya Mansion (6th Floor);
Road # 27 (Old), 16 (New),Dhanmondi R/A, 30, Agrabad C/A
Dhaka-1209. Chattogram-4100
+8802-9130268, +031 2522041-43
+8802-9130294