HUB POWER COMPANY LTD. ASIA PACIFIC TEAM

First & the largest power station in South Asia

Largest private power projectsin industrialized world

Largest market capitalization in Pakistan among privatecompanies

Listed in all 3 stock exchanges of Pakistan

Backed by World bank & commercial banks

GDR listed in Luxembourg stock exchange

HUBCO

PAKISTAN’S POWER GENERATION CAPACITY (19420 MW)

Wapda 59%IPP’S 32%

PAEC 9%

IPP’S 32%

PAEC 9%Wapda 59%

HUBCO FINANCES BREAKDOWN

$175 Million from local & international equity investors

$589 million from world bank

$189 million from other international banks

HUB POWER PLANT

•Most efficient oil fired thermal plant•Provision of 9+ percent of country's electricity demand•Available at a short notice during high demand period•Switch to flexible operations during low demand period

RECOMMENDATION

Current Price 36.54

Target Price 42.4

Upside Potential 16%

Hubco’s 52 week stock price

FINANCIAL HIGHLIGHTS

FY09A FY10A FY11E

Turnover 82,783,924 99,694,264 120,058,893

Gross Profit 6,096,811 7,687,945 9,673,166

Net Profit 3,780,991 5,556,122 7,593,551

EPS 3.27 4.80 6.96

DPS* 2.00 2.50 2.8

P/E 7.46 6.97 6.09

Generation (GWH)

EARNING PER SHARE

DIVIDEND YIELD

RATIOS 2009A 2010A 2011E

Current Ratio 1.03 1.00 Worst off

Debt To Asset Ratio 67.25% 75.64% Worst off

Long Term Debt To Equity 38.6% 78.64% Worst off

Inventory Turnover 12.02 6.18 Better off

Total Asset Turnover

91.7% 81.25% Better off

INVESTMENT MERITS 16% Upside Potential

Constant Dividend Growth

Hedge against rupee devaluations

Financing Availability

Laraib Energy ltd.

Open door Policy

Politically stableIncreasing Demand

Economic

1

UNRESOLVED CIRCULAR

2

Increase in per capita consumption of electricity

3 4

Shortage Of Oil Supply

Hydrological Risk

5

Lack Of Operational Efficiency

6

UNDERVALUED GEM

Earnings in US dollarsIncrease in overall capacity and load factor

1 2

91.7% increase in dividend payments.

Increased investments in domestic renewable

3 4

Increased Productivity Development Stage

5 6

Hubco Power Co. LTD.

INVEST

RECOMMENDATION

Upside Potential:16%