Pak Suzuki Motor Co. Ltd.

Pak Suzuki Motor is engaged in assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, and 4X4 vehicles. Co.'s product models include Baleno, Margalla, Mehran, Kyber, Ravi Pickup, Bolan Van and Potohar Jeep.
  • TickerPSMC
  • ISINPK0030501016
  • ExchangePakistan Stock Exchange
  • SectorAutomobiles & Parts
  • CountryPakistan

Analysts

Ali Asghar Poonawala

Pakistan Autos: January jump, but just for premium variants, (AKD Daily, Feb 12, 2020)

Pakistan Autos: January jump, but just for premium variants Following a clipped 4QCY19, a soft start to CY20 is seen with Jan’20 total industry sales of 12,338 units (-1%MoM/-47%YoY) consisting of 10,095 passenger cars (PC) (+1%MoM/-48%YoY), 1,806 LCVs & Pickups (-15%MoM/-43%YoY) and 386 Trucks (+54%MoM/-28%YoY), marking the tenth consecutive month of YoY sales decline   Cumulative 7MFY20 total industry sales of 81,912 vehicles (-44%YoY) constituted by 69,192 passenger cars (-44%YoY), 10,219 LCVs & Pickups (-48%YoY) and 2,077 Trucks (-45%MoM), underpin a broad-based constrained demand...

Ali Asghar Poonawala

Pakistan Autos: CY19 end couldn't come sooner for OEMs, (AKD Daily, Jan 14, 2020)

Pakistan Autos: CY19 end couldn’t come sooner for OEMs Dec’19 total industry sales of 12,415 vehicles (+21%MoM/-38%YoY), consisting of 9,987 passenger cars (+17%MoM/-38%YoY), 2,116 LCVs (+61%MoM/-36%YoY), and 251 trucks (-24%MoM/-17%YoY) wrapping up another year of drastic operational shifts and intermingled headwinds  CY19 total industry sales of 191,085 units (-27.6%YoY) consist of 161,004 passenger vehicles (-25.6%YoY), 25,025 LCVs (-33.3%YoY), 4,294 trucks (-47.5%YoY) and 762 bus units (-22.2%YoY), marking the single largest decline since CY08, taking annual unit sales back five years...

Team AKD Research

Stock Smart Weekly (Dec 27, 2019)

StockSmart                        Weekly Review                                 The market remained volatile during the outgoing week, closing in at 40,849pts, flattish WoW. The market opened on a weak note in its first trading session, as the negative sentiment of a show down situation between Pakistan’s military and judiciary institutions carried over the weekend. However, PPL’s discovery reversed the market sentiment the following day. After revising downward the FBR’s target from PKR5.5tn to PKR5.2tn, Pakistan agreed to take ‘additional measures’ on the eve of presenting the budget revi...

Team AKD Research

Pakistan Autos: Slipping through the durable demand net, (AKD Daily, Dec 11, 2019)

Nov’19 total industry sales stood at 10,223 units (-9%MoM/-44%YoY) comprising of Passenger Cars sales of 8,524 units (-11%MoM/-44%YoY), LCV/Pickup offtake of 1,316 units (-3%MoM/-39%YoY) and new Tractor purchases of 1,818 (-36%MoM/-52%YoY), marking a period of continued weakness in sectoral demand. Monthly sales declines in PC and LCV segments remained stark, where the segment-wise split stands at 3,430/1,555/3,539 for 1300CC+/1000CC/800CC & below segments, shifting +8%/-9%/-25%MoM and -59%/-57%/+9%YoY, while major OEMs underwent monthly sales moves of -16%/+6%/-6%MoM for PSMC/INDU/HCAR Cumu...

Ali Asghar Poonawala

PSMC: Major developments keep sentiment afloat, (AKD Daily, De 06, 2019)

Continuing the to-and-fro between the GoP and PSMC sponsors, the company (as expected) is reportedly proceeding with planned capacity expansions, despite receiving no incentives from the GoP. Additionally, news flow suggests the launch of an upgraded Swift is in the works, where we showcase earnings sensitivities from a spike in sales and price tags, setting up our base case expectations of 15-18% growth in NPAT from a potential new model launch with accompanying price/sales hike of ~7/4% from current levels. IN this backdrop we assess the benefits from capacity expansions on the OEMs profi...

Ali Asghar Poonawala

Pakistan Autos: January jump, but just for premium variants, (AKD Daily, Feb 12, 2020)

Pakistan Autos: January jump, but just for premium variants Following a clipped 4QCY19, a soft start to CY20 is seen with Jan’20 total industry sales of 12,338 units (-1%MoM/-47%YoY) consisting of 10,095 passenger cars (PC) (+1%MoM/-48%YoY), 1,806 LCVs & Pickups (-15%MoM/-43%YoY) and 386 Trucks (+54%MoM/-28%YoY), marking the tenth consecutive month of YoY sales decline   Cumulative 7MFY20 total industry sales of 81,912 vehicles (-44%YoY) constituted by 69,192 passenger cars (-44%YoY), 10,219 LCVs & Pickups (-48%YoY) and 2,077 Trucks (-45%MoM), underpin a broad-based constrained demand...

Ali Asghar Poonawala

Pakistan Autos: CY19 end couldn't come sooner for OEMs, (AKD Daily, Jan 14, 2020)

Pakistan Autos: CY19 end couldn’t come sooner for OEMs Dec’19 total industry sales of 12,415 vehicles (+21%MoM/-38%YoY), consisting of 9,987 passenger cars (+17%MoM/-38%YoY), 2,116 LCVs (+61%MoM/-36%YoY), and 251 trucks (-24%MoM/-17%YoY) wrapping up another year of drastic operational shifts and intermingled headwinds  CY19 total industry sales of 191,085 units (-27.6%YoY) consist of 161,004 passenger vehicles (-25.6%YoY), 25,025 LCVs (-33.3%YoY), 4,294 trucks (-47.5%YoY) and 762 bus units (-22.2%YoY), marking the single largest decline since CY08, taking annual unit sales back five years...

Team AKD Research

Stock Smart Weekly (Dec 27, 2019)

StockSmart                        Weekly Review                                 The market remained volatile during the outgoing week, closing in at 40,849pts, flattish WoW. The market opened on a weak note in its first trading session, as the negative sentiment of a show down situation between Pakistan’s military and judiciary institutions carried over the weekend. However, PPL’s discovery reversed the market sentiment the following day. After revising downward the FBR’s target from PKR5.5tn to PKR5.2tn, Pakistan agreed to take ‘additional measures’ on the eve of presenting the budget revi...

Team AKD Research

Pakistan Autos: Slipping through the durable demand net, (AKD Daily, Dec 11, 2019)

Nov’19 total industry sales stood at 10,223 units (-9%MoM/-44%YoY) comprising of Passenger Cars sales of 8,524 units (-11%MoM/-44%YoY), LCV/Pickup offtake of 1,316 units (-3%MoM/-39%YoY) and new Tractor purchases of 1,818 (-36%MoM/-52%YoY), marking a period of continued weakness in sectoral demand. Monthly sales declines in PC and LCV segments remained stark, where the segment-wise split stands at 3,430/1,555/3,539 for 1300CC+/1000CC/800CC & below segments, shifting +8%/-9%/-25%MoM and -59%/-57%/+9%YoY, while major OEMs underwent monthly sales moves of -16%/+6%/-6%MoM for PSMC/INDU/HCAR Cumu...

Ali Asghar Poonawala

PSMC: Major developments keep sentiment afloat, (AKD Daily, De 06, 2019)

Continuing the to-and-fro between the GoP and PSMC sponsors, the company (as expected) is reportedly proceeding with planned capacity expansions, despite receiving no incentives from the GoP. Additionally, news flow suggests the launch of an upgraded Swift is in the works, where we showcase earnings sensitivities from a spike in sales and price tags, setting up our base case expectations of 15-18% growth in NPAT from a potential new model launch with accompanying price/sales hike of ~7/4% from current levels. IN this backdrop we assess the benefits from capacity expansions on the OEMs profi...

Ali Asghar Poonawala

Pakistan Autos: Sales are ‘up in smoke’, (AKD Daily, Sep 13, 2019)

Aug’19 total automotive industry sales stood at 10,503 units down 20%MoM/43%YoY pulled lower by 17%MoM/41%YoY dip in passenger car (PC) sales to 9,126 units, 33%MoM/53%YoY decline in LCV offtake and 41%MoM/61%YoY fall in Truck sales, concluding five months of consecutive sales decline for the industry where TTM cumulative industry sales depict levels last seen in 2015 Segment-wise sales during August show 1,300CC+ segment sales crumbling (down 17%MoM/63%YoY) in the absence of any major model upgrades (atypical for the segment) while relatively nascent offerings by PSMC in the mid (1,000CC sal...

Team AKD Research

Pakistan Auto: Slimmer sales jump this January

Following a trimmed 4QCY18, a lean start to CY19 is seen with Jan’19 total industry sales of 23,140 units (+16%MoM/-6%YoY) consisting of 19,353 passenger cars (+20%MoM/-3%YoY), 3,185 LCVs & Pickups (-4%MoM/-12%YoY) and 537 Trucks (+78%MoM/-39%YoY), marking the slowest MoM move since Jan’07 For the passenger car segment, premium segment sales hunkered-on where 1300+ segment sales of 9,750 units (+49%MoM/+13%YoY) allowed premium players INDU/HCAR to record sales growth of +17%/+91%MoM and +16%/+3%YoY, whereas 800CC and below segment sales receded (4,318 units down 12%MoM/34%YoY), suppressing PS...

Pakistan Autos_ups & downs are what cycles are made of

Tepid August'18 PAMA sales data (total industry sales of 18,384units -17%MoM/-20%YoY illustrates sector dampeners (input pressures and price hikes, lack of new models) catching up to restrict demand, with the non-filer sales ban being the straw that breaks the camel's back. Seasonality played-out during the month (Eid effect, end of Kharif season), where cumulative 8MCY18 total industry sales of 180,300 units (+10%YoY) remains a better barometer for judging industry health (seasonal variations evened out by longer periods). Cumulative sales were up +13/+12/+5%YoY for PSMC/HCAR/INDU during 8M...

Ali Asghar Poonawala

Pakistan Autos: PAPS 2019 reflects a 'not-so-green light' for entrants

PAPAM's Pakistan Auto Show 2019, held in Karachi over the weekend was filled with exhibitors from the auto industry cluster, parts manufacturers, allied equipment, service providers and OEMs.  Refining our outlook for the competitive environment and forming a birds-eye-view of the sector we highlight the prevalence of Chinese origin brands, favouring shorter timespan brownfield entry over greenfield investments, and competitive pricing with enhanced features of PC segment offerings (both current and expected) as catalysts for organic growth  That said, amongst Greenfield entrants, KIA put up...

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Farheen Irfan

Automobile Assemblers - Passenger Cars Post 17%YoY Growth in FY18

Passenger cars have shown a robust growth of 17%YoY during FY18 on the back of rising income level, cheap car-financing, election year demand and blossoming ride-hailing segment. However, Passenger cars sales fell by 14%MoM during Jun-18 due to Ramadan effect and Eid holidays. Amongst the assemblers, HCAR showed strongest growth during the year (up 31%YoY) led by BR-V sales (302%YoY) due to low base year. PSMC registered growth of 26%YoY mainly due to sharp growth in WagonR/Mehran (65%YoY/22%YoY). While INDU posted a moderate growth of 5%YoY since focus shifted from passenger cars to SUVs (Fo...

South Asia Consumers & Conglomerates: Pakistan Autos and JKH are our top picks

Across more than 50 slides, we assess the opportunities in South Asia Consumers and Conglomerates, combining: (1) Country-specific demographic and urban characteristics. (2) Company and industry-specific dynamics. We break this second set down further into: (i) valuation relative to peers and history. (ii) track record on execution and strategy. (iii) competitive intensity and barriers to entry. (iv) long- and short-term risks and catalysts.

PAKISTAN AUTOS: We cut forecasts, but remain positive; INDU top pick

Lower margin outlook for HCAR and PSMC, INDU remains top pick. We cut our target prices for HCAR and PSMC by 18% to reflect a more cautious gross margin outlook and earlier market share loss assumptions to new entrants. HCAR’s gross margins are down 290bp yoy between April – December after the Pakistan Rupee depreciated versus the Thai Bhat and their sales mix has changed with more (lower margin due to less localisation of components) BR-V units sold. PSMC’s gross margins were flat yoy in 2017 but there is no update on the proposed new plant which should provide higher margin new models. We al...

Team AKD Research

AKD STOCK SMART

Weekly Review The ongoing political instability further fueled by announcement of tough US Pak-Afghan policy continued to cloud the investors’ sentiment, leading to the benchmark KSE-100 index falling 1.01%WoW, to close the week at 42,642pts. Continuing with risk-off approach, investors stayed away at bay where average daily turnover fell 2.06%WoW to 179.73mn shares with volume leaders comprising: 1) TRG (74.85mn shares), 2) ANL (74.76mn shares), 3) KEL (43.21mn shares), 4) BOP (41.81mn shares) and 5) ASL (41.69mn shares). Major news flows impacting the market included: 1) NAB filing applicat...

Team AKD Research

AKD STOCK SMART

With rising political uncertainty (PAT’s protest against Punjab government, summoning of former PM and his sons to NAB), the benchmark KSE-100 index fell 4.8%WoW, ending the 4-day trading session at 43,078pts. In tandem, average daily turnover also declined 3.38%WoW to 183.5mn shares, with volume leaders comprising: 1) ANL (57.15mn shares), 2) ASL (41.21mn shares), 3) TRG (39.18mn shares), 4) BOP (38.77mn shares) and 5) KEL (32.47mn shares).  Apart from aforementioned developments, key news flows impacting the market included: 1) Nawaz Sharif’s counsel filing review petition against Panama lea...

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