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
Ali Asghar Poonawala

Pakistan Autos_ Sales hit a dead stop , (AKD Daily, May 13, 2020)

Unprecedented, harsh and clearly, one for the history books, reported auto numbers for the outgoing April’20 hit a complete halt, with no sales recorded for PC segment, and major OEMs reporting nil sales as dealerships, plants and product supply chains came to a stop due to COVID-19 lockdown measures imposed across the nation Already on an uneasy footing, April’20 marks the point where 18 consecutive months of flat or declining YoY offtake came to a stop, showcased in weak cumulative 10MFY20 (total industry sales down 52%YoY – levels last seen during FY15) with the core Passenger Car (PC) se...

Abdul Ghani Mianoor

Pakistan Autos: Negligible sales in April due to country-wide lockdown

Pakistan's auto industry sold only 39 units in April 2020, which comprised trucks and buses only. There was no passenger car sales, primarily because of the country-wide lockdown (started 24 March) which resulted in the OEMs shutting down their plants and dealerships being closed. The tractor segment recorded sales of 2,035 units, down 30% mom and 63% yoy. Sales for AGTL saw a 19% mom increase, while those of MTL declined 51% mom. This brings the 10M FY 20 industry sales to 25,534 units (down...

Abdul Ghani Mianoor

Pakistan Suzuki: Weak sales outlook and profitability concerns; Sell

We resume coverage on PSMC with a Sell stance based on a December 2021 TP of PKR143/sh. We expect a slow recovery of lost sales (post-Mehran discontinuation) amid rising competition and a weak financial standing – which leads to a protracted recovery out of losses. A number of new entrants will inundate the Economy segment in the near term (Kia has already entered), leading to a very competitive landscape for PSMC. This will diminish its pricing power and keep profit margins low – exacerbatin...

Abdul Ghani Mianoor

Pakistan Suzuki: Q1 CY 20 review: Weak margins lead to earnings miss

PSMC posted 1QCY20 pre-tax loss of PKR1,326mn (LPS: PKR16.11), doubling from a pre-tax loss of PKR529mn in 1QCY19 and much higher vs. our projected pre-tax loss of PKR664mn (LPS: PKR8.06). That said, a PKR384mn tax credit diluted overall NLAT to PKR941mn (LPS: PKR11.44). The earnings miss primarily stems from (i) significantly lower-than-expected gross margins at 3.2% vs. expectation of 4.9% and (ii) higher-than-expected finance costs. Key highlights: * Volumes declined by 38% qoq and 63% yo...

Abdul Ghani Mianoor

Pak Autos 3Q20 Previews: Profits to rise qoq due to moderate pick-up in volumes

For Jan-March 2020 results, we expect Pak Autos to post combined NPAT of PKR442mn, down sharply by 87%yoy. This will however be an improvement from a cumulative net loss in the previous quarter. Volumes during 3Q were down by a moderate 6%qoq. Profitability will improve due to the price hikes in January and a stable PKR for most of the period. The improvement may however be short-lived as (i) INDU announced price hikes for all models in April, in light of the recent PKR depreciation (likely t...

Ali Asghar Poonawala

Pakistan Autos_ Sales hit a dead stop , (AKD Daily, May 13, 2020)

Unprecedented, harsh and clearly, one for the history books, reported auto numbers for the outgoing April’20 hit a complete halt, with no sales recorded for PC segment, and major OEMs reporting nil sales as dealerships, plants and product supply chains came to a stop due to COVID-19 lockdown measures imposed across the nation Already on an uneasy footing, April’20 marks the point where 18 consecutive months of flat or declining YoY offtake came to a stop, showcased in weak cumulative 10MFY20 (total industry sales down 52%YoY – levels last seen during FY15) with the core Passenger Car (PC) se...

Abdul Ghani Mianoor

Pakistan Autos: Negligible sales in April due to country-wide lockdown

Pakistan's auto industry sold only 39 units in April 2020, which comprised trucks and buses only. There was no passenger car sales, primarily because of the country-wide lockdown (started 24 March) which resulted in the OEMs shutting down their plants and dealerships being closed. The tractor segment recorded sales of 2,035 units, down 30% mom and 63% yoy. Sales for AGTL saw a 19% mom increase, while those of MTL declined 51% mom. This brings the 10M FY 20 industry sales to 25,534 units (down...

Abdul Ghani Mianoor

Pakistan Suzuki: Weak sales outlook and profitability concerns; Sell

We resume coverage on PSMC with a Sell stance based on a December 2021 TP of PKR143/sh. We expect a slow recovery of lost sales (post-Mehran discontinuation) amid rising competition and a weak financial standing – which leads to a protracted recovery out of losses. A number of new entrants will inundate the Economy segment in the near term (Kia has already entered), leading to a very competitive landscape for PSMC. This will diminish its pricing power and keep profit margins low – exacerbatin...

Abdul Ghani Mianoor

Pakistan Suzuki: Q1 CY 20 review: Weak margins lead to earnings miss

PSMC posted 1QCY20 pre-tax loss of PKR1,326mn (LPS: PKR16.11), doubling from a pre-tax loss of PKR529mn in 1QCY19 and much higher vs. our projected pre-tax loss of PKR664mn (LPS: PKR8.06). That said, a PKR384mn tax credit diluted overall NLAT to PKR941mn (LPS: PKR11.44). The earnings miss primarily stems from (i) significantly lower-than-expected gross margins at 3.2% vs. expectation of 4.9% and (ii) higher-than-expected finance costs. Key highlights: * Volumes declined by 38% qoq and 63% yo...

Abdul Ghani Mianoor

Pak Autos 3Q20 Previews: Profits to rise qoq due to moderate pick-up in volumes

For Jan-March 2020 results, we expect Pak Autos to post combined NPAT of PKR442mn, down sharply by 87%yoy. This will however be an improvement from a cumulative net loss in the previous quarter. Volumes during 3Q were down by a moderate 6%qoq. Profitability will improve due to the price hikes in January and a stable PKR for most of the period. The improvement may however be short-lived as (i) INDU announced price hikes for all models in April, in light of the recent PKR depreciation (likely t...

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...

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