Pakistan Cement_Local cement sales increase by 4.2%YoY for 1QFY22, (AKD Daily, Oct 07, 2021)
AKD Daily
Pakistan Cement: Local cement sales increase by 4.2%YoY for 1QFY22,
- Local cement dispatches for Sep’21 clocked in at 4.0mn tons, up 5.3%MoM however declining by a mere 1.7% on YoY basis. Both the regions witnessed a rather tepid month with North witnessing local sales of 3.5mn tons (-2/+10% YoY/MoM) while South witnessed local sales of 0.6mn tons (-15.8% MoM).
- Overall, for 1QFY22, local sales have increased by 4.2%YoY to 11.3mn tons where local sales in North have remained flat at 9.5mn tons while local sales in South have witnessed a significant jump of 30%YoY.
- With the coal prices trading at all-time highs, margins of local players are expected to remain under pressure particularly when government authorities have raised concerns over previous increase in cement prices. To note, local players needs to increase prices by another PkR50-60/bag in order to pass on the impact of increase in coal prices.
- We expect the sector to continue to remain under pressure however it is a good opportunity to accumulate in our opinion where once coal prices ease off, with the other fundamentals intact, the sector will be poised for significant returns.
AKD Research
Co. is engaged in the production and sale of Ordinary Portland and Sulphate Resistant Cements.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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