Pakistan Cement_Local dispatches increase by 42%YoY for Mar’21, (AKD Daily, Apr 06, 2021)
AKD Daily
Pakistan Cement: Local dispatches increase by 42%YoY for Mar’21
- Local cement dispatches extended their outstanding run with an increase of 42%YoY to 4.6mn tons for Mar’21 where South fared better among the two regions, witnessing an increase of 62%YoY while North posted an increase of 39%YoY.
- Exports also registered an impressive growth of 26/4% YoY/MoM where resolution of supply chain issues also contributed to the cause. Overall, dispatches for 9MFY21 stand at 42.9mn tons, up 16%YoY led by 18%YoY increase in local dispatches while exports increased by 4%YoY.
- Number of cost headwinds stand ahead of local cement manufacturers where in near term, as per news reports, government is expected to increase power tariff while increase in FED might also be on the cards. However, we expect local cement manufactures to exercise their strong pricing power to pass-on any increase in costs.
- We continue to like DGKC (TP: PkR209.7/sh, 81.7% upside), MLCF (TP: PkR80.1/ sh, 85.1% upside) and LUCK (TP: PkR1289.2/sh, 60.5% upside) from AKD cement universe with our universe currently trading at EV/EBITDA of 6.8x while EV/ton stands at USD67.
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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