Autos: September slip clouds FY18E forecast
Sep'17 total auto industry sales amounted to 19,591 units -14.7%MoM/+17.7%YoY consisting of 15,639 passenger cars (-16.2%MoM/+11.0%YoY) and tractors (+15.9%MoM/+81.8%YoY) sold during the past months. OEM sales for the month fell -12.2%/-11.1%/-26.5%MoM for PSMC/INDU/HCAR due to: 1) long drawn monsoon season reducing rural sales, 2) Eid-ul-Adha holidays and commencement of the holy month of Muharram during and 3) slower production leading in preceding months leading to supply slipping. Cumulative 9MCY17 industry sales stood at 183,249 units (growing 14.9%YoY) where growth from car sales (150,521 units growing 13.4%YoY) and tractors offtake (50,569 units increasing by 72.3%YoY) were major movers. During the period, segment-wise sales stood at 73,817/30,979/45,725 units for 1300CC+/800-1000CC/800CC & below segments moving +7.3%/48.6%/+6.2%YoY. Recent downturn in the prices have sharpened our investment case for INDU, where our FCFE based TP of 2,068/share implying a buy stance.
Indus Motor is engaged in the assembly, progressive manufacture, import and marketing of Toyota motor vehicles. Co. is also the sole distributor of Toyota and Daihatsu vehicles in Pakistan.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.