Pakistan Cement_Dec'19 Local sales increased by 7%YoY, (AKD Daily, Jan 03, 2020)
Pakistan Cement: Dec’19 Local sales increased by 7%YoY
- Local cement sales for Dec’19 increased by 7.3%YoY where both regions witnessed contrasting trends, as local sales in North increased by 13.0%YoY while South posted a decline of 15.2%YoY. For 1HFY20, total dispatches increased by 6.6%YoY where major growth was witnessed in exports — up by 23%YoY — followed by 3.7%YoY rise in local dispatches.
- Growth in dispatches can mainly be attributed to government releasing bulk of development expenditures allotted for 1HFY20 in 2QFY20 while resumption of private sector construction along with pre-buying before CNIC conditions are re-imposed from Jan’20.
- On the back of weakening demand, cement prices have also come down by ~PkR60-80/bag in the North where we expect weakness to continue particularly as ~4.7mn tons of new capacities come online prompting pricing indiscipline.
- We expect pressure on cement sector keeping in view weakening sector dynamics and potential weakness in 3QFY20 profitability. LUCK remains our preferred play from the sector with the company having lowest sensitivity to change in retail cement prices.
Lucky Cement is a cement manufacturing and distribution company which is based in Pakistan. Co. is engaged in the manufacture and sale of Ordinary Portland, Sulphate Resistant, and Slag Cement. Co.'s brand names included Lucky Cement, Lucky Star, Lucky Gold, Chairman, and Lucky Sulphate Resistant Cement. Co. maintains production facilities in Pezu (Production capacity: 13,000 tons per day) as well as in Karachi (Production capacity: 8,000 tons per day). In addition, Co. is engaged in developing export markets for bulk loose cement from Pakistan to the Gulf Countries, African Markets, and Far East Region including Nepal & Sri Lanka.
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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