Pakistan Textile_ 5MFY22 textile exports up 28.4%YoY (AKD Daily, Dec 20, 2021)
AKD Daily
Pakistan Textile_ 5MFY22 textile exports up 28.4%YoY
- As per the data released by PBS, textile exports for the month of Nov’21 registered a growth of 35.3%YoY to stand at US$1.74bn. Segment–wise value and non-value added exports posted a growth of 33.9/42.2%YoY in Nov’21 and 26.9/35.4%YoY in 5MFY22.
- In the value added segment, readymade garments and bed wear registered a growth of 27.2%/32%YoY while knitwear outperformed the segment with 41%YoY in Nov’21. In 5MFY22 readymade garments/bedwear/knitwear posted a growth of 23.4%/23.5%/36.6%YoY respectively.
- International cotton prices have remained strong in the ongoing 2QFY22, hovering around USc119/Ib with an increase of 20.4%QoQ in 2QFY22 and FYTD/CYTD increase of 26.7/42.9%. Local cotton prices have remained elevated, up 13.8%MoM to currently hover around PkR18,005/40kg and up 16% QoQ in 2QFY22.
- With global textile dynamics continuing to remain favorable amid brewing trade war between US and China and elevated local yarn margins (yarn margins: local 60% vs export 20% in 5MFY22), the local textile sector finds itself in a sweet spot. However, rising cases of Omicron variant poses serious threat to global economies where any kind of lockdown could hurt robust textile exports. Our top pick for the sector is NML (TP: PkR117/sh – 43% upside) based on diversified energy mix and an attractive valuations where the strong portfolio makes the core operations virtually free.
Nishat Mills is engaged in the business of textile manufacturing and of spinning, combing, weaving, bleaching, dyeing, printing, stitching, buying, selling and otherwise dealing in yarn, linen, cloth and other goods and fabrics made from raw cotton, synthetic fiber and cloth, and to generate, accumulated, distribute and supply electricity.
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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