Report
Team AKD Research
EUR 8.92 For Business Accounts Only

Pakistan Textile: Exports stand at USD2.3bn for 2MFY20,

  • As per data released by PBS, textile exports increased by 1.9%YoY for 2MFY20 to USD2.3bn with value added segment at the forefront, increasing by 4.5%YoY, while non-value added declined by 5.6%YoY.
  • For Aug’19, seasonality was visible in the 5.3%YoY decline with the exports of value added and non-value added products declining by 4.9%YoY and 6.6%YoY, respectively.
  • Local cotton prices are also reflective of the trade data as they increase by 2.0%MoM in Aug’19 after raw cotton exports increased by 73.8%YoY, imports declined by 27.9%YoY while production remains low.
  • Moving forward, we expect materialization of FTA with China to be a key trigger point for textile related export growth. Further, market penetration in the backdrop of on-going trade war between US & China should be a long term positive. NML is our top pick in the textile space given diversified earnings mix and focus on value additional (TP: PkR158/sh, Buy!).
Underlying
Nishat Mills Ltd.

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.

Provider
AKD Securities Limited
AKD Securities Limited

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.

Analysts
Team AKD Research

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