Pakistan Textile_10MFY21 textile exports up 17%YoY, (AKD Daily, May 25, 2021)
AKD Daily
Pakistan Textile: 10MFY21 textile exports up 17%YoY
- As per the data released by PBS, textile exports for the month of Apr’21 registered a growth of 231%YoY to stand at US$1.34bn showing signs of sales picking up with the arrival of spring season.
- Segment–wise value and non-value added exports showed a steep rise in performance with 245%YoY and 186%YoY respectively. The increase in non-value added segment occurred due to both yarn/cotton cloth exports up 165%/200%YoY as local manufacturers look to intensify efforts in capturing US textile imports from China after order cancellation from Xinjiang due to human rights violation.
- International cotton prices have corrected recently, down 1.04%MoM though c. CYTD/FYTD increase stands at 5.1/29.2%. The recent downtick in prices is attributable to partial correction in international markets.
- Textile sector has turned out of favor in recent months (CYTD: down 7.5%) following rupee appreciation. However, we expect earnings to remain robust in the near term as older cotton inventories benefits local manufacturers in streaming through the recent bull cycle in commodities, translating into higher margins. We prefer NML with the stock currently trading even below its portfolio value of PkR98/sh, where our TP for the stock stands at PkR132/sh.
AKD Research
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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