Autos: Growth sustains in first month of non-filer ban
Jul'18 total automotive industry sales of 22,038 units reflect a growth of +14.4%MoM/+8.2%YoY, leading 7MCY18 total industry offtake to 161,916 units (+15.1%YoY). Major constituents of total industry sales moved +15.5%/-23.8%/-16.8%YoY for Passenger Cars/LCV & Pick-ups/Trucks while buses grew +22.2%YoY for the month. Cumulative 7MCY18 total industry sales growth was a factor of LCV & Pickups/Trucks/Passenger car segments contributing +24.6/+13.0/+13.8%YoY. In the passenger car segment, 7MCY18 numbers of 1000CC/1300cc+ segment grew +27.9/+7.4%YoY and the 800cc and below climbed +14.7%YoY, clearly benefiting from PSMC's Wagon R (sales up 48.1%YoY). Citing catalysts for firm demand growth in high margin segments and mechanisms for controlling costs (particularly from FX swings), we continue to advocate building positions in INDU. With a TP of PkR2,068/sh, FY19/20F D/Y at 7.9/8.3% and undemanding P/E of 7.9x, we advocate a ‘Buy’ on the scrip at current levels.
Pak Suzuki Motor is engaged in assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, and 4X4 vehicles. Co.'s product models include Baleno, Margalla, Mehran, Kyber, Ravi Pickup, Bolan Van and Potohar Jeep.
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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