Pakistan Auto_Oct'18 sales are a much-needed lift
- Total automotive industry sales grew +28%MoM/+6%YoY during Oct'18, amounting to 25,508 units, taking cumulative 10MCY18 sales to 225,742 units (+9%YoY), where constituents of total industry sales moved +10%/-11%/-10%/+0%/+9%MoM for Passenger Cars/LCVs/Trucks/Buses/Tractors, where passenger car sales neared a high-watermark of 21,342 units (21,540 units were sold in May'18) owing to a significant strength witnessed in the 800-1000CC segment (+40%MoM).
- Cumulative 10MCY18 sales-growth of 9%YoY was an offshoot of Passenger Car/LCVs/Trucks growing 9%/8%/3%YoY, standing in contrast to 4MFY19 sales of +4%/-23%/-1%YoY, confirming our sanguine outlook for passenger car sales, despite dampeners emerging for total industry demand outlook (non-filer ban, rising cost pressures, inflation and oil price spike).
- Additionally, for the outgoing month PSMC/INDU/HCAR exceeded nameplate monthly capacities operating at 107/154/120% of monthly double-shift capacity taking 10MCY17 utilization levels to 94%/131%/108% vs. 86/124/95% for SPLY.
Notification of limited cost pass-on of some OEM variants indicate their capacity to absorb cost escalations (PkR slipped 6.6% during Oct'18), in a bid to encourage off-season buyers. Despite softer margin outlook over the near term, INDU remains our top pick in the space, offering a strong value proposition (FY19 D/Y & P/B of 8.9% and 2.5x), and an unmatched brand premium difficult to replicate for new entrants
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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