Pakistan Autos: High-base intensifies Oct’19 slowdown
- Total automotive industry sales fell -7%MoM/-56%YoY during Oct’19, amounting to just 11,231 units, where constituents of total industry sales moved -12%/+52%/+4%/+75%/-24%MoM for Passenger Cars/LCVs/Trucks/Buses/Tractors, where passenger car and LCV sales slipped passes their 7th consecutive month of YoY declines
- Cumulative 10MCY19 sales decline of 25.5%YoY was an offshoot of Passenger Car/LCVs/Trucks slipping 23.4%/32.7%/49.2%YoY, while in terms of car segments 800cc+/1000CC/1300CC+ sales moved -14.3/-19.1/-30.8%YoY, as hefty price tag hikes and lack of new variants in the premium category kept customers in ‘sticker-shock’ while relatively nascent lower-end variants exhibited relative strength
- Amongst major OEMs, PSMC/INDU/HCAR had relatively tough month with sales down 48/61/72%YoY as they compare feebly to a high-watermark established in Oct’18, while cumulative 10MCY19 figures remain firmly in the red as well with sales down 19/23/43%YoY
- Citing drastic decline in sales led by sticky cost centers, 1QFY20 results for INDU were highly reflective of the terse operational environment currently at play for the industry and INDU. Based on sales for FY20 showcasing decline of ~59%YoY (underpinned by ~60%YoY fall in Corolla sales to ~23K vehicles), we have pruned our EPS to PkR77.0.
AKD Research
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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