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EUR 9.28 For Business Accounts Only

Pakistan Autos: Minor monthly gain, still down 44%YoY during FY20, (AKD Daily, Mar 12, 2020)

Pakistan Autos_ Minor monthly gain, still down 44%YoY during FY20,

  • Total industry sales for the month of Feb’20 came in at 12,510 units (+1%MoM/-39%YoY) constituted by 10,345 units of passenger car (PC) sales (+2%MoM/-39%YoY), LCV sales of 1,774 units (-1%MoM/-37%YoY), Truck offtake of 327 units (-15%MoM/-38%YoY) and 64 Buses (+25%MoM/+73%YoY), marking ten consecutive months of YoY total industry sales declines.
  • Cumulative 8MFY20 total industry sales stand at 94,402 units (-44%YoY) with cumulative passenger car sales at 79,537 units -43%YoY, LCVs amounting to 11,973 (-47%YoY) and Truck sales of 2,404 units (-47%YoY), retracing to levels last witnessed during FY14-15.
  • Segment-wise PC sales during Feb’20 stood at 5,769/2,234/2,342 units for 1300cc+/1000cc/below 800CC, moving +6%/-1%/-1%MoM and -30/-48/-49%YoY, while amongst PSMC/INDU/HCAR recorded monthly offtake of 5,377/4,510/2,141 units moving -3/+12/-3%MoM and -50/-18/-35%YoY
  • Cumulative 8MFY19 sales for PSMC/INDU/HCAR to 55,630/22,707/12,497 vehicles a move of -35/-49/-61%YoY, implying capacity utilization levels of ~56%/62/38%, with competition from Kia Lucky Motors likely eating into PSMC’s share (KLM is not a member of PAMA, hence no numbers reported)
  • Flagging the imminent launch of the Yaris to upgrade its 1.3-1.5 PC segment offerings as a catalyst, our Buy call stands, with recent underperformance (-13%CYTD return) raising potential capital upside to ~37% to our TP of PkR1,375/sh exclusive of a tapered FY20 D/Y of 2.4% as CAPEX guidance lowers our expectation of payouts over the medium term.

AKD Research

Underlying
Pak Suzuki Motor Co. Ltd.

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.

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.

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