Pakistan Autos: Slipping through the durable demand net, (AKD Daily, Dec 11, 2019)
- Nov’19 total industry sales stood at 10,223 units (-9%MoM/-44%YoY) comprising of Passenger Cars sales of 8,524 units (-11%MoM/-44%YoY), LCV/Pickup offtake of 1,316 units (-3%MoM/-39%YoY) and new Tractor purchases of 1,818 (-36%MoM/-52%YoY), marking a period of continued weakness in sectoral demand.
- Monthly sales declines in PC and LCV segments remained stark, where the segment-wise split stands at 3,430/1,555/3,539 for 1300CC+/1000CC/800CC & below segments, shifting +8%/-9%/-25%MoM and -59%/-57%/+9%YoY, while major OEMs underwent monthly sales moves of -16%/+6%/-6%MoM for PSMC/INDU/HCAR
- Cumulative 11MCY19/5MFY20 passenger car sales stood at 151,017/49,110 (-26.8%/-44.1%YoY), while LCVs sales stood at 22,909/6,297 (-33.1/-51.9%YoY), underpinning the drastic nature of FYTD slippages.
- Re-iterating our cautious outlook on the sector, where performance has outpaced fundamentals (9.4% FYTD), largely based on expectations of capacity enhancements, new model launches and replacement demand persisting through the downturn. Ticking all these boxes and initiating targeted discounts to keep demand healthy, we re-iterate our liking for INDU, where a buy-on-dips strategy is advised.
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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