Pakistan Autos_Sales getting back in the groove , (AKD Daily, Dec 14, 2020)
AKD Daily
Pakistan Autos: Sales getting back in the groove
- Nov’20 total industry sales grew to 12,498 units (+10%MoM/+22%YoY) comprising of Passenger Cars sales of 9,576 units (+7%MoM/+12%YoY), LCV/Pickup offtake of 2,619 units (+26%MoM/+100%YoY) and new Tractor purchases of 3,234 (-28%MoM/+77%YoY), marking growth vis-à-vis low base, during the usual end of calendar down season.
- Monthly sales spiked for PC/LCV segments (+7/+26%MoM & +12/+100%YoY), with PC segment-wise split stood at 3,906/2,398/3,272 for 1300CC+/1000CC/800CC & below segments, shifting +17%/+19%/-8%MoM and +14%/+54%/-8%YoY, while major OEMs underwent monthly sales moves of +12%/-10%/0%MoM for PSMC/INDU/HCAR
- Cumulative 11MCY20/5MFY21 PC sales stood at 83,618/46,257 (-26%/-5.8%YoY) showcasing drastic recovery in volumes - a function of COVID-19 denting already soft demand followed by strong uptick brought on by low borrowing costs and new models
- LCV demand hike lends support to a more sustained recovery in durable consumer demand, while our bullish outlook on 1,300CC+ PC segment sales sustaining growth remains in play. Apart from the to-and-fro in PkR/US$ pair, uptick in global metal commodities and possible reversal of domestic interest rates are key dampeners to profitability over the long term.
- The role of major new Korean entrants (Kia and Hyundai, where later does not self-report monthly sales) cannot be ruled out in the less than smooth Yaris sales record (signs of new-model effect fading). Even on our more conservative estimates (22K Yaris sales in FY21), an upbeat earnings outlook remains (FY21/22 EPS growth of 43/65%YoY), coupled with liquidity (1QFY21 ST Invt. at PkR842/sh) as seasonal demand is expected to quicken during 1QCY21.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.