Pakistan Cement: Not stopping any time soon!, (AKD Daily, Feb 19, 2021)
AKD Daily
Pakistan Cement: Not stopping any time soon!
- Adjusting our estimates post increase in local cement prices of PkR57/bag during last two months to pass-on the increase in coal prices and upbeat demand growth of 17% for 7MFY21, we expect AKD Cement universe to post PAT of PkR39.4/51.7bn for FY22/23 vs. PkR24.0/33.2bn previously.
- Prices in North are expected to stand at PkR620/639bag for FY22/23 where strong demand growth is expected to keep prices on an upward trend while in South, after partial absorption of increase in coal prices by manufacturers, we expect gradual increase in prices (expected at PkR700/721/bag for FY22/23).
- Local cement demand is expected to continue the recent trend where we now expect growth of 18/10% for FY21/22 against 11/8% previously buoyed by continued uptick in private sector construction which will be further exacerbated by Government moving forward with Naya Pakistan Housing Scheme and construction of Dams.
- We maintain our overweight stance on the sector with LUCK (TP: PkR1289.2/sh, 54.4% upside), MLCF (TP: PkR80.1/sh, 68.1% upside) and DGKC (TP: PkR209.7/sh, 55.8% upside) as our top picks. The sector currently trades at EV/ton of USD71 offering earnings CAGR of 36% for FY21-24.
AKD Research
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.