Pakistan Cement_5MFY19 dispatches: Not an ideal picture for North
- Cement sales for Nov’18 clocked in at 3.9mn tons, down 1.1/14.0% YoY/MoM as seasonal slow down kicks-in. 5MFY19 sales were recorded at 19.2mn tons vs. 18.5mn tons in the corresponding period last year.
- Exports continue to provide crucial support to overall cement sales particularly as local sales dropped 7.1/14.9% YoY/MoM to 3.3mn tons. It remained healthy on a YoY basis (up 61.3% to 0.6mn tons), while falling for a second consecutive month (down 8.5%MoM).
- Coal prices have fallen in Nov’18 to average US$94.7/ton (down 5.3%MoM), acting as saving grace for local manufacturers amidst currency depreciation, surge in core input costs and constrained pass-on ability (particularly North based players).
- We believe additional capacities in the North (CHCC: 2.23mn tons / MLCF: 2.3mn tons) amid possible continued demand attrition, highlight downside risk to price in North. We have preference for LUCK with a FY19TP of PkR636/sh, offering upside of 34% from last close.
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.