Pakistan Cement_Dispatches remained dampen in Apr’23, down 17.5%YoY (AKD Daily, May 08, 2023)
AKD Daily
Pakistan Cement: Dispatches remained dampen in Apr’23, down 17.5%YoY
- Domestic cement dispatches for April’23 clocked in at 2.53mn tons, down 24.6%/25.1% MoM/YoY. Region-wise, North offtakes decreased by 22.5%/24.8% MoM/YoY to settle at 2.11mn tons. Likewise, volumes for the South witnessed a steep drop of 33.7%/26.5% MoM/YoY to report at 0.42mn tons.
- Richards Bay coal prices have declined amidst fallen demand from Europe, currently hovering at US$126/ton compared to CYTD avg. of US$146/ton.
- Increase in the cement prices and elevated gross margin kept the profitability of the companies intact despite decline in the offtakes, wherein 9MFY23 profits of AKD Cement Universe increased by 11.6% compared to SPLY.
- With an overall shift in macro-policy focus from growth in previous years to consolidation, we expect sector volumes to decline by 18% for FY23 (FYTD down 17.5%YoY).
- Overall, we continue to advocate LUCK, MLCF, and FCCL (Dec’23 TP: 632.5/38.1/16.4 per sh) on the back of low leverage and better production efficiencies contributing to their margins going forward. Additionally, timely expansions will lead to retention of market share.
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.
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