Pakistan Textile_ Textile exports tumble in Jul'22 from a high base ,(AKD Daily, Aug 17, 2022)
AKD Daily
Pakistan Textile: Textile exports tumble in Jul’22 from a high base
- Textile group exports were down 13%MoM to US$1,481mn in Jul’22, while remaining flat compared to the same period last year. The month’s reading was also lower by 8% when compared to FY22’s monthly average.
- Value-added textile exports showed a dip of 13%MoM, while being higher by a meager 2% compared to the same period last year. Exports of knitwear products (29% of total) were down by 8%MoM, while higher by 11%YoY, whereas readymade garments (21% of total) were down by 17%MoM and higher by a meager 1% compared to the same period last year.
- Non-value added exports were down by 14%MoM/5%YoY to US$257.8mn during Jul’22, largely driven by a 24%MoM/21%YoY dip in the exports of cotton yarn exports, along with a 9.5%MoM dip in cotton cloth.
- International cotton prices have dropped 5.7% in Jul’22, while dipping by another 6.6%MTD to USc122.75/lb currently.
- Woes being faced by the textile industry in India have led to opportunities for Pakistan’s textile exports. However, these seemed to be short-lived, with India’s cotton yarn exports rebounding to US$944.92mn in Jul’22, higher by 110%MoM, offsetting the 8%MoM dip in readymade garments during the period.
- Currency depreciation would likely support the textile sector, which would offset a dip in textile exports. In the sector, we find NML and NCL to be trading at attractive valuations, at forward PER of 2.81x and 3.38x, respectively
AKD Research
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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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