PSMC & INDU: Quarterly earnings continue to climb
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Sales growth coupled with cost side pressures remaining suppressed are expected to aid 1QCY17F/3QFY17F earnings for PSMC/INDU. We expect PSMC to post NPAT of PkR1.15bn (EPS:PKR13.9/sh), an increase of 28%QoQ/21%YoY led by: 1) sales of 32,269 units during the period (up 7%YoY), 2) Aug'16 price hikes in models across the board raises sales based weighted average unit price by ~4%YoY, and 3) input costs such as quarterly averages for PkRJpY/PkRUS$ remaining relatively unchanged (+3.7%/+0.11%QoQ). INDU is expected to continue growing its bottom line with 3QFY17E NPAT of PkR3.60bn (EPS:PkR45.9) marking a rise of 19%QoQ/22%YoY through: 1) higher unit sales raising topline by 20%QoQ/9%YoY, 2) GM/NM for the quarter are expected at 17.6/11.7% vs. 18.3/11.8% for 2QFY17, and 3) input prices remaining relatively stable. Accompanying the earnings, we expect the company to payout PkR25/sh, a payout ratio of 55% vs. 65% for 2QFY17, as the company undergoes planned CAPEX (~PkR2.5bn for FY17).
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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