SAZEW - FY23 Analyst Brifing Takeaway, (AKD Off the Analyst's Desk Oct 26, 2023)
AKD, Off the Analyst's Desk
SAZEW - FY23 Analyst Brifing Takeaway
SAZEW held its analyst briefing earlier today to brief investors about their FY23 financial results and outlining the future outlook of the company. Here are the key highlights:
- To recall, SAZEW achieved significant annual earnings growth, posting PkR996mn (EPS: PkR16.5) in FY23, a 7.4xYoY increase from PkR118mn (EPS: PkR2.0) in the previous year.
- The substantial annual earnings growth is primarily attributed to the inclusion of 4-wheel sales, specifically the incorporation of HAVAL, which significantly boosted the company's overall revenue. Furthermore, the company achieved its annual gross margins of 14.0% vs. last 10-year avg. of 10.2% .
- In FY23, the company successfully sold 1,827 locally produced 4-wheel units (HAVAL+BAIC), marking a noteworthy 2.9xYoY increase from 467 units in SPLY. However, the sales of the 3-wheel segment experienced a decline of 40.2%YoY, with 9.4k units sold compared to 15.7k units in SPLY.
- Throughout the previous fiscal year, the company initiated the commercial production of the "HAVAL" brand and introduced its first-ever locally assembled hybrid vehicle, "HAVAL-HEV".
- Additionally, SAZEW expanded its local dealership network during the year. Regarding localization, the management stated that their 4-wheel segment is nearly 100% non-localized (relays ~100% on imported kits for assembly), while 3-wheelers are fully localized except for their engines, which are imported.
- According to the management, "BAIC BJ40" is a niche product, and the company produces it based on demand.
- Looking ahead, the company plans to introduce new variants in the 4-wheel segment and innovate in the 3-wheel segment, including Electric 3-wheelers. Furthermore, SAZEW aims to expand its local dealership network and explore new markets for export business.
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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