Elixir Securities - Bestway Cement Ltd. (BWCL) Flash Note: Pakistan Cement Sector - Newer Expansions Ready to Test Market Earlier than Anticipated

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Elixir Securities

Farheen Irfan

Flash Note: Pakistan Cement Sector - Newer Expansions Ready to Test Market Earlier than Anticipated

As per our discussion with the company management, Bestway Cement (BWCL) has started trial production of its Brownfield cement plant (capacity: 1.8mn tpa) in North. The commercial operations are expected to begin by June 15, 2018. We had earlier assumed the commencement of commercial operations in 1QFY19.
With BWCL’s latest expansion coming online, cement capacity in North would rise by 5% to 40.6mn tpa (vs. 38.8 mn tpa). The next in line expansion is of Cherat Cement (CHCC) with a capacity of 2.2mn tpa, which is expected to come online by 2HFY19. After both plants’ commercial operations, the capacity in North will cumulatively increase by 10% to 42.8mn tpa by the end of FY19.

24/05/2018 1 EN

Underlying

Bestway Cement Ltd.

Bestway Cement. Bestway Cement Limited is a Pakistan-based company, which is engaged in the production and sale of cement. The Company's products include Ordinary Portland Cement, Sulphate Resistant Cement, Quick Setting Cement, Low Alkali Ordinary Portland Cement and Clinker. The Company supplies these products either in standard packaging, in bulk or packaged according to customers' requirements. The Company exports its products to various markets, including Sri Lanka, Africa, the Middle East and Central Asia. The Company is a subsidiary of Bestway (Holdings) Limited, which is engaged in global banking, wholesale cash and carry business, a string of retail outlets, real estate investment, ethnic food and beverage import and distribution, and milling of rice.

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PK0077601018 Pakistan Stock Exchange Pakistan

Provider

Elixir Securities

Elixir Securities Pakistan is a Corporate Member of the Pakistan Stock Exchange & Pakistan Mercantile Exchange and is one of the leading securities brokerage & investment banking firms in Pakistan, established since 1994. Our principal business activities include all aspects of Pakistan’s Capital Markets covering Securities Brokerage (Equities, Fixed Income and Commodities), Corporate Finance & Capital Markets Advisory (M&A, ECM, DCM) and Investment Research (Economics & Securities). We are one of the most active & aggressive Broker-Dealers in Pakistan executing trades for most of the Top 20 Global Brokers with unmatched corporate access credentials and have successfully advised and closed on some landmark ECM transactions in the history of Pakistan including the largest deal in frontier Asia (USD 1.02 billion). Our Clients include foreign and domestic financial institutions (Banks, Asset Managers, Insurance Companies, Pension Funds) corporates, HNWI’s and retail investors. This is supported by a very strong and independent research capability, which is quoted regularly in both local and international media.

Elixir Securities Pakistan is the proud recipient of many awards & recognitions including AsiaMoney’s Brokers Poll 2017, FinanceAsia’s Pakistan Best Investment Bank and Best Broker 2017, The Asset’s Best Brokerage House in Pakistan 2016, Asiamoney’s “Best Domestic Equity House 2015 in Pakistan”, The Asset Triple A Country Awards 2015 - Pakistan “Deal of the Year” and “Deal of the Year-Highly Commended”, CFA Society of Pakistan Awards for Year 2015 “Best Research Analyst (1^st Rank), CFA Society of Pakistan Awards for Year 2014 “Best Research Analyst (1^st Rank)”, “Best Trader” 2nd Runner-up (3rd Rank), The Asset Triple A Country Awards 2014’s “Best Deal in Pakistan” and Capital Finance International’s nomination for “Best Equity Research in Pakistan 2010”.

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Analysts

Farheen Irfan

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Flash Note: Pakistan Cement Sector - Newer Expansions Ready to Test Market Earlier than Anticipated

Higher coal price along with increase in FED to curb gross margins

Domestic Cement Demand Bounces Back with a Growth of 10.43% YoY

PKR Slips to PKR 132/134 per USD in Interbank

Open End Mutual Funds Industry - Ad Oculos

Pakistan Equity Market: Weekly Review - Index Closes Above 41k Mark on Foreign Buying

Elixir Grid - KSE100: Make or Break?

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