Intermarket Pulse: Pakistan Autos: Profitability to remain under pressure in Mar’18 results
- We expect IMS Auto Universe to post combined NPAT of PRs6.5bn for Jan-Mar’17 quarter, down 14% YoY/up 11% QoQ. Despite price hikes by all assemblers and healthy volumetric growth (up 28% YoY/8% QoQ), we expect PKR weakness against USD/JPY and gradual rise in CRC prices to weigh on YoY profitability.
- On a sequential basis, HCAR will see the biggest drop in margins as it kept the prices of BR-V unchanged, in our view. PSMC and INDU, however, will likely maintain their margins in the wake of swift price increases and model upgrades. Our GM expectations for INDU/HCAR/PSMC are 17.1/9.2/8.0% for the quarter, changing by -64/-131/+15 bps from previous quarter.
- While local assemblers have passed on the impact of USD-PKR depreciation, continued JPY strength can test the pricing of OEMs (PSMC in particular, which is estimated to have the highest exposure to JPY). Global trade tensions are likely to keep JPY at strong levels, at least in the short term, in our view.
General Tyre & Rubber Co. of Pakistan is engaged in the manufacture and sale of rubber tires and tubes, including tires for vans, pick-ups, four wheel drive vehicles, tractors, race cars, light trucks, buses, heavy trucks, minibuses, and other vehicles. Co.'s products are exported to the United Kingdom and sold in Pakistan to new vehicle manufacturers and businesses engaged in vehicle tire related services.
Honda Atlas Cars (Pakistan) Limited. Honda Atlas Cars (Pakistan) Limited is engaged in assembling and progressive manufacturing and sale of Honda vehicles and spare parts. The Company's segments include Manufacturing and Trading. The Company's Manufacturing segment relates to the sale of locally manufactured cars and parts. The Trading segment relates to the trading of completely built units (CBUs) and parts. The Company's factory is located at Multan Road, Manga Mandi, Lahore. The Company offers car models, such as Honda Accord, Honda CR-V, Honda CR-Z, Honda HR-V, Honda Civic (over four models), Honda City Aspire (over four models) and Honda City (over four models) in various colors with a range of technology features. The Company's cars are available in colors, including crystal black pearl, bold beige, taffeta white, urban titanium, modern steel metallic, habenaro red, alabaster silver metallic, camelian red pearl and white orchid pearl. The Company is a subsidiary of Honda Motor Co., Ltd., Japan.
Indus Motor is engaged in the assembly, progressive manufacture, import and marketing of Toyota motor vehicles. Co. is also the sole distributor of Toyota and Daihatsu vehicles in Pakistan.
Pak Suzuki Motor is engaged in assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, and 4X4 vehicles. Co.'s product models include Baleno, Margalla, Mehran, Kyber, Ravi Pickup, Bolan Van and Potohar Jeep.
Intermarket Securities Limited (IMS) is a full service corporate brokerage firm based in Karachi, Pakistan. We service both domestic and international clients. IMS was ranked #2 Best Local Brokerage and #3 Best for Overall Country Research for 2016 by AsiaMoney.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.