Intermarket Securities Limited - Pakistan Autos: Robust growth ahead of peak demand

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Intermarket Securities Limited

EUR 4.64 For Business Accounts Only

Pakistan Autos: Robust growth ahead of peak demand

Pakistan Auto Industry sales posted a growth of 17%YoY in Marâ€™17 driven mainly by HCARâ€™s Civic and PSMCâ€™s Wagon-R. Robust automobile demand is likely to continue in the medium term amid conducive environment for sales.

Pakistan Tractors posted a phenomenal 72% YoY growth in 9MFY17 reaching a total of 38,112 units which is the highest since 9MFY11, suggesting strong buying power in the rural sector. GoP measures for agricultural sector can be the next trigger for tractor sales.

Pakistan Autos currently trade at a P/E of 13.6x at 22% premium to the market, recent strengthening in JPY against USD (6% CYTD) could be a drag to the margins while price increases and new model/variant effect (besides strong demand growth) could provide the impetus, going forward.

12/04/2017 4 EN

Provider

Intermarket Securities Limited

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.

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Pakistan Autos: Robust growth ahead of peak demand

Intermarket Pulse: Pakistan Food producers: 1QCY18- Another weak quarter for consumers

Pakistan IPPs: Favor NPL over NCPL in a tougher macro environment

Intermarket Pulse: Pakistan Banks: Valuation anomaly warrants switch to large banks

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