Intermarket Securities Limited - Pakistan Autos: Significant jump in profits led by new models

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Intermarket Securities Limited

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Pakistan Autos: Significant jump in profits led by new models

We expect IMS Auto universe to post NPAT of PkR6.64bn for quarter ended Mar'16, up 32% YoY driven mainly by new models of HCARâ€™s Civic and INDUâ€™s Hilux and Fortuner.

Our EPS estimates for the quarter are as follows: INDU (PkR43.74, up 16.5% YoY), PSMC (PkR14.68 up 27.6% YoY) and HCAR (PkR 13.97 up 76% YoY). We expect slight increase margins for Auto OEMs underpinned by 3.5% QoQ depreciation of JPY against USD.

Significant corporate developments including launch of new variants by PSMC and HCAR and rumors regarding INDU expansion, have kept all 3 Auto players under limelight. Our stance on PSMC is under review while we have a sell stance on INDU and HCAR.

24/04/2017 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: Significant jump in profits led by new models

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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