Intermarket Securities Limited - Pakistan Cements: Results to post major decline after many uptrending quarters

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Intermarket Securities Limited

Abdul Samad Khanani

EUR 3.54 For Business Accounts Only

Pakistan Cements: Results to post major decline after many uptrending quarters

Cement Sector profitability is expected to take a major hit in 4Q; IMS Cement Universe (8 companies) is expected to post cumulative decline of 17%, taking FY17F to a first major decline after 6 years.

Decline in profitability is expected to be a function of flattish local dispatches, steep decline in exports, uptick in Coal/FO prices, and partial decline in cement prices which later on reversed during the quarter.

While concerns are starting to boil up, we selectively like PIOC (TP: PRs178/sh) and DGKC (TP: PRs262/sh); we have a neutral stance on FCCL (TP: PRs41/sh) and ACPL (TP: PRs303/sh). For more details, please refer our report entitled â€œPeak is behind us, switch to Northâ€ released on 24th Julâ€™17.

28/07/2017 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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Analysts

Abdul Samad Khanani

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Pakistan Cements: Results to post major decline after many uptrending quarters

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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