Flash Note: Pakistan Fertilizer: Mar 2018 urea offtake at 350k tons, up by 69% YoY
- During Mar 2018, Pakistan’s Urea sales is expected to clock in ~350k tons, up by ~69% YoY due to early procurement by dealers and famers for coming Kharif season in wake of expected urea shortage (leading to higher price despite of price cap by Govt. at Rs1400/bag) amid intermittent operations by SNGPL based fertilizer plants (Agritech and FatimaFert). On quarterly basis, urea offtake surged by 46% YoY to 1.26mn tons vs. 862k tons in SPLY.
- Among companies, Fauji Fertilizer (FFC) offtake is likely to clock in at 193k tons during Mar 2018 (55% of total urea sales vs. 42% in Mar 2017), up 69% YoY, as company serviced last month’s (Feb 2018) booked orders in March mainly due to lower production in Feb 2018 amid closure of one plant, as per our channel checks. Additionally, Engro Fertilizer (EFERT) and Fauji Fertilizer Bin Qasim (FFBL) is estimated to post growth of 42%/116% YoY to 90k/47k tons in urea segment.
- On the other hand, DAP sales for Mar 2018 is expected at around 135k tons, down by 12% YoY due to 1) better offtake in start of the quarter (Jan and Feb 2018) and 2) rise in DAP prices by 3.2%/20% MoM/YoY to Rs3,036/bag. Among companies, FFC‘s DAP sales is estimated at 31k tons (+3.1x YoY), while EFERT and FFBL offtake is likely to fell by 34%/22% YoY to 16k/69k tons.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
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