Pakistan Automobiles: FY18 Auto Sales Rise 21%YoY
- For the Fiscal Year ended 2018, Pakistan Auto sales (including LCVs Vans and Jeeps) rose by 21% YoY with growth seen in all segments. The strong performance was due to a multitude of reasons ranging from supportive macroeconomic environment, cheaper financing, demand from ride hailing services, as well as demand generated from election activity, we believe.
- Honda (HCAR) witnessed the highest growth amongst its peers, clocking in at 31% YoY to a total of 51,494 units. The growth is mostly attributable to 302% increase in BR-Vs sold due to low base of BR-V units in FY17 as sales of the said SUV were initiated in 4QFY17. Disregarding BR-V, the company still posted 16% growth originating from City and Civic models.
- Pak Suzuki Motor Company (PSMC) posted strong growth of 26%, selling 144,070 units cumulatively. The bulk of this growth can be accredited to swelling growth of Wagon-R (up 65%), while Cultus (up 20%) and Mehran (up 22%) were other significant contributors.
- Indus Motors (INDU) sold a total of 63,068 units in FY18 up by a modest 5% YoY. Focus on high margin segment has borne fruit as sales of Fortuner and Hilux have gone up a staggering 204% and 27% respectively. However, sales of Corola remained dull (down 2%) as the company continued to be plagued by capacity constraints.
- In June 2018, auto sales were up 20% YoY whereas it was down 15% MoM due to Eid Holidays during June.
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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