Pakistan Automobiles: No car sales recorded in Apr-2020 amidst COVID-19 lockdowns
- The lockdowns due to COVID-19 imposed by the Federal and Provincial governments in the later half of Mar-2020 till date has resulted in no car sales during Apr-2020, as reported by PAMA.
- The lockdowns has resulted in closure of plant operations along with car dealerships across the country.
- As a result, in 10MFY20 car sales have declined by 52% YoY. Honda Car (HCAR) sales are down by 64% YoY, followed by Indus Motors (INDU) and Pak Suzuki Motor Company (PSMC) with declines of 54% YoY and 47% YoY, respectively.
- ATLH (motorbikes) too recorded nominal sales of 2,783 units compared to pre-COVID sales of around 100k units.
- Keeping in view the importance of the Wheat harvesting season, the governments allowed the tractor industry to resume their operations in mid-April-2020.
- The tractor sales during Mar-2020 recorded a decline of 63% YoY and 30% MoM.
- Al Ghazi Tractors (AGTL) reported an increase of 19% MoM in its sales, while Millat Tractors (MTL) sales declined by 51% MoM. Last month, MTL sales were up MoM (+2%) whereas AGTL recorded a MoM decline (-22% MoM).
- We expect similar trend in May-2020 as restrictions are yet to ease for car manufacturers and dealers.
- We are currently ‘Under-weight’ on Pak Autos, however we have a ‘Buy’ rating on MTL in Pak tractors space.
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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