reports
- Abdul Ghani Mianoor
Mughal Iron & Steel Industries: 1QFY23 Review - Earnings beat on GMs a...
MUGHAL posted a profit of PKR872mn (EPS: PKR2.60) for 1QFY23, down 48% YoY and 5% QoQ. Profits are above our expected EPS of PKR1.43, where the major deviation stemmed from higher-than-expected gross margins and other income. Despite softer demand and surging interest rate, the company was able to produce a decent result. Key Observations: * Revenue has clocked in at PKR14.1bn, flat QoQ and down 26% YoY, lower than our expected revenue of PKR15bn. Lower-than-expected volumes majorly led to t...
- Abdul Ghani Mianoor
Gul Ahmed Textile Mills Ltd: 1QFY23 Review - Lower retail segment sale...
Gul Ahmed Textile Mills (GATM) has reported consolidated NPAT of PKR1.3bn (EPS: PKR2.19) for 1QFY23, up 16% YoY, but down a sharp 65% QoQ. The 1Q result missed our EPS estimate of PKR4.81 by some distance, owing to lower revenues and higher Opex compared to expectations. Key highlights for 1QFY23: * Revenues have clocked in at PKR31.7bn, up 29% YoY but are down 18% QoQ, lower than our estimate of PKR37.0bn. According to channel checks, the YoY rise in revenues is due to the strong order flow...
- Abdul Ghani Mianoor
Nishat Chunian: 1QFY23 Review - First loss in nine quarters
Nishat Chunian Ltd (NCL) has reported an unconsolidated net loss of PKR0.1bn in 1QFY23 (LPS: PKR0.54), slipping into losses for the first time since the pandemic, compared to an EPS of PKR9.23 last year and PKR3.00 in the previous quarter. The result came in considerably below our estimated EPS of PKR3.45, owing to lower-than-expected margins and other income. Key highlights for 1QFY23: * Revenue clocked in at PKR15.3bn, up 3% YoY and slightly higher than our estimated revenue of PKR14.9bn. ...
- Abdul Ghani Mianoor
Nishat Mills: 1QFY23 Result Review - Sharp improvement in margin led t...
Nishat Mills Ltd (NML) has reported an unconsolidated NPAT of PKR4.2bn (EPS: PKR11.81) in 1QFY23, up 26% YoY, while more than triple that of the previous quarter. We estimate core-textile operations to have clocked in at PKR9.0/sh, up 29% YoY. The 1Q result came in significantly higher than our expected EPS of PKR3.75, largely owing to higher-than-estimated gross margins and revenues. KEY OBSERVATIONS: * Revenue has clocked in at PKR34.3bn (highest quarterly sales), up 41% YoY, higher than o...
- Abdul Ghani Mianoor
Pakistan Tractors: Headwinds to dampen growth; maintain Marketweight
* We retain our Marketweight stance on Pakistan Tractors despite multiple headwinds in the form of margin attrition and sluggish demand outlook in FY23-24f, amid potential contraction in farm economics from recent floods. * IMS Tractor Universe has recently witnessed a steep decline in gross margins owing to higher input costs and sluggish demand. Margins may further deplete if the government decides to increase GST to 17% in order to fulfill revenue targets (seems difficult in election...
- Abdul Ghani Mianoor
Indus Motors: 1QFY23 Review - Earnings slump on record gross losses
Indus Motors Ltd (INDU) has reported 1QFY23 NPAT of PKR1.3bn (EPS: PKR16.50), down a sharp 76% YoY but up 155% QoQ. The result is lower than our estimated EPS of PKR18.45, where the deviation largely stems from a gross loss of PKR2.4bn (-6.3% margin), even wider than that witnessed in 4QFY20 (pandemic). The result was accompanied with an interim DPS of PKR8.20, slightly lower than our DPS expectation of PKR9.00. KEY RESULT HIGHLIGHTS FOR 1QFY23: * INDU has depicted a 43% YoY decrease in sale...
- Abdul Ghani Mianoor
Millat Tractors: 1QFY23 Review - Distribution costs hurt earnings
Millat Tractors Ltd (MTL) has reported a consolidated 1QFY23 NPAT of PKR549mn (EPS: PKR4.72), much lower than last year’s EPS of PKR12.47 and last quarter’s EPS of PKR8.22. The result came in lower than our estimated EPS of PKR5.85, where the deviation largely stemmed from lower-than-expected gross margin and higher distribution costs. KEY HIGHLIGHTS * MTL has posted a 27% YoY decrease in sales to PKR7.6bn (in line with estimates). The multiple price hikes towards the end of FY22 cushioned t...
- Abdul Ghani Mianoor
Pakistan Suzuki: 3QCY22 Review - Hefty finance costs drag PSMC into lo...
Pak Suzuki Motor Co. (PSMC) has posted a Net Loss of c.PKR2.5bn (LPS: PKR30.25) in 3QCY22, from a NPAT of c.PKR1.0bn (EPS: PKR12.07) in 3QCY21 and c.PKR0.4bn (EPS: PKR5.38) 2QCY22. This takes 9MCY22 net loss to c.PKR2.5bn (LPS: PKR30.46). The 3Q result is significantly worse than our expected EPS of PKR3.18, owing to a sharp rise in finance costs. KEY RESULT HIGHLIGHTS: * Net revenue of PKR29.8bn (in line with expectations), down a sharp 41% YoY, majorly owing to a 24% YoY contraction in vol...
- Abdul Ghani Mianoor
Pakistan Textiles: Attractive valuations offset the headwinds
* Despite the sharp downward revision in our target prices for the IMS Textile Universe, by 22% on average, we remain Overweight on the sector. The government’s policy of providing regionally competitive utility prices is vulnerable under the IMF program and global demand fares challenges, but valuations are already knocked down. * Global and local macroeconomic uncertainties have led us to further prune our revenue and earnings growth assumptions for FY23-24f by 1%/12%, respectively, f...
- Abdul Ghani Mianoor
Kohinoor Textile Mills: 1QFY23 Review - Earnings halve owing to slump ...
Kohinoor Textile Mills (KTML) has reported an unconsolidated NPAT of PKR0.5bn (EPS: PKR1.59), down a sharp 52% YoY (up 11% QoQ). The sluggish result is significantly lower than our expected EPS of PKR3.03, where the deviation has largely stemmed from lower-than-expected gross margin and lower other income. KEY RESULT HIGHLIGHTS FOR 1QFY23: * Net revenue has clocked in at PKR9.6bn, slightly lower than our expectation of PKR10bn, while 20% higher compared to last year. The annual rise in reven...
- Abdul Ghani Mianoor
Pakistan Autos: Difficult year ahead; prospects likely to improve beyo...
We reduce our earnings forecast and Target Prices by an average of 7% and 9%, respectively, on account of persistent supply chain constraints and an uncertain near-term macroeconomic environment. Elevated car prices in a high interest rate environment have led to weak sales during FY23td, PKR volatility may continue to dampen industry margins in 1HFY23, before respite comes moving into FY24f. We trim our 2023-26f margins for the OEMs by an average 1ppt, and sales volume estimates by 5ppt on a...
- Abdul Ghani Mianoor
Pakistan Textile exports dwindle during Sep’22
Recent monthly textile exports of USD1.5bn indicate a modest slowdown in growth to 3% YoY (down 3% MoM), significantly lower than the growth witnessed in Sep’21. The slowdown in exports is largely due to possible slowdown in demand, owing to piling up of inventories ahead of winters. However, headwinds remain at large, in terms of, i) sobering demand from global slowdown, ii) volatility in cotton prices, iii) higher operating costs and iv) import restrictions by SBP. However, we continue to r...
- Abdul Ghani Mianoor
Al Ghazi Tractors: 3QCY22 Review - Sharp attrition in margins
Al-Ghazi Tractors (AGTL) has reported 3QCY22 NPAT of PKR0.3bn (EPS: PKR4.36), down a sharp 70% YoY and 67% QoQ. This takes 9MCY22 NPAT to PKR2.2bn (EPS: PKR37.67), flat YoY. The result is significantly lower than our expected EPS of PKR10.89, where the deviation has largely stemmed from lower-than-expected gross margin of just 8% vs. 25% in the same period last year. KEY RESULT HIGHLIGHTS FOR 3QCY22: * Net revenue has clocked in at PKR6.5bn, up 17% YoY, in line with our expectations. This is...
- Abdul Ghani Mianoor
Interloop Ltd: 1QFY23 Result Review - Higher finance costs led to slig...
Interloop (ILP) reported the best 1Q result, posting a NPAT of c.PKR5.0bn (fully diluted EPS: PKR5.31) in 1QFY23, up 84% YoY (down 7% QoQ). The result slightly missed our expected NPAT of PKR5.3bn (EPS: PKR5.71), where the deviation largely stemmed from higher-than-expected finance costs. KEY OBSERVATIONS: * Revenues rose to a record high c.PKR30.5bn, up 58% compared to the previous year (flat QoQ), in line with our estimates. The Hosiery and Denim segments were likely the star performers in...
- Abdul Ghani Mianoor
Sep’22 Result Preview - Administrative measures will push massive earn...
* For Sep’22 results, we expect IMS Auto Universe combined net profit to plunge a sharp 73% YoY to PKR2.0bn, largely owing to administrative measures imposed by the SBP to curb CKD kit imports. Lower gross margins will also contribute to this decline. * The Sep’22 quarter was marred by plant shutdowns, which resulted in a 53% decline in sales compared to last year (sales down 52% QoQ). Although commodity prices continued to slump, implying positives for input pricing, lower volumes are ...
- Abdul Ghani Mianoor
1QFY23 Result Previews - Moderating gross margins to offset sharp reve...
* We expect the IMS Textile Universe to post combined core net profits of PKR9.4bn in 1QFY23, flat compared to SPLY, largely owing to moderating cotton inventory gains and elevated borrowing costs, offsetting the 34% YoY combined revenue growth. * Once again, ILP and GATM are expected to lead our Textile cluster, largely attributed to robust revenue growth in the Value-added segments, continued exchange gains and operational efficiencies. * Sequentially, the significant improvement...
- Abdul Ghani Mianoor
Pakistan Autos – Sep’22 - Volumes continue to dip on production woes
Latest automobile sales figures show a continued downtrend in demand to the tune of 51% YoY (down an additional 6% MoM) to c.10,950 units. This is a similar number to the pandemic lockdown in Jun’20 and is largely attributed to the ongoing production woes. Specifically, the prevailing auto-parts import curtailment measures on CKD units and resultant plant closures during Sep’22 (and in Oct’22td) have led to the decline in production as well to c.9,350 units (down 59% YoY and 27% MoM). Elevate...
- Abdul Ghani Mianoor
Pakistan Textiles sector update
GOVERNMENT PROPOSES DISCONTINUATION OF SUBSIDIZED ELECTRICITY RATE Latest news articles suggest that the government is proposing to discontinue the electricity tariff incentives from the current USD0.09/KwH (PKR21/KwH) to USD0.19/KwH (PKR43.45). Although the move will contradict the government’s plans on encouraging the sector to shift to the grid, away from gas-based CPPs, the sector’s competitiveness and profitability is likely to be hampered, in our view. It can be assumed that the propos...
- Abdul Ghani Mianoor
Gul Ahmed Textile Mills Ltd: 4QFY22 Review - Healthy revenue growth le...
Gul Ahmed Textile Mills (GATM) has reported consolidated NPAT of PKR3.9bn (EPS: PKR6.26) for 4QFY22, more than double compared to last year and up 58% QoQ. This takes FY22 NPAT to an all-time high of PKR9.8bn (EPS: PKR15.96), up 87% YoY. The 4Q result significantly beat our EPS estimate of PKR3.34, owing to greater revenue and a lower effective tax rate. However, GATM skipped out on a payout in FY22, against our PKR2.5/sh expectation, owing to i) expectations of a decline in profitability in ...
- Abdul Ghani Mianoor
Nishat Chunian: 4QFY22 review – Absence of inventory gains leads to re...
Nishat Chunian Ltd (NCL) has reported an unconsolidated NPAT of PKR0.72bn in 4QFY22 (EPS: PKR3.00), down 70% YoY and 65% QoQ, owing to significant margin attrition to the tune of 10.4ppt/5.3ppt YoY/QoQ, missing our EPS of PKR6.63. This took FY22 EPS to PKR31.10, up from an EPS of PKR23.32, last year. The result is accompanied with a dividend payout of PKR4.0/sh (IMS estimate of PKR5.0/sh), taking FY22 payout to PKR7.0/sh. KEY HIGHLIGHTS FOR 4QFY22: * Revenue clocked in at PKR14.8bn, up 12% f...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.