reports
- IMS Research Team
Pakistan Textiles: June 2023 - Textile exports continue to show respit...
Pakistan’s total exports were US$2.3bn in June 2023, down 19% YoY, but up 7% MoM. Textile exports clocked in at US$1.4bn, down 14% YoY, but up 11% MoM, accounting for 63% of total exports. This takes FY23 textile exports to US$16.5bn, down 15% YoY. The sequential improvement can be attributed to higher order-flows for value-added textile exports mainly stemming from USA & Europe amid falling inflation rates and better consumer-purchasing power. KEY HIGHLIGHTS IN TEXTILE EXPORTS Value added te...
- IMS Research Team
Pakistan Textiles: May’23- Textile exports show some respite on sequen...
Pakistan’s total exports were US$2.2bn in May 2023, down 16% YoY, but up 3% MoM. Textile exports clocked in at US$1.3bn, down 20% YoY, but up 7% MoM, representing 60% of total exports. This takes 11MFY23 textile exports to US$15.0bn, down 15% YoY. We believe sequential improvement came from better order flows and increasing focus on new client acquisition by local textile firms to maintain existing exports. KEY HIGHLIGHTS IN TEXTILE EXPORTS Value added textile exports were US$1.0bn in May’202...
- IMS Research Team
Pakistan Textiles: April’23 -Textile exports decline further
Pakistan total exports were recorded at US$2.1bn in April 2023, down 26% YoY and 10% MoM. Textile exports clocked in at US$1.2bn, down 29% YoY and 2% MoM, representing 58% of total exports, down 2ppt YoY. This takes 10MFY23 total textile exports to US$13.7bn, down 14% YoY as compared with US$15.9bn SPLY. Textile exports continued to remain under pressure amid overall slowdown in global economy with higher inflation and interest rates in major exporting regions having lowered purchasing power....
- Rahul Hans
Nishat Mills: 3QFY23 Result Review - Earnings beat on higher other inc...
Nishat Mills Ltd (NML) has posted unconsolidated NPAT of PKR3.3bn (EPS: PKR9.39) in 3QFY23, down 10% QoQ and 4% YoY. The result came higher than our expected EPS of PKR8.55, where the major deviation stemmed from higher than expected other income. This takes 9MFY23 NPAT to PKR11.1bn (EPS: PKR31.67), up 23% YoY. KEY HIGHLIGHTS FROM 3QFY23 RESULT INCLUDE: * Revenue clocked in at PKR37.1bn, up 12% QoQ and 18% YoY. This is majorly due to higher local yarn sales and increased dyed-fabric & garmen...
- IMS Research Team
Nishat Chunian: 3QFY23 Result Review - Massive earnings beat on large ...
Nishat Chunian Limited (NCL) has reported unconsolidated NPAT of PKR389mn (EPS: PKR1.62) in 3QFY23 versus NLAT of PKR1.7bn (LPS: PKR7.10) in 2QFY23. We were expecting a loss, where the major deviation stemmed from higher-than-expected gross margins and lower finance cost. This takes 9MFY23 unconsolidated NLAT to PKR1.4bn (LPS: PKR6.03). KEY HIGHLIGHTS FROM 3QFY23 RESULT INCLUDE: * Revenue clocked in at PKR17.4bn, up 21% QoQ and 8% YoY. The increase in topline is primarily attributable to hig...
- IMS Research Team
Gul Ahmed Textile Mills Ltd: 3QFY23 Review - Earnings beat on higher g...
Gul Ahmed Textiles Mills (GATM) has reported consolidated NPAT of PKR1.1bn (EPS: PKR1.82) for 3QFY23, up 35% QoQ but down 54% YoY, profits are slightly higher than our expected EPS of PKR1.67, with deviation stemming from higher GMs and lower-than-estimated finance costs. This takes 9MFY23 consolidated NPAT to PKR3.3bn (EPS: PKR5.36), down 46% YoY. KEY HIGHLIGHTS FOR 3QFY23 RESULT INCLUDE: * Revenue clocked in at PKR37.7bn, up 24% QoQ and 44% YoY. The increase in revenue is primarily attribu...
- IMS Research Team
Pakistan Textiles – Higher finance costs to offset higher exchange gai...
We expect the IMS Textile Universe to post combined core net profits of PKR1.8bn in 3QFY23, down 37% QoQ and 85% YoY. Finance costs are likely to elevate further after interest rate hikes during the quarter which would potentially offset higher exchange gains. Sales volumes are likely to decline further due to overall reduction in textile exports amid high inflation rates leading to lower demand in export markets. Rising energy prices also remains a key challenge for local manufacturers to co...
- IMS Research Team
Gul Ahmed Textile Mills Ltd: 2QFY23 Review - Higher COGS and tax rates...
Gul Ahmed Textile Mills (GATM) has reported consolidated NPAT of PKR0.8bn (EPS: PKR1.35) for 2QFY23, down 65% YoY and 38% QoQ. Increase in COGS, lower demand and higher tax rate led to the reduction in profits. This takes 1HFY23 NPAT to PKR2.2bn (EPS: PKR3.53), down 42% YoY. Key highlights for 2QFY23 result: * Revenue clocked in at PKR30.4bn, down 5% YoY and 4% QoQ. The slowdown in revenue is primarily attributable to higher inflation in local and major exporting destinations, which translat...
- IMS Research Team
Nishat Mills: 2QFY23 Result Review: Higher topline and other income le...
Nishat Mills Ltd (NML) has reported unconsolidated 2QFY23 NPAT of PKR3.7bn (EPS: PKR10.48), up 59% YoY, but down 11% QoQ. The result came in much better than our expected EPS of PKR3.53/sh – higher topline and other income were the major deviation. This takes 1HFY23 NPAT to PKR7.8bn (EPS: PKR22.29) up 40% YoY. KEY HIGHLIGHTS FROM 2QFY23 RESULT: * Revenue has clocked in at PKR33.2bn, up 16% YoY, but down 3% QoQ, better than our estimated topline of PKR30.3bn. This is a function of better orde...
Nishat (Chunian) Ltd: 1 director
A director at Nishat (Chunian) Ltd bought 512,000 shares at 21.820PKR and the significance rating of the trade was 57/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years...
- 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 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
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
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 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...
- Abdul Ghani Mianoor
Nishat Mills: 4QFY22 Result Review - Steep margin attrition result in ...
Nishat Mills Ltd (NML) has reported an unconsolidated NPAT of PKR1.3bn (EPS: PKR3.58) in 4QFY22, down 45% YoY and 64% QoQ, owing to significant margin attrition. We estimate core-textile operations to have incurred a loss of PKR88mn (LPS: PKR0.25), for the first time since 4QFY20. This takes FY22 EPS to a record PKR29.33, up 74% YoY. The 4Q result missed our EPS expectation of PKR4.94, largely owing to lower-than-estimated gross margin. The result was accompanied with a final DPS of PKR4.00, ...
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