PSMC: Pricing power & weaker JPY keep margins intact; Neutral

​​We maintain our Neutral stance on PSMC, while moderately lifting our estimates by incorporating the recent price increase of PkR20,000 of Wagon-R. Our new EPS estimates for CY17/18F are PkR50.93/59.01 (up 5%) where our new target price is PkR630/sh (up 6%); the stock offers a dividend yield of 2.4%Impressive sales growth amid conducive environment for Auto sales has given immense pricing power to local Auto OEMs where PSMC has taken a second price increase in last six months. This coupled ...