We initiate our coverage of Pioneer Cement (PIOC) with a Jun21 TP of PKR 87/sh, offering an upside 34% based on its last close of 64/sh. Our optimism towards the stock’s performance is underpinned upon: 1) recovering sector dynamics with anticipation of a recovery in demand, 2) timely capacity expansion to benefit from the anticipated… Continue reading Pioneer Cement (PIOC) – Timely expansion to capitalize recovering sector dynamics
Category: Sector
Kohat Cement (KOHC) – Offers one of the best valuations in the sector
We initiate our coverage of Kohat Cement (KOHC) with a Jun21 Target Price of PKR 189/sh, offering an upside 31%. Our preference for the stock is based on: 1) improving cement sector dynamics likely materializing in demand recovery, 2) timely expansion to capitalize on improving sector dynamics, 3) lower global energy prices to ease production… Continue reading Kohat Cement (KOHC) – Offers one of the best valuations in the sector
OMC Sales increase by 39% M/M as lockdown eases
POL sales volume sequentially improved during May’20, up by 39% M/M to 1.48 MN tons, spearheaded by 1.1x M/M increase in FO to 145 KT during the month. The increase in FO is likely driven by the lower prices of the fuel, making it financially viable for use in power generation in the country. On… Continue reading OMC Sales increase by 39% M/M as lockdown eases
Moody’s places top five Pakistani banks’ ratings under review for downgrade
Moody’s has placed Pakistan top 5 Banks(HBL, NBP, UBL, MCB, & ABL) on review for downgrade the B3 long-term local-currency deposit ratings, foreign currency deposit ratings and baseline credit assessments. The rating actions were followed by Moody’s decision to place the Government of Pakistan’s B3 issuer and senior unsecured ratings on review for downgrade on… Continue reading Moody’s places top five Pakistani banks’ ratings under review for downgrade
Automobile sales witness an unprecedented decline during Apr20
Automobile sales witnessed an unparalleled decline during Apr20, falling down to record low levels. Passenger vehicles were unable to register any sales during Apr20, highlighting the pandemic’s effect on the sector. The industry’s overall sales fell by 95% MoM to 4,896 units. The automobile industry was compelled to temporarily cease operations on account of the… Continue reading Automobile sales witness an unprecedented decline during Apr20
Crude Oil Outlook: Saudi Arabia cuts Jun’20 production outlook
▪ The Kingdom of Saudi Arabia announced on Monday that it will be cutting its oilproduction by another 1 MN BPD for Jun’20, on top of the already agreed upon ~2.5MN BPD cut announced as a part of the OPEC+ agreement in April (effective May’20). ▪ Following the cut, the production rate from Saudi Arabia… Continue reading Crude Oil Outlook: Saudi Arabia cuts Jun’20 production outlook
OMCs to experience another wave of heavy inventory losses
Regulated POL products’ prices were lowered for the second time in the last two months, raising concerns of possible inventory losses for Oil Marketing Companies. Whether these inventory losses would hinder profitability in the upcoming quarter is dependent on the movement in products’ prices in June and July. To recall, the Power Division estimated… Continue reading OMCs to experience another wave of heavy inventory losses
United Bank Limited (UBL): Management change
United Bank Limited (UBL) in its notice to PSX announced the appointment of Mr. Shazad G. Dada as its president and CEO with effect from July 1st, 2020 for a term of three years. Ms. Sima Kamil, the outgoing CEO and president of UBL, is completing her three year term on May 31st, 2020 and… Continue reading United Bank Limited (UBL): Management change
OMC offtake improves during Apr’20; HSD shows promise
▪ Data from the Oil Companies Advisory Council (OCAC) showed that Oil MarketingCompanies collectively sold 1.07 MN tons of oil during Apr’20, higher by 4.6% M/M,while lower by 35.6% Y/Y. The sequential increase was driven by a 41.8% M/M increasein HSD offtake in the industry; effects of which were watered down by a 20% M/Mdecline… Continue reading OMC offtake improves during Apr’20; HSD shows promise
Bank Alfalah Limited (BAFL) 1Q2020 conference call takeaways
Bank Alfalah Limited (BAFL) held a conference call for Analysts and Investors today. Themanagement reviewed 1Q2020 results and gave guidance regarding the future outlookof the bank. Key highlights of the conference call were: Provisioning expense surged 2.4xY/Y to PkR1.5bn largely driven by full upfrontimpairment charge (100% of total) taken on the equity portfolio despite… Continue reading Bank Alfalah Limited (BAFL) 1Q2020 conference call takeaways
