– FFBL announced its result for 2QCY20 earlier today, posting a loss of PKR 1,160mn (EPS: PKR -1.24) compared with a loss of PKR 84mn (EPS: PKR -0.09) recorded during 2QCY19. Cumulative loss for 1HCY20 stood at PKR 4,207mn (EPS: PKR -4.50) against a loss of PKR 1,951mn (EPS: PKR -2.09) posted during 1HCY19. – FFBL’s revenues grew… Continue reading FFBL announces a loss of PKR 1.24/sh during 2QCY20
Category: Sector
Pakistan Fertilizers – Earnings to rebound amidst recovering off-take
Earnings for the fertilizer sector during 2QCY20 are expected to rebound supported primarily by recovering off-take, particularly during Jun20. Off-take during Apr20 and May20 were largely affected by the uncertainty regarding the announced subsidy on urea, compelling dealers to withhold their purchases till further clarity. Moreover, the coronavirus led lockdown also affected sales during the… Continue reading Pakistan Fertilizers – Earnings to rebound amidst recovering off-take
Pakistan Banking Sector Result Preview- Banks to post decent 2Q20 results despite of high provisioning
-We think the key issues to look out for in 2Q20 results will be 1) The sensitivity of core income to the interest rates cut and 2) rise in provisions. -In 1Q2020, provisions for the sector increased by 8.9x Y/Y. We expect this trend to continue and provisioning expense to remain high in 2Q2020. Moreover,… Continue reading Pakistan Banking Sector Result Preview- Banks to post decent 2Q20 results despite of high provisioning
Pakistan Long Steel Sector-“Sharp Recovery Underway”
-We initiate our coverage on Pakistan long steel sector with an Outperform rating and Buy recommendation on Amreli Steel Limited (ASTL) (PT: PkR58, 41% upside) and Mughal Steel Limited (MUGHAL)(PT: PkR64, 25% upside). In a bid to stimulate the economy, Government of Pakistan announced construction package, providing incentives for investments into the industry, including an… Continue reading Pakistan Long Steel Sector-“Sharp Recovery Underway”
Tips on Investing in Banking Sector
Auto sales recover as lockdown eases
Total automobile sales closed the year on a relatively high note, exhibiting recovery throughout the board. Jun20’s sales are likely a reflection of easing lockdown restrictions resulting in the fulfillment of order backlogs. We believe the pent-up demand influenced growth in all major automobile segments including HCAR (+514% MoM) and INDU (+363% MoM). A yearly… Continue reading Auto sales recover as lockdown eases
Cement dispatches end year on a high note
Industry off-take grows by 2% YoY: Total Cement dispatches during FY20 inched up by 2% YoY and registered at 47.81mn MT compared with 46.88mn MT recorded during FY20. Overall industry growth was primarily supported by exports, which grew by 20% YoY to 7.85mn MT while domestic off-take fell by 1% YoY to 39.96mn MT. Domestic… Continue reading Cement dispatches end year on a high note
The Trapped Saviour: Cement Sector of Pakistan
In a Nutshell Pakistan is one of the most populous country in world with population figure over 200 million. Just as with other instances of over population, the concept of scarcity is applicable here as well, especially with regarding to housing. Currently, the housing shortage in the country is estimated around 10.4m out of which… Continue reading The Trapped Saviour: Cement Sector of Pakistan
US Oil Producers screaming : OPEC+ Russia happy?
Latest US production dropped from 13.1m to 10.5m in 12 weeks. The 2.6mn (~20%) drop is significant & in line with a 23% cut announced by the OPEC+. Exceptionally, Saudi Arabia announced a bigger 37% cut (low base level from 12m to 11m + 1mn voluntary cut). US had also voluntary picked up Mexico’s share of 400,000 barrels cut thus safe… Continue reading US Oil Producers screaming : OPEC+ Russia happy?
Pakistan OMCs – Inventory losses looming amid disparity between oil prices
The news of petroleum shortage has been making rounds, with nearly all pumps, barring PSO’s, reportedly out of fuel inventory. The disparity between domestic petroleum prices set for Jun20 and the imported cost of oil is the prime reason for the shortage. Domestic prices set for Jun20 are estimated to be PKR 17/liter cheaper than… Continue reading Pakistan OMCs – Inventory losses looming amid disparity between oil prices
