External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

Attock Cement Pakistan / Equity Bottom-Up

<ul><li>The Pakistan cement sector is currently trading at an EV/ton of US$39.6, while on FY26E EV/EBITDA basis, it is valued at 5.0x.</li><li>Within our coverage, DG Khan Cement (DGKC) is trading at an attractive EV/ton of US$13.2 and EV/EBITDA of 1.2x.</li><li>Kohat Cement (KOHC) is valued at EV/ton of US$25.4 and EV/EBITDA of 2.7x.</li></ul>

The Pakistan cement sector is currently trading at an EV/ton of US$39.6, while on FY26E EV/EBITDA basis, it is valued at 5.0x.Within our coverage, DG Khan Cement (DGKC) is trading at an attractive EV/ton of US$13.2 and EV/EBITDA of 1.2x.Kohat Cement (KOHC) is valued at EV/ton of US$25.4 and EV/EBITDA of 2.7x.

Maple Leaf Cement Factory / Equity Bottom-Up

<ul><li>Maple Leaf Cement (MLCF) has notified exchange regarding the acquisition price of a north based cement manufacturer Pioneer Cement (PIOC) at Rs478.43 per share which translates into Enterprise value of US$400mn, EV/Ton of US$76.9 at capacity of 5.2mn tons and EV/EBITDA of 9x at annual LTM EBITDA of Rs12.6bn, as per our calculation.</li><li>Similarly, another recent transaction of south based Attock Cement (ACPL) which is yet to be finalized, the market chatter suggests the pricing around Rs300-350, translating into EV/Ton of US$43-48/ton and EV to EBITDA of 8-9x.</li><li>We estimate, the replacement cost of a new brownfield plant in Pakistan is around US$50-60 per ton while for greenfield the cost is around US$90-100 per ton.</li></ul>

Maple Leaf Cement (MLCF) has notified exchange regarding the acquisition price of a north based cement manufacturer Pioneer Cement (PIOC) at Rs478.43 per share which translates into Enterprise value of US$400mn, EV/Ton of US$76.9 at capacity of 5.2mn tons and EV/EBITDA of 9x at annual LTM EBITDA of Rs12.6bn, as per our calculation.Similarly, another recent transaction of south based Attock Cement (ACPL) which is yet to be finalized, the market chatter suggests the pricing around Rs300-350, translating into EV/Ton of US$43-48/ton and EV to EBITDA of 8-9x.We estimate, the replacement cost of a new brownfield plant in Pakistan is around US$50-60 per ton while for greenfield the cost is around US$90-100 per ton.

Maple Leaf To Acquire Pioneer Cement At EV Of US$400mn; Takes PIOC EV/Ton To US$77, Sector EV/ton At US$54

Event-Driven

<ul><li>Maple Leaf Cement (MLCF) in a notice today to exchange has announced the possible acquisition of Pioneer Cement (PIOC).</li><li>Currently, MLCF, together with Maple Leaf Capital (MLCL), currently owns 18.6% of PIOC. While Habibullah group owns around 58% of the company through multiple holdings. While remaining stake is with general public.</li><li>If the acquisition proceeds, MLCF’s total capacity and market position will be significantly enhanced to 13.02mn tons from current 8mn tons as PIOC has the capacity of 5.2mn tons. The capacity-based market share of the company in north region will increase from 12% to 19%.</li></ul>

Maple Leaf Cement (MLCF) in a notice today to exchange has announced the possible acquisition of Pioneer Cement (PIOC).Currently, MLCF, together with Maple Leaf Capital (MLCL), currently owns 18.6% of PIOC. While Habibullah group owns around 58% of the company through multiple holdings. While remaining stake is with general public.If the acquisition proceeds, MLCF’s total capacity and market position will be significantly enhanced to 13.02mn tons from current 8mn tons as PIOC has the capacity of 5.2mn tons. The capacity-based market share of the company in north region will increase from 12% to 19%.

Topline Flash Note: Maple Leaf Cement (MLCF) - MLCF Likely Acquisition of PIOC; Maple to Become Second Largest Cement Player in North

<ul><li>Pakistan local cement dispatches are projected to increase by 34% month-over-month in May 2025.</li><li>Exports in May 2025 are expected to rise by 2% year-over-year and 14% month-over-month.</li><li>Total cement sales in May 2025 are anticipated to reach approximately 4.33 million tons, marking a 1% year-over-year increase.</li></ul>

Pakistan local cement dispatches are projected to increase by 34% month-over-month in May 2025.Exports in May 2025 are expected to rise by 2% year-over-year and 14% month-over-month.Total cement sales in May 2025 are anticipated to reach approximately 4.33 million tons, marking a 1% year-over-year increase.

Pakistan Cements: Dispatches Likely to Be up by 34% MoM in May-2025

Frontier and emerging markets (Vietnam)

Dylan Waller

Nomadic Equity

<p>Pakistan's cement industry is poised for substantial growth, which will be driven by the China Pakistan Economic Corridor.  Maple Leaf Cement is the top performing stock in this industry, and represents a strong compliment to the three previously mentioned companies, which all have new plants that they will fully develop by 2018-2019.</p>

Pakistan's cement industry is poised for substantial growth, which will be driven by the China Pakistan Economic Corridor.  Maple Leaf Cement is the top performing stock in this industry, and represents a strong compliment to the three previously mentioned companies, which all have new plants that they will fully develop by 2018-2019.

Pakistan

Attock Cement Pakistan Limited manufactures and sells cement and related products. The Company is also part of the Pharaon group, which in addition to investments in the cement industry also owns interests in the oil and gas sector.

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Attock Cement Pakistan (ACPL PA)

Pakistan Listed Cement Comp Sheet

The Pakistan cement sector is currently trading at an EV/ton of US$39.6, while on FY26E EV/EBITDA basis, it is valued at 5.0x. Within our...

Topline Securities

Maple Leaf To Acquire Pioneer Cement At EV Of US$400mn; Takes PIOC EV/Ton To US$77, Sector EV/ton At US$54

Maple Leaf Cement (MLCF) has notified exchange regarding the acquisition price of a north based cement manufacturer Pioneer Cement (PIOC) at...

Topline Securities

Topline Flash Note: Maple Leaf Cement (MLCF) - MLCF Likely Acquisition of PIOC; Maple to Become Second Largest Cement Player in North

Maple Leaf Cement (MLCF) in a notice today to exchange has announced the possible acquisition of Pioneer Cement (PIOC). Currently, MLCF, together...

Topline Securities

Pakistan Cements: Dispatches Likely to Be up by 34% MoM in May-2025

Pakistan local cement dispatches are projected to increase by 34% month-over-month in May 2025. Exports in May 2025 are expected to rise by 2%...

Topline Securities

Pakistan's Top Performing Cement Company

Pakistan's cement industry is poised for substantial growth, which will be driven by the China Pakistan Economic Corridor. Maple Leaf Cement is...

Nomadic Equity

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