External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Topline Securities hosted a Corporate Briefing Session (CBS) for DG Khan Cement (DGKC) today, where senior management discussed the recent financial performance and future outlook of the company.</li><li>As per the management, local cement demand to remain flat in FY24. However, cement demand to recover by 5-10% in FY25. At present, the demand for cement is driven by private sector construction activities.</li><li>DGKC raised cement prices by 14-15% today to pass on the impact of axle load. Management highlighted that any further impact of axle load will be passed on to consumers.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topline Securities hosted a Corporate Briefing Session (CBS) for DG Khan Cement (DGKC) today, where senior management discussed the recent financial performance and future outlook of the company.As per the management, local cement demand to remain flat in FY24. However, cement demand to recover by 5-10% in FY25. At present, the demand for cement is driven by private sector construction activities.DGKC raised cement prices by 14-15% today to pass on the impact of axle load. Management highlighted that any further impact of axle load will be passed on to consumers.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topline Flash Note: DG Khan Cement (DGKC): Corporate Briefing Key Takeaways

<ul><li>DG Khan Cement (DGKC) announced its 4QFY23 financial result today, where company reported loss of Rs5,748mn (LPS: Rs13.12) in 4QFY23. This takes full year FY23 loss to Rs3,636mn (LPS: Rs8.30) vs profit of Rs2,972mn (EPS: Rs6.78)</li><li>The result came below industry expectations as market was expecting a profit of Rs906mn (EPS: Rs2.07) for 4QFY23. The below expected result was primarily due to higher than expected tax expense.</li><li>DGKC recorded tax expense of Rs5,754mn in 4QFY23. This significant tax expense is due to imposition of super tax on FY23 earnings and deferred tax liability, we believe.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DG Khan Cement (DGKC) announced its 4QFY23 financial result today, where company reported loss of Rs5,748mn (LPS: Rs13.12) in 4QFY23. This takes full year FY23 loss to Rs3,636mn (LPS: Rs8.30) vs profit of Rs2,972mn (EPS: Rs6.78)The result came below industry expectations as market was expecting a profit of Rs906mn (EPS: Rs2.07) for 4QFY23. The below expected result was primarily due to higher than expected tax expense.DGKC recorded tax expense of Rs5,754mn in 4QFY23. This significant tax expense is due to imposition of super tax on FY23 earnings and deferred tax liability, we believe.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DG Khan Cement (DGKC): 4QFY23 LPS at Rs13.12 vs. 4QFY22 LPS of Rs1.48 (Result below expectations)

Thematic (Sector/Industry)

<ul><li>Pakistan’s listed cement sector has reported highest ever earnings of Rs21.3bn up 46% YoY in 1QFY24. The positive earnings growth is primarily due to higher volumetric sales and improved gross margins.</li><li>The cement sector also witnessed a significant increase in pre-tax earnings (PBT), rising by 60% YoY and 51% QoQ to Rs32.8bn. This significant growth is due to factors mentioned above and QoQ decline in tax expense.</li><li>Sales jumped 34% YoY to Rs170bn in 1QFY24 led by 23.6% YoY increase in total cement dispatches and 12% YoY in average cement prices.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan’s listed cement sector has reported highest ever earnings of Rs21.3bn up 46% YoY in 1QFY24. The positive earnings growth is primarily due to higher volumetric sales and improved gross margins.The cement sector also witnessed a significant increase in pre-tax earnings (PBT), rising by 60% YoY and 51% QoQ to Rs32.8bn. This significant growth is due to factors mentioned above and QoQ decline in tax expense.Sales jumped 34% YoY to Rs170bn in 1QFY24 led by 23.6% YoY increase in total cement dispatches and 12% YoY in average cement prices.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan Cements: Sector reported highest ever quarterly profit in 1QFY24

<ul><li>Pakistan total cement sales in Oct-23 are expected to decline by 7-11% YoY and 4-8% MoM.</li><li>Local dispatches are likely to decline by 19-23% YoY and 11-15% MoM. Decline in sales could be attributed to unavailability labor due to start of Rabi season, high construction cost and slowdown in construction activities.</li><li>Considering these figures, the average daily domestic sales for the sector are expected to reach 99.6k tons/day in Oct-23, compared to the five-year average Oct sales of 138.7k tons/day.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan total cement sales in Oct-23 are expected to decline by 7-11% YoY and 4-8% MoM.Local dispatches are likely to decline by 19-23% YoY and 11-15% MoM. Decline in sales could be attributed to unavailability labor due to start of Rabi season, high construction cost and slowdown in construction activities.Considering these figures, the average daily domestic sales for the sector are expected to reach 99.6k tons/day in Oct-23, compared to the five-year average Oct sales of 138.7k tons/day.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan Cements: Local Cement Dispatches to Decline by 19-23% YoY in Oct-2023

<ul><li>Topline Cement Universe is expected to post core profitability growth of 40% YoY to Rs13.6bn in 1QFY24 due to increase in cement dispatches, and improvement in gross margins.</li><li>Net sales are anticipated to grow by 28% YoY to Rs89bn in 1QFY24 primarily due to 18% YoY growth in local cement sales along with 12% YoY increase in average cement prices.</li><li>Surge in cement dispatches can be attributed to (1) low base effect of last year amid floods, (2) economic stability, (3) improved farmer’s income, and (4) 72% YoY surge in exports due to significant currency devaluation.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topline Cement Universe is expected to post core profitability growth of 40% YoY to Rs13.6bn in 1QFY24 due to increase in cement dispatches, and improvement in gross margins.Net sales are anticipated to grow by 28% YoY to Rs89bn in 1QFY24 primarily due to 18% YoY growth in local cement sales along with 12% YoY increase in average cement prices.Surge in cement dispatches can be attributed to (1) low base effect of last year amid floods, (2) economic stability, (3) improved farmer’s income, and (4) 72% YoY surge in exports due to significant currency devaluation.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan Cement: Profitability to Increase by 40% YoY in 1QFY24

Pakistan

D.G. Khan Cement Company Limited manufactures and sells portland cement.

D.G. Khan Cement (DGKC PA)

Topline Flash Note: DG Khan Cement (DGKC): Corporate Briefing Key Takeaways

Topline Securities hosted a Corporate Briefing Session (CBS) for DG Khan Cement (DGKC) today, where senior management discussed the recent...

Topline Securities

DG Khan Cement (DGKC): 4QFY23 LPS at Rs13.12 vs. 4QFY22 LPS of Rs1.48 (Result below expectations)

DG Khan Cement (DGKC) announced its 4QFY23 financial result today, where company reported loss of Rs5,748mn (LPS: Rs13.12) in 4QFY23. This takes...

Topline Securities

Pakistan Cements: Sector reported highest ever quarterly profit in 1QFY24

Pakistan’s listed cement sector has reported highest ever earnings of Rs21.3bn up 46% YoY in 1QFY24. The positive earnings growth is primarily due...

Topline Securities

Pakistan Cements: Local Cement Dispatches to Decline by 19-23% YoY in Oct-2023

Pakistan total cement sales in Oct-23 are expected to decline by 7-11% YoY and 4-8% MoM. Local dispatches are likely to decline by 19-23% YoY and...

Topline Securities

Pakistan Cement: Profitability to Increase by 40% YoY in 1QFY24

Topline Cement Universe is expected to post core profitability growth of 40% YoY to Rs13.6bn in 1QFY24 due to increase in cement dispatches, and...

Topline Securities