Frontier and emerging markets (Vietnam)

Dylan Waller

Nomadic Equity

Thematic (Sector/Industry)

Pakistan's UpgradePakistan received its well deserved emerging market upgrade from MSCI last week, and valuation still remains below its historical high experienced when it was previously an emerging market.  Now is a strong time to swoop in to profit from Pakistan's future upside, as the market has the potential trade at up to 13.8X its earnings, based on its historical valuation.  Unfortunately, this is a case where simple exposure through an ETF, the <a href="https://www.smartkarma.com/entities/21016" target="_blank" data-smartkarma-citation="entities:21016">Global X Msci Pakistan Etf</a>, is not an…

Pakistan's UpgradePakistan received its well deserved emerging market upgrade from MSCI last week, and valuation still remains below its historical high experienced when it was previously an emerging market.  Now is a strong time to swoop in to profit from Pakistan's future upside, as the market has the potential trade at up to 13.8X its earnings, based on its historical valuation.  Unfortunately, this is a case where simple exposure through an ETF, the Global X Msci Pakistan Etf, is not an…

Top Industries for Investment as Pakistan Transitions to an Emerging Market

The cement industry in Pakistan has a flurry of advantages ahead of it, and can be considered a strategic industry for investment in Pakistan:<ul><li>Local demand for cement is growing, and companies are responding by constructing new cement plants.</li><li>Exports growth will slow, primarily driven by issues in South Africa, yet this is not strong enough to offset the strong domestic demand.</li><li>Investment in Pakistan's cement industry should be a long term endeavor.</li></ul>

The cement industry in Pakistan has a flurry of advantages ahead of it, and can be considered a strategic industry for investment in Pakistan:Local demand for cement is growing, and companies are responding by constructing new cement plants.Exports growth will slow, primarily driven by issues in South Africa, yet this is not strong enough to offset the strong domestic demand.Investment in Pakistan's cement industry should be a long term endeavor.

Pakistan's Cement Industry Poised for Further Growth

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.

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>As per company notice, Fauji Fertilizer Company Limited (FFC) board has approved acquisition of 214,687,500 ordinary shares of FFBL Power Company (FPCL) (25% of the paid capital) from the Parent Company Fauji Foundation. Post this acquisition, total ownership of FFC in FPCL will increase to 100%.</li><li>For this purpose, swap ratio has been calculated as per valuation report which translates 1 share of FFC against a consideration of 13.49 shares of FPCL.</li><li>FFC will issue 15,914,566 ordinary shares at a par value of Rs10 per share, representing approximately 1.1% of the company’s paid-up share capital before the issue. The issuance will result in minimal dilution for existing shareholders.</li></ul>

As per company notice, Fauji Fertilizer Company Limited (FFC) board has approved acquisition of 214,687,500 ordinary shares of FFBL Power Company (FPCL) (25% of the paid capital) from the Parent Company Fauji Foundation. Post this acquisition, total ownership of FFC in FPCL will increase to 100%.For this purpose, swap ratio has been calculated as per valuation report which translates 1 share of FFC against a consideration of 13.49 shares of FPCL.FFC will issue 15,914,566 ordinary shares at a par value of Rs10 per share, representing approximately 1.1% of the company’s paid-up share capital before the issue. The issuance will result in minimal dilution for existing shareholders.

Topline Flash Note: Fauji Fertilizer Company Limited (FFC) - Acquiring Of 25% In FFBL Power Company Limited (FPCL), Taking Total Ownership To 100%

Equity Bottom-Up

<ul><li>Fauji Cement Company Limited (FCCL) conducted its FY25 corporate briefing session today where management discussed financial performance and future outlook.</li><li>Regarding the unsecured loan from Fauji Foundation, management stated that they have start accruing a 10% markup, and no decision has been taken to convert it into ordinary shares.</li><li>FCCL sold 5.37mn tons of cement in FY25, registration a growth of 5.7% YoY vs. FY24. In this, Local sales increased by 5.5% YoY to 4.81mn tons and export sales increased by 7.7% YoY to 0.56mn tons.</li></ul>

Fauji Cement Company Limited (FCCL) conducted its FY25 corporate briefing session today where management discussed financial performance and future outlook.Regarding the unsecured loan from Fauji Foundation, management stated that they have start accruing a 10% markup, and no decision has been taken to convert it into ordinary shares.FCCL sold 5.37mn tons of cement in FY25, registration a growth of 5.7% YoY vs. FY24. In this, Local sales increased by 5.5% YoY to 4.81mn tons and export sales increased by 7.7% YoY to 0.56mn tons.

Topline Flash Note: Fauji Cement (FCCL) – Corporate Briefing Key Takeaways

Pakistan

Fauji Cement Company Limited manufactures and sells cement.

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Fauji Cement (FCCL PA)

Top Industries for Investment as Pakistan Transitions to an Emerging Market

Pakistan's UpgradePakistan received its well deserved emerging market upgrade from MSCI last week, and valuation still remains below its historical...

Nomadic Equity

Pakistan's Cement Industry Poised for Further Growth

The cement industry in Pakistan has a flurry of advantages ahead of it, and can be considered a strategic industry for investment in...

Nomadic Equity

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

Topline Flash Note: Fauji Fertilizer Company Limited (FFC) - Acquiring Of 25% In FFBL Power Company Limited (FPCL), Taking Total Ownership To 100%

As per company notice, Fauji Fertilizer Company Limited (FFC) board has approved acquisition of 214,687,500 ordinary shares of FFBL Power Company...

Topline Securities

Topline Flash Note: Fauji Cement (FCCL) – Corporate Briefing Key Takeaways

Fauji Cement Company Limited (FCCL) conducted its FY25 corporate briefing session today where management discussed financial performance and...

Topline Securities

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52-week Range

Market Cap (USDm)

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