External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

<ul><li>Honda Atlas Car Pakistan (HCAR) announced its 2QMY25 result today, where the company recorded profit of Rs258mn (EPS of Rs1.80), down 62% YoY and 27% QoQ. The result came lower than industry expectations.</li><li>The earnings declined in outgoing quarter due to lower gross margins of 7.4% compared to 10.9% in 2QMY24 and significant fall in other income by 91% from Rs897mn to Rs85mn.</li><li>This takes 1HMY25 earnings to Rs460mn (EPS of Rs3.22) compared to 1HMY24 profit of Rs820mn (EPS of Rs5.74), down 44% YoY.</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.

Honda Atlas Car Pakistan (HCAR) announced its 2QMY25 result today, where the company recorded profit of Rs258mn (EPS of Rs1.80), down 62% YoY and 27% QoQ. The result came lower than industry expectations.The earnings declined in outgoing quarter due to lower gross margins of 7.4% compared to 10.9% in 2QMY24 and significant fall in other income by 91% from Rs897mn to Rs85mn.This takes 1HMY25 earnings to Rs460mn (EPS of Rs3.22) compared to 1HMY24 profit of Rs820mn (EPS of Rs5.74), down 44% YoY.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.

Honda Atlas Cars (HCAR) - 2QMY25 EPS at Rs1.80, Down 62% YoY up 27% QoQ - Lower than Expectations

Thematic (Sector/Industry)

<ul><li>Car sales in Pakistan clocked in at 10,297 units in Sep 2024, reflecting a 24% YoY and 18% MoM increase in sales, as reported by PAMA. The increase in car sales is driven by backlog of Suzuki cars which were delivered this month.</li><li>This takes 1QFY25 sales to 27,585 units a 31% YoY rise from 20,982 units in 1QFY24.</li><li>Sazgar Engineering (SAZEW) saw the most significant YoY rise of 174% but down 13% MoM to 827 units in Sep 2024, driven by Haval sales.</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.

Car sales in Pakistan clocked in at 10,297 units in Sep 2024, reflecting a 24% YoY and 18% MoM increase in sales, as reported by PAMA. The increase in car sales is driven by backlog of Suzuki cars which were delivered this month.This takes 1QFY25 sales to 27,585 units a 31% YoY rise from 20,982 units in 1QFY24.Sazgar Engineering (SAZEW) saw the most significant YoY rise of 174% but down 13% MoM to 827 units in Sep 2024, driven by Haval sales.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 Automobiles: Car sales rose by 24% YoY and 18% MoM in Sep 2024

<ul><li>Car sales in Pakistan totaled 8,589 units in July 2024, reflecting a 60% YoY increase and a 36% MoM decline in sales, as reported by PAMA.</li><li>In volumetric terms, the MoM decline in car sales can be primarily attributed to the increase in tax rates for vehicles (i.e. WHT) introduced in the FY25 budget. This led to pre-buying in June 2024 and as a result Jun 2024 number clocked in at 18 months high.</li><li>Hyundai Nishat Motor experienced the most significant MoM drop, with sales of 529 units-down 50% MoM and 7% YoY.</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.

Car sales in Pakistan totaled 8,589 units in July 2024, reflecting a 60% YoY increase and a 36% MoM decline in sales, as reported by PAMA.In volumetric terms, the MoM decline in car sales can be primarily attributed to the increase in tax rates for vehicles (i.e. WHT) introduced in the FY25 budget. This led to pre-buying in June 2024 and as a result Jun 2024 number clocked in at 18 months high.Hyundai Nishat Motor experienced the most significant MoM drop, with sales of 529 units-down 50% MoM and 7% YoY.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 Automobiles: Car sales fell 36% MoM due to pre buying in Jun 2024

<ul><li>Honda Atlas Car (HCAR) conducted its corporate briefing on 1QMY25 performance and to discuss current and future operational dynamics.</li><li>This year, there were no issues with the opening of LCs; however, subdued demand and a shrinking economy led to lower revenues.</li><li>Localization levels for different HCAR models are as follows: Civic over 60%; City 73%; BRV and HRV is less than 50%.</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.

Honda Atlas Car (HCAR) conducted its corporate briefing on 1QMY25 performance and to discuss current and future operational dynamics.This year, there were no issues with the opening of LCs; however, subdued demand and a shrinking economy led to lower revenues.Localization levels for different HCAR models are as follows: Civic over 60%; City 73%; BRV and HRV is less than 50%.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: Honda Atlas Cars (HCAR): Corporate Briefing Key Takeaways

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>A group of shareholders aims to raise up to US$3.2bn via selling around 5% of <a href="https://www.smartkarma.com/entities/honda-motor-co-ltd" target="_blank" data-smartkarma-citation="entities:154:1" rel="noopener">Honda Motor (7267 JP).</a>
</li>
<li>The possibility of such a selldown was flagged by Reuters prior to the deal launch.</li>
<li>In our earlier note, we spoke about the deal dynamics. In this note, we talk about the updates since then.</li>
</ul>


A group of shareholders aims to raise up to US$3.2bn via selling around 5% of Honda Motor (7267 JP).

The possibility of such a selldown was flagged by Reuters prior to the deal launch.
In our earlier note, we spoke about the deal dynamics. In this note, we talk about the updates since then.


Honda Motor Placement - Past Large Deals Analysis - Could Do with a Bit More Correction

Pakistan

Honda Atlas Cars Pakistan Limited manufactures, assembles and sells Honda vehicles through its many divisions within Pakistan.

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Honda Atlas Car (HCAR PA)

Honda Atlas Cars (HCAR) - 2QMY25 EPS at Rs1.80, Down 62% YoY up 27% QoQ - Lower than Expectations

Honda Atlas Car Pakistan (HCAR) announced its 2QMY25 result today, where the company recorded profit of Rs258mn (EPS of Rs1.80), down 62% YoY and...

Topline Securities

Pakistan Automobiles: Car sales rose by 24% YoY and 18% MoM in Sep 2024

Car sales in Pakistan clocked in at 10,297 units in Sep 2024, reflecting a 24% YoY and 18% MoM increase in sales, as reported by PAMA. The...

Topline Securities

Pakistan Automobiles: Car sales fell 36% MoM due to pre buying in Jun 2024

Car sales in Pakistan totaled 8,589 units in July 2024, reflecting a 60% YoY increase and a 36% MoM decline in sales, as reported by PAMA. In...

Topline Securities

Topline Flash Note: Honda Atlas Cars (HCAR): Corporate Briefing Key Takeaways

Honda Atlas Car (HCAR) conducted its corporate briefing on 1QMY25 performance and to discuss current and future operational dynamics. This year,...

Topline Securities

Honda Motor Placement - Past Large Deals Analysis - Could Do with a Bit More Correction

A group of shareholders aims to raise up to US$3.2bn via selling around 5% of Honda Motor (7267 JP). In this note, we talk about the updates since...

Sumeet Singh

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