Frontier and emerging markets (Vietnam)

Dylan Waller

Nomadic Equity

Thematic (Sector/Industry)

Pakistan is a strong frontier market in Asia for investors to consider:<ul><li>The MSCI will review Pakistan's eligibility to become an emerging market this year</li><li>Pakistan stands out for its high growth and strong discount to other stock markets in Asia</li><li>The cement industry, banking industry, and automotive industry are all strong areas for investment</li><li>Investors should avoid the textile and oil/gas industry in general, although some buy opportunities may emerge from the sell off</li><li>Regardless of what decision is made this year, Pakistan is still a strong, high growth frontier market</li></ul>

Pakistan is a strong frontier market in Asia for investors to consider:The MSCI will review Pakistan's eligibility to become an emerging market this yearPakistan stands out for its high growth and strong discount to other stock markets in AsiaThe cement industry, banking industry, and automotive industry are all strong areas for investmentInvestors should avoid the textile and oil/gas industry in general, although some buy opportunities may emerge from the sell offRegardless of what decision is made this year, Pakistan is still a strong, high growth frontier market

Emerging Pakistan?: Key Industries to Consider and Avoid

Pakistan’s textile industry has a somewhat gloomy outlook, while the industry in other countries, particularly Vietnam, appears to be positioned to benefit at the expense of Pakistan.  Despite the country’s dependency on textile exports, Pakistan has still been a high growth country, with one of the best performing stock markets in Asia.  Investment in Pakistan certainly has its merits, but the textile industry in general should be avoided. Potential opportunity lies in the non value added…

Pakistan’s textile industry has a somewhat gloomy outlook, while the industry in other countries, particularly Vietnam, appears to be positioned to benefit at the expense of Pakistan.  Despite the country’s dependency on textile exports, Pakistan has still been a high growth country, with one of the best performing stock markets in Asia.  Investment in Pakistan certainly has its merits, but the textile industry in general should be avoided. Potential opportunity lies in the non value added…

Avoid Pakistan's Textile Industry: Look to Vietnam Instead

Pakistan’s automotive industry has been displaying record high growth, and presents a strong opportunity for investors:<ul>
<li>The Pakistan Automotive Manufacturers Association reported <a href="http://res.bmacapital.com/dailyreports/SOD/PDFS/12142015.PDF" target="_blank">62% YoY increase </a>in sales in the industry this November.</li>
<li>This displays record growth, as CAGR has averaged at <a href="http://www.pakistantoday.com.pk/2015/06/10/business/car-sales-in-pakistan-to-achieve-highest-growth-in-3-years/" target="_blank">5.3% for the past five years.</a>
</li>
<li>There are 3 options for listed equity in this industry, all of which have substantially outperformed the KSE Index’s 1 year gain of 7.6%.</li>
<li>Pakistan is on track to eventually become an…</li>
</ul>

Pakistan’s automotive industry has been displaying record high growth, and presents a strong opportunity for investors:
The Pakistan Automotive Manufacturers Association reported 62% YoY increase in sales in the industry this November.
This displays record growth, as CAGR has averaged at 5.3% for the past five years.

There are 3 options for listed equity in this industry, all of which have substantially outperformed the KSE Index’s 1 year gain of 7.6%.
Pakistan is on track to eventually become an…


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>Indus Motor (INDU) conducted its FY25 analyst briefing today, where management discussed financial performance and future outlook.</li><li>The company recorded 14.5% gross margins in FY25 compared to 12.7% in FY24, mainly due to lower input material costs due to favorable exchange rates, cost optimization initiatives and increased localization effects.</li><li>Yaris facelift was introduced in July 2024 which was widely accepted and contributed positively to the profitability.</li></ul>

Indus Motor (INDU) conducted its FY25 analyst briefing today, where management discussed financial performance and future outlook.The company recorded 14.5% gross margins in FY25 compared to 12.7% in FY24, mainly due to lower input material costs due to favorable exchange rates, cost optimization initiatives and increased localization effects.Yaris facelift was introduced in July 2024 which was widely accepted and contributed positively to the profitability.

Topline Flash Note: Indus Motor (INDU): Corporate Briefing Key Takeaways

<ul><li>Indus Motor Company (INDU) announced its FY25 results today, where the company recorded profit of Rs23bn (EPS of Rs292.74), up 48% YoY.</li><li>The result came slightly lower than industry expectations.</li><li>INDU announced a final cash dividend of Rs50/share, taking FY25 total payout to Rs176/share.</li></ul>

Indus Motor Company (INDU) announced its FY25 results today, where the company recorded profit of Rs23bn (EPS of Rs292.74), up 48% YoY.The result came slightly lower than industry expectations.INDU announced a final cash dividend of Rs50/share, taking FY25 total payout to Rs176/share.

Indus Motor Company (INDU): FY25 EPS At Rs292.74, Up 53% YoY - Earnings Lower Than Industry Expectations

Pakistan

Indus Motor Company Limited was created through a joint venture agreement between the House of Habib, the Toyota Motor Corporation and the Toyota Tsusho Corporation, in order to assemble, manufacture and market Toyota vehicles.  The company is also the sole distributor of Toyota vehicles in Pakistan.

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Indus Motor Company (INDU PA)

Emerging Pakistan?: Key Industries to Consider and Avoid

Pakistan is a strong frontier market in Asia for investors to consider: The MSCI will review Pakistan's eligibility to become an emerging market...

Nomadic Equity

Avoid Pakistan's Textile Industry: Look to Vietnam Instead

Pakistan’s textile industry has a somewhat gloomy outlook, while the industry in other countries, particularly Vietnam, appears to be positioned to...

Nomadic Equity

Pakistan's Automotive Industry

Pakistan’s automotive industry has been displaying record high growth, and presents a strong opportunity for investors: The Pakistan Automotive...

Nomadic Equity

Topline Flash Note: Indus Motor (INDU): Corporate Briefing Key Takeaways

Indus Motor (INDU) conducted its FY25 analyst briefing today, where management discussed financial performance and future outlook. The company...

Topline Securities

Indus Motor Company (INDU): FY25 EPS At Rs292.74, Up 53% YoY - Earnings Lower Than Industry Expectations

Indus Motor Company (INDU) announced its FY25 results today, where the company recorded profit of Rs23bn (EPS of Rs292.74), up 48% YoY. The result...

Topline Securities

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