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>Lucky Cement plans to expand solar capacity at its Karachi plant by 15MW, which will take its total installed solar capacity to 89.3MW upon completion.</li><li>International operations remain a key growth area, with around 15.6MTPA of cement capacity in Pakistan and 5MTPA outside Pakistan, including Congo and Iraq.</li><li>We maintain our BUY call with a FY27F PE of 5.8x.</li></ul>

Lucky Cement plans to expand solar capacity at its Karachi plant by 15MW, which will take its total installed solar capacity to 89.3MW upon completion.International operations remain a key growth area, with around 15.6MTPA of cement capacity in Pakistan and 5MTPA outside Pakistan, including Congo and Iraq.We maintain our BUY call with a FY27F PE of 5.8x.

Topline Flash Note: Lucky Cement (LUCK) - AGM Key Takeaways

Thematic (Sector/Industry)

<ul><li>Topline Cement Universe is expected to post profitability of Rs32.4bn in 1QFY27 against profit of Rs27.8bn in 1QFY26, up by 16% YoY and 16% QoQ.</li><li>The YoY increase in earnings is primarily driven by increase in net sales amid higher retention prices.</li><li>Net sales are expected to reach Rs143bn in 1QFY27, reflecting growth of 25% YoY and 14% QoQ.</li></ul>

Topline Cement Universe is expected to post profitability of Rs32.4bn in 1QFY27 against profit of Rs27.8bn in 1QFY26, up by 16% YoY and 16% QoQ.The YoY increase in earnings is primarily driven by increase in net sales amid higher retention prices.Net sales are expected to reach Rs143bn in 1QFY27, reflecting growth of 25% YoY and 14% QoQ.

Pakistan Cements - Profitability Likely to Be Up by 16% YoY in 1QFY27; Led by Higher Local Volumetric Sales and Retention Prices

<ul><li>Lucky Cement (LUCK) announced its 4QFY26 result today, where the company recorded profit attributable to equity owners of Rs25.35bn (EPS of Rs17.31) reflecting an increase of 29% YoY.</li><li>On a standalone basis, profitability stood at Rs9.89bn in 4QFY26, increasing 72% YoY but declining 27% QoQ.</li><li>Consolidated net revenue increased 19% YoY and 7% QoQ to Rs139.0bn in 4QFY26, taking FY26 revenue to Rs516.3bn, up 15% YoY.</li></ul>

Lucky Cement (LUCK) announced its 4QFY26 result today, where the company recorded profit attributable to equity owners of Rs25.35bn (EPS of Rs17.31) reflecting an increase of 29% YoY.On a standalone basis, profitability stood at Rs9.89bn in 4QFY26, increasing 72% YoY but declining 27% QoQ.Consolidated net revenue increased 19% YoY and 7% QoQ to Rs139.0bn in 4QFY26, taking FY26 revenue to Rs516.3bn, up 15% YoY.

Lucky Cement (LUCK) – 4QFY26 EPS at Rs17.31, Up by 29% YoY (Earnings in Line With Expectations)

Cross Asset Strategy

<ul><li>KSE-100 index companies posted earnings of Rs609bn in 4QFY26, up 34% YoY and 20% QoQ.</li><li>The E&P sector witnessed significant boost in profitability, surging 2.6x YoY and 2.3x QoQ to Rs214.2bn, mainly driven by a huge tax reversal following the FCC’s decision on super tax.</li><li>This takes the FY26 dividends to Rs904.4bn, up 11% with a payout ratio of around 45%.</li></ul>

KSE-100 index companies posted earnings of Rs609bn in 4QFY26, up 34% YoY and 20% QoQ.The E&P sector witnessed significant boost in profitability, surging 2.6x YoY and 2.3x QoQ to Rs214.2bn, mainly driven by a huge tax reversal following the FCC’s decision on super tax.This takes the FY26 dividends to Rs904.4bn, up 11% with a payout ratio of around 45%.

Pakistan Strategy - Corporate Profitability Up 34% in 4QFY26; FY26 Earnings Up 23%; Dividends Up 11%

<ul><li>Pakistan's listed cement sector reported earnings of Rs38.41bn in 4QFY26, up by 23% YoY and 12% QoQ.</li><li>In FY26, sector profitability increased 13% YoY to Rs143bn, driven by improved retention prices, stable gross margins, and lower finance costs.</li><li>Net sales for the cement sector increased 9% YoY and 3% QoQ to Rs179.3bn in 4QFY26.</li></ul>

Pakistan's listed cement sector reported earnings of Rs38.41bn in 4QFY26, up by 23% YoY and 12% QoQ.In FY26, sector profitability increased 13% YoY to Rs143bn, driven by improved retention prices, stable gross margins, and lower finance costs.Net sales for the cement sector increased 9% YoY and 3% QoQ to Rs179.3bn in 4QFY26.

Pakistan Cements - Cement Sector Profits Rise 23% YoY in 4QFY26; Led by Improved Retention Prices and a Lower Effective Tax Rate

Taiwan

Lucky Cement Corporation manufactures Portland cement.  The Company sells its products under the Lucky brand name.  The Company manufactures ready-mixed concrete and develops real estate through its subsidiaries.

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Lucky Cement (1108 TT)

Topline Flash Note: Lucky Cement (LUCK) - AGM Key Takeaways

Lucky Cement plans to expand solar capacity at its Karachi plant by 15MW, which will take its total installed solar capacity to 89.3MW upon...

Topline Securities

Pakistan Cements - Profitability Likely to Be Up by 16% YoY in 1QFY27; Led by Higher Local Volumetric Sales and Retention Prices

Topline Cement Universe is expected to post profitability of Rs32.4bn in 1QFY27 against profit of Rs27.8bn in 1QFY26, up by 16% YoY and 16%...

Topline Securities

Lucky Cement (LUCK) – 4QFY26 EPS at Rs17.31, Up by 29% YoY (Earnings in Line With Expectations)

Lucky Cement (LUCK) announced its 4QFY26 result today, where the company recorded profit attributable to equity owners of Rs25.35bn (EPS of...

Topline Securities

Pakistan Strategy - Corporate Profitability Up 34% in 4QFY26; FY26 Earnings Up 23%; Dividends Up 11%

KSE-100 index companies posted earnings of Rs609bn in 4QFY26, up 34% YoY and 20% QoQ. The E&P sector witnessed significant boost in...

Topline Securities

Pakistan Cements - Cement Sector Profits Rise 23% YoY in 4QFY26; Led by Improved Retention Prices and a Lower Effective Tax Rate

Pakistan's listed cement sector reported earnings of Rs38.41bn in 4QFY26, up by 23% YoY and 12% QoQ. In FY26, sector profitability increased 13%...

Topline Securities

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