External broker reports(aggregated public sources), Topline Securities

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External broker reports(aggregated public sources)

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Equity Bottom-Up

Lucky Core Industries Limited / Equity Bottom-Up

<ul><li>LCI’s operating profit declined on a YoY basis primarily due to a sharp contraction in the polyester and soda ash businesses, where operating profit fell by 79% and 21%, respectively.</li><li>Management highlighted that soda ash imports have increased due to cheaper import prices (~US$190/ton) amid global oversupply, mainly from China, with imported market share rising to ~10% from 5–6% previously.</li><li>Notably, construction of the Greenfield Veterinary Medicine manufacturing unit is underway, with completion expected in 4QFY26. The capex incurred on this plant so far is approximately Rs800mn.</li></ul>

LCI’s operating profit declined on a YoY basis primarily due to a sharp contraction in the polyester and soda ash businesses, where operating profit fell by 79% and 21%, respectively.Management highlighted that soda ash imports have increased due to cheaper import prices (~US$190/ton) amid global oversupply, mainly from China, with imported market share rising to ~10% from 5–6% previously.Notably, construction of the Greenfield Veterinary Medicine manufacturing unit is underway, with completion expected in 4QFY26. The capex incurred on this plant so far is approximately Rs800mn.

Topline Flash Note: Lucky Core Industries (LCI): Corporate Briefing Key Takeaways

Macroeconomics

<ul><li>The government has notified SRO 1064(I)/2026 (superseding SRO 1152(I)/2025), effective July 1, 2026, implementing the second-year tariff rationalization plan under the National Tariff Policy (NTP) 2025–30.</li><li>The government has reduced Regulatory Duty (RD) across almost all categories, with the maximum RD now capped at 20% vs earlier 50%.</li><li>To highlight, the highest RD slab previously stood at 50%, applicable to various automobile categories (PCT 8703) for import of SUVs, 4x4s, and other large-engine vehicles.</li></ul>

The government has notified SRO 1064(I)/2026 (superseding SRO 1152(I)/2025), effective July 1, 2026, implementing the second-year tariff rationalization plan under the National Tariff Policy (NTP) 2025–30.The government has reduced Regulatory Duty (RD) across almost all categories, with the maximum RD now capped at 20% vs earlier 50%.To highlight, the highest RD slab previously stood at 50%, applicable to various automobile categories (PCT 8703) for import of SUVs, 4x4s, and other large-engine vehicles.

Pakistan Strategy: Govt Slashes Import Duties Under Second Phase of NTP 2025–30; Sector Wise Impact of Tariff Rationalization

<ul><li>Lucky Core Industries (LCI) held it's corporate briefing today to discuss FY25 financial result and future outlook.</li><li>LCI's operating performance improved due to Pfizer portfolio integration and better margins in Pharmaceuticals. Notably, Pharmaceutical business recorded 32-35% margins which helped in bringing the average margins of the company to 38%. However, Soda Ash, Chemicals & Agri Sciences, and Animal Health faced demand challenges.</li><li>Regarding the pharmaceutical business, management communicated that 65% of the current portfolio is non-essential and 35% essential. The Pfizer portfolio acquired is mostly non-essential, barring one small product.</li></ul>

Lucky Core Industries (LCI) held it's corporate briefing today to discuss FY25 financial result and future outlook.LCI's operating performance improved due to Pfizer portfolio integration and better margins in Pharmaceuticals. Notably, Pharmaceutical business recorded 32-35% margins which helped in bringing the average margins of the company to 38%. However, Soda Ash, Chemicals & Agri Sciences, and Animal Health faced demand challenges.Regarding the pharmaceutical business, management communicated that 65% of the current portfolio is non-essential and 35% essential. The Pfizer portfolio acquired is mostly non-essential, barring one small product.

Lucky Core Industries (LCI): FY25 Corporate Briefing Key Takeaways

<ul><li>Lucky Cement (LUCK) announced its 4QFY25 result today, where the company recorded consolidated earnings of Rs19.69bn (EPS of Rs13.41) up by 34% YoY, in line with our expectations.</li><li>Alongside the result, the company announced annual cash dividend of Rs4.0/share in 4QFY25, which was in line with the industry expectations.</li><li>On consol basis, net revenue increased by 12% YoY and by 8% QoQ to Rs116.8bn. Increase in revenue on a YoY basis is due to higher revenue from Local Cement and Lucky Motors (in line with auto industry sales trend), we believe.</li></ul>

Lucky Cement (LUCK) announced its 4QFY25 result today, where the company recorded consolidated earnings of Rs19.69bn (EPS of Rs13.41) up by 34% YoY, in line with our expectations.Alongside the result, the company announced annual cash dividend of Rs4.0/share in 4QFY25, which was in line with the industry expectations.On consol basis, net revenue increased by 12% YoY and by 8% QoQ to Rs116.8bn. Increase in revenue on a YoY basis is due to higher revenue from Local Cement and Lucky Motors (in line with auto industry sales trend), we believe.

Lucky Cement (LUCK): 4QFY25 EPS at Rs13.41, FY25 EPS at Rs52.53 (Earnings in Line with Expectations)

<ul><li>Lucky Core Industries (LCI) announced its 4QFY25 result today, where the company recorded consolidated earnings of Rs2.8bn (EPS of Rs6.17), up by 9% QoQ.</li><li>The result came in-line with our expectations.</li><li>Lucky Core Industries (LCI) executed a 5-for-1 stock split, increasing its total outstanding shares from 92 mn to 462 mn.</li></ul>

Lucky Core Industries (LCI) announced its 4QFY25 result today, where the company recorded consolidated earnings of Rs2.8bn (EPS of Rs6.17), up by 9% QoQ.The result came in-line with our expectations.Lucky Core Industries (LCI) executed a 5-for-1 stock split, increasing its total outstanding shares from 92 mn to 462 mn.

Lucky Core Industries (LCI): 4QFY24 EPS At Rs6.25, FY25 EPS At Rs25.5(Earnings In Line With Expectations)

Pakistan

Lucky Core Industries Limited, previously known as ICI Pakistan Limited, is a Pakistani chemical company which is based in Karachi, Pakistan. It manufactures polyester, pharmaceutical, agrochemical, soda ash and animal health products.

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Lucky Core Industries Limited (LCI PK)

Topline Flash Note: Lucky Core Industries (LCI): Corporate Briefing Key Takeaways

LCI’s operating profit declined on a YoY basis primarily due to a sharp contraction in the polyester and soda ash businesses, where operating...

Topline Securities

Pakistan Strategy: Govt Slashes Import Duties Under Second Phase of NTP 2025–30; Sector Wise Impact of Tariff Rationalization

The government has notified SRO 1064(I)/2026 (superseding SRO 1152(I)/2025), effective July 1, 2026, implementing the second-year tariff...

Topline Securities

Lucky Core Industries (LCI): FY25 Corporate Briefing Key Takeaways

Lucky Core Industries (LCI) held it's corporate briefing today to discuss FY25 financial result and future outlook. LCI's operating performance...

Topline Securities

Lucky Cement (LUCK): 4QFY25 EPS at Rs13.41, FY25 EPS at Rs52.53 (Earnings in Line with Expectations)

Lucky Cement (LUCK) announced its 4QFY25 result today, where the company recorded consolidated earnings of Rs19.69bn (EPS of Rs13.41) up by 34%...

Topline Securities

Lucky Core Industries (LCI): 4QFY24 EPS At Rs6.25, FY25 EPS At Rs25.5(Earnings In Line With Expectations)

Lucky Core Industries (LCI) announced its 4QFY25 result today, where the company recorded consolidated earnings of Rs2.8bn (EPS of Rs6.17), up by...

Topline Securities

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