External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

Pioneer Cement Limited / Equity Bottom-Up

<ul><li>Pioneer Cement (PIOC) conducted FY26 analyst briefing today to discuss business performance and outlook.</li><li>Management expects local cement industry sales to grow by 7-7.5% in FY27, in line with recent trends. Subsidized housing finance schemes at both federal and provincial levels could provide further upside to demand.</li><li>PIOC’s solar power plant expansion to 28.3MW is in the final installation stage, with commissioning underway in phases. Overall project is expected to be completed by Dec-2026.</li></ul>

Pioneer Cement (PIOC) conducted FY26 analyst briefing today to discuss business performance and outlook.Management expects local cement industry sales to grow by 7-7.5% in FY27, in line with recent trends. Subsidized housing finance schemes at both federal and provincial levels could provide further upside to demand.PIOC’s solar power plant expansion to 28.3MW is in the final installation stage, with commissioning underway in phases. Overall project is expected to be completed by Dec-2026.

Topline Flash Note: Pioneer Cement (PIOC): Corporate Briefing Key Takeaways

Thematic (Sector/Industry)

<ul>
<li>Pakistan's local cement dispatches are expected to decrease by 11% YoY to 2.97mn tons in Aug-2026.</li>
<li>The YoY decline is attributable to multiple factors, including an increase in ex-factory prices, higher diesel prices, and the impact of monsoon rains.</li>
<li>In 2MFY27, total cement dispatches are expected to clock in at 8.18mn tons, down 1% YoY. However, local cement dispatches are expected to increase by 3% YoY.</li>
</ul>


Pakistan's local cement dispatches are expected to decrease by 11% YoY to 2.97mn tons in Aug-2026.
The YoY decline is attributable to multiple factors, including an increase in ex-factory prices, higher diesel prices, and the impact of monsoon rains.
In 2MFY27, total cement dispatches are expected to clock in at 8.18mn tons, down 1% YoY. However, local cement dispatches are expected to increase by 3% YoY.


Pakistan Cements - Local Cement Dispatches Likely to Be Down by 11% YoY in Aug 2026

Maple Leaf Cement Factory / Equity Bottom-Up

<ul><li>MLCF announced its 2QFY26 result today, where the company recorded consolidated earnings of ~Rs 3.12bn (EPS of Rs2.98), down by 17% YoY but up by 14% QoQ.</li><li>In 1HFY26, MLCF earnings increased by 15% YoY to Rs5.85bn, translating into EPS of Rs5.58.</li><li>Company recorded gross margins of 34.7% in 2QFY26 compared to 33.9% in 1QFY26 and 39.8% in 2QFY25. Gross margins in 1HFY26 stood at 34.3% compared to 36.1% in 1HFY25.</li></ul>

MLCF announced its 2QFY26 result today, where the company recorded consolidated earnings of ~Rs 3.12bn (EPS of Rs2.98), down by 17% YoY but up by 14% QoQ.In 1HFY26, MLCF earnings increased by 15% YoY to Rs5.85bn, translating into EPS of Rs5.58.Company recorded gross margins of 34.7% in 2QFY26 compared to 33.9% in 1QFY26 and 39.8% in 2QFY25. Gross margins in 1HFY26 stood at 34.3% compared to 36.1% in 1HFY25.

Maple Leaf Cement (MLCF): 2QFY26 EPS At Rs2.98, 1HFY26 EPS At Rs5.58 (Earnings In Line With Expectations)

<ul><li>Maple Leaf Cement (MLCF) has notified exchange regarding the acquisition price of a north based cement manufacturer Pioneer Cement (PIOC) at Rs478.43 per share which translates into Enterprise value of US$400mn, EV/Ton of US$76.9 at capacity of 5.2mn tons and EV/EBITDA of 9x at annual LTM EBITDA of Rs12.6bn, as per our calculation.</li><li>Similarly, another recent transaction of south based Attock Cement (ACPL) which is yet to be finalized, the market chatter suggests the pricing around Rs300-350, translating into EV/Ton of US$43-48/ton and EV to EBITDA of 8-9x.</li><li>We estimate, the replacement cost of a new brownfield plant in Pakistan is around US$50-60 per ton while for greenfield the cost is around US$90-100 per ton.</li></ul>

Maple Leaf Cement (MLCF) has notified exchange regarding the acquisition price of a north based cement manufacturer Pioneer Cement (PIOC) at Rs478.43 per share which translates into Enterprise value of US$400mn, EV/Ton of US$76.9 at capacity of 5.2mn tons and EV/EBITDA of 9x at annual LTM EBITDA of Rs12.6bn, as per our calculation.Similarly, another recent transaction of south based Attock Cement (ACPL) which is yet to be finalized, the market chatter suggests the pricing around Rs300-350, translating into EV/Ton of US$43-48/ton and EV to EBITDA of 8-9x.We estimate, the replacement cost of a new brownfield plant in Pakistan is around US$50-60 per ton while for greenfield the cost is around US$90-100 per ton.

Maple Leaf To Acquire Pioneer Cement At EV Of US$400mn; Takes PIOC EV/Ton To US$77, Sector EV/ton At US$54

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

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Maple Leaf Cement Factory (MLCF PA)

Topline Flash Note: Pioneer Cement (PIOC): Corporate Briefing Key Takeaways

Pioneer Cement (PIOC) conducted FY26 analyst briefing today to discuss business performance and outlook. Management expects local cement industry...

Topline Securities

Pakistan Cements - Local Cement Dispatches Likely to Be Down by 11% YoY in Aug 2026

Pakistan's local cement dispatches are expected to decrease by 11% YoY to 2.97mn tons in Aug-2026. The YoY decline is attributable to multiple...

Topline Securities

Maple Leaf Cement (MLCF): 2QFY26 EPS At Rs2.98, 1HFY26 EPS At Rs5.58 (Earnings In Line With Expectations)

MLCF announced its 2QFY26 result today, where the company recorded consolidated earnings of ~Rs 3.12bn (EPS of Rs2.98), down by 17% YoY but up by...

Topline Securities

Maple Leaf To Acquire Pioneer Cement At EV Of US$400mn; Takes PIOC EV/Ton To US$77, Sector EV/ton At US$54

Maple Leaf Cement (MLCF) has notified exchange regarding the acquisition price of a north based cement manufacturer Pioneer Cement (PIOC) at...

Topline Securities

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

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