External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

Maple Leaf Cement Factory / Equity Bottom-Up

<ul><li>Maple Leaf Cement (MLCF) conducted FY25 analyst briefing today to discuss business performance and future outlook.</li><li>Management expects cement dispatches to grow by 10-13% YoY in FY26, driven by stronger-than-expected demand in 4MFY26. The increase in YoY sales is attributable to improved private sector activity and pent-up demand from the construction sector.</li><li>MLCF is diversifying into healthcare through NovaCare Hospitals, planning three facilities across major cities. The first, in Islamabad, will open by end-2026 under affiliation with Imperial College Healthcare NHS Trust, London. The US$100mn project will be financed equally through debt and equity, with MLCF holding 99.99% ownership.</li></ul>

Maple Leaf Cement (MLCF) conducted FY25 analyst briefing today to discuss business performance and future outlook.Management expects cement dispatches to grow by 10-13% YoY in FY26, driven by stronger-than-expected demand in 4MFY26. The increase in YoY sales is attributable to improved private sector activity and pent-up demand from the construction sector.MLCF is diversifying into healthcare through NovaCare Hospitals, planning three facilities across major cities. The first, in Islamabad, will open by end-2026 under affiliation with Imperial College Healthcare NHS Trust, London. The US$100mn project will be financed equally through debt and equity, with MLCF holding 99.99% ownership.

Topline Flash Note: Maple Leaf Cement - MLCF - Corporate Briefing Key Takeaways- Corporate Briefing Key Takeaways

<ul><li>MLCF announced its 1QFY26 result today, where the company recorded consolidated earnings of ~Rs2.73bn (EPS of Rs2.6), up by 2x YoY while down by 25% QoQ.</li><li>The result came higher than industry expectations in 1QFY26 due to higher than estimated sales.</li><li>Alongside the result, the company did not announce any cash dividend which is as per expectations.</li></ul>

MLCF announced its 1QFY26 result today, where the company recorded consolidated earnings of ~Rs2.73bn (EPS of Rs2.6), up by 2x YoY while down by 25% QoQ.The result came higher than industry expectations in 1QFY26 due to higher than estimated sales.Alongside the result, the company did not announce any cash dividend which is as per expectations.

Maple Leaf Cement (MLCF): 1QFY26 EPS at Rs2.6 Up by 2x YoY (Earnings Higher Than Industry Expectations)

Thematic (Sector/Industry)

<ul><li>Pakistan's local cement dispatches are expected to increase by 11% YoY to 3.59mn tons in Jul-2026.</li><li>The YoY growth is primarily attributable to sustained momentum in domestic cement demand, driven by a gradual pickup in housing and construction activity.</li><li>This brings Pakistan's total cement dispatches to approximately 4.29mn tons in Jul-2026, up 2% YoY but down 1% MoM.</li></ul>

Pakistan's local cement dispatches are expected to increase by 11% YoY to 3.59mn tons in Jul-2026.The YoY growth is primarily attributable to sustained momentum in domestic cement demand, driven by a gradual pickup in housing and construction activity.This brings Pakistan's total cement dispatches to approximately 4.29mn tons in Jul-2026, up 2% YoY but down 1% MoM.

Pakistan Cements - Local Cement Dispatches Likely to Be Up by 11% YoY in Jul 2026; FY27 Begins With Sustained Momentum in Domestic Cement Demand

<ul><li>Topline Cement Universe is expected to post profitability of Rs20.54bn in 4QFY26 against profit of Rs18.81bn in 4QFY25, up by 9% YoY and down by 10% 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 Rs116.32bn in 4QFY26, reflecting growth of 23% YoY and 10% QoQ.</li></ul>

Topline Cement Universe is expected to post profitability of Rs20.54bn in 4QFY26 against profit of Rs18.81bn in 4QFY25, up by 9% YoY and down by 10% QoQ.The YoY increase in earnings is primarily driven by increase in net sales amid higher retention prices.Net sales are expected to reach Rs116.32bn in 4QFY26, reflecting growth of 23% YoY and 10% QoQ.

Pakistan Cements - Cement Profitability Likely to Be Up by 9% YoY in 4QFY26; Led by Increase in Local Volumetric Sales

<ul><li>We have revised our cement sector earnings estimates downward by an average of 15–20% for FY26 and FY27. The revision reflects a weaker macroeconomic outlook stemming from the ongoing US-Iran conflict and its broader economic implications.</li><li>Domestic growth expectations moderated: Local cement dispatches rose by ~9% YoY during 11MFY26, supported by improving macroeconomic conditions, lower interest rates earlier in the year, and a gradual recovery in construction activity.</li><li>Higher coal prices to pressure margins: Following the US–Iran conflict, international coal prices rebounded sharply, reaching US$112/ton in May-26 compared to US$96/ton in Feb-26 and an FY25 average of US$101/ton.</li></ul>

We have revised our cement sector earnings estimates downward by an average of 15–20% for FY26 and FY27. The revision reflects a weaker macroeconomic outlook stemming from the ongoing US-Iran conflict and its broader economic implications.Domestic growth expectations moderated: Local cement dispatches rose by ~9% YoY during 11MFY26, supported by improving macroeconomic conditions, lower interest rates earlier in the year, and a gradual recovery in construction activity.Higher coal prices to pressure margins: Following the US–Iran conflict, international coal prices rebounded sharply, reaching US$112/ton in May-26 compared to US$96/ton in Feb-26 and an FY25 average of US$101/ton.

Pakistan Cements - Earnings Revised Downward; Market Weight Maintained

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Maple Leaf Cement Factory (MLCF PA)

Topline Flash Note: Maple Leaf Cement - MLCF - Corporate Briefing Key Takeaways- Corporate Briefing Key Takeaways

Maple Leaf Cement (MLCF) conducted FY25 analyst briefing today to discuss business performance and future outlook. Management expects cement...

Topline Securities

Maple Leaf Cement (MLCF): 1QFY26 EPS at Rs2.6 Up by 2x YoY (Earnings Higher Than Industry Expectations)

MLCF announced its 1QFY26 result today, where the company recorded consolidated earnings of ~Rs2.73bn (EPS of Rs2.6), up by 2x YoY while down by...

Topline Securities

Pakistan Cements - Local Cement Dispatches Likely to Be Up by 11% YoY in Jul 2026; FY27 Begins With Sustained Momentum in Domestic Cement Demand

Pakistan's local cement dispatches are expected to increase by 11% YoY to 3.59mn tons in Jul-2026. The YoY growth is primarily attributable to...

Topline Securities

Pakistan Cements - Cement Profitability Likely to Be Up by 9% YoY in 4QFY26; Led by Increase in Local Volumetric Sales

Topline Cement Universe is expected to post profitability of Rs20.54bn in 4QFY26 against profit of Rs18.81bn in 4QFY25, up by 9% YoY and down by...

Topline Securities

Pakistan Cements - Earnings Revised Downward; Market Weight Maintained

We have revised our cement sector earnings estimates downward by an average of 15–20% for FY26 and FY27. The revision reflects a weaker...

Topline Securities

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