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.

Thematic (Sector/Industry)

<ul><li>Topline Cement Universe is expected to post core profitability growth of 10% YoY to Rs12.6bn in 2QFY24 due to improvement in gross margin and higher other income.</li><li>Net sales are anticipated to grow by 5% YoY to Rs93.5bn in 2QFY24 despite 12% YoY decline in local cement sales, thanks to 16% YoY increase in average local cement prices.</li><li>Decline in cement dispatches in 2QFY24 is due to (1) imposition of axle load, (2) high cost of construction, and (3) high base effect of last year when cement dispatches began rising after floods.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topline Cement Universe is expected to post core profitability growth of 10% YoY to Rs12.6bn in 2QFY24 due to improvement in gross margin and higher other income.Net sales are anticipated to grow by 5% YoY to Rs93.5bn in 2QFY24 despite 12% YoY decline in local cement sales, thanks to 16% YoY increase in average local cement prices.Decline in cement dispatches in 2QFY24 is due to (1) imposition of axle load, (2) high cost of construction, and (3) high base effect of last year when cement dispatches began rising after floods.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan Cement: Profitability Likely to Increase 10% YoY in 2QFY24

Equity Bottom-Up

Maple Leaf Cement Factory / Equity Bottom-Up

<ul><li>Topline Securities hosted a Corporate Briefing Session (CBS) for Maple Leaf Cement (MLCF) today, where senior management discussed the recent financial performance and future outlook of the company.</li><li>As per the management margins to remain stable. Moreover, local Cement demand to grow at 3-5% in FY24.</li><li>Industry utilization level to hover around 57% in FY24 despite addition of another 3mn tons by Fauji Cement (FCCL) and Attock Cement (ACPL), management believes.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topline Securities hosted a Corporate Briefing Session (CBS) for Maple Leaf Cement (MLCF) today, where senior management discussed the recent financial performance and future outlook of the company.As per the management margins to remain stable. Moreover, local Cement demand to grow at 3-5% in FY24.Industry utilization level to hover around 57% in FY24 despite addition of another 3mn tons by Fauji Cement (FCCL) and Attock Cement (ACPL), management believes.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

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

Cross Asset Strategy

<ul><li>MSCI released an update on its November 2023 Index Review, notifying that there is no change in constituents for Pakistan in the MSCI main Frontier Market Index. However, in the small-cap index, four constituents have been removed, and four new constituents have been added.</li><li>The changes to MSCI Frontier Market index will be effective from Nov 30, 2023.</li><li>The main Frontier Market Index comprises of 17 constituents, including OGDC, PPL, MARI, UBL, LUCK, MCB, ENGRO, HBL, HUBC, FFC, SYS, EFERT, POL, MTL, PSO, BAFL, and TRG.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

MSCI released an update on its November 2023 Index Review, notifying that there is no change in constituents for Pakistan in the MSCI main Frontier Market Index. However, in the small-cap index, four constituents have been removed, and four new constituents have been added.The changes to MSCI Frontier Market index will be effective from Nov 30, 2023.The main Frontier Market Index comprises of 17 constituents, including OGDC, PPL, MARI, UBL, LUCK, MCB, ENGRO, HBL, HUBC, FFC, SYS, EFERT, POL, MTL, PSO, BAFL, and TRG.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topline Flash Note: Pakistan Strategy: MSCI November 2023 Index Review

<ul><li>Pakistan’s listed cement sector has reported highest ever earnings of Rs21.3bn up 46% YoY in 1QFY24. The positive earnings growth is primarily due to higher volumetric sales and improved gross margins.</li><li>The cement sector also witnessed a significant increase in pre-tax earnings (PBT), rising by 60% YoY and 51% QoQ to Rs32.8bn. This significant growth is due to factors mentioned above and QoQ decline in tax expense.</li><li>Sales jumped 34% YoY to Rs170bn in 1QFY24 led by 23.6% YoY increase in total cement dispatches and 12% YoY in average cement prices.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan’s listed cement sector has reported highest ever earnings of Rs21.3bn up 46% YoY in 1QFY24. The positive earnings growth is primarily due to higher volumetric sales and improved gross margins.The cement sector also witnessed a significant increase in pre-tax earnings (PBT), rising by 60% YoY and 51% QoQ to Rs32.8bn. This significant growth is due to factors mentioned above and QoQ decline in tax expense.Sales jumped 34% YoY to Rs170bn in 1QFY24 led by 23.6% YoY increase in total cement dispatches and 12% YoY in average cement prices.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan Cements: Sector reported highest ever quarterly profit in 1QFY24

<ul><li>Pakistan total cement sales in Oct-23 are expected to decline by 7-11% YoY and 4-8% MoM.</li><li>Local dispatches are likely to decline by 19-23% YoY and 11-15% MoM. Decline in sales could be attributed to unavailability labor due to start of Rabi season, high construction cost and slowdown in construction activities.</li><li>Considering these figures, the average daily domestic sales for the sector are expected to reach 99.6k tons/day in Oct-23, compared to the five-year average Oct sales of 138.7k tons/day.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan total cement sales in Oct-23 are expected to decline by 7-11% YoY and 4-8% MoM.Local dispatches are likely to decline by 19-23% YoY and 11-15% MoM. Decline in sales could be attributed to unavailability labor due to start of Rabi season, high construction cost and slowdown in construction activities.Considering these figures, the average daily domestic sales for the sector are expected to reach 99.6k tons/day in Oct-23, compared to the five-year average Oct sales of 138.7k tons/day.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pakistan Cements: Local Cement Dispatches to Decline by 19-23% YoY in Oct-2023

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Maple Leaf Cement Factory (MLCF PA)

Pakistan Cement: Profitability Likely to Increase 10% YoY in 2QFY24

Topline Cement Universe is expected to post core profitability growth of 10% YoY to Rs12.6bn in 2QFY24 due to improvement in gross margin and...

Topline Securities

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

Topline Securities hosted a Corporate Briefing Session (CBS) for Maple Leaf Cement (MLCF) today, where senior management discussed the recent...

Topline Securities

Topline Flash Note: Pakistan Strategy: MSCI November 2023 Index Review

MSCI released an update on its November 2023 Index Review, notifying that there is no change in constituents for Pakistan in the MSCI main...

Topline Securities

Pakistan Cements: Sector reported highest ever quarterly profit in 1QFY24

Pakistan’s listed cement sector has reported highest ever earnings of Rs21.3bn up 46% YoY in 1QFY24. The positive earnings growth is primarily due...

Topline Securities

Pakistan Cements: Local Cement Dispatches to Decline by 19-23% YoY in Oct-2023

Pakistan total cement sales in Oct-23 are expected to decline by 7-11% YoY and 4-8% MoM. Local dispatches are likely to decline by 19-23% YoY and...

Topline Securities

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