External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Thematic (Sector/Industry)

Pakistan Materials / Thematic (Sector/Industry)

<ul><li>We maintain our overweight stance on the Pakistan Cement sector in anticipation of the expected recovery on both demand and pricing side. In our base case, we had assumed domestic dispatches growth of 8% in both north and south regions. However, recent trends of Jul and Aug 2025 suggest the actual growth could be much higher.</li><li>In Jul 2025, domestic cement sales were up 18% YoY, while the first 17 days of August were depicting trend of 28% YoY. We believe, 2MFY26 domestic sales could depict YoY growth of 20-25%. The north average currently is around over 98,000 tons per day (in working days its over 100k TPD) compared to 75,000 tons per day in Aug 2024 and 78,000 tons per day in Jul 2025. While south sales are averaging at 18,000 TPD (in working days 19k) compared to 13,750 TPD in Aug 2024.</li><li>The better-than-expected domestic demand is on the back of multiple factors which includes monetary easing and revival in construction sector and infrastructure projects.</li></ul>

We maintain our overweight stance on the Pakistan Cement sector in anticipation of the expected recovery on both demand and pricing side. In our base case, we had assumed domestic dispatches growth of 8% in both north and south regions. However, recent trends of Jul and Aug 2025 suggest the actual growth could be much higher.In Jul 2025, domestic cement sales were up 18% YoY, while the first 17 days of August were depicting trend of 28% YoY. We believe, 2MFY26 domestic sales could depict YoY growth of 20-25%. The north average currently is around over 98,000 tons per day (in working days its over 100k TPD) compared to 75,000 tons per day in Aug 2024 and 78,000 tons per day in Jul 2025. While south sales are averaging at 18,000 TPD (in working days 19k) compared to 13,750 TPD in Aug 2024.The better-than-expected domestic demand is on the back of multiple factors which includes monetary easing and revival in construction sector and infrastructure projects.

Pakistan Cement: Cement Sales Gaining Momentum In Aug 2025; Earnings Could Be Higher Than Expectations