External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Thematic (Sector/Industry)

Pakistan Construction materials / Thematic (Sector/Industry)

<ul><li>We have revised up our earlier estimates of cement earnings by simple average of 23-28% for FY25 and FY26 due to multiple factors including better than expected domestic demand recovery in FY25, and lower coal costs.</li><li>Better than expected domestic dispatches: In 1QFY25 local cement dispatches decreased by ~20% YoY and by 7% QoQ to 8.1mn tons. This decrease was mainly due to sudden jump in bag prices mainly caused by increase in FED per bag to Rs4 from Rs2. Other main reason was strikes by cement dealers due to taxation measures introduced in FY25 budget.</li><li>In 2QFY25 cement dispatches displayed tremendous recovery increasing by 23% on QoQ basis to 9.9mn tons. Local dispatches in the first two months of 3QFY25 have also shown improved performance. As a result of this rising YoY growth in subsequent months, the 8MFY25 local dispatches decline stands at 6% YoY compared to 8MFY24.</li></ul><p><em>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.</em></p>

We have revised up our earlier estimates of cement earnings by simple average of 23-28% for FY25 and FY26 due to multiple factors including better than expected domestic demand recovery in FY25, and lower coal costs.Better than expected domestic dispatches: In 1QFY25 local cement dispatches decreased by ~20% YoY and by 7% QoQ to 8.1mn tons. This decrease was mainly due to sudden jump in bag prices mainly caused by increase in FED per bag to Rs4 from Rs2. Other main reason was strikes by cement dealers due to taxation measures introduced in FY25 budget.In 2QFY25 cement dispatches displayed tremendous recovery increasing by 23% on QoQ basis to 9.9mn tons. Local dispatches in the first two months of 3QFY25 have also shown improved performance. As a result of this rising YoY growth in subsequent months, the 8MFY25 local dispatches decline stands at 6% YoY compared to 8MFY24.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: Earnings Revised Upward; Buy Stance Maintained