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.

Equity Bottom-Up

Fauji Fertilizer Bin Qasim  / Equity Bottom-Up

Fauji Fertilizer Bin Qasim Limited manufactures, purchases, and markets fertilizers. The Company produces Granular Urea and DAP.  Fauji Fertilizer provides its products to farmers in Pakistan.

<ul>
<li>DAP market size increased by 23% YoY to 292K tons in 1Q2024 where FFBL's market share increased to 58% in 1Q2024 compared to 54% in 1Q2023.</li>
<li>DAP primary margins in 1Q2024 stood at US$151/ton compared to US$160/ton in 1Q2023.</li>
<li>FFBL ensured US$151/ton of FX saving for Pakistan in 1Q2024 by producing DAP locally which will translate into annual saving of US$129mn.</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.


DAP market size increased by 23% YoY to 292K tons in 1Q2024 where FFBL's market share increased to 58% in 1Q2024 compared to 54% in 1Q2023.
DAP primary margins in 1Q2024 stood at US$151/ton compared to US$160/ton in 1Q2023.
FFBL ensured US$151/ton of FX saving for Pakistan in 1Q2024 by producing DAP locally which will translate into annual saving of US$129mn.

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.

Fauji Fertilizer Bin Qasim (FFBL) - 1Q2024 Corporate Briefing Key Takeaways

Cross Asset Strategy

<ul><li>MSCI is scheduled to release its results of the May 2024 Semi-Annual Index Review today (i.e. May 14, 2024). Announcement is expected to be made available shortly after 11 p.m. Central European Summer Time (CEST), i.e. 2 AM. Pakistan Standard Time (PST) on May 15, 2024.</li><li>All changes will be implemented as of Jun 03, 2024.</li><li>Currently, main Frontier Market Index comprises of 20 constituents, including OGDC, MARI, PPL, LUCK, MCB, UBL, ENGRO, HBL, POL, SYS, FFC, HUBC, EFERT, MTL, BAFL, PSO, TRG, BAHL, ILP and SNGP.</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 is scheduled to release its results of the May 2024 Semi-Annual Index Review today (i.e. May 14, 2024). Announcement is expected to be made available shortly after 11 p.m. Central European Summer Time (CEST), i.e. 2 AM. Pakistan Standard Time (PST) on May 15, 2024.All changes will be implemented as of Jun 03, 2024.Currently, main Frontier Market Index comprises of 20 constituents, including OGDC, MARI, PPL, LUCK, MCB, UBL, ENGRO, HBL, POL, SYS, FFC, HUBC, EFERT, MTL, BAFL, PSO, TRG, BAHL, ILP and SNGP.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 Equity | MSCI Semi-Annual Index Review: Pakistan Weight Is Expected to Increase

Equity Capital Markets

International Packaging Films Limited / Equity Capital Markets

International Packaging Products Private Limited was founded in 2000. The company's line of business includes manufacturing coated, impregnated, or laminated textiles.

International Packaging Films Limited (IPAK PK)

<ul>
<li>Pakistan Stock Exchange (PSX) is set to witness another IPO of 2024, where book building is scheduled on May 08-09, 2024.</li>
<li>International Packaging Films (IPAK) is offering 70.105mn shares with floor price of Rs21/share (Rs1.472bn, US$8mn) and cap of Rs29.4/share (Rs2.061bn, US$12mn). The market capitalization of the company post IPO would be Rs14.7bn-20.6bn (US$83-116mn)</li>
<li>The Issue is being made through 100% book building process whereby the bidders shall place bids for 100% of the Issue Size. However, the successful bidders shall be allocated only 75% shares and the remaining 25% shall be offered to the retail investors. In case retail portion remains unsubscribed, the unsubscribed shares will be allotted to the successful bidders on pro rata basis.</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 Stock Exchange (PSX) is set to witness another IPO of 2024, where book building is scheduled on May 08-09, 2024.
International Packaging Films (IPAK) is offering 70.105mn shares with floor price of Rs21/share (Rs1.472bn, US$8mn) and cap of Rs29.4/share (Rs2.061bn, US$12mn). The market capitalization of the company post IPO would be Rs14.7bn-20.6bn (US$83-116mn)
The Issue is being made through 100% book building process whereby the bidders shall place bids for 100% of the Issue Size. However, the successful bidders shall be allocated only 75% shares and the remaining 25% shall be offered to the retail investors. In case retail portion remains unsubscribed, the unsubscribed shares will be allotted to the successful bidders on pro rata basis.

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.

International Packaging Films (IPAK) – IPO; Offering 70mn ShareS at Floor Price of Rs21/Share

Thematic (Sector/Industry)

<ul>
<li>To recall, Government of Pakistan under the IMF program has sizably increased the gas prices by ~75% in Nov-2023 and ~20% in Feb-2024 to contain the annual pile up of the gas sector circular debt which mounted to around Rs3trn by Jan-2024.</li>
<li>Oil and Gas exploration companies were amongst the top affected companies of this menace. However, post adjustment/increase in gas prices, there has been some improvement in the cashflows of the companies.</li>
<li>To quantify the impact, we have assessed Mar 2024 quarter accounts of the OGDC and PPL. As per which the change in receivables to net sales ratio in 3QFY24/9MFY24 has fallen to 21%/20% of the net sales for both companies cumulatively compared to last six years (FY18-23) average of 29%, signaling partial improvement in recoveries of the E&amp;P companies.</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.


To recall, Government of Pakistan under the IMF program has sizably increased the gas prices by ~75% in Nov-2023 and ~20% in Feb-2024 to contain the annual pile up of the gas sector circular debt which mounted to around Rs3trn by Jan-2024.
Oil and Gas exploration companies were amongst the top affected companies of this menace. However, post adjustment/increase in gas prices, there has been some improvement in the cashflows of the companies.
To quantify the impact, we have assessed Mar 2024 quarter accounts of the OGDC and PPL. As per which the change in receivables to net sales ratio in 3QFY24/9MFY24 has fallen to 21%/20% of the net sales for both companies cumulatively compared to last six years (FY18-23) average of 29%, signaling partial improvement in recoveries of the E&amp;P companies.

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 Equity - Flash Note; Oil & Gas Exploration

<ul>
<li>Pakistan listed banks profitability clocked in at Rs152bn up 21% YoY in 1Q2024. This was primarily driven by jump in Net Interest Income (NII) amid high interest rates, and Non Interest Income. In US$ terms listed banks profit was also up 13% YoY to US$545mn in 1Q2024.</li>
<li>NII of the sector clocked in at Rs433bn in 1Q2024 vs. Rs358bn in 1Q2023 up 21% YoY as average policy rates during 1Q2024 remained to 22% vs. 18% in 1Q2023. Interest income was up by 57% YoY to Rs1.7trn, whereas interest expense was up by 74% YoY to Rs1.3trn.</li>
<li>Non-interest income of the sector was up by 65% YoY to Rs125bn in 1Q2024 primarily due to gain on securities. On other hand, non interest expense up 22% YoY to Rs243bn in 1Q2024 due to higher admin expense which is in line with inflation trend.</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 listed banks profitability clocked in at Rs152bn up 21% YoY in 1Q2024. This was primarily driven by jump in Net Interest Income (NII) amid high interest rates, and Non Interest Income. In US$ terms listed banks profit was also up 13% YoY to US$545mn in 1Q2024.
NII of the sector clocked in at Rs433bn in 1Q2024 vs. Rs358bn in 1Q2023 up 21% YoY as average policy rates during 1Q2024 remained to 22% vs. 18% in 1Q2023. Interest income was up by 57% YoY to Rs1.7trn, whereas interest expense was up by 74% YoY to Rs1.3trn.
Non-interest income of the sector was up by 65% YoY to Rs125bn in 1Q2024 primarily due to gain on securities. On other hand, non interest expense up 22% YoY to Rs243bn in 1Q2024 due to higher admin expense which is in line with inflation trend.

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 Listed Banks Profitability up 21% YoY in 1Q2024; Earnings fall 2% QoQ in 1Q2024

Topline Securities
External broker reports(aggregated public sources)
• Topline Securities

Fauji Fertilizer Bin Qasim (FFBL) - 1Q2024 Corporate Briefing Key Takeaways

DAP market size increased by 23% YoY to 292K tons in 1Q2024 where FFBL's market share increased to 58% in 1Q2024 compared to 54% in 1Q2023.

Topline Securities

Pakistan Equity | MSCI Semi-Annual Index Review: Pakistan Weight Is Expected to Increase

Currently, main Frontier Market Index comprises of 20 constituents, including OGDC, MARI, PPL, LUCK, MCB, UBL, ENGRO, HBL, POL, SYS, FFC, HUBC,...

Topline Securities

Pakistan Equity - Flash Note; Oil & Gas Exploration

Government of Pakistan under the IMF program has sizably increased the gas prices by ~75% in Nov-2023 and ~20% in Feb-2024 to contain the annual...

Topline Securities

Pakistan Listed Banks Profitability up 21% YoY in 1Q2024; Earnings fall 2% QoQ in 1Q2024

Pakistan listed banks profitability clocked in at Rs152bn up 21% YoY in 1Q2024. This was primarily driven by jump in Net Interest Income (NII) amid...

Topline Securities

Fauji Fertilizer Bin Qasim (FFBL) - 1Q2024 Corporate Briefing Key Takeaways

DAP market size increased by 23% YoY to 292K tons in 1Q2024 where FFBL's market share increased to 58% in 1Q2024 compared to 54% in 1Q2023.

Topline Securities

Pakistan Equity | MSCI Semi-Annual Index Review: Pakistan Weight Is Expected to Increase

Currently, main Frontier Market Index comprises of 20 constituents, including OGDC, MARI, PPL, LUCK, MCB, UBL, ENGRO, HBL, POL, SYS, FFC, HUBC,...

Topline Securities

International Packaging Films (IPAK) – IPO; Offering 70mn ShareS at Floor Price of Rs21/Share

International Packaging Films (IPAK) is offering 70.105mn shares with floor price of Rs21/share (Rs1.472bn, US$8mn) and cap of Rs29.4/share...

Topline Securities

Pakistan Equity - Flash Note; Oil & Gas Exploration

Government of Pakistan under the IMF program has sizably increased the gas prices by ~75% in Nov-2023 and ~20% in Feb-2024 to contain the annual...

Topline Securities

Pakistan Listed Banks Profitability up 21% YoY in 1Q2024; Earnings fall 2% QoQ in 1Q2024

Pakistan listed banks profitability clocked in at Rs152bn up 21% YoY in 1Q2024. This was primarily driven by jump in Net Interest Income (NII) amid...

Topline Securities