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.

Macroeconomics

<ul><li>Pakistan Debt to GDP has fallen to 70% in FY24 as nominal GDP has grown faster than debt owing to higher inflation Pakistan External Debt to GDP is also at 6 year low of 26%</li><li>External Debt to GDP has fallen to 6 year low in FY24 at 26% of GDP from 32% in FY23 due to relatively lower increase in foreign currency borrowings than local currency Pakistan External Debt servicing to total exports has fallen to 35% in FY24 from 51% in FY23</li><li>This ratio indicates how much a country's export revenue will be used up in servicing its debt, thus how vulnerable the payment of debt service obligations is to an unexpected fall in export proceeds Pakistan External Debt to Total Exports stands at 253% in FY24</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 Debt to GDP has fallen to 70% in FY24 as nominal GDP has grown faster than debt owing to higher inflation Pakistan External Debt to GDP is also at 6 year low of 26%External Debt to GDP has fallen to 6 year low in FY24 at 26% of GDP from 32% in FY23 due to relatively lower increase in foreign currency borrowings than local currency Pakistan External Debt servicing to total exports has fallen to 35% in FY24 from 51% in FY23This ratio indicates how much a country's export revenue will be used up in servicing its debt, thus how vulnerable the payment of debt service obligations is to an unexpected fall in export proceeds Pakistan External Debt to Total Exports stands at 253% in FY24Content 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 Economy: Pakistan Debt Indicators Have Improved in FY24

Equity Bottom-Up

Fauji Fertilizer Company / Equity Bottom-Up

Fauji Fertilizer Company Limited manufactures, purchases and markets fertilizers.

<ul><li>The management of Fauji Fertilizer (FFC) and Fauji Fertilizer Bin Qasim (FFBL) held their corporate briefings today to discuss financial result and future outlook of the company.</li><li>Regarding recent merger notification of FFBL and FFC, the management informed that the ratio has not finalized yet. They have hired the consultant (KPMG) and ratio would be finalized by the end of next month (i.e. Sep).</li><li>Management commented that the FFC has firm contract with supplier to provide gas at current rates till 2029. Any change in the gas prices will be welcomed and the company has potential to pass on the impact. However, fertilizer association has recommended Govt to bring all manufacturers to Mari network.</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.

The management of Fauji Fertilizer (FFC) and Fauji Fertilizer Bin Qasim (FFBL) held their corporate briefings today to discuss financial result and future outlook of the company.Regarding recent merger notification of FFBL and FFC, the management informed that the ratio has not finalized yet. They have hired the consultant (KPMG) and ratio would be finalized by the end of next month (i.e. Sep).Management commented that the FFC has firm contract with supplier to provide gas at current rates till 2029. Any change in the gas prices will be welcomed and the company has potential to pass on the impact. However, fertilizer association has recommended Govt to bring all manufacturers to Mari network.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 (FFC) & Fauji Fertilizer Bin Qasim (FFBL): Corporate Briefing Key Takeaways

Thematic (Sector/Industry)

<ul><li>Pakistan Urea sales in Jul-2024 is expected to clock in at 611k tons, down 3% YoY compared to 629k tons in Jul-2023. However, Urea sales are expected to be up 27% MoM due to seasonality factor.</li><li>Urea sales in 7M2024 is expected to clock in at 3,648K tons compared to 3,730k tons in 7M2023, down 2% YoY.</li><li>This is likely to take closing inventory of Urea to be around 401k tons in Jun-2024, down from 430K tons in Jun-2024.</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 Urea sales in Jul-2024 is expected to clock in at 611k tons, down 3% YoY compared to 629k tons in Jul-2023. However, Urea sales are expected to be up 27% MoM due to seasonality factor.Urea sales in 7M2024 is expected to clock in at 3,648K tons compared to 3,730k tons in 7M2023, down 2% YoY.This is likely to take closing inventory of Urea to be around 401k tons in Jun-2024, down from 430K tons in Jun-2024.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 Fertilizers - Urea Sales for Jun-2024 at 483k Tons Down 21% YoY.

<ul><li>As per the latest data released by the Pakistan Telecommunication Authority (PTA), local mobile companies have manufactured/assembled 4.26mn units, up 13x YoY and 2x MoM in Jun-2024.</li><li>The significant MoM growth in mobile sales in Jun-2024 is due to pre-buying following the announcement of an 18% GST on all mobile phones in the FY25 budget.</li><li>In 1H2024, total locally manufactured/assembled sales reached 17.34mn units up 3x YoY. This significant improvement is mainly due to the import restrictions imposed last year.</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.

As per the latest data released by the Pakistan Telecommunication Authority (PTA), local mobile companies have manufactured/assembled 4.26mn units, up 13x YoY and 2x MoM in Jun-2024.The significant MoM growth in mobile sales in Jun-2024 is due to pre-buying following the announcement of an 18% GST on all mobile phones in the FY25 budget.In 1H2024, total locally manufactured/assembled sales reached 17.34mn units up 3x YoY. This significant improvement is mainly due to the import restrictions imposed last year.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 Market: Local Mobile Phones Record Sales in Jun-2024

<ul><li>Pakistan local cement dispatches are likely to be down by 11% YoY to clock in at 2.46mn tons in Jul-2024. Dispatches are also anticipated to decline by 20% MoM.</li><li>MoM decrease in local cement dispatches is primarily due to expected hike in cement prices in Jul 2024 amidst increase in FED by Govt to the extent of Rs100/bag.</li><li>Furthermore, strikes from some dealers and retailers in retaliation of budgetary measures by government also led to decline in cement sales, in our view.</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 local cement dispatches are likely to be down by 11% YoY to clock in at 2.46mn tons in Jul-2024. Dispatches are also anticipated to decline by 20% MoM.MoM decrease in local cement dispatches is primarily due to expected hike in cement prices in Jul 2024 amidst increase in FED by Govt to the extent of Rs100/bag.Furthermore, strikes from some dealers and retailers in retaliation of budgetary measures by government also led to decline in cement sales, in our view.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: Local Cement Dispatches Down by 11% YoY in Jul-2024;