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>Pakistan’s listed cement sector has reported after tax earnings (PAT) of Rs51bn down 3% YoY in FY23 vs growth of 8% in FY22. The negative earnings growth is primarily due to higher tax expense amid implantation of 10% super tax.</li><li>However Cement sector recorded pre tax earnings (PBT) of Rs100bn up 11% despite 16% YoY fall in total cement dispatches and 78% YoY increase in finance cost.</li><li>The improvement in PBT is primarily back of increase in sales by 21% YoY to Rs590bn in FY23 led by 37% YoY increase in 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 after tax earnings (PAT) of Rs51bn down 3% YoY in FY23 vs growth of 8% in FY22. The negative earnings growth is primarily due to higher tax expense amid implantation of 10% super tax.However Cement sector recorded pre tax earnings (PBT) of Rs100bn up 11% despite 16% YoY fall in total cement dispatches and 78% YoY increase in finance cost.The improvement in PBT is primarily back of increase in sales by 21% YoY to Rs590bn in FY23 led by 37% YoY increase in 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 Cement: Sector profits down 3% YoY in FY23; Pre-tax profitability up 11% YoY in FY23

Equity Bottom-Up

<ul><li>Fauji Cement Company Limited (FCCL) announced its financial result today, wherein the company reported earnings of Rs472mn (EPS: Rs0.19) in 4QFY23, down 73% YoY and 75% QoQ. Earnings were below market expectations.</li><li>Lower than estimated earnings could be attributed to higher than estimated selling and distribution expenses and effective tax rate.</li><li>This takes full year FY23 earnings to Rs7,440mn (EPS: Rs 3.03) up 5% YoY majorly on the back of higher retention 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.

Fauji Cement Company Limited (FCCL) announced its financial result today, wherein the company reported earnings of Rs472mn (EPS: Rs0.19) in 4QFY23, down 73% YoY and 75% QoQ. Earnings were below market expectations.Lower than estimated earnings could be attributed to higher than estimated selling and distribution expenses and effective tax rate.This takes full year FY23 earnings to Rs7,440mn (EPS: Rs 3.03) up 5% YoY majorly on the back of higher retention 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.

Fauji Cement (FCCL): 4QFY23 EPS at Rs0.19 vs. 4QFY22 EPS of Rs0.72 (Earnings below expectations)

<ul><li>Cement sales in Aug-23 are anticipated to increase by 23-27% YoY and 26-29% MoM. Local dispatches are likely to rise by 19-23% YoY and 25-29% MoM.</li><li>Considering these figures, the average daily domestic sales for the sector are projected to reach 113.5k tons/day in Aug-23, compared to the five-year average August sales of 100.6k tons/day.</li><li>The start of FY24 began on shaky ground as sales were lower in Jul-23 due to rainfall in most parts of the country. However, sales are expected to rebound in Aug-23 with MoM increase of 27% to 3.5mn tons, attributed to the low base effect. It's worth recalling that the country was affected by floods last year, which hampered construction activities in Jul-Aug 2022.</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.

Cement sales in Aug-23 are anticipated to increase by 23-27% YoY and 26-29% MoM. Local dispatches are likely to rise by 19-23% YoY and 25-29% MoM.Considering these figures, the average daily domestic sales for the sector are projected to reach 113.5k tons/day in Aug-23, compared to the five-year average August sales of 100.6k tons/day.The start of FY24 began on shaky ground as sales were lower in Jul-23 due to rainfall in most parts of the country. However, sales are expected to rebound in Aug-23 with MoM increase of 27% to 3.5mn tons, attributed to the low base effect. It's worth recalling that the country was affected by floods last year, which hampered construction activities in Jul-Aug 2022.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 Increase by 19-23% YoY in Aug-2023

Investing in high growth Asian frontier economies., Asia Frontier Capital

Scott Osheroff

Investing in high growth Asian frontier economies.

Asia Frontier Capital

Asia Frontier Capital Ltd. is a pioneering fund management company based in Hong Kong that specializes in investing in high growth Asian frontier economies by managing the AFC Asia Frontier Fund , AFC Iraq Fund and the AFC Vietnam Fund.

The AFC Asia Frontier Fund invests in public equities of Asian frontier countries that are seeing increasing consumption due to favorable demographic trends, rising incomes and high GDP growth. The fund invests in listed equities of companies that have their principal business activities in Bangladesh, Bhutan, Cambodia, Iraq, Laos, Maldives, Mongolia, Myanmar (Burma), Nepal, Pakistan, Papua New Guinea, Sri Lanka and Vietnam. The AFC Asia Frontier Fund is positioned to take advantage of the continuing economic shifts in these countries and offers high returns combined with significant diversification opportunities. This fund is directed by the founder and CEO of Asia Frontier Capital, Thomas Hugger, who has been investing in frontier markets across Asia and Africa for more than 20 years.

The AFC Iraq Fund was launched on the 26th June 2015 and aims to achieve long-term capital appreciation for investors by capturing value and growth potential in the post conflict high-growth & resource rich Iraq market. The fund emphasises long term investment horizon to truly capture the opportunity in Iraq. The fund's investable universe consists of locally listed companies that have their principal business activities in Iraq as well as foreign listed companies that have the majority of the business in Iraq as a whole including the prosperous Kurdish Region of Iraq (KRI). The AFC Iraq Fund offers access to investments in post conflict recovery potential of Iraq, including the KRI, and/or stability in its territory. The AFC Iraq Fund is managed by Asia Frontier Capital (Iraq) Limited, Cayman Islands under the executive leadership team of Thomas Hugger (CEO & Fund Manager) and Ahmed Tabaqchali (CIO) who have more than 47 years of investment experience as well as an extensive background covering global, emerging, frontier and MENA markets.

The AFC Vietnam Fund invests exclusively in listed Vietnamese equities to capture value in growth companies with a focus on the small to medium size companies. This market segment offers a unique investment opportunity as the valuation gap between large- and small-cap stocks in Vietnam is presently much wider than in comparable neighboring markets and the valuations are significantly depressed versus their regional peers. The fund adopts a fundamental-quantitative approach and employs an in-house earnings model to identify attractive companies where we see high growth opportunities. In conjunction with targeting the maximum upside potential the portfolio has been structured to mitigate corporate government and liquidity risks. The fund invests in a diversified portfolio of 70-90 attractively valued companies to carefully control concentration risk.  This approach allows the fund to sell, or buy, positions without having a significant market impact. The fund is directed under the executive leadership of Thomas Hugger and Andreas Vogelsanger who have more than 50 years combined experience managing investments in frontier markets, Asia and around the world.

For more information about the fund, management team and investment strategy please contact us at info@asiafrontiercapital.com.

I had the opportunity in early October 2016 to attend a three-day fund manager conference organized by one of our Pakistani brokers in Lahore (one day) and two days in Karachi, followed by my own visits to some of our investee companies and a number of promising companies pinned down by our research efforts...

I had the opportunity in early October 2016 to attend a three-day fund manager conference organized by one of our Pakistani brokers in Lahore (one day) and two days in Karachi, followed by my own visits to some of our investee companies and a number of promising companies pinned down by our research efforts...

Asia Frontier Capital Travel Report: Pakistan

Frontier and emerging markets (Vietnam)

Dylan Waller

Nomadic Equity

Pakistan's UpgradePakistan received its well deserved emerging market upgrade from MSCI last week, and valuation still remains below its historical high experienced when it was previously an emerging market.  Now is a strong time to swoop in to profit from Pakistan's future upside, as the market has the potential trade at up to 13.8X its earnings, based on its historical valuation.  Unfortunately, this is a case where simple exposure through an ETF, the <a href="https://www.smartkarma.com/entities/21016" target="_blank" data-smartkarma-citation="entities:21016">Global X Msci Pakistan Etf</a>, is not an…

Pakistan's UpgradePakistan received its well deserved emerging market upgrade from MSCI last week, and valuation still remains below its historical high experienced when it was previously an emerging market.  Now is a strong time to swoop in to profit from Pakistan's future upside, as the market has the potential trade at up to 13.8X its earnings, based on its historical valuation.  Unfortunately, this is a case where simple exposure through an ETF, the Global X Msci Pakistan Etf, is not an…

Top Industries for Investment as Pakistan Transitions to an Emerging Market

Pakistan

Fauji Cement Company Limited manufactures and sells cement.

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Fauji Cement (FCCL PA)

Pakistan Cement: Sector profits down 3% YoY in FY23; Pre-tax profitability up 11% YoY in FY23

Pakistan’s listed cement sector has reported after tax earnings (PAT) of Rs51bn down 3% YoY in FY23 vs growth of 8% in FY22. The negative earnings...

Topline Securities

Fauji Cement (FCCL): 4QFY23 EPS at Rs0.19 vs. 4QFY22 EPS of Rs0.72 (Earnings below expectations)

Fauji Cement Company Limited (FCCL) announced its financial result today, wherein the company reported earnings of Rs472mn (EPS: Rs0.19) in...

Topline Securities

Pakistan Cements: Local Cement Dispatches to Increase by 19-23% YoY in Aug-2023

Cement sales in Aug-23 are anticipated to increase by 23-27% YoY and 26-29% MoM. Local dispatches are likely to rise by 19-23% YoY and...

Topline Securities

Asia Frontier Capital Travel Report: Pakistan

I had the opportunity in early October 2016 to attend a three-day fund manager conference organized by one of our Pakistani brokers in Lahore (one...

Asia Frontier Capital

Top Industries for Investment as Pakistan Transitions to an Emerging Market

Pakistan's UpgradePakistan received its well deserved emerging market upgrade from MSCI last week, and valuation still remains below its historical...

Nomadic Equity

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