External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Thematic (Sector/Industry)

Pakistan Chemicals / Thematic (Sector/Industry)

<ul><li>We expect Topline Fertilizer universe earnings to increase by 104% YoY to Rs25bn in 4Q2023, primarily due to a increase in retention prices which will lead to higher gross margins. However, on a QoQ basis, earnings are expected to remain flat due to lower volumetric sales of Urea.</li><li>This will take full year 2023 after tax earnings to Rs63bn, up 63% YoY led by higher gross profit amid higher prices and DAP sales.</li><li>Urea sales are expected to decline by 8% YoY and QoQ to 1.7mn tons in 4Q2023. However, DAP offtake is anticipated to increase by 24% YoY and 20% QoQ to 576k tons during 4Q2023. This is likely to take 2023 Urea and DAP sales to 6.64mn tons (+0.4% YoY) and 1.57mn tons (+31% YoY), respectively.</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 expect Topline Fertilizer universe earnings to increase by 104% YoY to Rs25bn in 4Q2023, primarily due to a increase in retention prices which will lead to higher gross margins. However, on a QoQ basis, earnings are expected to remain flat due to lower volumetric sales of Urea.This will take full year 2023 after tax earnings to Rs63bn, up 63% YoY led by higher gross profit amid higher prices and DAP sales.Urea sales are expected to decline by 8% YoY and QoQ to 1.7mn tons in 4Q2023. However, DAP offtake is anticipated to increase by 24% YoY and 20% QoQ to 576k tons during 4Q2023. This is likely to take 2023 Urea and DAP sales to 6.64mn tons (+0.4% YoY) and 1.57mn tons (+31% YoY), respectively.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 Fertilizer: Profits likely to jump 63% YoY in 2023; Market Weight Maintained