External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Equity Bottom-Up

Fauji Fertilizer Bin Qasim  / Equity Bottom-Up

<ul><li>1Q2023 was catastrophic for the company due to massive exchange loss. However, things started to improve in 2Q2023 which pushed management to take risk and keep producing DAP that led to massive offtake of DAP in 3Q2023 in the absence of DAP importers. DAP importers were reluctant to import considering volatile PKR movement and uncertain demand situation of DAP.</li><li>FFBL strategically sold Fauji Meat Limited (FML) to Fauji Foundation to get liquidity of Rs4.3bn and gain of Rs268mn in 3Q2023.</li><li>Early record sales helped the company to avert more borrowing and report better margins. The company does not expect to carry too much inventory at year-end and anticipates selling out in 4Q2023. FFBL is aiming to continue to production at full and produce around 300k tons of DAP in 4Q2023.</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>

1Q2023 was catastrophic for the company due to massive exchange loss. However, things started to improve in 2Q2023 which pushed management to take risk and keep producing DAP that led to massive offtake of DAP in 3Q2023 in the absence of DAP importers. DAP importers were reluctant to import considering volatile PKR movement and uncertain demand situation of DAP.FFBL strategically sold Fauji Meat Limited (FML) to Fauji Foundation to get liquidity of Rs4.3bn and gain of Rs268mn in 3Q2023.Early record sales helped the company to avert more borrowing and report better margins. The company does not expect to carry too much inventory at year-end and anticipates selling out in 4Q2023. FFBL is aiming to continue to production at full and produce around 300k tons of DAP in 4Q2023.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: Fauji Fertilizer Bin Qasim (FFBL): Corporate Briefing Key Takeaways