MorningBriefing

July14,2011

Tue,Jul12

Wed,Jul13

KSE100Index

12,191.78

12,262.52

KSE30Index

11,660.71

11,709.26

32

42

MarketOverview

The market staged a modest recovery on Wednesday on the back of

buyingactivityinselectiveoil,banking,chemicalandconsumerstocks.
ValueTradedPKRm
1,305
1,955 TheKSE100Indexgained70pointstocloseat12,262onthebackof
MarketCap.PKRbn
3,213
3,231 42m shares traded. Most of the activity was concentrated in the
Chemicals, Banks, Oil & gas and Financial services sectors. The top
TheMarket LastFiveDays
gainersaccordingtoIndexpointswereNESTLE,ULEVERandFFC;like
wisethetopdeclinerswereSCBPL,PTCLAandRMPL.
Vol. (m)
Index
SharesTraded(mn)

Volume

Index

100

12500

Werecommendinvestorstoholdontotheirpositions.

PAMADataFY11

50

12000

Wed

Tue

Mon

Fri

Thr

11500

TheMarket LastOneMonth
Vol. (m)

Index
Volume

13000

Index

100

12500
50
12000

12-Jul

8-Jul

6-Jul

4-Jul

30-Jun

28-Jun

24-Jun

22-Jun

20-Jun

16-Jun

0
14-Jun

11500

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PAMAreleased monthly Autodatayesterdaydepictinga3%increase

in car sales, but tractor sales declined by 3% during FY11. Growth in
lowsegmentandmediumendsegmentcarwas11%ascomparedto
8%inthe1,300ccandabovecategory.Totalpassengercarssoldduring
FY11 were 127,944 units as compared to 123,713 cars sold during
FY10.
All3majorcarmanufactureshaveraisedpricesacoupledoftimesdur
ingtheyearandwithcarpriceshigherthanlastyear,thehighestcars
saleswereinthehighendsegmentof1,300ccandabove,whichto
taled61,147unitsascomparedtoFY10whichwere8%higher.Inter
national steel prices hovered over US$ 570 per tone presently have
increasedtooverUS$590pertone.
PSMC
The highest cars sales were of Pak Suzuki, with sales totaling 65,340
units commanding a market share of 55%. Pak Suzuki is one premier
carmanufacturinginthecountry.Itshighestsalesareinthelowend
segment in particular in 800cc 1,000cc segment. Pak Suzukis SWIFT
didwellinFY11andisgettingpopularinthe1.3Lsegmentwhichhas
traditionally been Indus Motors forte. The company managed to sell
4,080 units. Pak Suzuki having a wide array of cars and a motorcycle
segment is a unique company likely to grow in the face of a growing
economyandwithgrowthoftheeconomystagnantandcarfinancing
rates higher growth in cars is likely to decrease. Car sales during the
month of June were 2,400 as compared to 7,211 decreasing by 67%.

CONTINUEDONPAGE2
Disclaimer:Theaboveinformationandadviceisgiveningoodfaith,withoutanylegalresponsibility.TaurusSecuritiesLimitedorindividualsconnectedwithitmayhaveused
researchmaterialbeforepublicationandmayhavepositionsinormaybeinterestedinthesecuritiesmentionedherein.

Morning Briefing
WORLDINDICES
Markets atClos e
DJIA
Nas daq
S&P
FTSE
DAX
CAC40
Nikkei
H.Seng

Jul12,2011
Index
12,446.90
2,781.91
1,313.64
5,868.96
7,174.14
3,774.12
9,925.92
21,663.20

Chg%
(0.47)
(0.71)
(0.44)
(1.00)
(0.78)
(0.88)
(1.40)
(3.10)

WebelievethisdecreasetobeprimaryduetounavailabilityofCNG
carsastheyhadrunshortofCNGcylinders.

MarketShareFY11
PSMC

INDU

HCAR

11%
34%

55%

Source: PAMA

IndusMotor

BoardMeetings
FABL
FFBL
ULEVER
UPFL
KAPCO

Date
18Jul
26Jul
9Aug
11Aug
5Sep

Time
3:00p.m.
10:30a .m.
10:30a .m.
2:30p.m.
1:00p.m.

Ourmostfavoritescripinthecarsegmentandthiscompanyhasper
formed extremely well as compared to others. Indus Motors star
product has been Corolla, and this year its total sales have been
41,111ascomparedto43,510decliningby5.5%.Webelievesalesof
CorollatobehighduringFY12;companyhaskeptpricescompetitive
with newer model and has decided to introduce the Corolla Altis
with1.6Lengine.Themostfavoritevariantsinthe1.3Lsegmentbe
ing Xli and GLi, have been launched with a better engine and this
timeGlihasbeenlaunchedwithanautomatictransmission.INDUs
pickup Toyota Hilux was also launched as Hilux Turbo, this around
both the4X4and4x2arebeing manufacturedinPakistan,andthis
would likely raise margins. The company sold 47,118 units during
FY11 as compared to 48,811 units declining by 3%. With the intro
ductionofnewermodels,webelieve salesofCorollatoincreasein
CY11.
Honda
Honda cars sales during FY11 were, 15,486 units increasing by 10%
ascomparedtoFY10.Howevermonthlysaleswere788unitsdeclin
ingby54%.OnMoMbasissales,declinedby17%.HCAR,sellsCivic
andCitywhichfallinthe1.31.8Lsegmenttargetingtheupperend
segment.Thecompanysmarketsharewas11%duringFY11.HCAR
leveloflocalizationisthelowestandasaresultitsprimarymargins
havesuffered,webelieveifthecompanyistobecomeprofitableit
willhavetoincreaseitsleveloflocalization.
CONTINUEDONPAGE3

Disclaimer:Theaboveinformationandadviceisgiveningoodfaith,withoutanylegalresponsibility.TaurusSecuritiesLimitedorindividualsconnectedwithitmayhaveused
researchmaterialbeforepublicationandmayhavepositionsinormaybeinterestedinthesecuritiesmentionedherein.

Morning Briefing
AutoSalesReviewFY11
FY11

MotorCars

FY10

%Chg

Jun11

Jun10 %Chg

May11

%Chg

PSMC

65,340 60,782

7% 2,400 7,211

67% 6,635

64%

INDU

47,118 48,811

3% 3,301 5,381

39% 3,900

15%

HCAR

15,486 14,120

10% 788 1,728

54% 944

17%

Total

127,944 123,713

3% 6,489 14,320

55% 11,479

43%

<1,000cc

43,437 39,253

11% 1,724 4,739

64% 4,214

59%

1,000cc

23,360 21,035

11% 869 2,661

67% 2,377

63%

1,300cc&Above

61,147 56,567

8% 3,896 6,920

44% 4,888

20%

127,944 116,855

9% 6,489 14,320

55% 11,479

43%

LCV,Jeeps&Pickups 18,539 17,689

5% 1,028 2,343

56%

1,732

41%

Total

9% 7,517 16,663

55% 13,211

43%

146,483 134,544

Source:TSLResearchandPAMA

TractorSegment
Ourtractorsegmentconsistsofonly2companiesAlGhaziandMillat
Tractors with MTL having a higher market share. Tractor sales have
been low with total sales being 69,203 during FY11 as compared to
71,512FY10,decliningby3%.MTLsaleswere5%ascomparedtolast
yearwhichMF285doingextremelywell.OnYoYbasisAGTLsalesde
clined, by 44%% with total units being 2,007 as compared to 3,594
declining.Withthe2ndphaseofBenazirTractorSchemetocommence
inSeptember,2011wearebullishonthetractorsegmentandexpect
highersalesoftractors.

TractorSales
FY11

FY10

%Chg

Jun11

Jun10

%Chg

May11

%Chg

AGTL

27,187 31,432

14% 2,007

3,594

44% 2,270

12%

MTL

42,016 40,080

5% 4,945

3,541

40% 3,978

24%

Total

69,203 71,512

3% 6,952 7,135

3% 6,248

11%

Source:TSLResearchandPAMA

MohammadAliGhanghro
m.ali@taurus.com.pk
Ext:202

Disclaimer:Theaboveinformationandadviceisgiveningoodfaith,withoutanylegalresponsibility.TaurusSecuritiesLimitedorindividualsconnectedwithitmayhaveused
researchmaterialbeforepublicationandmayhavepositionsinormaybeinterestedinthesecuritiesmentionedherein.