PSX Academics

PSX Academics

2/13/2025, 6:43:20 AM

*Millat Tractors Limited* *Ticker: PSX:MTL* *Date: 13/02/2025* *Source: Taurus Securities* Millat Tractors Limited (MTL) is expected to report strong financial results for the second quarter of fiscal year 2025 (2QFY25). Key highlights include: *Revenue Growth:* Expected net sales of PKR 30.5 billion, up 27% year-over-year (YoY) and nearly triple compared to the previous quarter. *Profit Surge:* Profit after tax (PAT) projected at PKR 3.5 billion, showing a 5.1x increase quarter-over-quarter (QoQ) and an 18% rise YoY. *Main Growth Driver* : The increase in sales is largely due to the Punjab government's Green Tractor Scheme, which provides 9,500 subsidized tractors to farmers. *Rising Costs:* Finance costs have significantly increased (3.9x YoY, 10% QoQ), which could impact future profitability. *No Interim Dividend:* The company is not expected to announce an interim cash dividend for this quarter. Overall, MTL's strong performance is driven by government support and higher tractor sales, but rising costs may pose challenges ahead.

PSX Academics

2/13/2025, 6:52:24 AM

*Millat Tractors Limited* *Ticker: PSX:MTL* *Date: 13/02/2025* *Research/Source: Taurus Securities* ملت ٹریکٹرز لمیٹڈ (MTL) کی دوسری سہ ماہی (2QFY25) کے مالی نتائج مضبوط رہنے کی توقع ہے۔ اہم نکات درج ذیل ہیں: *متوقع ریونیو گروتھ:* Net Sales تقریباً PKR 30.5 Billion ہوگی، جو پچھلے سال کے مقابلے 27% زیادہ اور پچھلی سہ ماہی سے تقریباً تین گنا ہے۔ *منافع میں اضافہ* : Profit After Tax (PAT) تقریباً PKR 3.5 Billion تک پہنچنے کا امکان ہے، جو پچھلی سہ ماہی سے 5.1x اور سالانہ 18% زیادہ ہے۔ *اہم وجہ* : Sales میں اضافہ بنیادی طور پر پنجاب حکومت کی Green Tractor Scheme کی وجہ سے ہوا ہے، جس کے تحت 9,500 کسانوں کو Subsidized Tractors دیے جا رہے ہیں۔ *بڑھتے ہوئے اخراجات* : Finance Cost میں 3.9x YoY اور 10% QoQ اضافہ دیکھا گیا ہے، جو مستقبل کے منافع پر اثر ڈال سکتا ہے۔ *ڈیویڈ ٹ کا ا اعلان*: اس سہ ماہی کے لیے Interim Cash Dividend متوقع نہیں ہے۔ مجموعی طور پر، MTL کی شاندار کارکردگی حکومت کی مدد اور Tractor Sales میں اضافے کی وجہ سے ہے، لیکن بڑھتے ہوئے اخراجات مستقبل میں چیلنج بن سکتے ہیں۔

PSX Academics

3/1/2025, 5:38:48 AM

پاکستان KSE-100 انڈیکس نےگزشتہ ہفتے کے دوران تقریباً 1.1% سے 1.5% کی کمی دیکھی، جو منافع خوری اور آخر میں فروخت کے دباؤ کی وجہ سے تھی۔ PIBTL نے ٹرانسپورٹ سیکٹر میں بہترین کارکردگی دکھائی، جبکہ OGDC اور PPL نے کچھ دنوں میں مثبت کردار ادا کیا۔ دوسری طرف، ENGROH، LUCK، HBL، اور PSO ہفتے کے بدترین اسٹاکس میں شامل رہے، خاص طور پر PSO مستقل طور پر کمزور رہا۔

PSX Academics

2/13/2025, 9:36:37 AM

*Engro Powergen Qadirpur Limited* *Ticker: PSX:EPQL* *Date: 12/02/2025* *Research/Source: Taurus Securities* اینگرو پاورجن قادرپور لمیٹڈ (EPQL) کی 4QCY24 میں Earnings per share (EPS) 1.26 روپے اور پورے سال کے لیےEPS 10.14 روپے ہونے کی توقع ہے۔ کمپنی کی ریونیو میں 31% سالانہ (YoY) اضافہ متوقع ہے، جو انرجی پیمینٹس اور ڈیمانڈ میں اضافے کی وجہ سے ہوگا، لیکن 19% سہ ماہی (QoQ) کمی کا سامنا موسمی اثرات کی وجہ سے ہو سکتا ہے، جو پاور جنریشن کو متاثر کرتے ہیں۔ اہم مالیاتی جھلکیاں: Net Sales:3089 Million (▲31% YoY, ▼19% QoQ) Profit After Tax (PAT): 407 Million ملین روپے (▲4.9x YoY, ▼68% QoQ) Final Dividend Per Share (DPS):PKR 1.5روپے (پورے سال کا DPS: 7.5 روپے) Finance انکم:229 ملین روپے (▲43% YoY, ▼2% QoQ) سہ ماہی منافع میں کمی کی بنیادی وجہ لوڈ فیکٹر میں کمی کی وجہ سے ریونیو میں کمی ہے، لیکن سالانہ کارکردگی مستحکم رہی ہے، جس کی وجہ زیادہ آپریٹنگ پروفٹ اور فنانس انکم ہے۔

PSX Academics

2/13/2025, 9:25:26 AM

*Engro Powergen Qadirpur Limited* *Ticker: PSX:EPQL* *Date: 12/02/2025* *Research/Source: Taurus Securities* *Board Meeting:* February 14, 2025. *4QCY24 EPS* : PKR 1.26; *DPS:* PKR 1.5; CY24 *EPS:* PKR 10.14; *DPS:* PKR 7.5. Engro Powergen Qadirpur Limited (EPQL) is expected to report a 4QCY24 earnings per share (EPS) of PKR 1.26 and a full-year EPS of PKR 10.14. The company’s revenue is projected to grow by 31% YoY due to increased energy payments and demand, but it is expected to decline 19% QoQ due to seasonal factors affecting power generation. *Key financial highlights:* Net sales: PKR 3,080Mn (▲31% YoY, ▼19% QoQ) Profit after tax (PAT): PKR 407Mn (▲4.9x YoY, ▼68% QoQ) Final dividend per share (DPS): PKR 1.5 (full-year DPS: PKR 7.5) Finance income: PKR 229Mn (▲43% YoY, ▼2% QoQ) The decline in quarterly profits is primarily due to a lower load factor affecting revenue. However, annual performance remains strong, supported by higher operating profit and finance income.

PSX Academics

2/4/2025, 9:51:30 AM

*Pakistan Economy: Jan-2025 CPI at 2.4%; 7MFY25 Avg. at 6.6%* JS Research, February 4, 2025 *Key Points:* *CPI:* January 2025 CPI reached 2.4%, the lowest in over 9 years, primarily due to a favorable base effect from high inflation in the previous year. The 7-month average for FY25 is 6.6%, down from 28.7% in the same period of FY24. *Inflation Drivers:* The main driver was a significant decrease in food inflation, declining 3.13% YoY in January 2025. *Forecast:* The average CPI forecast for FY25 is ~6.2%, with a rebound expected in May and June. *PDL Impact:* An increase in PDL (Petroleum Development Levy) is considered less likely, but if it occurs, it would increase fuel prices and lead to higher inflation. *Real Interest Rate:* Currently at ~9.6ppt. While investors anticipate a policy rate cut due to lower-than-expected inflation, JS Research believes there is limited room for easing. *WPI:* The Wholesale Price Index (WPI) increased by 0.6% YoY in January 2025, driven by higher inflation in food products, beverages, and tobacco.

PSX Academics

2/3/2025, 9:07:04 AM

*Pakistan Could Become a Trillion-Dollar Economy by 2035, Says World Bank VP* *What happened:* The World Bank’s Vice President for South Asia, Martin Raiser, has stated that Pakistan could reach a trillion-dollar economy by 2035 if it achieves an annual growth rate of 7%. He emphasized that while long-term predictions are tough, Pakistan could easily hit this target with the right economic recovery plan in place. *Why it matters:* Reaching a trillion-dollar economy would mark a huge milestone for Pakistan, improving living standards, job opportunities, and overall economic stability. However, it will require serious reforms and strong policies to make it happen. *What’s next:* The World Bank has promised to support Pakistan by providing $20 billion over the next 10 years, but this will depend on Pakistan’s ability to implement the necessary economic reforms. The country must focus on making these reforms a reality to achieve the growth needed to reach the trillion-dollar goal.

PSX Academics

2/13/2025, 5:47:59 AM

*Banking Sector Report* (12 February 2025) Source: JS Research *Core Income Decline in 4QCY24* Pakistani banks are expected to report a YoY decline in core income due to narrowing Net Interest Margins (NIMs). Increased taxation is anticipated to offset gains from non-core income and asset base growth. *Key Banks' EPS Projections for 4QCY24:* HBL: Rs7.5 (-26% YoY) UBL: Rs11.9 (+8% YoY) MEBL: Rs12.3 (-18% YoY) AKBL: Rs3.4 (-28% YoY) HMB: Rs4.4 (-11% YoY) FABL: Rs2.4 (-54% YoY) *Macroeconomic Impact on Banking Sector* Monetary easing: Policy rate reduced by 1,000bps since June 2024. Lower deposit and borrowing rates due to the 4.5% policy rate cut from September–November 2024. *Higher taxation:* Additional 5% tax on CY24E PBT despite meeting the Advance-Deposit Ratio (ADR) threshold. Government raised income tax for banks from 39% to 44% (to be reduced to 43% in CY25 and 42% in CY26). *Sector Performance & Outlook* Non-Interest Income Growth: Gains from securities sales, fees, and dividends expected to provide some support. Stable FX income may lead to lower secondary income. *Operating Costs & Expenses:* Disinflation may slow the rise in expenses. Cost-to-Income ratio expected to drop to ~40% from 43% in 3QCY24. Dividends to remain stable, with no expected increases due to declining yields affecting future profitability. *Conclusion* Banks face challenges from reduced NIMs, policy rate cuts, and higher taxation. Non-interest income and asset base growth may provide some support. Dividend strategies remain intact, but banks may experience lower future profitability.

PSX Academics

2/13/2025, 6:22:59 AM

*Pakistan State Oil* *Ticker: PSX:PSO* *Date: 13/02/2025* *Source: Taurus Securities* Pakistan State Oil performed well in the second quarter of the financial year 2025 (2QFY25). The company earned a profit after tax (PAT) of PKR 8.6 billion, which is double compared to the same period last year. Earnings per share (EPS) stood at PKR 18.48. Despite a 10% drop in sales revenue compared to last year (PKR 816.8 billion), profits increased due to lower finance costs (down 34%) and steady gross margins (4%). The company faced some inventory losses due to falling fuel prices. For the first half of the financial year 2025 (1HFY25), PSO’s EPS is expected to reach PKR 26.94, a 63% increase compared to last year. However, no interim cash dividend was announced for this quarter.

PSX Academics

2/3/2025, 9:05:27 AM

*Key Events to Watch This Week!*🔥 📊 Inflation Numbers: Key price trends to watch this week. 🏗️ Cement Sales: A pulse check on construction activity. 📜 Half-Yearly Economic Report: Finance Ministry’s FY 2025 update. 💰️Foreign Exchange Reserves: Updates on the nation’s currency reserves. 🏏ICC Champions Trophy 2025: Grand opening ceremony set for February 7