Last update: Thu, 28 Jul 2016 09am

BR Research: All


When the PMLN assumed charge in 2013, there was dearth of power production in the country, and the incumbents were desperate to bring any kind of projects online within their five-year tenure. It started with a too optimistic and irrational plan of 1320 MW of imported coal projects in Gaddani, which was rightly shelved after a year.
What is another epic failure of PML-Ns experienced team; the government has decided to change the mode of privatisation of public power distribution companies.
Pakistan Tobacco Company (PSX:PAKT) has once again done its job quite well. The largest cigarette company in Pakistan saw a significant boost to both its top line and bottom line during the six-month period ended June 30, 2016.
The fertilizer sector is being tested to its limit. Expectedly, profits have come down crashing. The market leader, Fauji Fertilizer Company (FFC) announced its 1HCY16 earnings yesterday, reporting a massive 41 percent year-on- year dip in after-tax profits. It all started from the top, as urea off-take for most of the 1HCY! 6 remained massively under pressure.
Mega-mall business is a fad in Pakistan. Big business groups are venturing into it. There ought to be returns in it as real estate based retailing business is preferred over manufacturing. And it looks like the Nishat, Younus Brothers and Packages Group are committed to generate profits from the mall economy.
The banking sector was supposed to be under severe pressure for much of CY16. That is what most bankers thought anyways, at the start of CY16. Whether it was a deliberate attempt at promising little and achieving more or otherwise - banks seem in pretty healthy shape. UBL kick started the 1HCY16 banking earning season, with a solid 12 percent year-on-year growth in after-tax profits.
Honda Atlas Cars Pakistan posted its financial results for its first quarter ending June 2016 with a weak top line of Rs10.5 billion against Rs11.4 billion; a year-on-year decline of seven percent. Sales saw a slight fall, particularly with the continued slowdown in Civic sales that may have taken a hit due to the popular Toyota Corolla Grande. However, strong City sales have managed to keep the ship afloat.