AKD Securities Limited - AKD Daily (December 30, 2022)

FLASHNEWS:

Sindh Government Commits PKR 14.7 Billion to K-IV Water Project

Snow Leopards Threatened by Road Construction in Gilgit-Baltistan

Punjab Government Subsidizes Agricultural Equipment to Boost Rice Farming Efficiency

Engro Fertilizers and Engro Polymer Expect Declines in Quarterly Earnings as per AKD Securities

Japan Grants $9.8 Million for Development Projects in Islamabad

PSX Experiences Minor Downturn Amid Varied Sector Performances

Technical Indicators Suggest Caution in Karachi Stock Market Trading

Exchange Rates Fluctuate Slightly in Pakistan’s Currency Market

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Spotify and Coke Studio Pakistan Announce Continued Collaboration for Music Season 15 in Karachi

SITE President Calls for Action as Rising Production Costs Threaten Factory Operations

FPCCI Criticizes Recent Increases in Petroleum Prices Despite Favorable Economic Indicators

Shabbir Mansha Churra Named Chairman of Pakistan-China Business Council

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AKD Securities Limited – AKD Daily (December 30, 2022)

December 30, 2022

Karachi, December 30, 2022 (PPI-OT): Pakistan Fertilizer: Urea offtakes set to post all-time highs

Urea sales for Nov’22 clocked in at 583.1k MT, taking 1MCY22 offtakes to 5.9mn MT, up by 4% compared to SPLY. We expect CY22 to close with north of 6.4mn MT of urea sold in the year, which would culminate into an all-time high for the nutrient.

Company wise, FFC’s urea offtake clocked in at 2.2mn MT in 11MCY22 while EFERT’s sales for the month fell by 19%YoY, clocking in at 1.7mn MT sold in the year.

DAP sales recorded a significant jump in Nov’22, increasing by 231%MoM. After posting 236.4k MT sold for the month, DAP sales for 11MCY22 have clocked in at 1.0mn MT, which is a decline of 41%YoY.

We continue our liking for the sector due to stable dynamics of fertilizer industry, reasonable pass on ability and attractive dividend yield, where EFERT and FFC are our top picks.