Morning Call about – Auto Data Automobile and Parts – Arif Habib Limited

Karachi, March 11, 2014 (PPI-OT): Feb-14 Auto Sales registered a 7% MoM decline

As per the latest auto sales and production figures released by the Pakistan Automotive Manufacturers Association (PAMA), car and LCV sales were down by 7% MoM during Feb’14. This was on account of high base effect of Jan’14 from increased sales due to preference of new cars registration from the start of the New Year.

According to Arif Habib Limited, while cumulatively, auto sales increased 6% YoY in 8MFY14. Segment-wise breakup shows 1000-1300cc and above segment decreased by an avg. of 9.5% MoM, on 8MFY14 basis it has increased by an avg. of 11.5% YoY. The economy segment (below 1000cc) increased 14% MoM though decreased 7% YoY in 8MFY14.


Auto data Feb-14 Jan-14 MoM Feb-13 YoY 8MFY14 8MFY13 YoY
1300cc and above 5,816 6,698 -13% 5,874 -1% 37,879 35,848 6%
1000cc 1,392 1,474 -6% 1,169 19% 10,121 8,628 17%
<1000cc 2,874 2,531 14% 2,800 3% 19,106 20,642 -7%
Total cars 10,082 10,703 -6% 9,843 2% 67,106 65,118 3%
LCV's + 4×4 2,690 3,047 -12% 2,785 -3% 20,551 17,861 15%
Total 12,772 13,750 -7% 12,628 1% 87,657 82,979 6%

Company wise Feb-14 Jan-14 MoM Feb-13 YoY 8MFY14 8MFY13 YoY
PSMC 6,941 7,089 -2% 7,000 -1% 49,522 48,328 2%
INDU 3,505 3,992 -12% 3,588 -2% 22,676 21,847 4%
HCAR 2,232 2,600 -14% 2,015 11% 14,821 12,528 18%
Source: PAMA

Company-wise sales analysis
Pakistan Suzuki Motor Company’s (PSMC) sales were recorded at 6,941 units in Feb’14, down 2% MoM with cumulative sales in 8MFY14 were flat on YoY basis by +2%.

Indus Motor Company Limited’s (INDU) sales fell in Feb’14, to 2,232 units which was a 12% decline MoM. On cumulative basis in 8MFY14, company registered a sales growth of 4% YoY.

Honda Atlas Cars Limited’s (HCAR) sales also showed a downward trend with 12% MoM fall in Feb’14. While on 8MFY14 basis, company’s sales grew 18% YoY mainly owing to low base-effect of last year (when customers waited for Civics’ new model launch).

Tractors’ sales up 2.2x MoM!
Tractors’ sales during Feb’14 recorded a massive 218% MoM growth mainly on account of seasonal impact due to the start of Kharif season. In this regard, Millat Tractor’s sales recorded a substantial 4.6x MoM jump in Feb’14 to 1,060 units (8MFY14 cumulative at 33% decline YoY), while Al-Ghazi Tractors’ sales massively increased by 73% MoM to 545 units in Feb’14 while in 8MFY14 the cumulative sales declined at 37% YoY.

Recommendation
Arif Habib Limited maintains Arif Habib Limited’s Hold stance on INDU and PSMC both, with Arif Habib Limited’s Dec’14 Target Prices of PKR 380/share and PKR 169/share respectively. INDU and PSMC are currently trading at a FY14E and CY14E P/E of 8.46x and 7.43x.

The post Morning Call about – Auto Data Automobile and Parts – Arif Habib Limited appeared first on AsiaNet-Pakistan.

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