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Karachi, February 12, 2014 (PPI-OT): Rabi crops drove the Automobile sales by massive
58.6% MoM
As per the latest automobile sales data by PAMA, overall volumetric sales of auto sector jump by 58.6% MoM and 53% YoY.
According to Standard Capital, 107,020 units were sold in 7MFY14 as against the sales of 70,029 units in the corresponding period last year. Moreover, on monthly basis, industry sales were up by 58.6% to 13,671 units in Jan-14 as against 8,618 units in Dec-13. With strong volumetric sales in start of CY14 Standard Capital sees juice in auto industry.
PSMC volumetric sales up by 46% YoY
Pak Suzuki Motors Company (PSMC) sales up by 46% YoY to 60,530 units in 7MFY14 against 41,328 units sold in same period last year (SPLY). MoM increase in sales by 18.4% was the major contribution to massive YoY growth. During first month of 2HFY14 PSMC sold 7,079 units of cars and 2,021 units of motorcycles against 5,981 units of cars and 1,767 motorcycles sold in Dec-13. For PSMC Ravi, Cultus and Bolan were the major contributors in growth of sales and individually posted 77%, 62% and 59% respectively growth in volumetric sales in 7MFY14.
Indus motors observed 52% YoY growth
The starting of 2HFY14 was fabulous for INDU motors in term of volumetric sales and sales were double in Jan-14 to 3,992 units against last month sales of 1,982 units. Toyota Corolla was the major beneficiary due to customer preference for high end cars in Jan-14. While on YoY basis INDU sales were increased by 52% to 27,590 units sold in 7MFY14 against 18,188 units sold in SPLY.
HCAR- Marvellous growth in January sales
The harvesting season in rural area of Sindh and Punjab drove the high end cars demand in Jan-14. HCAR being symbol of high end cars was the major gainer and volumetric sales were 4 times higher in Jan-14 to 2600 units (1,278 units of Civic and 1,322 units of City) against 655 units sold in Dec 13. Wherein HCAR posted 80% YoY growth in sales to 18,893 units sold in 7MFY14 against 10,513 units sold in SPLY.
Awful month for tractors players:
Tractors manufactures were badly hampered during Jan-14 and witnessed drastic 85% MoM decrease in sales to 876 units in Jan-14 against 5,770 units sold in last month. Wherein tractor sales were dropped by 37% YoY to 18,376 units in 7MFY14 against 29,034 units sold in SPLY.
Valuation:
Based on expected earnings HCAR, PSMC and INDU yield PE multiple of 9x 6.2x and 7.4x respectively. Depreciating JPY/ USD parity and swilling gross margin for the auto assembles we maintain BUY stance for PSMC and INDU and HOLD stance for HCAR.
Automobile sales
Jan-14 Dec-13 MoM 7MFY14 7MFY13 YoY
Total vehicles 13,671 8,618 58.6% 107,020 70,029 52.8%
PSMC
Liana 22 26 -15.4% 139 112 24%
Swift 455 329 38.3% 4,265 3,624 18%
Cultus 1,456 1,384 5.2% 12,062 7,459 62%
Mehran 2,531 1,979 27.9% 23,414 17,771 32%
Bolan 1,252 1,306 -4.1% 10,977 6,883 59%
Ravi 1,363 957 42.4% 9,680 5,479 77%
Total cars 7,079 5,981 18.4% 60,537 41,328 46%
Motorcycles 2,021 1,767 14.4% 19,837 9,801 102%
Indus Motors
Corolla 3,611 1,534 135.4% 23,595 15,725 50%
Fortuner 40 52 -23.1% 387 - n/a
Hilux 341 396 -13.9% 3,608 2,463 46%
3,992 1,982 101.4% 27,590 18,188 52%
HCAR -
Civic 1,278 265 382.3% 8,301 4,718 76%
City 1,322 390 239.0% 10,592 5,795 83%
2,600 655 296.9% 18,893 10,513 80%
Tractors -
AL Ghazi Tractor 561 1,565 -64.2% 6,903 11,971 -42%
Millat Tractor 315 4,205 -92.5% 11,473 17,063 -33%
Total tractors 876 5,770 -84.8% 18,376 29,034 -37%
Source: www.pama.org.pk
Automobile