PakStox Outlook

PABC: Notes from Directors' Report Dec 2022 In the year ended December 31, 2022, the net sales of the Company increased by Rs. 6.92 billion, reaching Rs. 14.15 billion, representing a 95.76% increase compared to the corresponding period last year.  The sales growth is attributable to better volumes in local market and further expanding the international market. The gross profit during the year under review was 33.41%, compared to 35.48% in the previous year.

AGIC:  Notes from Directors' Report  Dec 2022 The general insurance industry in Pakistan has faced several challenges, including intense competition, high claim costs and economic instability. The devaluation of the Pakistani rupee has also impacted the industry, as it has resulted in higher reinsurance costs for insurance companies. With reinsurers’ revenue and profitability declining in USD terms, Pakistan’s general insurance industry is losing ranks in reinsurer’s priorities. During 2022, SBP raised the policy rate to 16% , to moderate the aggregate demand and control the rising Current Account Deficit (CAD). This has negatively affected the overall business activity and resultantly the insurance industry as well.

Rates of profit on National Savings Schemes have been revised upwards; DSC: 14.87%, +261bps BSC: 16.56%, +264bps RIC: 12.84%, +24bps SSC: 17.13%, +413bps SA: 18.50%, +400bps PBA: 16.56%, +264bps STSC: 19.82%, +386bps.  Download pdf. Pakistan Roshan Digital Account (RDA) gross inflows crossed $ 6bn and reached $ 6,005 million as of 07-Apr-23. During the month of  March 2023 gross inflows reached  USD 155 million, up by 24% MoM and the highest monthly inflow since September last year. See News.   See SBP Tweet.

Strongly reversing recent weak trend the KSE100 Index today rose by 1.6% closing at 40,351 up 634 points as positive signals emerge for an IMF deal.  https://invst.ly/-q0c0

See more PSX Financial Announcements at:  https://www.pakstox.com/p/earning-announcements-at-psx.html Company Year ended /Half Year ended EPS /(LPS) Dividend / Bonus / Right Profit / (Loss) Before Taxation (Rs. In Million) Profit / (Loss) After Taxation (Rs. In Million) 5 April 2023 Sitara Peroxide Limited 31/12/2022(HYR) -3.99 - -274.91 -220.064 The Pakistan General Insurance Co. Ltd. 31/12/2022(YR) -0.62 - -29.696 -28.791 PICIC Insurance Limited 31/12/2022(YR) -0.09 - -0.338 -3.069 Pak Elektron Limited 31/12/2022(YR) 1.33 - 2348.153 1067.467 Pakistan Reinsurance Company Limited 31/12/2022(YR) 2.92 7.50%(F) (D) 3556.743 2624.828 Fatima Fertilizer Company Limited 31/12/2022(YR) 6.73 - 30,764.933 (CS) 14,123.939 (CS) Fatima Fertilizer Company Limited 31/12/2022(YR) 6.73 35%(F) (D) 30,786.389 (UCS) 14,139.151 (UCS)

Pak Elektron Limited (PSX:PAEL), Annual Results (December 2022) Share Price (Rs.) 3 Month 1 Year PAEL 10.67 -11.85% -29.77% PAEL earned a Profit after tax of Rs. 1.06 (EPS Rs. 1.33) declining 33% over last year. Announced no dividend.  Sales increased by 22% for the year ending December 22, 2012. Gross profit increased by 14%, while gross profit margin declined by 7% to 19.7%. Operating income increased by 24% on the reversal of Rs. 241 million on account of  'impairment allowance for expected credit loss'. A huge increase of 42% in the financial charges substantially nullified top line growth and profit before tax, which could only register a 6% increase. The tax rate increase to 54% from 28% last year impacted the bottom line negatively. PAT declined by 33%. Pak Elektron Limited Dec-2022 Dec-2021 yoy Rs. Mill Rs. Mill % Sales 52,386 42,887 22% Gross Profit 10,301 9,068 14% Operating Profit 5,439 4,381 24% Finance Cost -3,090 -2,174 42% Profit Before Tax 2,348 ...

KSE100 trading +200 points. State Bank hiked rates by 100bps, fears were 200bps. Some relief.

Gold trading above $2k. Oil remains bullish after Opec surprise cut. Pakistan State Bank hikes by 100bps to 21.00% in Monetray Policy Committee meeting held today. The MPC noted that inflation in March 2023 rose further to 35.4 percent, and is expected to remain high in the near term.  MPC statement 4/4/2023. In its previous emergent meeting The State Bank of Pakistan had increased Policy rate by 300bps to 20%.  Rupee weakened further today, declining to over Rs 287 to a US dollar. KIBOR at 22.36%

At its meeting today, the Monetary Policy Committee (MPC) decided to increase the policy rate by 100 basis points to 21 percent. The MPC noted that inflation in March 2023 rose further to 35.4 percent, and is expected to remain high in the near term. Read MPC Statement. In its previous meeting held on 2nd Mar 2023, the rate was hiked by 300bps to 20%.

Notes from 3rd Quarter Report (Sep 2022) Export sales of the Company are roughly 80% of total sales, with the Company’s target being to further increase the export component going forward.  Growth across all four geographies, with the Middle East Region leading. The GCC region has not been impacted by inflation and economic slowdown and there is sustained demand and growth in the region. UAE subsidiary has become a key contributor to the business as the Company has signed key strategic accounts with a diversified portfolio and growth opportunities that are expected to provide the Company with recurring revenue for future growth. 

Oil surged after OPEC+ announced a production cut, with WTI crude rising above $81 a barrel and Brent topping $86. Inflation from energy alone is currently at 13.7% in the Euro area.  OPEC  is producing nearly 5 million barrels less per day than just a few years ago.  twt . China oil imports hit 11.1 MMBOPD last month, their all time high. Global oil demand is off to a good start in 2023, especially as international jet travel continues to accelerate.

OPEC cutting production voluntarily. Saudi Arabia will cut production by 500,000 barrels a day from May to December in coordination with some other OPEC and non-OPEC countries. Unclear if the total number is 900k or 1.4mm. Reminder OPEC+ has been underproducing. twt . Saudi 500K Russia 500K Iraq 211K UAE 144K Kuwait 128K Kazakhstan 78K Algeria 48K Oman 40K  Some say that Saudia was irritated last week that the Biden administration publicly ruled out new crude purchases to replenish a strategic stockpile that had been drained last year as the White House battled to tame inflation. “For the purpose of taking precautionary measures to confront the challenges facing global oil markets, and in order to achieve the balance between demand and supply and market stability, the ministry of oil decided to reduce the voluntary production by 211,000 b/d,” Iraq said according to an Arabic press statement released by the ministry of oil. See Source.