Author Topic: Textile Sector  (Read 465625 times)

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Offline asianstock

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Re: Textile Sector
« Reply #439 on: June 01, 2013, 11:22:36 AM »
http://www.brecorder.com/pakistan/business-a-economy/121924-fpcci-demand-revival-of-textile-sector.html

Laoooooooooooooooooooooooo Textile Rally Monday say... jaysay Power Sector may ahi thi...  :dance :shoaby: :shoaby:

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Re: Textile Sector
« Reply #439 on: June 01, 2013, 11:22:36 AM »

Offline Salammembers

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Re: Textile Sector
« Reply #440 on: June 01, 2013, 07:36:28 PM »
Hamid bhai,
crtm turnover finally up,
pl guide about crtm FV/exit point,
i started buying when it was 11
and bought more on every UL
want to offload some quantity
thanks and regards
15 now ESTABLISED as S1,
still holding good quantity,
for me remains a buy below 16 though Group
Reputation not Good ,however AH Group representation on board gives bit of comfort,
if u believe textile sector will deliver this year then crtm worth a bet below 16
CRTM looks good... But aik kaam karo... on every upper cap kuch sell kartay raho... Profit booking sehat keh liye ache hote hai...
http://www.crescenttextile.com/finance/3rd%20Quarter%20CTML%20Accounts%2031%20Mar%2013.pdf
yeh Fesco connection and TOH boiler saay  kitni saving possible ?

Offline Farzooq

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Re: Textile Sector
« Reply #441 on: June 06, 2013, 06:37:23 PM »
Highlighting KTML, REWM and GADT

Driven by concrete fundamentals and attractive valuations, we highlight Gadoon Textile Mills (GADT) and Reliance Weaving Mills (REWM) as next potential outperformers in the textile sector

We also reiterate our stance on Kohinoor Textile Mills (KTML), still yielding an upside of 97% at our SOTP based TP of PKR36/sh

At our estimated FY13E EPS of PKR48.2/sh, GADT is currently available at an attractive PE multiple of 2.7x compared to BMA Universe FY13PE of 8.5x

REWM is currently trading at rock bottom PE of 1.6x to our FY13E EPS of PKR18.7/sh

Going forward, 1) Chinese cotton yarn import boom, 2) EU duty waiver access, 3) better retention levels on yarn and cloth/fabric and 4) improved gas supply in summer season will remain the key value drivers

bma
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Offline MZ

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Re: Textile Sector
« Reply #442 on: June 06, 2013, 10:54:32 PM »
Budget preview: Neutral for the textile sector
The textile sector of Pakistan having enjoyed the government's sympathy for
the longest time has emerged as a leading exporter and one of the major employers
in the country. The sectors importance in any budget therefore cannot
be ignored. In today's Value Seeker, we present our budgetary expectations for
the textile sector, along with our outlook and recommendations on the scrips
currently under coverage.

Zero rated regime vanishes into thin air
The FBR has replaced the zero-rating regime for the textile industry with a 2%
value added tax for the textile value chain, both for registered and unregistered
entities. The refunds, under the scheme, will be available against exports,
however, refunds to the unregistered entities will not be allowed.
Such alteration is expected to facilitate the registered textile companies more
as compared to the unregistered segment.
Textile sector to prosper as power supply improves
Being a major exporter and key employer, the government has been giving
distinctive attention to this sector. During last couple of years, the power
shortage has been a major dampener for the profitability of the sector, specifically
in Punjab which is the key manufacturer of textile items in the country.
Therefore, the new government has placed power sector reforms on top
of their priority list. We expect the production of textile sector to improve as
the load shedding in this sector reduces. This coupled with better production,
stable cotton prices both internationally and locally is expected to make
the sector more profitable.
Recommendation: 'Buy' NML & NCL
Currently, we recommend 'Buy' on NML and NCL with Dec-13 target price of
Rs118/share and Rs70/share respectively. Higher portfolio value is expected
to be beneficial for both companies as they have significant investments in
their associated companies. NML is trading at a PE multiple of 6.3x and offering
a dividend yield of 5.6% on FY13 estimates. Similarly, NCL is trading at PE
of 4.5x and offering a dividend yield of 7.2% on FY13 estimates.

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Offline TechGuru

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Re: Textile Sector
« Reply #443 on: June 07, 2013, 02:01:44 AM »
Any news on SAIF textile?... its increasing slowly and gradually from Rs. 20!
but still trading at a very low PE.
The trend is your friend.... Don't buck the trend!!

Offline SBM

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Re: Textile Sector
« Reply #444 on: June 07, 2013, 03:04:50 PM »
Any news on SAIF textile?... its increasing slowly and gradually from Rs. 20!
but still trading at a very low PE.


it should cross 40 easily. hold.
I hate waking up.

Offline TechGuru

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Re: Textile Sector
« Reply #445 on: June 07, 2013, 04:00:51 PM »
Any news on SAIF textile?... its increasing slowly and gradually from Rs. 20!
but still trading at a very low PE.

LAo SAIF CAP!!! :dance :dance :dance :dance :dance
The trend is your friend.... Don't buck the trend!!

Offline Salammembers

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Re: Textile Sector
« Reply #446 on: June 08, 2013, 12:32:32 AM »
Any idea about Kohat textile?

Offline Usmanz

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Re: Textile Sector
« Reply #447 on: June 08, 2013, 11:40:47 AM »
Hi guys
Does anyone has any idea about chenab limited preferred shares? Should i hold it?
I have 1 million shares. I feel like ka la ker phans gaya hn

Offline SBM

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Re: Textile Sector
« Reply #448 on: June 08, 2013, 01:39:32 PM »
Any idea about Kohat textile?

18-20 should be achievable by sept.
5.5 eps 1.5 dps.

its saif group company, making synthetic yarn .  not related to kohat cement :)
I hate waking up.

Offline Valueestimator

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Re: Textile Sector
« Reply #449 on: June 10, 2013, 10:35:39 AM »
REWM another upper lock, many to come in sha ALLAH
Top Picks: BTL, FASM, KHTC, AGIC, NPL, AKBL, BOP,ATRL

Offline Salammembers

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Re: Textile Sector
« Reply #450 on: June 13, 2013, 12:41:55 PM »
GATM showing buyers,
lets c maal laay or finally laooooo this time,
i might buy more once 24 is breeched

Offline Hamid Mamraiz

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Re: Textile Sector
« Reply #451 on: June 14, 2013, 08:11:29 PM »
Trend is your friend. Never go against the Trend.

Offline Farzooq

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Re: Textile Sector
« Reply #452 on: June 17, 2013, 02:13:18 PM »
AKD Daily

Cotton Update: June 2013

USDA released its monthly cotton report on Wednesday, Jun 12'13. Key takeaways from the report were downward revision in import expectations from China by 1mn bales due to lower world exportable supplies and the downward revision of production estimates by 657k bales. Furthermore, recent currency movements for regional countries may result in Pakistan losing its competitive edge vis-à-vis currency depreciation as compared to the US$. While CYTD PkR depreciation puts Pakistani exporters in a better position as compared to their Bangladeshi counterparts, however, WoW depreciation of 1.7% for the INR, 3.1% for the BDT and 0% for PkR presents a nascent worrying picture for Pakistani textile exporters. Finally, according to US Commodity Futures Trading Commission (CFTC), hedge funds and other large speculators decreased net long positions in cotton futures by 101 contracts while commercial users of cotton increased net short positions by 4,005 contracts. As result, cotton prices may be in for a correction given the sharp rally in the last two weeks.    .

Key takeaways: USDA released its monthly cotton report on Wednesday, Jun 12'13. Key takeaways from the report were an upward revision for imports by China for the marketing year 2012-13 (Marketing Year (MY): August 1st to July 31st) by 1.75mn bales to 20mn bales, while going forward USDA has slashed its import expectations from China by 1mn bales to 11mn due to lower world exportable supplies. Export for the US, Australia, India and Turkmenistan have been revised upwards by 350k bales, 500k bales, 200k bales and 150k bales respectively for MY13. Production estimates have been revised downwards by 657k bales to 117.16mn bales, mainly caused by a downward revision in production estimates for the US by 500k bales due to a prolonged brought in Texas, the main cotton growing state in the US. The USDA report reported lower imports in China for MY14F based on the continued Chinese cotton support price policy. This is expected to result in increased demand for cotton in regional countries as China increases demand for imported yarn rather than cotton. The mix of higher expected demand and tighter forecasted supplies resulted in upwards pressure on cotton prices in the last two weeks.

Relatively strong PkR to hurt competitiveness? There has been sharp depreciation in regional currencies recently. In this regard, the INR has depreciated by 1.7%WoW while the BDT has fallen by a considerable 3.1%WoW against the US$, which will help Indian and Bangladeshi textile exporters to undercut Pakistani textile exporters ceteris paribus.

Speculators trimming long positions: According to US Commodity Futures Trading Commission (CFTC) commitment of traders report, hedge funds and other large speculators have decreased net long positions in cotton futures by 101 contracts to 48,661 contracts while commercial users of cotton increased net short positions by 4,005 contracts bringing the total to 56,178 contracts on the ICE Futures US. The recent movement in futures positions suggests that speculators are expecting the futures prices to go down. Cotton (COTLOOK A) prices have rallied strongly in Jun'13, rising by 9%MTD to US¢96.4/lb, where the rally has been spurred by recent downward revisions in cotton crop estimates, overriding concerns over a slowdown in China. However, cotton prices may be in for a correction given the sharp rally in the last two weeks
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Offline MZ

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Re: Textile Sector
« Reply #453 on: June 17, 2013, 09:39:50 PM »

Offline Farzooq

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Re: Textile Sector
« Reply #454 on: June 20, 2013, 01:27:56 PM »
AKD Daily

Textile sector joyride coming to an end?

News out of China suggests that the Chinese Government may be considering changing its cotton support price policy from the next season onwards. This could have severe implications for the local textile industry and the global cotton markets. A faster rate of release of cotton from the Chinese Government stockpiles and/or a decline in cotton support price in China are likely to pressure cotton prices downwards. Consequently China's demand for yarn imported from regional countries including Pakistan is likely to decline resulting in higher sales risk. Decline in cotton prices will likely drag yarn prices downward curtailing topline as well as bottomline growth for yarn manufacturers in Pakistan. That said, textile firms with a larger chunk of revenues concentrated in higher value added finished goods such as NML are likely to be less adversely impacted and may even benefit due to margin accretion in higher value added segment. Based on earnings sensitivity to cotton prices, a decrease in cotton prices assumption by US¢5/lb would result in a negative EPS impact of ~PkR0.90 for NCL and ~PkR0.4 for NML across our forecast horizon.

China contemplating winding down of cotton stockpile: News out of China suggests that the Chinese Government may be considering changing its cotton support price policy from the next season onwards. The severe financial impact on Chinese textile manufacturers caused by high raw material costs due to cotton stockpiling is being cited as the cause for this possible change in policy by several Chinese officials. Recall that in a bid to support rural income the Chinese Government had set a cotton support price up to 40% higher than market rates and the Chinese Government has accumulated cotton stocks of ~50% of the global cotton stocks. In this regard, China is planning to offload cotton supplies to the market, gradually increasing supply of cotton available in the market. News reports suggest that China may release up to 4.5mn tons of cotton stocks out of a total of 10mn tons to the market by the end of Jul'13. Moreover, China's demand for yarn may falter as the Chinese economy seems headed for a slow down as suggested by the Purchasing Manager's Index (PMI) released by HSBC Holdings Plc and Markit Economics. The preliminary PMI reading clocked in at 48.3 where a reading below 50 is interpreted as indicating a slow down in the economy.

Is the textile sector joyride coming to an end? Unwinding of the state cotton reserve policy will have serious implications for the local textile industry. In this regard, lower domestic Chinese cotton prices will make Chinese yarn mills competitive again, significantly reducing demand for yarn imports, while lower int'l cotton prices could also result in margin compression for Pakistani yarn manufacturers. That said, textile firms with a larger chunk of revenues concentrated in higher value added finished goods such as NML are likely to be less adversely impacted and may even benefit due to margin accretion in higher value added segment. Based on earnings sensitivity to cotton prices, a decrease in cotton prices assumption by US¢5/lb would result in a negative EPS impact of ~PkR0.90 for NCL and ~PkR0.4 for NML across our forecast horizon. However, NML and NCL may be able to curtail the impact on the bottom line due to margin accretion in the higher value added segment. PSF manufacturers may also be adversely impacted due to falling cotton prices due to increased sales risk. In this regard our TP for NML is PkR131/share indicating a "Buy" at current levels while our TP for NCL is PkR56/share indicating a “Reduce” stance at current prices. 
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Offline asim.786

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Re: Textile Sector
« Reply #455 on: June 23, 2013, 05:16:42 PM »
Top Picks. EFOODS,PPL,SHEL,FFC,PNSC,JSCL,BIPL.FFBL,IGIIL!CSAP

Offline ziauddin

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Re: Textile Sector
« Reply #456 on: June 23, 2013, 08:16:01 PM »
plz share best undervalued textile scripts for medium o long term..thanx

Offline TechGuru

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Re: Textile Sector
« Reply #457 on: June 23, 2013, 09:36:38 PM »
plz share best undervalued textile scripts for medium o long term..thanx

Saif Textile... trading at a PE multiple of less than 3.
great buy between 24-25.
The trend is your friend.... Don't buck the trend!!

Offline Farzooq

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Re: Textile Sector
« Reply #458 on: June 25, 2013, 12:11:20 PM »
Textile Exports May’13

According to trade data released by Pakistan Bureau of Statistics (PBS) the textile sector posted an overall sequential exports growth of 5%MoM to US$1,188mn. Pakistan's textile sector resumed growth in exports after posting a decline in Apr'13. The growth in exports during May'13 were driven by higher value added segments as well as cotton yarn. In this regard, knitwear increased by a significant 19%MoM to clock in at US$180mn followed by bed wear 10%MoM, readymade garments 5%MoM and towels 4%MoM. This increase in exports of the higher value added segment can be attributed to the improvement in the power and gas supply situation to the textile industry, where we believe that textile manufacturers were better able to avail the opportunities presented by the EU Autonomous Trade Preference (ATP), increased international demand and PkR/US$ depreciation. Yarn exports increased 5%MoM to US$196mn following a recovery in the demand for imported yarn from China (Chinese yarn imports increased by 5%MoM to 171.88k tons during May'13) after witnessing a decline in Apr'13 (-18%MoM). During the 11MFY13 period yarn exports remained the star performer, increasing 25%YoY to US$2,053mn. Overall exports from the textile sector for the 11MFY13 period clocked in at US$11.9bn (up 6%YoY). Going forward, if the cotton prices, already facing downward pressures (-5%WoW), continue to fall the resultant decline in the yarn prices may hamper growth of yarn exports.

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