Author Topic: Auto Sector  (Read 186040 times)

0 Members and 1 Guest are viewing this topic.

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #19 on: June 06, 2010, 12:07:25 PM »

KARACHI: The automobile sector has been left mostly untouched in the federal budget announced on Saturday.


The only major change is the government waiving the 15 per cent customs duty on the import of LPG buses to encourage use of cheaper environment friendly fuel, said Abdul Azim, automobile analyst, Invest Capital Investment Bank.

Local importers wanted the age-limit of imported cars to be relaxed, but it was not mentioned in the budget announcement. They want to be able to import cars that are five years old. They are currently only allowed to import cars that are a maximum of three years old.

“Priority was given to car manufacturers as they contribute highly to the Large Scale Manufacturing sector,” said Azim.

LSM growth has been a major contributor to the overall gross domestic product growth of 4.1 per cent in current fiscal year of 2010.

“The manufacturers have the right to be favoured as they bring foreign investment and employ large number of people,” said General Manager, Honda Drive-in, Hussain Abbas.

“Car manufacturers have a major share in the automobile industry and importers are only a minor portion of the automobile sector,” said Abbas.

Increasing the age-limit was a genuine demand, which was made in the best interest of the consumers, said Sarfaraz Hussain Dhanji, owner of Aristocars, a local car importing dealership. Imports bring valuable foreign exchange through duties and help stabilise the balance of payments of the country, he informed.

He added that the implementation of the demand would have broken the monopoly of the local manufacturers and given consumers the choice of buying cars at lower rates.

Cars here are more expensive in Pakistan than other countries and consumers are charged a lot more for the same car available at cheaper rates in other countries, he added. There is also misconceptions as car manufacturers only assemble cars here and they do not manufacture them, he further said.

Car manufacturers pay 20-25 per cent duty on completely knocked down (CKD) kits for parts like engine and gear while we have to pay 200 per cent duty for the car, this is unjust, he said, adding that manufacturers dictated the policy keeping themselves and not the consumers in mind.

Published in the Express Tribune, June 6th, 2010.
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Pakinvestorsguide

Re: Auto Sector
« Reply #19 on: June 06, 2010, 12:07:25 PM »

Offline 007

  • Global Moderator
  • Senior Member
  • *****
  • Posts: 9132
  • Thanks Received: 74
    • View Profile
Re: Auto Sector
« Reply #20 on: June 06, 2010, 06:03:03 PM »
comment on sazew

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #21 on: June 06, 2010, 09:03:15 PM »
comment on sazew

Illiquid stock .. I'd stay away ..

currently four stocks under my watch-list
'INDU' 'MTL' 'AGTL' 'GHNI'

what can I say .. Auto-Guru [hehe]
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline 007

  • Global Moderator
  • Senior Member
  • *****
  • Posts: 9132
  • Thanks Received: 74
    • View Profile
Re: Auto Sector
« Reply #22 on: June 06, 2010, 09:45:29 PM »
i just thought eps was very good compared to price :dunno:

wht are your buying trgt for INDU

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #23 on: June 06, 2010, 11:14:33 PM »
i just thought eps was very good compared to price :dunno:

wht are your buying trgt for INDU

Frankly speaking - I'm longing for a free fall of the index and other stocks next week.
If it happens, I'll catch the falling knife and buy around 240.
If market remains flat then i'll wait for the may 2010 sales numbers then decide accordingly.

as far as 'SAZEW' is concerned - mainey to toba ki hui hey illiquid stocks sey phir chahey wo kitna hi attractive kio na ho, telecom sector mey 'PAKD' ko hi dekhlo - pretty much undervalued but koi faida nahin and generally speaking EPS is just a factor, it's not the only factor.

goodluck.
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline Farzooq

  • Administrator
  • Senior Member
  • *****
  • Posts: 22119
  • Thanks Received: 196
    • View Profile
Re: Auto Sector
« Reply #24 on: June 10, 2010, 09:00:29 AM »
11M auto sales pick up 38.6pc
 

May Honda sales up 41pc, Indus falls 5pc
Aqeel Abdul Razzak
KARACHI: Auto sales showed a phenomenal improvement in sales as cumulative car, LCV & pickup sales up by 38.6 per cent to 124,991 units during 11MFY10, according to the latest data released by Pakistan Automotive Manufacturers Association (PAMA).
On the other hand, cumulative production of car, LCV and pickups up by 34 per cent to 124,833 units against 93,245 units in 11MFY09. Reasons of surge in sales and production are strong recovery in economy mainly due to growth in services and agriculture sector and rising remittances, as per the TFD analyst.
Enumerating the categories, car sales showed an exceptional growth of 45.6 per cent YoY to 109.6k units, whereas LCV & pickup segment sales registered a minimal increase of 2.94 per cent YoY to 15.3k units.On MoM basis, car segment sales increased by 4.3 per cent in May to 11.8k units.
Honda Atlas Company showed strong reversal as its sales increased by 41 per cent to 1.5k units against 1k units in April 10, while Indus Motors -- overall top performer during the 11MFY10 -- sales dropped by 5 per cent to 4.96k units in May 10.
 As expected, mostly brand of cars performed well before budget as 7 brands out of 11 managed positive growth namely Civic (+59 per cent), City (+28 per cent), Liana  (+22 per cent), Swift (+8 per cent), Cultus (+13 per cent), Alto (+1 per cent)  and Cuore (+89 per cent) in the month of May. Similarly, car production surge by 4.6 per cent MoM to 11.6k units. Overall, auto sales increased by 2.4 per cent MoM to 13.3k units in May-10.
Pak Suzuki, Indus Motor and Honda cars were the three companies that showed positive growth in their volumetric sales by 40.07 per cent, 48.8 per cent and 20.5 per cent, respectively. On the other hand, Dewan Farooq Motors witnessed 44 per cent declines in their sales volumes.
Production and sales of Pak Suzuki (PSMC) grew by 35.22 and 40.07 per cent to 65,384 units and 65,300 units respectively. Indus Motors (INDU) sold and produced 45,030 units and 45,228 units respectively in the 11MFY10. Similarly, sales and production of Honda Car (HCAR) went up to 12,392 units and 12,060 units respectively. However, Dewan Farooq Motors (DFML) lost its way as it production and sales massively down by 52.76 per cent and 44.04 per cent to 1,018 units and 1,169 units respectively.
 
TOP PICKS
Engro efert ogdc ppl pso dgkc luck hubc ubl hbl atrl nrl nml efoods aicl hcar searl

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #25 on: July 03, 2010, 12:09:00 PM »
10pc FED imposed on car ACs

KARACHI, July 2: In a surprise move, the government has imposed a 10 per cent federal excise duty on car air-conditioners despite the fact that the budgetary decision on the duty was confined mainly to split air-conditioners and deep-freezers to contain high electricity consumption in view of power shortage.

Pak Suzuki Motor Company was the first to pass on two impacts on Friday — imposition of FED on car air-conditioners and one per cent hike in general sales tax from 16 to 17 per cent.

The company’s senior general manager (marketing) Ashfaq Hussain told Dawn that Mehran without A/C would now cost Rs479,000 after imposition of one per cent GST. Before the budget it was sold for Rs474,000.

The 10 per cent FED on A/C pushed the price of Mehran AC/CNG to Rs532,000 from Rs524,000.

The price of Alto AC/CNG has been increased to Rs684,000 from Rs674,000 and that of Cultus CNG/AC to Rs857,000 from Rs845,000.

The price of Liana AC\CNG has been raised to Rs118,4000 from Rs1169,000.

Mr Hussain said the company was delivering cars in two to four weeks. The production plant is shut down from June 28 to July 3 for annual maintenance.

Pak Suzuki Motor Company has also increased the price of GS-150 and GS-125 (motorcycles) to Rs84,500 and Rs78,500, respectively, from Rs83,900 and Rs77,900. Sprinter, Sprinter ECO, Shogun and Shogun (deleted) are now priced at Rs69,500, Rs66,500, Rs76,000 and Rs72,000, respectively, as compared to Rs68,000, Rs65,900, Rs75,400 and Rs71,400.

Other car manufacturers are likely to pass on the impact of increased GST and 10 per cent FED next week.

Meanwhile, director (sales and marketing) of Indus Motor Company Raza Ansari said the Pakistan Automotive Manufacturers Association had requested the government to withdraw FED because it would increase the cost of production.

He said that although the government wanted to see car prices down, it had imposed FED without any reason. About one per cent increase in GST, Mr Ansari said the company had decided not to charge the tax on bookings made before July 1.

However, it is not clear if the increase in car prices after the two levies will hit sales.

The assemblers had previously raised car prices on account of the Japanese yen appreciation against the rupee, but it did not make any adverse impact on their sales.

The sale of locally-produced cars, including Suzuki Bolan, swelled to 109,637 units in July-May 2009-10 from 75,293 units in the same period last fiscal.

The assemblers said that sales by the end of the current fiscal year might increase to 120,000-125,000 units.

Source:
bloodsuckers
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #26 on: July 09, 2010, 12:57:41 PM »
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #27 on: July 13, 2010, 09:44:07 AM »
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #28 on: July 13, 2010, 10:30:14 PM »
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #29 on: July 19, 2010, 11:47:35 AM »
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #30 on: July 20, 2010, 07:47:28 PM »
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #31 on: July 25, 2010, 12:34:24 PM »
CCP releases study on automobile, PSF sectors

Note:
another indication of likelihood that the trade policy 2010-11 will prove to be detrimental for car manufacturers.
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #32 on: August 04, 2010, 09:08:50 AM »
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #33 on: August 04, 2010, 03:30:49 PM »
Rupee hits all-time low against Japanese yen

Aggressive buying of Japanese yen by importers and corporate clients resulted in the rupee value to close down at an all-time low. Pakistani rupee equated in price to the Japanese yen on Wednesday. The rupee lost more than 30 paisa against the yen during the last two years.
The yen strengthened against all major currencies including the dollar across the globe. However the rupee lost value sharply as compared to other currencies. According to experts the changing value of yen will have substantial impact on the automobile industry of Pakistan.

Source:
yeah!
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline mamu jee

  • Active Member
  • ***
  • Posts: 936
  • Thanks Received: 1
    • View Profile
Re: Auto Sector
« Reply #34 on: August 04, 2010, 07:27:19 PM »
ECC to discuss import of used cars on July 20
Yar used car import ke information ke lea mujhy ak banda yaad aaya ha jo apky Ecc ke decision ke bary me information de sakta ha,Laken uska ph number mobile sa miss ho gea ha,ab junhee woh mujhy ph kary ga tu me us sa khabar ka khoojh zarur lagau ga.

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #35 on: August 04, 2010, 09:49:11 PM »
ECC to discuss import of used cars on July 20
Yar used car import ke information ke lea mujhy ak banda yaad aaya ha jo apky Ecc ke decision ke bary me information de sakta ha,Laken uska ph number mobile sa miss ho gea ha,ab junhee woh mujhy ph kary ga tu me us sa khabar ka khoojh zarur lagau ga.

shukriya dost  :s1:
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #36 on: August 06, 2010, 07:49:08 PM »
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline M&M

  • KSE100 Trader
  • Administrator
  • Senior Member
  • *****
  • Posts: 4428
  • Thanks Received: 109
  • Who doesn't like chocolates and profits?
    • View Profile
Re: Auto Sector
« Reply #37 on: August 08, 2010, 12:54:03 PM »
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | Follow me

Offline Farzooq

  • Administrator
  • Senior Member
  • *****
  • Posts: 22119
  • Thanks Received: 196
    • View Profile
Re: Auto Sector
« Reply #38 on: August 12, 2010, 12:31:17 PM »
Automobile & Parts: A Slow Beginning for FY11
   Automobile sales witnessed a growth of 10% YoY to 10,814 units in the first month of the new year (July 2011). It was primarily led by INDU with its sales up by 39% YoY to 4,999 units while PSMC posted a decline of 9% to 4,503 units during the month

   On a MoM basis sales witnessed a sharp decline of 34% mainly due to 1) hike in car prices with a higher rate of GST (17%) in place and 2) pre-buying of cars in Jun10

   Recent downtrend in sales including that of PSMC led us to revisit our financial model for the company. We forecast its EPS to clock in at PKR2.61/share for CY10 with its fair value revised downwards to PKR95/share from PKR106/share earlier. ADD

   Our DCF based fair value for INDU stays intact (since a detailed report on INDU: “Fuelled Up” issued on November 13, 2009) at PKR288/share. ADD
 
TOP PICKS
Engro efert ogdc ppl pso dgkc luck hubc ubl hbl atrl nrl nml efoods aicl hcar searl