Equity Analysis /
Pakistan

Honda Atlas: 1QMY22 review – Earnings beat on higher-than-expected gross margins

  • HCAR announced a 1QMY22 NPAT of PKR928mn (EPS: PKR6.50), much higher-than-our expected EPS of PKR5.88

  • Gross margins rose by c.2ppt qoq, likely due to the change in sales mix, lower shipping freight and PKR appreciation

  • We have a Buy rating on HCAR with March 2022 TP of PKR500/sh, where the launch of the new City will boost profitability

Abdul Ghani Mianoor
Intermarket Securities
29 July 2021