Taximisation Of Existing Tax Payers Budget Review FY16 June 08, 2015

HABIBMETRO Financial Services Contents

• Fiscal Budget – FY16 • Working of Budget Deficit & Financing • Budget at a Glance • Economic Review & Outlook • Budget Brief • Revenue Measures • Relief & Incentives • Sector‐wise Analysis • Sector‐wise Snapshot • Valuation Snapshot

HABIBMETRO Financial Services Fiscal Budget – FY16

Budget at Balance FY14R % FY15R % FY16B % Tax Revenue Direct Tax Income Tax 876.9 21.60% 1,091.70 25.80% 1,326.80 29.80% Others 14.1 0.30% 17.3 0.40% 21 0.50% 891 22.00% 1,109.00 26.20% 1,347.90 30.30% IdiIndirect taxation Customs 241 5.90% 255 6.00% 299.1 6.70% Sales Tax 1,005.00 24.80% 1,082.00 25.50% 1,250.30 28.10% Federal Excise 138 3.40% 159 3.80% 206.4 4.60% Carbon Surcharge on POL & CNG 235 5.80% 301 7.10% 310 7.00% Others 3.9 0.10% 4.2 0.10% 4.5 0.10% 1,622.90 40.00% 1,801.20 42.50% 2,070.30 46.50% Total Tax revenue 2,513.90 62.00% 2,910.20 68.70% 3,418 76.80% Non‐Tax revenue 1,083 .20 26.70% 1,042 .30 24.60% 894.5 20.10% 3,597.10 88.70% 3,952.50 93.30% 4,312.70 96.90% Less Share of Provinces 1,413.30 34.80% 1,574.70 37.20% 1,849.40 41.50% 2,183.80 53.80% 2,377.80 56.10% 2,463.40 55.30% Net Capital reciepts 600.1 14.80% 603 14.20% 606.3 13.60% External reciepts 714.1 17.60% 710.4 16.80% 801.5 18.00% Change in Provential Cash Balance 183 4.50% 141.6 3.30% 297.2 6.70% Bank Borrowing 376.3 9.30% 402.4 9.50% 282.9 6.40% 4,057.30 100.00% 4,235 100.00% 4,451 100.00% 3,985.00 4,302.00 4,451.30 Expenditure (Including Current) General Public Expenditure Debt Servicing 1,520.30 37.50% 1,270.00 30.00% 1,279.90 28.80% Grant & transfers 337.2 8.30% 418.7 9.90% 409.9 9.20% Superannuation & Pensions 171.3 4.20% 220 5.20% 231 5.20% Subsidies 240.4 5.90% 342.2 8.10% 137.6 3.10% Others 88.2 282.2 6.70% 390.1 8.80% 2,357.40 55.90% 2,533.10 59.80% 2,448.40 55.00% Defence Affairs & Services 627.2 15.50% 720 17.00% 781.2 17.50% Economic Affairs 52.3 1.30% 55.3 1.30% 60.2 1.40% Public Order & Safelty 78.5 1.90% 87.6 2.10% 94.9 2.10% Education affairs & Services 59.3 1.50% 64.5 1.50% 75.6 1.70% Others 21.5 0.50% 20.3 0.50% 22 0.50% 3,196.10 77% 3,480.80 82% 3,482.20 78% Development Expenditure PSDP 689.4 17.00% 542 12.80% 700 15.70% Others 171.8 4.20% 212.3 5.00% 269 6.00% 861.2 21.20% 754.3 17.80% 969 21.80% Total Expenditures 4,057.30 98% 4,235.10 100% 4,451.30 100% HABIBMETRO Financial Services Working of Budget Deficit & Financing – FY16

Working Deficit PKRbn Financing of Deficit PKRbn Federal Revenue 2,463 Gross External Loans 752 Total Federal Expenditure 4,089 Less Payments 406 Current Expenditure 3,166 Long Term Foreign Loans 316 Development & Net Lending 923 Short Term Foreign Loans 89 Federal PSDP 700 Net External Financing 346 Other Development Expenditure 164 Domestic Financing 982 Net Lending 58 Bank Financing 283 Federal Deficit (1,625) of Which SBP Financing 0 Est. Provincial Surplus 297 Non Bank Financing 699 Public Debt 395 Public Account 254 Privatization Proceeds 50 % of GDP ‐4.3% % of GDP 4.3%

Over Fiscal deficit (1,328) Total Financing of Deficit 1,328 Source: MOF,FY16 Budget document

HABIBMETRO Financial Services Budget at a Glance – FY16

BUDGET AT A GLANCE ‐ 2015‐16 Receipts PKRbn Expenditure PKRbn Tax Revenue* 3,418 CURRENT: 3,166 Non‐Tax Revenue 895 Interest Payments 1,280 Gross Revenue Receipts 4,313 Pension 231 Less Provincial Share 1,849 Defence Affairs & Services 781 Net Revenue Receipts 2,463 Grants and transfers 410 Net Capital Receipts (Non Bank) 649 Subsidies 138 External Receipts 346 Running of civil Government 326 Estimated Provincial Surplus 297 Provision for pay and pension 0 Bank Borrowing 283

Privatization Proceeds 50 DEVELOPMENT: 923 Federal PSDP 700 Net Lending 58 Other developmental expenditure 164

Total Resources 4,089 Total Expenditures 4,089 * The budget outlay is taken from the Annual Budget Statement FY16 ** The actual Outlay is PKR4,451bn as against PKR4,235bn, the change was on account of Provincial PSDP Source: MOF,FY16 Budget document

HABIBMETRO Financial Services Economic Review & Outlook – FY16

• Yet another year passed with a similar kind of real GDP growth of 4.24% in contrast Macro Targets FY11 FY12 FY13 FY14 FY15F with the estimated growth of 5.1%. In the preceding 5‐years, the average GDP Real GDP Growth % 3.6% 3.8% 3.7% 4.1% 4.1% growth remained below par at 3.9% in contrast with our regional peers. In any of Agriculture 2.0% 3.6% 2.7% 2.7% 2.9% the major sector, we haven’t seen any major uptick in growth while industrial Manufacturing 2.5% 2.1% 4.6% 4.5% 3.2% sector posted contraction causing lower growth. So far we haven’t seen elimination LSM Large Scale Manufacturing 1.7% 1.1% 4.2% 4.0% 2.4% of circular debt or major improvement in power supply. Nevertheless government Services 3.9% 4.4% 5.1% 4.4% 5.0% is striving hard to improve the situation Current Account Balance (USD bn) 0.2 (4.6) (2.2) (3.1) (1.4) Exports (USD bn) 29.9 27.8 24.8 25.1 20.2 • Agriculture productivity registered a growth of 3.9% as against the target of 3.3% Imports (USD bn) 40.6 45.6 45.0 45.1 34.0 largely backed by lower growth in major crops. Cotton production witnessed a Trade Deficit (% of GDP) ‐10.0% ‐16.8% ‐19.9% ‐20.2% ‐13.2% major uptic k as agaitinst other major crop ildiincluding sugarcane (‐7.1%), Rice (‐3.0%) Fiscal Deficit (% of GDP) 59%5.9% 66%6.6% 88%8.8% 63%6.3% 50%5.0% and wheat (‐1.9%). Another major issue pertinent to the agriculture sector include Inflation (%) 13.7% 11.1% 8.0% 8.6% 4.7% lower commodity prices and water availability Source: SBP, MOF & Planning commission • GoP set the initial target of manufacturing segment at 6.9% in FY15, so far the *Based on New base of FY06 actual growth has merely been 3.62%. Large Scale Manufacturing (LSM) constitute nearly 80% of the total manufacturing segment. Initially GoP expected LSM growth GDP Growth Vs C/A deficit & Investment to GDP Ration of 7% as against the actual growth of 2.38%. Growth in heavy machinery, fertilizer, 22% 22% and paper & board segment witnessed a negative trend. Furthermore lower use of 18% 18% furnace oil and diesel was also witnessed. Amongst the major gainers include car 14% 14% and textile sector which posted marginal growth 10% 10% • External account improved backed by lower fuel oil prices in the international 6% 6% market consequently the current account deficit reduced to USD1.7bn in 10MFY15 2% 2% over preceding year level of USD2.9bn. Worker remittances improved by 16% on ‐2% ‐2% Y/Y basis to USD14.97bn. The major concerning factor was the decline in exports ‐6% ‐6% by 3.2% Y/Y to USD20.12bn ‐10% ‐10% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 • The silver lining of the preceding fiscal year was the inflation figure which fell below the targeted level to 4.7%, hence SBP reduced the discount rate by 3% over GDP Growth C/A Deficit (% of GDP) Total Investment to GDP Inflation preceding year HABIBMETRO Financial Services Budget Brief – FY16

• Total budget outlay for FY16 is targeted at PKR4,451.3bn (↑3.5%) over last year • Gross revenue receipts are estimated at PKR4,313bn (+9%YoY), leaving a fiscal gap of PKR1.3tn (4.3% of GDP). Budget deficit will be financed by domestic sources including bank and non‐bank borrowing. So far the government was able to contain the budget deficit to 3.9% in 9MFY15 in contrast with FY15 estimate of 4.9%.Priilimarilythenon‐conventilional source of income has resuldlted in lower dfiideficit. Furthermore thegovernmenthas estidimated a bdbudget dfiideficit of 4.3% in FY16 • Earlier in FY15 budget , the tax collection target for FBR was fixed at PKR2.8tn later it was revised lower by PKR200bn to PKR2.6bn. So far FBR has achieveda revenue collection of PKR2.21tn in 11MFY15, the authority is still short by PKR390bn. GoP in FY16 budget set a target of PKR3.1tr up by 19% over preceding year target. The changes in tax measures is expected to enhance the tax revenue by PKR253bn • Total PSDP allocation has increased to PKR1.513tn out of which PKR700bn is allocated to federal government and PKR813bn to provinces. In the preceding 9MFY15 Federal PSDP utilization was PKR208bn which is equivalent to 38% of the budgeted amount • Current expenditure accounts for 78% (PKR3.48bn) of total budget outlay. The GoP is trying to curtail the current expenditure hence a marginal increase was estimated. The markup expenses account for nearly 37% of total current expenditure suggesting increase in flow towards deficit financing is not likely to reduce with the lower domestic interest rates • Defense expenditure has been raised by 12% to PKR781bn, while pension to military account is estimated at PKR174bn up by nearly 4% over preceding year • Cumulative domestic and foreign debt servicing is estimated at PKR1,279bn up marginally, of which a significant chunk of 91% is allocated for intereston domestic debt. Furthermore, 37% of total current expenditures are going to be utilized for total debt servicing in FY16 as compared with preceding year’s level of 36%. Earlier the debt financing component reached to nearly 47% of total current expenditure leaving no room for other expenses • GoP in the preceding year provided subsidies of PKR243bn out of which nearly PKR221bn (91% of total subsidies) was allocated to power sector. GoP in FY16 has reduced the allocation of subsidies to PKR137.6bn out of which power sector is estimated to consume PKR118bn. Pertinent to note is reduction in oil prices globally has reduced the fuel prices by nearly 50%, hence reduction in power subsidies is possible • Allocation of revenue collection is as follows i.Direct tax PKR1,347.87bn (up by22%) ii. Indirect tax PKR1,755.83bn higher by 17%, while exemption on number of items are to be removed which will enhance the sales tax base HABIBMETRO Financial Services Budget Brief – Key Targets

KEY MACROECONOMIC INDICATORS TAX REVENUE Budget (14‐15)R Budget (15‐16)B Budget (16‐17)F Budget (17‐18)F PKR Mn 2014‐15B 2014‐15R 2015‐16B 1. Direct Taxes % of GDP 4.20% 5.50% 6.50% 7.00% Income Tax 1,163,821 1,091,691 1,326,835 Total Revenue 15.40% 15.10% 15.00% 15.30% Worker's Welfare Fund 15,500 16,216 19,709 Tax Revenue 11.50% 12.00% 12.50% 13.00% Capital Value Tax 679 1093 1,328

FBR Revenue 9.50% 10.10% 10.60% 11.30% Total (Direct) 1,180,000 1,109,000 1,347,872 2. Indirect Taxes Customs 281,000 255,000 299,125 Total Expenditure 20.40% 19.40% 19.00% 18.80% Sales Tax 1,171,000 1,082,000 1,250,272 Current Expenditure 16.30% 14.90% 14.60% 14.20% Federal Excise 178,000 159,000 206,437 Petroleum Levy 123,000 126,000 135,000 Developmental Expenditure 4.10% 4.50% 4.40% 4.60% Other Taxes 4,720 4,105 4,365 Gas Infrastructure Dev. Cess 145,000 145,000 145,000 Fiscal Deficit ‐5.00% ‐4.30% ‐4.00% ‐3.50% Natural Gas Dev. Surcharge 46,400 30,000 30,000

Revenue Deficit/Surplus ‐0.90% 0.10% 0.40% 1.10% Total (Indirect) 1,630,000 1,496,000 1,755,834 Total Public Debt 62.90% 62.00% 58.80% 55.20% TAX REVENUE 3,129,210 2,910,180 3,418,221 GDP (mp) PKR bn 27,384 30,672 34,801 39,666 FBR Revenue 2,810,000 2,605,000 3,103,706

Source: MOF,FY16 Budget document Source: MOF,FY16 Budget document

HABIBMETRO Financial Services Revenue Measures

• Rate of Capital gain tax for capital market is proposed to be increased to 15% for a period of less than 1‐year while for a holding period of more than 1‐year but less than 2‐years it will stay at 12.5% (+2.5%). For a holding period of more than 2‐years but less than 4‐years the rate of CGT will be 7.5% while for a holding period beyond 4‐years it will be tax free • Rate of tax on dividend income increased by 2.5% to 12.5% and for unregistered person to 17.5% from 15% • Computerized National Identity Card Number (CNIC) will be treated as a National Tax Number (NTN) from Tax Year FY15/2015‐16 • Capital value Tax (CVT) will be applicable on all transactions of Mercantile Exchange (PMEX) @ 0.1% on purchase & sale (on all future contracts) CGT Slabs Salaried Class Income Slabs Inv. Period FY15 FY16 S.No Taxable Income % Tax < 12 Months 12.50% 15% Range Marginal Cumulative Change ‐ 3% 1 ‐ 400,000 0.00% 0 0 12 to 24 Months 10% 12.50% 2 400,000 500,000 2.00% 2,000 2,000 Change ‐2.50% 3 500,000 750,000 5.00% 12,500 14,500 24 to 48 months ( 2 to 4 years) 0% 7.50% 4 750,000 1,400,000 10.00% 65,000 79,500 Change ‐7.50% 5 1,400,000 1,500,000 12.50% 12,500 92,000 < 4 years ‐‐6 1,500,000 1,800,000 15.00% 45,000 137,000 Source: Finance Bill 7 1,800,000 2,500,000 17.50% 122,500 259,500 8 2,500,000 3,000,000 20.00% 100,000 359,500 9 3,000,000 3,500,000 22.50% 112,500 472,000 10 3,500,000 4,000,000 25.00% 125,000 597,000 11 4,000,000 7,000,000 27.50% 825,000 1,422,000 12 7,000,000 ‐ 30.00% ‐‐ Source: Finance Bill HABIBMETRO Financial Services Revenue Measures (Continued)

• Imposition on Super Tax on Companies and individuals earning an income of PKR500mn and above will have to bear an additional tax of 3% on the income • Imposition on Super Tax on Banking Companies having income of PKR500mn and above will have to bear an additional tax of 4% on the income • Increase in tax rate on dividend income and capital gain to 35% from 10% ‐ 12.5% (on capital gains) and 10% on dividend income • The rate of tax for suppliers to unregistered persons is being enhanced to 2% • Increase in tax rate from 9% to 12% on aerated beverages (cold drink) • Increase in tax on dividend income from 10% to 12.5% and for unregistered persons it will be at 17.5% • A clear distinction between registered and unregistered person where in most case the tax authorities propose to increase the tax incident for unregistered person by 2% ‐ 3% • In a major move the tax authorities imposed tax on corporate sector excluding government listed companies and banks where equity reserves are more that the paid‐up capital. A 10% levy on equity reserve will be applicable if it is greater than its paid‐up‐capital • Levy of 0.6% advance tax on all banking transactions totaling more than PKR50,000 in value in a single day (for non filers) • Levy of withholding tax on withdrawals by exchange companies @0.15% • Rationalization of tax structure with an increased incidence for steel smelters, re‐rollers and ship breaking • Increase in sales tax on cell‐phones in the range of PKR300‐PKR1000/handset, depending upon its value • Yield on profit on debt instrument will be paid on gross basis at 10% for filers and 17.5% for non‐filers • Enhancement of customs duty slab from the existing 1% to 2% • Increase in the levy of FED on cigarettes from 58% to 63% • Increase in tax on commission income of advertising agencies from 7.5% to 10% • Withholding tax of 5% will be levied on fee paid to foreign education institutions • Sales tax will be levied at 14% on any sort of internet services

HABIBMETRO Financial Services Relief & Incentives

• Reduction in corporate tax rate by 1% to 32% which would eventually reduced to 30% as per schedule • Marginal reduction in tax liability of PKR3,000 on the salaried individuals in all the tax brackets. Furthermore the same will be applicable on Non‐ salaried individual and Association of Persons • RdReduc tion incustom dtduty on general custom dtdutyslblab from 25% to 20% • Reduction in WHT on token tax and transfer tax on vehicles • Tax credit for enlistment enhanced from 15% to 20% for the first year of enlistment • Four year tax exemption on new plants of Halal Meat producers • Tax exemption for LNG terminal operators on sales tax, Income tax and other major levies • 10‐year tax holiday for putting‐up new transmission projects, provided such projects are setup by June 30, 2018 • 5‐year income tax holiday for all new manufacturing units to be set up by in KPK by June30, 2018 • Suspension on minimum tax on builders for three years • Bricks and crush stone exempted from sales tax for three years • Income tax holiday for new units in cold storage and warehousing facilities for storage of agricultural produce • Export financing facility rate reduced from 6% to 4.5% • Increase in minimum wage by PKR1,000 bringing it at PKR13,000 per month • 7.5% increase in pension of all federal government employees • Increase BISP allocation by 5.2% PKR30bn • Relief for rice producers for a period of one fiscal year • Tax credit for housing loans obtained by individuals from banks and FIs for construction and buying of property to be allowed as a tax deductable against income up to 50% of taxable income not exceeding PKR1.0mn • Exemption of capital gains tax on seller of property to REIT development scheme HABIBMETRO Financial Services Financial

Banking Sector: Negative Super Tax Impact (4% On Income) • The net income from dividend and capital gains on sale of shares of listed companies shall be taxed at the rate of S.No PKR mn CY15 EPS Impact 35% as against the earlier tax rate of 10% on dividend income and capital gains at 12.5% for 1‐year and 10% for 1 UBL 46,116 (2.26) second year. 2 MCB 47,495 (2.13) • This will enhance the tax on all major banks, especially ABL, UBL and MCB are likely to be impacted largely 3 HBL 61,212 (1.67) 4 ABL 26,177 (1.03) on account of this provision 5 FABL 11,497 (0.48) • Government imposed a Supper Tax at the rate of 4% on the banking companies having income exceeding 6 BAHL 9,827 (0.44) PKR500mn in a financial year 7 HMB 8,738 (0.42) 8 NBP 20,076 (0.38) • The super tax is likely to generate PKR14bn in revenue for the government 9 BAFL 12,157 (0.31) 10 AKBL 7,598 • Earnings of major banks are likely to be impacted in the range 9%‐7% in CY15. We believe valuation impact (0.30) *Based on Annualized Income would be around 3%‐4% Source HMFS Research • Advance tax collected (adjustable) from depositors at the rate 0.6% on every transaction exceeding PKR50,000 whether its cheque clearing, online transfer, inter bank transfer, telegraphic transfer, mobile and ATM transfer (all type of transfers) • This will impact the deposits of the banking sector at large and where unregistered person may start preferring cash transactions over banking transactions

HABIBMETRO Financial Services Sector‐wise Snapshot

Sectors Budgetary proposals Stance Super tax imposed at the rate 4% on all banks Banks Dividend and capital gains will be taxed at 35% in contrast with earlier scheduled of capital gain and dividend income at 10% Negative Advance tax collected (adjustable) from depositors at the rate 0.6% on all transaction The estimate for revenue receipts in the form of Royalty, Petroleum Levy and Windfall levy from various crude petroleum products has been set at PKR99.6bn against PKR119bn last year Oil & Gas The estimate of dividends from state owned E&P companies has been kept at PKR49bn implying a dividend of PKR10/share and PKR13/share from OGDC and Neutral PPL respectively Tax exemptions for operators of LNG terminals SbidSubsidy for the power sector has been alloca te d at PKR83bn in contttrast to PKR243bn provide d for in the lltast fisca l year , the lower subidbsidy amount is cognitizant with lower oil prices Power Neutral The overall circular debt has resurfaced to a sizeable PKR600bn, a lower subsidy allocation may translate into a tariff hike

Tax Exemption for setting‐up of new electricity transmission projects for a period of 10‐years, provided the project is established before end of Jun’18 The rate of advance tax on retailers and wholesalers of fertilizers is proposed to be enhanced from 0.2% to 0.7% Fertilizers Subsidy for Urea Import has been allocated at PKR25bn keeping the amount unchanged compared to last year Neutral Increase in import duty on Ethylene to the tune of 1%, taking it to 2% Zero Rating on dairy products is now restricted to ‘baby milk’ products only, the rest of the dairy sector shall be given exemption status Tax Exemption given to producers of Halal Meat FMCG Levy of 10% Sales tax at import stage for various milk products, which is likely to provide more pricing headroom for local producers Neutral to Negative The FED applicable on aerated waters has been enhanced from 9% to 12% of the retail price Introduction of electronic monitoring for real time production data of cigarettes, sugar and beverage industry with the aim of curbing under‐reporting practices PSDP allocated for FY16 is PKR 1,514bn (↑29% Y/Y) while the amount allocated to Federal is PKR 700bn (↑30% Y/Y) Cements Neutral Levy of 5% customs duty on import of coal, which translates to an impact of USD2‐2.5/ton with a squeeze in margins to the tune of 1%‐2% Telecom Application of 14% sales tax on internet services of all nature Negative Reduction in WHT on token and transfer of vehicles Autos Neutral to Positive Substantive increase in advance tax on transfer and registration of vehicles for non‐filers HABIBMETRO Financial Services Autos

Positive

TOKEN TAX OLD NEW Filers Non Filers Filers Non Filers Upto 1000cc 1,000 1,000 800 1,200 1001cc‐1199cc 1,800 3,600 1,500 4,000 1200cc‐1299cc 2,000 4,000 1,750 5,000 1300cc‐1499cc 3,000 6,000 2,500 7,500 1500cc‐1599cc 4,500 9,000 3,750 12,000 1600cc‐1999cc 6,000 12,000 4,500 15,000 2000cc and above 12,000 24,000 10,000 30,000 Source: MoF

ADVANCE TAX ON PURCHASE AND REGISTRATION OLD NEW Filers Non Filers Filers Non Filers Upto 850cc 10,000 10,000 10,000 10,000 851cc‐1000cc 20,000 25,000 20,000 25,000 1001cc‐1300cc 30,000 40,000 30,000 40,000 1301cc‐1600cc 50,000 100,000 50,000 100,000 1601cc‐1800cc 75,000 150,000 75,000 150,000 1801cc‐2000cc 100,000 200,000 100,000 200,000 2001cc‐2500cc 150,000 300,000 150,000 300,000 2501cc‐3000cc 200,000 400,000 200,000 400,000 Above 3000cc 250,000 450,000 250,000 450,000 Source: MoF

HABIBMETRO Financial Services Valuation Snapshot

Index Current Target Price Company Name Symbol Upside (%) Rating Earnings Dividend PER (x) PBR (X) D/Y (%) Wght (%) Price Dec’15 FY15/CY15 FY16/CY16 FY15/CY15 FY16/CY16 FY15/CY15 FY16/CY16 FY15/CY15 FY16/CY16 FY15/CY15 FY16/CY16 Chemical Fauji Fertilizer Co FFC 5.24 142.65 159 12% Accumulate 15.79 16.89 15.50 16.00 9.03 8.45 7.09 6.22 11% 11% Fauji Fert Bin Qasim FFBL 0.85 49.38 49 ‐1% Neutral 4.95 6.80 4.75 6.50 9.98 7.26 2.88 2.86 10% 13% Fatima Fertilizer Co FATIMA 0.86 39.01 43 10% Accumulate 4.98 5.27 3.00 3.50 7.83 7.40 2.30 2.10 8% 9% Chem EPCL 0.92 87.39 107 22% Buy 10.70 11.85 4.50 5.50 8.17 7.37 7.73 6.46 5% 6% Engro Corp Ltd ENGRO 4.06 295.37 338 14% Accumulate 33.30 37.21 3.00 5.00 8.87 7.94 2.40 2.10 1% 2% Power Generation HUBC 4.42 97.03 71 ‐27% Sell 5.66 7.48 6.50 7.25 17.15 12.97 5.77 5.69 7% 7% Kot Addu Power Co KAPCO 2.07 86.97 97 12% Accumulate 8.78 16.76 6.50 15.00 9.90 5.19 2.86 2.35 7% 17% Nishat Power Ltd NPL 0.46 55.14 38 ‐30% Sell 8.24 8.78 4.00 4.25 6.69 6.28 1.89 1.57 7% 8% Nishat Chunian Power NCPL 0580.58 61.18 43 ‐30% Sell 7907.90 10.43 6506.50 7007.00 7747.74 5875.87 3193.19 2682.68 11% 11% Pakgen Power Ltd PKGP 0.27 30.75 24 ‐22% Sell 2.49 2.52 1.25 1.50 12.35 12.22 1.05 1.03 4% 5% Oil & Gas Oil & Gas Devp Co OGDC 6.35 187.52 242 29% Buy 28.81 29.46 9.25 8.00 6.51 6.36 2.04 1.67 5% 4% Pakistan Oilfields POL 2.21 389.74 442 14% Accumulate 54.51 51.57 52.50 42.00 7.15 7.56 2.62 2.64 13% 11% PPL 4.30 170.36 221 30% Buy 26.08 24.75 12.50 14.50 6.53 6.88 1.85 1.63 7% 9% Attock Petroleum APL 0.59 539.92 626 16% Buy 52.15 57.31 47.50 49.00 10.35 9.42 3.25 3.09 9% 9% Bank Allied Bank Ltd ABL 0.92 102.52 160 56% Buy 13.21 12.39 6.00 6.50 7.76 8.27 2.10 1.85 6% 6% Habib Bank Ltd HBL 7.25 209.10 270 29% Buy 20.43 24.10 9.50 11.00 10.24 8.68 1.96 1.68 5% 5% MCB Bank Ltd MCB 6.38 272.79 320 17% Buy 23.04 28.29 15.00 17.00 11.84 9.64 2.81 2.50 5% 6% National Bank NBP 1.46 55.00 72 30% Buy 8.05 8.58 6.50 6.00 6.83 6.41 1.01 0.95 12% 11% United Bank Ltd UBL 4.36 169.73 212 25% Buy 18.98 22.13 10.50 12.00 8.94 7.67 1.81 1.57 6% 7% Bank Al‐Falah Ltd BAFL 0.99 26.47 34 28% Buy 3.99 5.35 2.00 2.50 6.63 4.95 1.14 0.98 8% 9% Bank Al‐Habib Ltd BAHL 1.49 42.60 68 59% Buy 5.54 5.90 3.25 4.00 7.69 7.22 1.63 1.48 8% 9% Cement LUCK 3.28 483.52 552 14% Accumulate 35.08 39.83 9.00 10.00 13.78 12.14 3.14 2.60 2% 2% DG Khan Cement DGKC 1.71 135.42 162 20% Buy 13.65 15.94 3.50 3.50 9.92 8.50 0.96 1.00 3% 3% Cherat Cement CHCC 0.48 80.39 95 19% Buy 7.45 7.61 3.50 3.50 10.79 10.57 2.92 1.86 4% 4% Maple Leaf Cement MLCF 0.96 77.12 65 ‐16% Sell 5.36 6.90 ‐ 2.00 14.38 11.17 4.17 3.16 0% 3% Fauji Cement FCCL 1.33 34.49 37 8% Accumulate 1.81 2.92 1.50 2.50 19.08 11.82 2.91 2.47 4% 7% Automobile & Parts HCAR 0.34 229.34 204 ‐11% Reduce 17.23 18.75 3.00 4.50 13.31 12.23 13.13 15.33 1% 2% Indus Motor INDU 1061.06 1279.30 1023 ‐20% Sell 82.56 93.52 23.18 40.97 15.50 13.68 5245.24 4614.61 2% 3% Pak Suzuki Motor Co PSMC 0.50 435.09 495 14% Accumulate 62.39 35.91 3.00 3.00 6.97 12.12 1.85 1.53 1% 1% Ltd MTL 0.59 636.37 626 ‐2% Neutral 32.91 43.50 26.33 34.80 19.34 14.63 5.53 5.14 4% 5% Average Universe 68.82 11.91 8.00 2.85 2.54 10% 12% HABIBMETRO Financial Services Manzar Mushtaq CEO (92‐21) 3514 8170 [email protected]

Research Team Bilal Asif Head of Research (92‐21) 3582 2208 [email protected] Muhammad Sultan Mahmood Senior Analyst (92‐21) 3536 4665 ‐ 7 (Ext 117) [email protected] Kumail Chevelwalla Senior Analyst (92‐21) 3536 4665 ‐ 7 (Ext 118) [email protected] Saba Mahmood Investment Analyst (92‐21) 3536 4665 ‐ 7 (Ext 118) [email protected] Waheed Khan Data Analyst (92‐21) 3536 4665 ‐ 7 (Ext 119) [email protected]

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