KARACHI, July 27, 2020: KIA lucky Motors has received an impressive response from the market on both its products including Picanto and Sportage.
According to Topline, company is booking 1,500-2,000 cars per month, which can take sales to 18,000 to 24,000 units per annum as against earlier expectation of 12,000 units for this fiscal year (FY21).
In FY22, the company is planning to launch 2 to 4 new models before Jun-2021 to avail low tariff benefits of the Automotive Policy 2016-2021.
Resultantly, Topline is now expected that Kia-Lucky profits of Rs2.2 billion to Rs 3.3 billion in FY21 and FY22 as against earlier expectation of a loss in FY21 and a nominal profit in FY22.
The company has a tax holiday for 10 years unlike other players like Pak Suzuki, Indus Motors and Honda Car.
LUCK offers exposure to combination of factor including (1) construction up cycle as a result of favorable government policies, (2) pickup in Auto sales driven by low markup rates and (3) COVID-19 related benefits through its Pharmaceutical cum Chemical company, ICI Pakistan.
EPS of LUCK forecast by 6 percent to Rs48 and Rs108 for FY21 and FY22, respectively due to strong performance portrayed by KIA Lucky Motors. Expect 3-Year (FY22-24) earning CAGR of 43% primarily on the back of induction of 660 MW coal power plant, better-than-expected KIA performance, improvement in cement business margins and commercial operations of integrated plant in Iraq.