40,650 40,600 40,550 40,500 40,450 40,400 40,350 40,300 40,250 40,200 40,596 40,544 40,507 40,487 40, Feb 12-Feb 13-Feb 14-Feb 15-Feb

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1 AKD Equity Research / Pakistan AKD Research research@akdsecurities.net Indic e s KS E KS E- 3 0 This week 40,487 19,454 Last week 40,887 19,599 Change % % Indic e s KMI- 3 0 Allsha re This week 67,988 29,331 Last week 68,426 29, % % Mkt Ca p. PkRbn US$ bn This week 8, Last week 8, Avg. Da ily Turnove r ('mn sha re s) This week Last week Change % Weekly Review Continuing from the close of last week, index started the week on a negative note and remained on the trajectory, ending the week at 40,487pts, down -1%WoW. Even the hint by Finance Minister of opting for an IMF program could not cheer the investors as they preferred to book profits after the index posting an increase of ~10% in Jan'18. Declining coal prices (down 11% since start of Dec'19) invigorated euphoria among cement stocks in the early part of the week, however, some selling was witnessed in the latter half as profit taking took effect. Inflows of US$1.6mn depicted muted foreign interest while the average daily turnover stood at 125mn, down 34.7%WoW. Key news flows impacting the market during the week included i) the Government reportedly deciding to take up to US$6 billion loan from the International Monetary Fund (IMF), ii) Pakistan and Saudi Arabia likely to ink three major Memorandum of Understanding (MoUs) amounting to over US$10 billion during the upcoming visit of Saudi Prince, iii) exports during 7MFY19 witnessing an increase of 2.24% to US$13.2 billion, iv) Moody's Investors Services changing its outlook for the banking system in Pakistan to negative (B3 negative) from stable, and v) Taliban saying that their negotiators would meet US envoys for talks this month in Islamabad, and will also sit down with Prime Minister Imran Khan to discuss Afghanistan. Key performers over the week were: i) CHCC (+5.36%WoW), ii) DGKC (+5.01%WoW), iii) KEL (+2.35%WoW), iv) KAPCO (+2.29%WoW) and v) OGDC (+1.74%WoW), while laggards included: i) PSMC (-7.02%WoW), ii) PSO (-7.02%WoW), iii) HBL (-3.29%WoW), iv) APL (-2.95%WoW) and v) EFOODS (-2.91% WoW). Top-5 Volume Leaders Symbol Volume (mn) KEL : LOTCHEM : ANL : DGKC : FCCL : (share mn) (Index) 700 Index & Volume Chart (Shrs'000) 180, , , , ,000 80,000 60,000 40,000 20,000 40,327 40,596 40,544 40,507 40,487 (Index) 40,650 40,600 40,550 40,500 40,450 40,400 40,350 40,300 40,250 40, % 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% Universe Gainers & Losers ,000 44, Feb 12-Feb 13-Feb 14-Feb 15-Feb Ready Volume (LHS) KSE100 Index (RHS) 40,150 CHCC DGKC KEL KAPCO OGDC EFOODS APL HBL PSO PSMC ,000 Source: PSX & AKD Research ,000 38,000 Outlook 0 Volume (LHS) KSE-100 Index 36,000 Source: PSX & AKD Research Upcoming visit of Saudi Prince is expected to keep the investors excited for the week as major investment deals are expected to be signed. Moreover, continuation of result season will also keep the activity uplifted in selected stocks where some blue chips like PSO, UBL, MCB, ENGRO are expected to announce their results. However, we advise investors to keep a close eye on rising geopolitical tensions as any escalation can take a toll on the market. Important disclosures Important disclosures including investment banking relationships and analyst certification at end of this report. AKD Securities does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of the report. Investors should consider this report as only a single factor in making their investment decision. AKD Securities TREC Holder & Registered Broker Pakistan Stock Exchange REP-019 Find AKD research on Bloomberg (AKDS<GO>), firstcall.com and Reuters Knowledge Copyright All rights reserved. The information provided on this document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject AKD Securities or its affiliates to any registration requirement within such jurisdiction or country. Neither the information, nor any opinion contained in this document constitutes a solicitation or offer by AKD Securities or its affiliates to buy or sell any securities or provide any investment advice or service. AKD Securities does not warrant the accuracy of the information provided herein.

2 This Week s Daily Reports Feb 15, ,700 40,650 40,600 40,550 40,500 40,450 40,400 40,350 40,300 40,250 40,200 Feb 14, :30 9:55 10:20 10:44 11:09 11:34 11:58 12:23 12:48 13:12 13:37 14:02 14:26 14:51 15:16 9:30 9:55 10:19 10:44 11:09 11:33 11:58 12:22 12:47 13:12 13:36 14:01 14:26 14:50 15:15 40,650 40,600 40,550 40,500 40,450 40,400 40,350 40,300 40,250 40,200 40,150 Feb 13, ,865 40,821 40,777 40,733 40,689 40,645 40,601 40,557 40,513 40,469 40,425 Feb 12, ,722 40,656 40,590 40,524 40,458 40,392 40,326 40,260 40,194 40,128 40,062 9:15 9:39 10:02 10:26 10:49 11:13 11:36 12:00 12:23 12:46 13:10 13:33 13:57 14:20 14:43 15:07 15:30 15:54 16:17 9:46 10:09 10:33 10:56 11:20 11:43 12:07 12:30 12:53 13:17 13:40 14:04 14:27 14:51 15:14 9:30 9:53 10:17 10:40 11:04 11:27 11:51 12:14 12:38 13:01 13:25 13:48 14:12 14:35 14:59 15:22 Feb 11, ,240 41,085 40,930 40,775 40,620 40,465 40,310 40,155 40,000 Source: PSX & AKD Research Pakistan OMC's: PSO & HASCOL Result Previews, (AKD Daily, Feb 15, 2019) PSO expected to post NPAT of PkR6.3bn for 1HFY19, down 26%YoY: Board of Management of PSO is scheduled to meet tomorrow (Feb 16 19) to announce 1HFY19 results. For 2QFY19, the company is expected to post an EPS of PkR5.45 vs. PkR8.93 in 2QFY18. A 46/3% YoY/QoQ decline in volumes (in-line with an industry-wide down cycle) will soften the topline as economic cyclicality dampens demand, leading to a YoY decline while the QoQ decline was on the back of seasonality (worsened by smuggled product). Declining oil prices will also drag the bottom-line as we expect the company to incur inventory loss of PkR1.2bn for the quarter vs. an inventory gain of PkR1.8bn in 1QFY19, taking the total for 1HFY19 to PkR0.6bn. Moreover, a 12% depreciation of PkR vs. USD is expected to induce exchange loss of PkR0.3bn for PSO. For 1HFY19, the EPS is expected to come out at PkR16.1 vs. PkR21.8 in 1HFY18, down 26%YoY on the back of decreased volumes, higher inventory/ exchange loss. HASCOL is set to record an EPS of PkR9.16 in CY18, down 14%YoY: We expect the company to record NPAT of PkR1.2bn (EPS: PkR9.16) in CY18 vs. PkR1.4bn (EPS: PkR9.68) in the corresponding period last year. The results could be accompanied by a dividend of PkR2.5/sh. For 4QCY18, we expect the company to post an EPS of PkR-1.25, -159/-138% YoY/QoQ driven by 57.23%YoY decrease in gross profit on the back of decrease in market share to 9.5% in 4QCY18 vs. 10.9% in 4QCY17 as sales volume receded by 37%YoY, dropping significantly from the high-growth trajectory witnessed previously. Exchange loss has been a major drag on company s earnings, totaling to PkR2.5bn in 9MCY18 where we expect the exchange loss for 4QCY18 to the tune of ~PkR0.5mn, taking the total to ~PkR3bn for CY18. On other hand, weak global crude and refined product price volatility imply an inventory loss of ~PkR400mn for 4QCY18, where a reliance on imported sourcing and sourcing prowess (timing of shipments) could deliver upsides to our estimates. Pak Commodities: Dazed and confused' from global developments, (AKD Daily, Feb 14, 19) Recovering from a weak 4QCY18, global commodity prices bounced back as fears of global economic growth remained prominent (IMF pulling 2019 global growth forecast to 3.5%), despite which a spate of geopolitical developments (Venezuela sanctions, China's coal import slowdown) pushed the TRJ Commodities index higher (up 5.8%MoM) Energy commodities witnessed mixed performance with Crude benchmarks rising (Brent/ Arab Light prices up 14.6/14.4%MoM) from US sanctions levied on crude from Venezuela pushing prices for heavy grades, while slowing demand from China kept Coal prices soft (Richard's Bay coal fell 7.1%MoM) Steel prices remain subdued where the outlook is showing signs of improvement, while Cotton (-3.7%MoM), Urea (-2.4%MoM) and Food (FAO index +1.8%MoM) price indices undergo modest moves as damaging weather events and altered supply chains reflected in prices While effectively rolling forward and doubling previous oil financing arrangements with Saudi Arabia, the role of the Kingdom in supplying crude (evenly split between UAE and Saudi) is set to solidify with the Crown Prince's visit and inking of agreements to establish a refining complex. While core food and energy commodities remain in relatively soft territory, any space provided on the external front is significant, while providing a window to enact tough reforms (energy prices, fiscal measures) mandated under any IMF program without exerting undue pressures on consumer purchasing power. Pakistan Banks: 4QCY18_Interest rate hikes to reflect on NIMs, (AKD Daily, Feb 13, 2019) AKD banking universe is set to announce their full year CY18 results where we expect the sector to post an NPAT of PkR86.4bn for CY18E vs. PkR124.3bn in CY17 (excluding HBL penalty). 4QCY18 NPAT is likely to record at PkR14.3bn (down 22.1/54.6% QoQ/YoY), with attrition in earnings attributable to super tax. On a PBT basis, we expect earnings to register a growth of 18.1%QoQ driven through NIMs improvement 4QCY18E NIMs: 3.54% vs. 3.27/3.45% in 3QCY18E/4QCY17) pulling-up NII 2

3 This Week s Daily Reports growth by 10.3%QoQ vs. ve 3.5%QoQ in 3QCY18. 4QCY18 provisions are likely to creep up by 38.7%QoQ/3.5xYoY to PkR8.1bn likely driven by HBL, UBL and NBP. Apart from provisioning costs, administrative costs are likely to remain elevated due to continuation of one-off cost for HBL and seasonally higher administrative expense at year-end for HBL, ABL and MCB. Our preference is tilted towards banks that can keep their provisioning costs at a manageable level in a fragile macro-economic environment and resultantly we have our liking for MCB with a Dec 19 TP of PkR238.3/sh. Pakistan Auto: Slimmer sales jump this January, (AKD Daily, Feb 12, 2019) Following a trimmed 4QCY18, a lean start to CY19 is seen with Jan 19 total industry sales of 23,140 units (+16%MoM/-6%YoY) consisting of 19,353 passenger cars (+20%MoM/-3%YoY), 3,185 LCVs & Pickups (-4%MoM/-12%YoY) and 537 Trucks (+78%MoM/-39%YoY), marking the slowest MoM move since Jan 07 For the passenger car segment, premium segment sales hunkered-on where segment sales of 9,750 units (+49%MoM/+13%YoY) allowed premium players INDU/HCAR to record sales growth of +17%/+91%MoM and +16%/+3%YoY, whereas 800CC and below segment sales receded (4,318 units down 12%MoM/34%YoY), suppressing PSMC s offtake (11,746 vehicles, 0%MoM/-15%YoY) Cumulative 7MFY19 total industry sales of 147,352 vehicles (-4%YoY) constituted by 123,391 passenger vehicles (0%YoY), 19,589 LCVs & Pickups (-20%YoY) and 3,762 Trucks (- 27%MoM), underpin a hampered commercial demand scenario where LCV, Pickups, Trucks and Buses account for 16.3% of industry sales vs. 19.4% in 7MFY18 Amongst major OEMs, 7MFY19 cumulative sales for PSMC/INDU/HCAR amount to 74,903/38,880/28,796 units shifting -10/+10/-2%YoY, as 1,300CC+ segment sales remained a bright spot (+11%YoY) with INDU and HCAR unit sales benefitting from the wider segmental lift Pak Eco: IMF Negotiations Searching for common ground, (AKD Daily, Feb 11, 2019) Recent headlines suggest that the GoP and the IMF have reached a broad level consensus with regards to potential bailout package amounting to US$6bn. The final agreement however is expected to be inked by Apr 19, with flows likely to materialize Jun 19 on-wards. The said development is broadly positive with additional spillovers for building confidence, with critical implications on unlocking funding flows from other multilateral agencies, where adherence to IMF imposed structural benchmarks raises creditworthiness. While we await details of any finalized agreement, initial policy focus would be on the fiscal side, in our view, with other macro adjustments including further tightening and market based currency depreciation complementing the adjustment process. Initial market reaction is observed to be mixed given the statement of commitment from the IMF is tempered with hints of do more. Eyeing continued interest rate up-cycle, we stick to our preference for the Banking sector where top picks include UBL and MCB. Sectors including E&Ps, Textiles, and Power that favorably play on macro-theme of consolidation are also part of our preference list, with particular liking for NML, HUBC, and OGDC.. 3

4 Regional Valuations (2019) EPS Growth PE(x) Pakistan 19.68% 8.70 Indonesia 8.55% Malaysia 12.11% Philippines 6.57% Vitenam 12.42% India 28.47% China 12.47% 8.97 % ROE Divd Yld Pakistan 16.3% 7.36 Indonesia Malaysia Philippines Vitenam India China Source: AKD Research & Bloomberg Major World Indices Performance Country Bloomberg Code WoW CYTD Pakistan KSE100 Index 40,487 40, % 9.2% Srilanka CSEALL Index 5,909 5, % -2.4% Thailand SET Index 1,637 1, % 4.7% Indonesia JCI Index 6,389 6, % 3.1% Malaysia FBMKLCI Index 1,689 1, % -0.1% Philippines PCOMP Index 7,909 8, % 5.9% Vietnam VNINDEX Index % 6.5% Hong Kong HSI Index 27,901 27, % 8.0% Singapore FSSTI Index 3,240 3, % 5.6% Brazil IBX Index 40,633 39, % 11.3% India SENSEX Index 35,809 36, % -0.7% S&P SPX Index 2,746 2, % 9.5% DJIA INDU Index 25,439 25, % 9.1% UK UKX Index 7,237 7, % 7.6% Germany DAX Index 11,239 10, % 6.4% Qatar DSM Index 9,942 10, % -3.5% Abu Dhabi ADSMI Index 5,036 5, % 2.5% Dubai DFMGI Index 2,534 2, % 0.2% Kuwait KWSEIDX Index 6,633 6, % 0.0% Oman MSM30 Index 4,109 4, % -5.0% Saudi Arabia SASEIDX Index 8,626 8, % 10.2% MSCI EM MXEF Index 1,039 1, % 7.6% MSCI FM MXFM Index % 6.9% PkR/US$ Trend TRJ-CRB Index Source: Bloomberg Source: Bloomberg International Major Currencies Source: Bloomberg SPOT Chg +/- WoW CYTD Dollar Index % 1.05% USD/PkR % -0.01% USD/JPY % 0.76% EUR/USD % -1.81% GBP/USD % 0.42% AUD/USD % 0.88% NZD/USD % 2.01% CHF/USD % 2.54% CAD/USD % -2.60% USD/KRW 1,129 1, % 1.16% CNY/USD % -1.57% Source: Bloomberg Commodities SPOT Units WoW CYTD TRJ-CRB Points % 5.88% Nymex (WTI) US$/bbl % 21.03% ICE Brent US$/bbl % 21.99% N. Gas Henry Hub US$/Mmbtu % % Cotton USd/Pound % -1.42% Gold US$/Tr.Oz % 2.78% Sliver US$/Tr.Oz % 1.14% Copper US$/MT % 3.16% Platinum US$/Oz % -0.54% Coal US$/MT % % Source: Bloomberg 4

5 Chart Bank Earnings Yield vs. T-Bill (12M) Differential (%) Advance to Decline Ratio Jan-18 FIPI Flows for the week LIPI Flows for the week (US$'000) 4,000 3,500 3, Ind., , ,500 2,596 2, Bank/DFI, ,000 1,500 1,683 1,658 - (2.00) NBFC, (1.56) Others, (0.26) 1, (4.00) (6.00) (8.00) Co., (4.68) M.Funds, (2.84) Ins, (3.63) Prop. Trading, (6.30) AKD Universe vs. KSE-100 Index KSE-100 vs. MSCI-EM & MSCI-FM 17% 12% 7% 2% -3% -8% -13% -18% -23% 15% 10% 5% 0% -5% -10% -15% -20% -25% KSE100 MSCI FM MSCI EM KSE-All Share Index AKD Universe 5

6 AKD Universe Valuations F 2019F 2020F EPS (PkR) EPS chg (%) 1.10 (12.04) EPS chg (%) ex-e&p (21.82) (3.74) Book Value per Share (PkR) Payout (%) Valuations Price to Earnings (x) PER (Ex-Banks & E&Ps) (x) Price to Book (x) Price to CF (x) Earnings Yield (%) Dividend Yield (%) EV / EBITDA (x) Profitability Return on Equity (%) Return on Assets (%) Chg in Sales (%) (16.05) Gross Margin (%) Source: AKD Research Market PER Chart 2019 Jul-07 Jun-08 Jun-09 May-10 May-11 May-12 Apr-13 Apr-14 Mar-15 Mar-16 Mar-17 Jul-07 Jun-08 Jun-09 May-10 May-11 May-12 Apr-13 Apr-14 Mar-15 Mar-16 Mar-17 (x) Market P/BVS Chart 2019 (x) Source: AKD Research 6

7 AKD Universe Active Coverage Cluster s Valuations Stock Symbol Price TP Stance EPS(PkR) PE(x) PB(x) DY(%) UR Under Review (PkR) (PkR) 17 18F 19F 17 18F 19F 17 18F 19F 17 18F 19F Automobile and Parts Indus Motors INDU 1, , Buy Pak Suzuki Motors PSMC Sell Cements DG Khan Cement DGKC Sell Lucky Cement LUCK Buy Maple Leaf Cement Factory MLCF Buy Fauji Cement Company Ltd. FCCL Sell Pioneer Cement Limited PIOC Sell Cherat Cement Co Limited CHCC Sell Gharibwal Cement Ltd GWLC Buy Engineering Amreli Steels Ltd. ASTL Buy Fertilizers Engro Corporation ENGRO Neutral Engro Fertilizers Limited EFERT Sell Fauji Fert. Bin Qasim Ltd. FFBL Sell Fauji Fertilizer Company FFC Sell Fatima Fertilizer FATIMA Sell Food Producers Engro Foods Limited EFOODS Sell Oil & Gas Oil & Gas Development Co. OGDC Buy Pak Oilfields POL Sell Pakistan Petroleum PPL Neutral Hascol Petroleum HASCOL Buy Attock Petroleum APL Buy Pakistan State Oil PSO Buy Power Hub Power Co. HUBC Buy K-Electric Co. KEL 6.53 UR UR UR UR UR UR UR UR UR UR UR UR UR UR Kot Addu Power Company KAPCO Sell Cable & Electrical Goods Pak Elektron Ltd PAEL Sell Personal Goods Nishat Mills NML Neutral Nishat Chunian Ltd. NCL Sell Banks Allied Bank Limited ABL Neutral Bank AlFalah BAFL Sell Habib Bank Limited HBL Sell MCB Bank Limited MCB Neutral National Bank of Pakistan NBP Buy United Bank Ltd UBL Sell Source: AKD Research 7

8 AKD Universe Coverage Cluster s Performance S toc ks S ymbol P ric e Absolute P e rforma nc e (%) 1 Y e a r 1 Y e a r 15 - Fe b- 19 1M 3M 6M 12 M CY TD High Low KS E Inde x 4 0, , , Automobile a nd P a rts Indus Motors INDU Pak Suzuki Motors PSMC Ce me nts DG Khan Cement DGKC Lucky Cement LUCK Maple Leaf Cement Factory MLCF Fauji Cement Company Ltd. FCCL Pioneer Cement Limited PIOC Cherat Cement Limited CHCC Gharibwal Cement Limited GWLC Engine e ring Amreli Steel Ltd ASTL Fe rtilize rs Dawood Hercules DAWH Engro Fertilizers Ltd. EFERT Engro Chemical ENGRO Fatima Fertilizer FATIMA Fauji Fert. Bin Qasim Ltd. FFBL Fauji Fertilizer Company FFC Food P roduc e rs Engro Foods Limited EFOODS Ca ble & Ele c tric a l Goods Pak Elektron Limited PAEL Oil & Ga s Oil & Gas Development Co. OGDC Pak Oilfields POL Pakistan Petroleum Ltd. PPL Pakistan State Oil PSO Attock Petroleum Ltd. APL Hascol Petroleum HASCOL P owe r Hub Power Co. HUBC K- Electric Limited KEL Kot Addu Power Company KAPCO P e rsona l Goods Nisaht (Chunian) Ltd. NCL Nishat Mills NML Ba nks Allied Bank Limited ABL Bank AlFalah BAFL Habib Bank Limited HBL MCB Bank Limited MCB National Bank of Pakistan NBP United Bank Ltd UBL Source: PSX & AKD Research 8

9 Economic Snapshot End Month Data Units Dec-17 Jan-18 Monetary Rates T-Bills - 3M % T-Bills - 6M % T-Bills - 12M % PIB 10Y % KIBOR 6M % Discount rate % Policy rate % Inflation Headline inflation % Core inflation % Food inflation % (0.20) External Indicators Export (PBS) Import (PBS) Trade Deficit (PBS) Export (SBP) Import (SBP) US$ (mn) US$ (mn) US$ (mn) 1,977 1,971 1,902 2,231 2,133 2, ,646 2,017 1,728 1,903 1,843 2,080 4,910 5,607 4,797 5,280 5,066 5, ,838 4,992 4,430 4,841 4,626 4,444 (2,933) (3,636) (2,895) (3,049) (2,933) (3,670) (3,807) (3,192) (2,975) (2,702) (2,938) (2,783) (2,364) 2,464 2,111 2,059 2,305 2,246 2,266 2,012 2, , ,334 4,943 4,949 5,166 5,133 5,493 4,460 3,792 4,717 4,184 4,627 Trade Deficit (SBP) (2,676) (2,763) (2,275) (2,638) (2,703) (2,900) (3,121) (3,484) (2,373) (1,991) (2,654) (2,291) (2,624) Home Remittances US$ (mn) 1,724 1,639 1,672 1,773 1,651 1,771 1,594 1,929 2,037 1,452 2,000 1,609 1,690 Current Account US$ (mn) (1,256) (1,617) (1,241) (1,237) (1,947) (2,011) (1,976) (2,200) (600) (909) (1,218) (1,209) (1,660) Banking Sector Deposits PkR (bn) Advances PkR (bn) Investments PkR (bn) W. A. lending rate % W. A. deposit rate % 12,362 12,002 11,933 12,571 12,277 12,258 13,063 12,551 12,692 13,032 12,666 13,079 13,354 6,530 6,556 6,629 6,812 6,839 7,046 7,362 7,336 7,426 7,492 7,534 7,750 7,888 8,542 7,637 8,127 6,853 7,784 6,733 8,179 7,785 6,893 6,677 5,525 5,459 7, Spread rate % Public Finance Tax collection PkR (mn) 416, , , , , , , , , , Direct taxes PkR (mn) 188,476 95,706 89, ,524 95, , ,441 94,017 71, ,023 n.a n.a n.a Indirect Taxes PkR (mn) 227, , , , , , , , , ,781 n.a n.a n.a Currency Fx Reserves USDPkR - Interbank US$ (mn) PkR/USD 20,154 18,957 18,317 17,796 17,540 15,977 16,407 16,891 16,370 14,921 14,016 14,011 13, Source: SBP, PBS & AKD Research 9

10 Analyst Certification We, the AKD Research Team, hereby individually & jointly certify that the views expressed in this research report accurately reflect our personal views about the subject securities and issuers. We also certify that no part of our compensation was, is,or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report. We further certify that we do not have any beneficial holding of the specific securities that we have recommendations on in this report. AKD Research Team Analyst Tel no. Coverage Usman Zahid (693) Executive Director Research Hamza Kamal (603) Banking Ali Asghar Poonawala (646) Cable & Electrical, OMCs & Automobiles Umer Farooq (602) Textiles & Steel Shahrukh Saleem (685) Cement Sector Qasim Anwar (680) Technical Analysis Nasir Khan (639) Research Production Tariq Mehmood (643) Library Operations DISCLOSURES & DISCLAIMERS This publication/communication or any portion hereof may not be reprinted, sold or redistributed without the written consent of AKD Securities Limited. has produced this report for private circulation to professional and institutional clients only. The information, opinions and estimates herein are not directed at, or intended for distribution to or use by, any person or entity in any jurisdiction where doing so would be contrary to law or regulation or which would subject to any additional registration or licensing requirement within such jurisdiction. The information and statistical data herein have been obtained from sources we believe to be reliable and complied by our research department in good faith. Such information has not been independently verified and we make no representation or warranty as to its accuracy, completeness or correctness. Any opinions or estimates herein reflect the judgment of at the date of this publication/ communication and are subject to change at any time without notice. This report is not a solicitation or any offer to buy or sell any of the securities mentioned herein. It is for information purposes only and is not intended to provide professional, investment or any other type of advice or recommendation and does not take into account the particular investment objectives, financial situation or needs of individual recipients. Before acting on any information in this publication/communication, you should consider whether it is suitable for your particular circumstances and, if appropriate, seek professional advice. Neither AKD Securities Limited nor any of its affiliates or any other person connected with the company accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained therein. Subject to any applicable laws and regulations,, its affiliates or group companies or individuals connected with AKD Securities Limited may have used the information contained herein before publication and may have positions in, may from time to time purchase or sell or have a material interest in any of the securities mentioned or related securities or may currently or in future have or have had a relationship with, or may provide or have provided investment banking, capital markets and/or other services to, the entities referred to herein, their advisors and/or any other connected parties. (the company) or persons connected with it may from time to time have an investment banking or other relationship, including but not limited to, the participation or investment in commercial banking transaction (including loans) with some or all of the issuers mentioned therein, either for their own account or the account of their customers. Persons connected with the company may provide corporate finance and other services to the issuer of the securities mentioned herein, including the issuance of options on securities mentioned herein or any related investment and may make a purchase and/or sale of the securities or any related investment from time to time in the open market or otherwise, in each case either as principal or agent. This document is being distributed in the United State solely to "major institutional investors" as defined in Rule 15a-6 under the U.S. Securities Exchange Act of 1934, and may not be furnished to any other person in the United States. Each U.S. person that receives this document by its acceptance hereof represents and agrees that it: is a "major institutional investor", as so defined; and understands the whole document. Any such person wishing to follow-up any of the information should do so by contacting a registered representative of. The securities discussed in this report may not be eligible for sale in some states in the U.S. or in some countries. Any recipient, other than a U.S. recipient that wishes further information should contact the company. This report may not be reproduced, distributed or published, in whole or in part, by any recipient hereof for any purpose. 10