<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Pak Elektron Limited (PAEL) announced its 1QCY20 result
where the company reported a loss of PKR557mn (LPS: PKR1.14), as opposed to a
profit of PKR409mn (EPS: PKR0.82) SPLY.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We attribute the decline in profitability mainly to 472bps
decline in GM to 22% as against 27% over the SPLY owing to higher raw material
costs and lower pricing power.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Additionally, 22%YoY and 59%YoY higher admin expenses and
distribution expenses, respectively, and rise of 33%YoY in finance cost also
dented the profitability of the company.</span></li></ul>
