Lucky Motor to manufacture mobile phone in Pakistan

Lucky Motor Corporation has entered into an agreement with Samsung Gulf Electronics to produce Samsung mobile phones domestically, at its existing Automobile plant at Port Qasim. Pertinently, mobile phone imports in Pakistan are set at ~USD 2bn per annum whereby Samsung has an estimated 24% market share. Assuming the PKR-USD parity at 160/USD, this can generate a revenue of PKR 76.8bn per annum for the group. We estimate this to be materially positive with initial workings suggesting a bottom-line ranging between PKR 8.31/share to PKR 23.75/share per annum; please find the table below to check sensitivity. This project requires a capex of PKR 5bn (most likely to be sourced internally), and the plant is projected to come online by Dec’21.

Courtesy – AHL Research

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