SAZEW earnings preview: Haval sales face road bumps, but hybrid lead remains strong

Sazgar Engineering Works (SAZEW), the name behind Pakistan’s popular Haval hybrid SUVs, is expected to post solid earnings for the last quarter of FY25, with EPS likely to clock in at Rs7.26, showing a 30% growth year-on-year.

Here’s what’s driving the numbers:

• Quarterly revenue is expected at Rs27.6 billion, up 20% from last year. That’s an impressive jump, driven by steady demand in the hybrid segment.
• Gross margins are likely to be 29.1%, a slight drop compared to earlier quarters, mostly due to tougher competition in the SUV market and some cost pressure.
• Investors can expect a dividend of Rs11/share, not bad for a company still scaling operations in a fast-moving auto market.

Why the slowdown QoQ?

Even though year-on-year growth looks good, quarter-on-quarter comparisons tell a different story:

• Sales volumes of Haval SUVs dipped, possibly due to price competition and consumer wait-and-watch behavior.
• Delivery disruptions in Sindh due to local protests slowed down shipments and affected sales in key urban markets.
• The company’s flagship SUV, the Haval H6 Hybrid, still leads in its segment but is beginning to face pressure from new hybrid entrants and global players.

The bigger picture:

Despite short-term delivery and competition challenges, SAZEW is still seen as a pioneer in Pakistan’s hybrid vehicle space. Its first-mover advantage, growing brand recognition, and continued customer interest in fuel-efficient alternatives give it a solid edge going into FY26.

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If policy support continues for EVs and hybrids, like tax cuts and import duty waivers, SAZEW could benefit even more as Pakistan’s car market shifts toward cleaner, more tech-savvy vehicles.

Stock outlook:

While short-term sales may fluctuate, SAZEW remains a key long-term player in the hybrid/EV story. Watch this space.

Source: Foundation Securities

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⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →