Staff Report :

According to data from the Pakistan Telecommunication Authority (PTA), local mobile manufacturers produced 2.15 million units in September 2024, a 44% increase month-on-month and stable year-on-year.

In the first nine months of 2024, local manufacturing reached 22.59 million units, up 74% year-on-year, largely due to last year’s import restrictions. Compared to 2022, this still marks a 35% increase, fueled by economic recovery, a shift to locally assembled phones due to higher import taxes, and population growth.Jazz,Wateen Concerned over Telenor Acquisition by PTCL

Of the 22.59 million locally assembled units in 2024, 61% were smartphones (13.86 million), and 39% were 2G phones (8.73 million).

The top 10 brands in 2024 included Infinix (2.79 million units), Itel (2.75 million), VGO Tel (2.43 million), Vivo (2.13 million), Tecno (2.03 million), Xiaomi (1.89 million), Realme (1.35 million), G’Five (1.09 million), Samsung (0.98 million), and Nokia (0.96 million).

Tecno and Xiaomi, manufactured by Airlink, made significant gains. Tecno’s production increased by 33% to 0.04 million units, and Xiaomi’s surged by 117% to 0.13 million in September 2024.

*Outlook:* The monthly run rate and 18% sales tax on all mobile phones in the FY25 budget may drive demand up to 33 million units in 2024, a 44% year-on-year increase from 2023’s 22.9 million units.

*Buy Recommendation on AIRLINK:* Air Link Communication is well-positioned to benefit from rising smartphone sales, with a favorable buy recommendation at a forecasted FY25 P/E of 8.5x and FY26 P/E of 8.0x, compared to its three-year average P/E since its IPO.