AHCL Board proposes share split for greater investor access

February 18, 2025 (MLN): The Board of Directors of Arif Habib Corporation Limited (AHCL) has proposed a subdivision of the company’s shares, reducing the face value from Rs10 per share to Rs1 per share.

This move is aimed at enhancing market liquidity, improving investor accessibility, and aligning AHCL's stock price with broader market participation.

As a result, the company's subscribed and paid-up capital, currently consisting of 421.69 million ordinary shares of Rs10 each, will be restructured into 4.21 billion ordinary shares of Rs1 each, without any change in the total paid-up capital.

Shareholders will receive 10 shares of Rs1 each for every 1 share of Rs10 held, with the effective date to be announced later.

To secure approval for this corporate action, the Board of Directors has called an Extra-Ordinary General Meeting (EOGM) on March 19, 2025, where shareholders will vote on the proposed resolution.

AHCL reported robust financial results for the period under review.

The company posted a consolidated profit after tax of Rs5.9bn, up from Rs5.4bn (restated) in the same period last year.

Earnings per share (EPS) stood at Rs14.66, compared to Rs13.30 (restated) in the prior year.

On an unconsolidated basis, AHCL posted a profit after tax of Rs15,157mn, with an EPS of Rs35.94, a significant increase from Rs4.5bn (restated) and EPS of Rs10.72 (restated) in the previous year.

This strong performance was driven by higher dividend income, remeasurement gains on investments, and strategic portfolio management.

The performance of AHCL’s subsidiaries and associates showed mixed results.

Arif Habib Limited saw a notable increase in profit after tax, reaching Rs509.95mn, up from Rs189.87mn in the same period last year, benefiting from favorable market conditions.

Sachal Energy Development delivered a profit of Rs1.5bn, although slightly lower than the previous year.

Power Cement Limited reported a profit after tax of Rs32.37mn, a significant turnaround from a loss of Rs469.8mn in the prior year, attributed to better cost management and operational efficiencies.

Fatima Fertilizer saw growth in profitability, driven by operational efficiencies and improved margins.

Javedan Corporation Limited continued to perform strongly, benefitting from a robust real estate market.

SafeMix Concrete Limited remained profitable, despite a slight decline compared to the previous year.

Aisha Steel Mills Limited, however, faced challenges, experiencing a downturn in its financial performance due to adverse market conditions in the steel sector.

With economic stability improving, inflation easing, and interest rates declining, Pakistan's business environment is expected to remain favorable.

Support from the IMF, strong remittances, and fiscal discipline are anticipated to reinforce macroeconomic stability.

AHCL is well-positioned to benefit from these conditions, with continued strong performance in the fertilizer and brokerage sectors, stable performance in wind power, and resilience in the real estate, cement, and steel sectors, all supported by improved market sentiment.

With a strategic focus on efficiency and growth, the company remains confident in sustaining strong financial performance in the near term.

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