Weekly Corporate Buzz

September 28, 2024 (MLN): The outgoing week was packed with exciting developments from top players in the corporate world.

BF Biosciences stunned the market with an oversubscribed IPO at the upper price limit, Ecopack ramping up production with a brand-new bottle line, Din Textile moving with an expansion plan that's set to launch by November while PTCL bagged $400m for its Telenor acquisition.

Meanwhile, Attock Petroleum announced its solar plan and Mari Petroleum informed the bourse regarding its tech venture.
Here is a quick update on the latest happenings at the local bourse. Let’s dive into the top highlights.

Ecopack powers up with 22% production surge

The Board of Directors (BoD) of Ecopack Limited (PSX: ECOP) has approved the capital expenditure (CAPEX) for the acquisition of a PET bottle-blowing line, which will increase the company’s bottle production capacity by 22%.

Din Textile’s stitching unit set to launch in November

The Board of Directors of Din Textile Mills Limited (PSX: DINT) has approved the establishment of a new bedsheet stitching unit as part of its expansion strategy in the textile sector. This new unit will be located at the existing production facility and is expected to be operational by November 2024.

Arctic Textile spins into action

The board of directors of Arctic Textile Mills Limited (ARCTM) approved the acquisition of spinning unit(s) on lease at market-competitive rates, effective October 1, 2024. This decision is in response to the increased yarn conversion orders and is part of the company's business expansion efforts.

PTCL bags $400m for Telenor Pakistan acquisition

Pakistan Telecommunica­tion Com­pany Ltd (PTCL) has entered into a deal with the International Finance Corporation (IFC) led consortium for $400 million financing to materialise its plan of PTCL’s acquisition of Telenor Pakistan and its subsidiary Orion Towers (Private).

Attock Petroleum goes green

Attock Petroleum Limited (PSX: APL) plans to fully or partially transition to an On-Grid Solar System at its COCO retail outlets and other bulk oil storage terminals.

BF Biosciences IPO, strike price set at Rs77/share

BF Biosciences Limited's initial public offering resulted in a strike price of Rs77 per share, which is the upper limit of the 40% price band, determined through Book Building conducted on September 25 and 26, 2024.

The book-building process of BF Biosciences’ IPO concluded with an oversubscription of 3.4 times.

Siddiqsons Tin Plate appeals Singapore Court ruling

Siddiqsons Tin Plate Limited (PSX: STPL) filed an appeal in the Supreme Court of Singapore against order of the Singapore High Court dated August 28, 2024 in the matter of the dispute between STPL and New Metallurgy Hi-Tech Group Co. Ltd. (NMHC).

LCI secures Rs14bn

The shareholders of Lucky Core Industries Limited (PSX: LCI) authorized the company to enter into arrangements up to the aggregate extent of Rs14bn for the purchase and sale of goods, commodities, and materials with various related parties.

Bank of Khyber leads KP’s e-Stamping revolution

Bank of Khyber (BoK), Board of Revenue Khyber Pakhtunkhwa, and Khyber Pakhtunkhwa Information Technology Board (KPITB) signed a Service Level Agreement (SLA) in Peshawar to initiate the rollout of the e-Stamping project.

CCP discourages ‘Big Four’ term in agreements

The Competition Commission of Pakistan (CCP) explicitly discouraged using the term ‘Big Four’ in commercial covenants for appointing firms for assurance or financial services.

Indus Motor halts production temporarily

Indus Motor Company Limited (PSX: INDU) temporarily suspended operations at its production plant from September 26, 2024, to September 30, 2024, both days inclusive.

UBL partners with TriFit for exclusive cardholder discounts

United Bank Limited (PSX: UBL) has formed a strategic partnership with TriFit to offer the best discounts to its debit and credit cardholders.

Siemens Pakistan unveils new strategy for electrification, automation

Siemens (Pakistan) Engineering (PSX: SIEM) moving to transform one of its operational segments within the Smart Infrastructure – Electrification and Automation Business.

Mari Petroleum launches tech subsidiary for data hosting

Mari Petroleum Company Limited (PSX: MARI) initiated the formation of a proposed wholly-owned tech subsidiary. These data centers will host data for public and private institutions.

Also, the shareholders MARI approved the capitalization of a total of Rs10.59bn from its Capital Redemption Reserve Fund and Rs82.2m from its unappropriated profits.

NCCPL extends deadline for HBL LSE Branch closure

The National Clearing Company of Pakistan Limited (NCCPL) extended the deadline for the closure of Habib Bank Limited – LSE Branch, Lahore, as a Settling Bank to September 30, 2024.

Turkish Airlines shuts down PIA acquisition rumors

Turkish Airlines refuted reports claiming it is in negotiations to acquire Pakistan International Airlines (PIA). In an official exchange filing, the airline stated that the news circulating in various media outlets "does not reflect the truth."

OGDC finds new gas reserves in Sindh

In a major boost to Pakistan's energy sector, the Sawan South Joint Venture discovered a promising gas reserve in the Akhiro-1 well, located in District Khairpur, Sindh Province, Oil and Gas Development Company Limited (PSX: OGDC)'s filing on PSX revealed.  Sawan South Joint Venture comprised of United Energy Pakistan Limited (UEPL) as operator, also includes Oil and Gas Development Company Limited (OGDCL) with a 20% working interest, Government Holding Private Limited (GHPL) at 2.5%, and Sindh Energy Holding Limited (SEHL) with 2.5%.

PIA privatization plan takes shape

The final draft for Pakistan International Airlines' privatization has been prepared, with 60% of the carrier’s shares set for sale on October 01, a Privatization Commission official said.

CCP approves Nishat Group’s restructuring plan

The Competition Commission of Pakistan (CCP) has approved internal restructuring involving Nishat Chunian Limited (NCL), Nishat Chunian Power Limited (NCPL), Nishat Mills Limited (NML), and the CEO of NCL, Shahzad Saleem.

Sindh High Court Ssnctions pharma merger

The High Court of Sindh authorized the merger of Liven Pharmaceuticals (Pvt.) Limited (LPL) with Landmark Spinning Industries Limited (PSX: LMSM) by way of amalgamation of the entire business.

Calcorp greenlights sale of operating assets

The Board of Directors of Calcorp Limited (PSX: CASH) approved the prospective sales of the company's operating assets (i.e. the vehicles) to Optimus Limited.

Habib Rice to install Rs250m Biomass Cogen Plant

The board of Habib Rice Product Ltd (PSX: HRPL) allowed the management of the company to purchase and install a Biomass Cogen Power and Steam Plant at a cost of approximately Rs250m.

TOMCL secures $12m contract with China

The Organic Meat Company Limited (PSX: TOMCL) has secured a contract of $12m for the supply of frozen cooked beef meat to the People's Republic of China (PR China).

PSX improvises Corporate Services Suite

The Pakistan Stock Exchange (PSX) enhanced its Suite of Corporate Services services to encourage companies to improve their investor relations, corporate affairs, and compliance with the regulatory framework.

Amreli Steels suspends 30% of production

The Board of Directors (BoD) of Amreli Steels Limited (PSX: ASTL) decided to temporarily suspend operations at its oldest manufacturing facility, the SITE Rolling Mill (SRM) in Karachi, which accounts for 30% of the company's total production capacity.

Sazgar Engineering sets sights on Rs4.5bn expansion plan

The Board of Directors of Sazgar Engineering Works Limited (PSX: SAZEW) has approved an expansion plan with an estimated cost of Rs4.50 billion (excluding the cost of land), a part of which includes the installation of a 4-megawatt solar system.

OGDC partners with China’s CCDC

The Oil and Gas Development Company Limited (PSX: OGDC) and Chuanqing Drilling Engineering Company Limited (CCDC), China’s major player in Drilling and upstream Oil field Services, signed an MoU on Sunday for the development of Shale and tight gas potential of Pakistan.

Financial Results

Amidst the earnings season, numerous companies have announced their financial results for the recent quarter. Most of them witnessed remarkable performance across various sectors

• Treet Battery Limited (PSX: TBL) saw a turnaround in FY24, as it suffered a loss of Rs285.99 million [LPS: Rs0.32] compared to the positive bottom line of Rs57.99m [EPS: Rs0.26] reported last year.
• Treet Corporation Limited (PSX: TREET) bared a loss of Rs189.15 million [LPS: Rs0.87] in FY24 compared to a profit of Rs133.45m [EPS: Rs0.61] reported in the previous fiscal year.
• Nishat Mills Limited (PSX: NML) earned a profit after tax of Rs1.02 billion [EPS: Rs2.9] in the quarter ending June 2024, compared to a profit of Rs1.03bn [EPS: Rs2.93] in the same period last year (SPLY).
• Sitara Chemical Industries Limited (PSX: SITC) reported a quarterly loss on Friday as its margins eroded and taxes surged. The company posted a net loss of Rs69.67 million [LPS: Rs3.25] during the quarter ending June 2024 compared to a profit of Rs346.6m [EPS: Rs16.17] earned in SPLY.
• Towellers Limited (PSX: TOWL) witnessed a major setback in FY24 as its earnings plummeted by 76.57% to Rs559.5 million [EPS: Rs32.91], compared to the bottom line of Rs2.39bn [EPS: Rs140.49] in the previous fiscal year.
• Nishat Chunian Limited (PSX: NCL) swung to a positive bottom line, earning Rs691.67 million [EPS: Rs2.88] in FY24, compared to a loss of Rs998.93m [LPS: Rs4.16] incurred in SPLY.
• Ghandhara Industries Limited (PSX: GHNI) experienced a rise of 335.5% YoY in its bottom line for FY24, earning Rs781.41 million [EPS: Rs10.71], compared to a profit of Rs179.42m [EPS: Rs9.78] reported in the previous financial year.
• Ghandhara Automobiles Limited (PSX: GAL) reported a loss of Rs258.81 million [LPS: Rs4.54] in FY24, compared to a profit of Rs63.7m [EPS: Rs1.12] during SPLY.
• Power Cement Limited (PSX: POWER) losses widened by almost four times during the April-June quarter as sales plunged. The company incurred a net loss of Rs1.52 billion [LPS: Rs1.47] during the quarter as compared to Rs384.43 million [LPS: Rs0.35] in SPLY.
• Gul Ahmed Textile Mills Limited (PSX: GATM) recorded an increase of 79.1% in its profitability during the quarter ending June 2024 as its other income surged.
• Sitara Peroxide Limited (PSX: SPL) suffered steeper losses in fiscal year 2023-24 as its sales plummeted during the year. Net loss for the year widened to Rs792.78 million from a loss of Rs341.2m. That translates to a loss per share of Rs14.39.
• Berger Paints Pakistan Limited (PSX: BERG) recorded an increase of 9.5% YoY in its earnings for FY24, clocking in its profit after tax at Rs262.86 million [EPS: Rs10.71], compared to the bottom line of Rs240.06m [EPS: Rs9.78] reported in FY23.
• Kohinoor Energy Limited (PSX: KOHE) earned Rs1.6 billion [EPS: Rs9.44] in FY24, edging up by 1.72% compared to the bottom line of Rs1.57bn [EPS: Rs9.29] in SPLY.
• TPL Properties Limited (PSX: TPLP) posted a loss after tax of Rs1.9 billion [LPS: Rs3.39] during the quarter ending June 2024, up significantly by 480.5% compared to the loss of Rs327.94 million [LPS: Rs0.6] incurred in SPLY.
• TPL Trakker Limited (PSX: TPLT) posted a profit after tax of Rs29.44 million [EPS: Rs0.16] for the quarter ending June 2024, down 20.2% from the same period last year despite a surge in gross profit.
• Sazgar Engineering Works Limited (PSX: SAZEW) reported a remarkable profit of Rs7.94 billion for the year ended June 30, 2024 (FY24), which is an impressive nearly 700% increase compared to the earnings of Rs995.08 million in FY23.
• Oil & Gas Development Company Limited (PSX: OGDC) posted a profit after tax of Rs37.87 billion [EPS: Rs8.81], down 41.7% compared to a profit of Rs64.98bn [EPS: Rs15.11] in SPLY.
• Amreli Steels Ltd. (PSX: ASTL) recorded a massive loss of Rs6.11 billion [LPS: Rs20.56] during the fiscal year 2024, around 776% higher compared to the negative bottom line of Rs697.2m [LPS: Rs2.35] reported in the previous fiscal year.
• Hi-Tech Lubricants Limited (PSX: HTL) posted a profit after tax of Rs52.48 million [EPS: Rs0.38] in the quarter ending June 2024 as sales doubled. For the whole fiscal year 2023-24, the company earned Rs111.4m.

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