Weekly Corporate Buzz

October 06, 2024 (MLN): Another action-packed week passed on Chundrigar Road, where a series of corporate decisions and market maneuvers kept the momentum alive.

Companies unveiled new strategies, tackling economic hurdles and reshaping their business models.

Textile giants turned to real estate, power players secured massive investments, and IPO announcements, along with PSX warnings and exciting collaborations, kept the market buzz strong.

Here is a quick update on the latest happenings at the local bourse. Let’s dive into the top highlights.

PSX reshuffles JS Momentum Factor Index

Setting the tone for future momentum-based trades, the Pakistan Stock Exchange Limited (PSX) conducted the JS Momentum Factor Index (JSMFI) recomposition exercise as of September 30, 2024.

Pak Leather downsizing, diversifying

The board of directors of Pak Leather Crafts Limited (PSX: PAKL) decided to downsize current operations and diversify into other lines of manufacturing, warehousing, or supply chain management.

D.M. Textile eyes real estate revolution

D.M. Textile Mills Limited (PSX: DMTX) is planning a full pivot into real estate as its Board of Directors recommended changing the principal line of business to real estate, after evaluating the available resources.

Zahur Cotton Mills gears up for revival

Zahur Cotton Mills Limited (PSX: ZHCM) is actively taking steps to initiate or resume commercial production and business operations.

Mubarak Textile stays in shutdown mode

Mubarak Textile Mills Limited (PSX: MUBT) will not commence or resume commercial production and business operations in its main business line.

Crescent Steel to offload non-operational assets

The Board of Directors of Crescent Steel & Allied Products Limited (PSX: CSAP) approved the disposal of plant and machinery and pre-engineered building of Crescent Hadeed (Billet) Division, which was non-operational for the past couple of years.

Azgard Nine extends Muzaffargarh sale deadline

The management of Azgard Nine Limited (PSX: ANL) extended the completion date for the sale transaction of the Muzaffargarh Unit until June 30, 2025, as part of the ongoing Creditors' Scheme of Arrangement.

Tariq Glass invests Rs1bn in Balochistan Glass

Tariq Glass Industries Limited (PSX: TGL)’s shareholders resolved to renew an investment of up to Rs1 billion in Baluchistan Glass Limited (PSX: BGL), an associated company.

Khalid Siraj eyes market comeback

The management of Khalid Siraj Textile Mills Limited (PSX: KSTM) is planning to restart production as soon as possible given that the right atmosphere and policies are in place.

Nazir Cotton faces legal delays

Nazir Cotton Mills Limited (PSX: NCML)’s case regarding the restoration of its electricity connection is pending before the Civil Court due to the health issues of WAPDA's lawyer.

PACRA downgrades Amreli Steels

Pakistan Credit Rating Agency Limited (PACRA) downgraded the entity ratings of Amreli Steels Limited (PSX: ASTL) from "BBB" to "BB" for the long-term and "A3" for the short-term with a negative outlook forecast.

Fateh Sportswear seeks to unlock $2mn stuck funds

Fateh Sports Wear Limited (PSX: FSWL) is actively pursuing the release of the stuck amount of $2 million and anticipates a swift resumption of operations once the stay order is vacated in the near future.

Suhail Jute reports slow progress amid uncertainty

Suhail Jute Mills Limited (PSX: SUHJ) reported no meaningful progress in respect of the sale of Land during the quarter ended on September 30, 2024, on the back of the political and economic uncertainties prevailing in the country and especially in Khyber-Pakhtunkhwa.

PSX warns of fraudulent activities on social media

Pakistan Stock Exchange Limited (PSX) alerted the investing public regarding the surge in fraudulent activities through different social media platforms.

Ferozsons partners with Gilead Sciences

Ferozsons Laboratories (PSX: FEROZ) has teamed up with Gilead Sciences Ireland UC through a non-exclusive voluntary license agreement to manufacture and distribute generic lenacapavir in high-need, resource-limited countries.

AGTL launches 85 HP model

To meet the changing needs of the agricultural sector, Al-Ghazi Tractors Limited (PSX: AGTL) has launched a new 85 HP tractor (the NH850).

CCP reviews PTCL’s acquisition of Telenor, Orion Towers

The Competition Commission of Pakistan (CCP) is actively progressing with the Phase II Merger Review of PTCL's proposed acquisition of 100% shareholding in Telenor Pakistan (Private) Limited (TP) and Orion Towers Private Limited (OT).

SANE looks for revival

Salman Noman Enterprises (PSX: SANE), following the closure of its operations, is actively pursuing different options for the revival of the company.

Mari faces market risk over bonus shares

Due to fluctuations in market price since the book closure date of September 19, 2024, there is a risk that Mari Petroleum Company Limited (PSX: MARI) may not fully recover the tax through bonus shares sales alone for those shareholders who do not remit money to the company.

Bilal Fibres remains non-operational

Bilal Fibres Limited (PSX: BILF) continues to be non-operational due to the adverse economic condition of Pakistan.

Landmark Spinning advances merger with Liven Pharmaceuticals

Following approval from the High Court of Sindh, Landmark Spinning Industries Limited (PSX: LMSM) is currently in the process of executing the terms and conditions of its merger with Liven Pharmaceuticals (Pvt.) Limited.

JS Bank teams up with Aion Digital

JS Bank Limited (PSX: JSBL) signed a strategic partnership with Aion Digital to enhance its digital banking services in Bahrain.

K-Electric launches Star Rewards

K-Electric (KE) has launched another pioneering initiative in the form of KE Star Rewards, in recognition of its customers who make on-time bill payments.

Crescent Cotton finalizes spinning unit sale for Rs550m

Following shareholder approval on June 3, Crescent Cotton Mills Limited (PSX: CCM) successfully negotiated the sale of its spinning unit to a potential buyer.

STPL postpones TMBP project

The Board of Siddiqsons Tin Plate Limited (PSX: STPL) decided to postpone its Tin Mill Black Plate (TMBP) project due to challenging economic conditions.

BF Biosciences public subscription opens

The public subscription for BF Biosciences Limited took place on October 2nd and 3rd, 2024.

Engro Polymer resumes operations

The units of Engro Polymer & Chemicals Limited (PSX: EPCL) plant that were undergoing maintenance successfully resumed operations on the evening of September 30, 2024.

Hub Power invests Rs5.4bn in SECMC

The Hub Power Company Limited (PSX: HUBC) received its shareholders' approval for additional investments in Sindh Engro Coal Mining Company Limited (SECMC), with a total investment capped at Rs5.4 billion.

Thal Industries secures Rs2bn land deal

The shareholders of Thal Industries Corporation Limited (PSX: TICL) granted their approval to acquire freehold land from Muhammad Shamim Khan, at a price of Rs2.004 billion, as determined by an approved independent valuer.

Pakistan Cables sells its Karachi land

The shareholders of Pakistan Cables Limited (PSX: PCAL) approved the disposal and sale of its bifurcated land, bearing plot no B-21, measuring approximately 6.816 acres, located at Pakistan Cables Road, S.I.T.E., Karachi-75700, Pakistan, for a price of Rs285 million per acre.

Kohinoor Power, Saritow Spinning call off amalgamation

The Boards of Directors of Kohinoor Power Company Limited (PSX: KOHP) and Saritow Spinning Mills Limited (SSML) have decided to retract the previously granted approval for the proposed amalgamation of KPCL into SSML.

PSX reschedules GIS auction

The Pakistan Stock Exchange (PSX) rescheduled the GIS auction originally scheduled for Thursday, October 3, 2024, to Monday, October 14, 2024.

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.

• Hum Network Limited (HUMNL) net profit rose 21.5% to Rs2.61 billion [EPS: Rs2.3] in the financial year 2024.
• Oil & Gas Development Company Limited (PSX: OGDC) posted a substantial drop in its quarterly profit, which dragged the bottom line of the sector as a whole down, despite other players reporting remarkable earnings growth.
• Roshan Packages Limited (PSX: RPL) recorded a profit after tax of Rs211.26 million [EPS: Rs1.49] in the financial year 2024.
• Unity Foods Limited (PSX: UNITY) recorded a loss after tax of Rs1.04 billion [LPS: Rs0.87] during April-June quarter, compared to a profit of Rs1.39bn [EPS: Rs1.17] earned in the same period last year (SPLY).
• TPL Corp Limited (PSX: TPL) losses widened by 62% in the financial year 2024 as its dividend income slumped.
• Hascol Petroleum Limited (PSX: HASCOL) incurred a loss after tax of Rs3.05 billion [LPS: Rs3.05] during the quarter ending June 2024.
• Dewan Cement Limited (PSX: DCL) posted a 46.8% lower profit after tax of Rs91.46 million [EPS: Rs0.19] during the quarter ending June 2024 despite a notable improvement in gross margins.
• Citi Pharma Ltd. (PSX: CPHL) earned a net profit of Rs833.46 million in the financial year 2024, translating into earnings per share (EPS) of Rs3.65.
• TRG Pakistan Limited (PSX: TRG) incurred a loss after tax of Rs30.85 billion in the financial year 2024, translating into loss per share (EPS) of Rs56.56.
• Agha Steel Industries Limited (PSX: AGHA) incurred a significant net loss of Rs3.05 billion [LPS: Rs5.05] in the quarter ending June 2024 as its sales plunged.
• Crescent Fibres Limited (PSX: CFL) suffered a loss of Rs758.43 million [LPS: Rs61.08] for its financial year ending June 30, 2024 (FY24), due to declining income, rising expenses and a tax burden.
• At-Tahur Limited (PSX: PREMA) recorded a decrease of 71.7% in its profits in the financial year ending June 2024 from last year, with the company's after-tax profits plummeting to Rs353.23 million [EPS: Rs1.62].
• Crescent Textile Mills Limited (PSX: CRTM) incurred a net loss of Rs974.56 million [LPS: Rs9.75] during the quarter ending June 2024 as its sales fell and margins eroded.
• The Organic Meat Company Limited (PSX: TOMCL) recorded a decrease of 31.13% YoY in its earnings for the year ended June 30, 2024, with the company's after-tax profits clocking in at Rs497.37 million [EPS: Rs3.35].

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