Weekly Corporate Buzz

October 13, 2024 (MLN): The pulse of Chundrigar Road beat stronger this week, with expansions, mergers, and regulatory actions.

Power Cement, Pakistan Cables, and Hub Power Company led the headlines with critical developments.

Meanwhile, Ghandhara Tyre & Rubber and Citi Pharma run industry shifts with production updates and joint ventures

Here is a quick update on the latest happenings at the local bourse. Let’s dive into the top highlights.
PKGI's Public Announcement of Intent

The Pakistan General Insurance Company Limited (PSX: PKGI) has received a Notice of Public Announcement of Intention (PAI) from Muhammad Shahzad Habib (and his associates) through LSE Capital Limited (LSECL), being Manager to the Offer, to acquire at least 84.71% ordinary shares of PKGI from their sponsors.

Tax fraud FIR against Power Cement

The Federal Board of Revenue’s (FBR) Directorate of Internal Audit, Inland Revenue, Karachi, has registered a First Information Report (FIR) against Power Cement Limited on charges of tax fraud amounting to Rs316 million.

Dewan Farooque Motors' EV success

Dewan Farooque Motors Limited (PSX: DFML) has successfully assembled Electric Vehicles under the brand Honri EV through toll manufacturing, and the first lot of these Electric Vehicles has been dispatched to Eco-Green Motors Limited (EGML).

Masood Textile's Sukuk issuance

Masood Textile Mills Limited (PSX: MSOT) has successfully completed the Sukuk issue of Rs2 billion carrying a rental rate of 3M KIBOR + 1.75% per annum over a tenor of 5 years (inclusive of an 09 months grace Period).

Burj Clean Energy Modaraba listing

A gong ceremony was held at the Pakistan Stock Exchange (PSX) to mark the listing of Burj Clean Energy Modaraba (Burj Modaraba). Burj Modaraba is the first green energy fund in accordance with Shariah principles to be listed on the Stock Exchange on the Growth Enterprise Market (GEM) Board of PSX.

Ghandhara Tyre suspension announcement

Ghandhara Tyre & Rubber Company Limited (PSX: GTYR) will temporarily suspend the operations at its production plant on Monday, October 14, 2024, due to faults in the power supply cables.

Citi Pharma's joint venture in KSA

Citi Pharma Limited (PSX: CPHL) signed joint venture agreement with All Care Group of Investment to establish an advanced API (Active Pharmaceutical Ingredient) and Formulation Facility in the Kingdom of Saudi Arabia (KSA).

Pakistan Cables and Bahra Electric MoU

Pakistan Cables Limited (PSX: PCAL) and Bahra Electric have signed a Memorandum of Understanding (MoU) aimed at strengthening collaboration in the industrial and energy sectors between Pakistan and the Kingdom of Saudi Arabia.

Investor Weekend 2024

With the support and guidance of the Securities and Exchange Commission of Pakistan, Central Depository Company (CDC), in collaboration with leading AMCs and brokerage houses of Pakistan, has organized a 3-day long “Investor Weekend 2024” event at Dolmen Mall Clifton, Karachi from October 11 – 13, 2024.

Top Brokers of September 2024

AKD Securities Limited (AKDSL), Munir Khanani Securities Limited, and Arif Habib Limited (AHL) emerged as the top three brokers among the recipients of the 'Top 10 Brokers with Most Active Accounts' for September 2024.

Sazgar's vehicle sales surge

Sazgar Engineering Works Limited (PSX: SAZEW) witnessed a substantial rise of 173.84% in the sale of four-wheel off-road and passenger vehicles in September 2024, with 827 units sold compared to the topline of 302 vehicles in the same month last year.

Hub Power negotiated settlement

The Directors of Hub Power Company Limited (PSX: HUBC), in the greater national interest, have decided to initiate a Negotiated Settlement Agreement with regard to the accelerated expiry on October 1, 2024.

HBL recognized as Best Conventional Bank

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has awarded HBL the accolade of the ‘Best Conventional Bank of the Year Excellence Award’.

Alfalah and Emaar Pakistan collaboration

Alfalah Investments has announced a strategic collaboration with Emaar Pakistan to explore Real Estate Investment Trust (REIT) opportunities. As a Strategic Partner, Emaar will be instrumental in shaping the REIT’s structure, bringing its expertise in high-end real estate to the forefront.

NBP divestment decision

The Board of Directors of National Bank of Pakistan (PSX: NBP) has approved the divestment of the entirety of NBP's shareholding in Agritech Limited (PSX: AGL).

SLGL and TRAX merger

The Board of Directors of Secure Logistic Group Ltd (PSX: SLGL) and Trax Online(Pvt.) Limited (TRAX) have decided to merge their businesses. This will allow TRAX shareholders to become part of SLGL and the combined company will operate both SLGL and TRAX businesses under one umbrella.

Ismail Industries subsidiary approval

The shareholders of Ismail Industries Limited (PSX: ISIL) have approved the establishment of a subsidiary, Bisconni Middle East Manufacturing LLC, in Abu Dhabi, UAE, with a total investment of up to $10 million.

NETSOL Technologies' new platform

NETSOL Technologies has introduced its new unified Transcend Platform “ an AI-powered digital retail and asset finance solution for automotive and equipment OEMs, auto captives, commercial lenders, dealers, brokers and financial institutions.

Crescent Jute's funding strategy

Crescent Jute Products Limited (PSX: CJPL)'s future business strategy hinges on securing funds from its sponsor director, the Progress Report of the company disclosed. The company is actively working on obtaining the required capital, and once available, a detailed business plan will be presented to the Board of Directors (BOD) for approval.

EFERT launches E-commerce platform

Engro Fertilizers (PSX: EFERT) has launched “UgAi”, the first integrated agri e-commerce platform of Pakistan, to offer farmers relief by enabling direct purchase of fertilizers at official prices from the company.

Bawany Air Products capital increase

Bawany Air Products Limited (PSX: BAPL) has resolved to increase its authorized capital from Rs150 million to Rs12.1 billion.

MCB Bank's scheme approved

The Lahore High Court has approved MCB Bank Limited's (PSX: MCB) Scheme of Compromises, Arrangements, and Reconstruction, which involves the demerger and conversion of 39 of the bank's branches into Islamic banking branches.

Big Bird Foods' new product line

Big Bird Foods Limited (PSX: BBFL) is expanding its product portfolio with the introduction of a new line of raw fish fillets and raw finger fish.

Wafi Energy's share acquisition

Wafi Energy Holding Limited has successfully completed its acquisition of 11.29% of the total issued and paid-up share capital of Shell Pakistan Limited at Rs155.11 per share.

FWBL and Kuickpay Partnership

First Women Bank Limited (FWBL), Kuickpay and National Fertilizer Corporation Institute of Engineering and Research (NFC) have signed an MoU to form a strategic partnership that aims to drive digital innovation in the institute's payment space.

UBL's digital transformation journey

United Bank Limited (UBL) partnered with System Limited and Temenos to embark on a transformative journey towards digital excellence in banking.

PSX's compliance proposal

The Pakistan Stock Exchange (PSX) is proposing to introduce specific compliance conditions for companies seeking to list following the approval of a Scheme of Arrangement for Merger, Amalgamation, Restructuring, or Reconstruction.

Dawood Lawrencepur's completes share transfer

Dawood Lawrencepur Limited (PSX: DLL) has completed the transfer of its entire shareholding in Reon Energy Limited (REL), amounting to 102.6 million shares, to Juniper International FZ LLC.

CSAP secures contract from SNGPL

In a significant development, Sui Northern Gas Pipelines Limited (PSX: SNGPL) has awarded a contract worth Rs2,740 million to Crescent Steel and Allied Products Limited (PSX: CSAP).

Flying Cement's new production line

Flying Cement Limited (PSX: FLYNG) is set to commence the commissioning process of its new Line-11, which can produce 9,000 tons per day (TPD) of clinker.

BOP arranges FCY

The Bank of Punjab (BOP) has successfully arranged a Foreign Currency (FCY) On-lending Facility of USD 54.2 Mn (Credit Facility) from Agence Française de Développement (AFD), the French state development finance agency.

PPL’s settlement with Iraqi oil company

Pakistan Petroleum Limited's (PSX: PPL) subsidiary, PPL Asia E&P B.V. (PPL Asia), has reached a mutually favourable settlement with Midland Oil Company (MdOC), a state-owned Iraqi oil company.

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.

• Pakistan Hotels Developers Limited (PSX: PHDL) recorded a profit after tax of Rs446.88 million [EPS: Rs24.83] in financial year 2024 as against a profit of Rs44.13m [EPS: Rs2.45] last year.
• Pakistan National Shipping Corporation Limited (PSX: PNSC) recorded an increase of 120.8% in its profitability, recording a net profit of Rs1.91 billion [EPS: Rs14.47] in the quarter ending June 2024.
• Supernet Limited (PSX: GEMSPNL) posted a 28.1% higher consolidated profit after tax of Rs241.29 million [EPS: Rs1.93] in financial year 2024 as its sales surged.
• The Searle Company Limited (PSX: SEARL) suffered a loss of Rs3.33 billion [LPS: Rs6.95] for the year ended June 30, 2024, due to a substantial loss on investment in a subsidiary.
• Panther Tyres Ltd. (PSX: PTL) revealed its earnings for the year ended June 30, 2024, wherein the profit after tax clocked in at Rs465.79 million [EPS: Rs2.77], up by 7.62% compared to the bottom line reported last year.
• Fecto Cement Limited (PSX: FECTC) transitioned to profitability in FY24, earning Rs317.32 million [EPS: Rs6.33] compared to a loss of Rs133.25m [LPS: Rs2.66] in the same period last year (SPLY).

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