Weekly Corporate Buzz

October 26, 2024 (MLN): The past week witnessed major shifts and moves at the Pakistan Stock Exchange (PSX), during which Ghani Chemical Industries positioned itself for new opportunities in the chemicals sector.

Signalling stronger regional commitment, Siemens AG deepened its local footprint by boosting its stake in Siemens Pakistan by 13.85%. At the same time, United Bank Limited stirred interest with a potential merger proposal for Silkbank and achieved a 50% Advance to Deposits Ratio.

Twisting the game, Blue World City entered the PIA privatization race, offering Rs10 billion for a 60% share in the national airline. Meanwhile, supply challenges forced Indus Motor to pause production whereas Shell Pakistan is all set to rebrand itself as Wafi Energy Pakistan.

Economic pressure pushed Janana De Malucho and Ghazi Fabrics to scale back operations while Meezan Bank emerged as 'Best Company in Financial Category.'

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

Ghani Chemical approves demerger of Calcium Carbide project

The shareholders of Ghani Chemical Industries Limited (PSX: JCIL) have approved the proposed demerger of the Calcium Carbide Project from Ghani Chemical Industries Limited to Ghani ChemWorld Limited.

Siemens AG acquires additional 13.85% stake in SIEM

Siemens Aktiengesellschaft has entered into a Share Purchase Agreement with National Investment Trust Limited (NIT) to acquire all shares of Siemens (Pakistan) Engineering (SIEM), representing approximately 13.85% of the issued and paid-up capital.

UBL submits offer to merge with Silkbank

United Bank Limited (PSX: UBL) has submitted an offer to Silkbank Limited (PSX: SILK) to amalgamate of Silkbank with and into UBL.

UBL goes extra mile, hitting 50% ADR target

United Bank Limited (PSX: UBL) has successfully met the Advances to Deposits Ratio (ADR) requirement of 50% by lending over Rs200 billion to the Pakistan Agricultural Storage and Services Corporation (PASSCO), trimming high-cost deposits, and increasing private sector lending.

Blue World City submits Rs10bn bid for stake in PIA

The final bidding process for the privatisation of Pakistan International Airlines attracted just one bid of Rs10 billion for a 60% stake in the national flag carrier, the Privatisation Ministry said on Thursday.

FBR launches advance stock register system

Under the direction of the Chairman FBR and as part of FBR's comprehensive digitalization efforts to optimize tax administration and boost revenue collection, FBR has launched an advanced Stock Register system via the Information Center 2.0 platform.

JDMT halts production citing high costs, slowing sales

Janana De Malucho Textile Mills Limited (PSX: JDMT) has decided to temporarily halt production activities. According to the company’s filing on the PSX, the shutdown is due to prevailing economic conditions, including rising power costs, unavailability of quality cotton at affordable prices, declining sales, and the accumulation of finished goods stock due to a slowdown in the yarn market.

Shell Pakistan to rebrand as Wafi Energy Pakistan

The Board of Directors (BoD) of Shell Pakistan Limited (PSX: SHEL) has approved the change of the company's name to the proposed name "Wafi Energy Pakistan Limited." This follows the acquisition of 87.78% of the total issued share capital of SHEL by Wafi Energy Holding Limited.

Meskay & Femtee extends acquisition due date for Mandviwalla Mauser

Meskay & Femtee Trading Company (Private) Limited has extended its due date by 90 days to acquire approximately 74% shareholding and control of Mandviwalla Mauser Plastic Industries Limited.

Bank Makramah secures Rs5bn advance from Abdulla Nasser

Bank Makramah Limited (PSX: BML) and Abdulla Nasser Abdulla Hussain Lootah have entered into an agreement whereby Abdulla will deposit Rs5 billion in the bank as an advance against share capital by December 31, 2024.

NCML plans machinery disposal for debt repayment

The Board of Directors of Nazir Cotton Mills Limited (PSX: NCML) has decided to dispose of the company's obsolete machinery.

Meezan Bank wins ‘Best Company in Financial Category’ award

Meezan Bank, Pakistan’s leading Islamic bank, has been honored with the prestigious ‘Best Company in the Financial Category’ award at the 39th Corporate Excellence Awards, hosted by the Management Association of Pakistan (MAP) at the Marriott Hotel, Karachi.

PIA gets just one bid from shortlist

Pakistan received just one bid for a stake in the national carrier as five other consortiums stayed away from one of the country’s major privatization attempts.

Mari releases bonus shares after tax payment verification

Mari Petroleum Company Limited (PSX: MARI) has released the withheld bonus shares of shareholders that had deposited their withholding tax on bonus shares (WHT) with the company, it said in a stock filing on Tuesday.

GFIL slashes weaving output amid economic strain

Ghazi Fabrics International Limited (PSX: GFIL) has decided to partially curtail production activities at its Weaving Unit due to the prevailing economic conditions as the reason for this decision.

ZAREA Limited files for IPO on PSX’s main board

ZAREA Limited, one of Pakistan’s largest digital marketplaces for physical commodities, has applied for listing on the Main Board of PSX.

Meezan Bank’s soaring shares herald rise of Islamic finance in Pakistan

Meezan Bank, Pakistan’s leading Islamic financial institution, has cemented its position as the country’s most valuable lender after its shares surged and the bank profited from consumer demand for sharia-compliant finance and high interest rates.

Indus Motor Company temporarily shuts operations

Indus Motor Company Limited (PSX: INDU) has decided to temporarily suspend operations at its production plant from October 29 to 31 due to parts shortage.

Treet Corporation utilizes 76% of rights issue for debt repayment

Treet Corporation Limited (PSX: TREET) has utilized 76% of its rights issue amounting to Rs 1.899 billion for the repayment of debt and the realignment of its capital structure.

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

• Ferozsons Laboratories Limited (PSX: FEROZ)’s bottom line in Q1 FY25 contracted by 22.16% YoY to Rs140.5 million [EPS: Rs3.23] as compared to Rs180.5m [EPS: Rs4.15] in the corresponding quarter of FY24. 
• Newly listed at the Pakistan Stock Exchange, BF Biosciences Limited (BFBIO) has notified its financial results for the first quarter ended September 30, 2024, today wherein the company posted net profit Rs115.3 million, up by 14.39% YoY compared to the in the corresponding quarter of FY24.
• Hascol Petroleum Limited (PSX: HASCOL) recorded a decrease of 9.5% YoY in its quarterly losses, clocking in at Rs2.48 billion [LPS: Rs2.48], compared to the loss of Rs2.74bn [LPS: Rs2.72] reported in the same period last year (SPLY).
• Bank Makramah Limited (PSX: BML) has continued its loss-making journey as the bank witnessed a loss of Rs1.74 billion for the quarter ended September 30, 2024 (Q3 2024).
• Kohinoor Power Company Limited (PSX: KOHP) swung to a positive bottom line in the first quarter of the fiscal year, earning Rs 182.81 million (EPS: Rs 0.015).
• Fast Cables Limited (PSX: FCL) recorded a decrease of 37.2% YoY in its earnings for the third quarter, with the company's after-tax profits falling to Rs206.76 million [EPS: Rs0.33].
• Telecard Limited (PSX: TELE) posted a net profit of Rs92.92 million [EPS: Rs0.15] during the quarter ending September 2024, down 44.3% YoY.
• Roshan Packages Limited (PSX: RPL) experienced a rise of 17.9% YoY in its profits, earning a profit after tax of Rs125.91 million [EPS: Rs0.89].
• NetSol Technologies Limited (PSX: NETSOL) recorded a decrease of 27.5% YoY in its profits, with the company's after-tax profits falling to Rs196.84 million [EPS: Rs2.24] in the quarter ended September 30, 2024.
• The Searle Company Limited (PSX: SEARL) experienced a fall of 7.4% YoY in its quarterly earnings, with its profit after tax falling to Rs300.78 million [EPS: Rs0.59].
• Mari Petroleum Company Limited (PSX: MARI)'s earnings in the first quarter of FY25 inched up 0.3%, with its profit after tax reaching Rs19.2 billion [EPS: Rs15.99].
• Nishat Power Limited (PSX: NPL) recorded an increase of 13.4% YoY in its quarterly earnings, clocking in its profit after tax at Rs1.65 billion [EPS: Rs4.67].
• Allied Bank Limited (PSX: ABL) experienced a rise of around 9% in its earnings in Q3 CY24, clocking in its profit after tax at Rs12.42 billion [EPS: Rs10.84].
• Atlas Honda Limited (PSX: ATLH) experienced a rise of 49.4% YoY in its quarterly earnings, with its profit after tax rising to Rs4.97 billion [EPS: Rs25.33].
• Samba Bank Limited (PSX: SBL) earned Rs103.66m [EPS: Rs0.1] during the quarter ended September 30, 2024 (Q3 CY24).
• Askari Bank Limited (PSX: AKBL) reported a profit of Rs6.02 billion [EPS: Rs4.15] in Q3 2024, 4.77% higher compared to Rs5.75bn [EPS: Rs3.97] recorded in SPLY.
• Hub Power Company Limited's (PSX: HUBC) first-quarter profit almost doubled as its revenue and other income rose. Pakistan’s largest Independent Power Producer (IPP) recorded a net profit of Rs7.79 billion [EPS: Rs6] during the quarter ending September 2024.
• The Bank of Khyber (PSX: BOK) disclosed a profit of Rs1.07 billion [EPS: Rs0.92] for the quarter ended September 30, 2024, rising 36.03%.
• Thal Limited (PSX: THALL) earned a 29.8% higher first-quarter profit despite lower revenue. The growth was led by higher other income.
• The National Bank of Pakistan (PSX: NBP) reported a significant decline in its financial performance for the third quarter, with net profit dropping by over 75% to Rs3.09 billion [EPS: Rs1.39].
• Sapphire Textile Mills Limited (PSX: SAPT) recorded a net profit of Rs1.03 billion [EPS: Rs47.65] during the quarter ending September 2024, up 45.0%.
• Citi Pharma Ltd. (PSX: CPHL) recorded a 113.3% higher net profit in the first quarter of FY25 as its margins jumped.
• The Organic Meat Company Limited's (PSX: TOMCL) first-quarter profit surged 228.6% to Rs170.61 million [EPS: Rs1.15] during the quarter ending September 2024 as its revenue rose.
• AGP Limited (PSX: AGP) earned a net profit of Rs549.75 million [EPS: Rs1.96] during the quarter ending September 2024.
• Agha Steel Industry Ltd (PSX: AGHA) suffered a massive loss of Rs1.81bn [LPS: Rs3] in contrast to the profit of Rs125.24m [EPS: Rs 0.21] achieved in the same period last year (SPLY).
• Saif Power Limited (PSX: SPWL) recorded a profit after tax of Rs535.37 million [EPS: Rs1.39] during the quarter ending September 2024.
• Nishat Chunian Power Limited (PSX: NCPL) recorded a 5.8% growth in its net profit despite a plunge in revenue.
• WorldCall Telecom Limited (PSX: WTL) reduced its loss by 17.3% in the third quarter of the current year, with a loss after tax of Rs 342.68 million [LPS: Rs 0.07].
• Hum Network Limited (PSX: HUMNL) net profit jumped 40.9% to Rs677.47 million [EPS: Rs0.6] during the quarter ending September 2024.
• Fatima Fertilizer Company Limited (PSX: FATIMA) earned a 25.1% higher net profit of Rs9.4 billion [EPS: Rs4.48] during the quarter ending September 2024 despite lower revenue.
• Shell Pakistan Limited (PSX: SHEL) incurred a net loss of Rs727.11 million [LPS: Rs2.78] during the quarter ending September 2024 as its margins plummeted.
• Calcorp Limited (PSX: CASH) experienced a fall of 41.7% YoY in its earnings for the third quarter, reporting a profit after tax of Rs4.05 billion [EPS: Rs0.38].
• Unity Foods Limited (PSX: UNITY) rebounded with a profit after tax of Rs51.23 million [EPS: Rs0.04] during the quarter ending September 2024.
• Pioneer Cement Limited (PSX: PIOC) experienced a rise of 9.6% YoY in its third quarter bottom line, earning a profit after tax of Rs1.02 billion [EPS: Rs4.5].
• Pakistan Cables Limited (PSX: PCAL) reported a loss of Rs130.94 million [LPS: Rs2.4] compared to a profit of Rs136.33m [EPS: Rs2.5] in SPLY.
• Pakistan Petroleum Limited’s (PSX: PPL) first-quarter profit fell 20.4% from last year as its revenue contracted while cost of sales rose.
• Philip Morris (Pakistan) Limited (PSX: PMPK) reported a loss of Rs113.13 million [LPS: Rs1.84] in the third quarter, contrasting with a profit of Rs287.24m [EPS: Rs4.66] in the same period last year.
• Fecto Cement Limited's (PSX: FECTC) net profit soared 180.1% during the first quarter of FY25 as gross margins jumped.
• Engro Corporation Limited's (PSX: ENGRO) revenue from continued operations grew by 12% to Rs279 billion in the first nine months of 2024, compared to Rs250bn in the same period of 2023.
• Sitara Chemical Industries Limited (PSX: SITC) posted a net profit of Rs155.33 million [EPS: Rs7.25] during the quarter ending September 2024.
• Pakistan Aluminium Beverage Cans Limited (PSX: PABC) earned a net profit of Rs1.71 billion [EPS: Rs4.72] during the quarter ending September 2024.
• TRG Pakistan Limited (PSX: TRG) reported its profit and loss statement for the first quarter of FY25, wherein the net profit clocked in at Rs2.41 billion.
• Pakistan’s cement manufacturer Cherat Cement Company Limited (PSX: CHCC) saw its first-quarter profit grow by 87.7% to Rs2.88 billion [EPS: Rs14.81] amid higher margins and significantly lower taxes.
• Cnergyico PK Limited (PSX: CNERGY) recorded a loss after tax of Rs1.6 billion [LPS: Rs0.29] during the quarter ending September 2024 as rising costs continued to erode revenue.
• Air Link Communication Limited (PSX: AIRLINK) posted a 44.6% decline in first-quarter profits as its expenses jumped.
• Lucky Cement Limited (PSX: LUCK) recorded a net profit of Rs6.56 billion during the quarter ending September 2024. That translates to an earnings per share of Rs22.4, higher than the analysts' estimates of Rs20.98 per share.
• Pakistan Hotels Developers Limited (PSX: PHDL) earned a net profit of Rs232.64 million [EPS: Rs12.92] during the quarter ending September 2024.
• TPL Properties Limited (PSX: TPLP) recorded a net loss of Rs884.33 million [LPS: Rs1.58] during the quarter ending September 2024,
• GlaxoSmithKline (Pakistan) Limited (PSX: GLAXO) posted a profit after tax of Rs1.93 billion [EPS: Rs6.05] during the quarter ending September 2024 amid significantly higher margins.
• Al-Ghazi Tractors Limited (PSX: AGTL) experienced a fall of 35.4% YoY in its quarterly bottom line, earning a profit after tax of Rs633.45 million [EPS: Rs10.97].
• Packages Limited (PSX: PKGS) revealed its third-quarter earnings, wherein the profit after tax dropped over 45% to Rs464.66 million [EPS: Rs5.2].
• Lucky Core Industries Limited (PSX: LCI) posted a paltry growth in its earnings during the first quarter of FY25 as the business operations continued to face macroeconomic challenges.
• Gul Ahmed Textile Mills Limited (PSX: GATM) posted a 40.2% decline in its net profit during the quarter ending September 2024 despite higher revenue.
• Indus Motor Company Limited (PSX: INDU) reported a profit of Rs5.09 billion for the July-September quarter, an increase of 58.3% when compared with earnings of Rs3.22 billion in the same period of the previous year.
• Colgate Palmolive (Pakistan) Limited (PSX: COLG) earned a net profit of Rs5.1 billion [EPS: Rs21.02] during the quarter ending September 2024.
• Fauji Fertilizer Company Limited (PSX: FFC) earned a profit after tax of Rs16.48 billion [EPS: Rs12.95] during the quarter ending September 2024.

Stay hooked for more corporate updates and insights!

Copyright Mettis Link News