August 25, 2024 (MLN): The outgoing week witnessed notable developments in Pakistan’s corporate landscape including strategic acquisitions, impactful partnerships, exploring new markets, business expansions and other key decisions to shape the business environment.
These developments set the tone for what lies ahead in the market as companies adapt to economic challenges and explore new markets.
Here is a quick update on the latest happenings at the local bourse. Let’s dive into the top highlights.
CCP approves Al Falah's acquisition of Faisal Asset Funds
The Competition Commission of Pakistan (CCP) has granted Al Falah Asset Management approval to acquire funds from Faisal Asset Management. The transfer of management rights for certain funds will proceed as per the agreement between the two companies.
Arif Habib extends PAO deadline for Liberty Power’s acquisition
Arif Habib Limited has extended the deadline by 90 days for making a Public Announcement of the Offer (PAO) on behalf of Liberty Power Holding (Private), Soorty Enterprises (Private), and Procon Engineering (Private) regarding their acquisition of 68.89% of Engro Powergen Qadirpur Limited).
Blue-Ex explores E-Commerce acquisition
Reflecting its strategic interest in expanding its footprint in the e-commerce sector, Blue-Ex Limited (PSX: GEMBLUEX) is considering acquiring a domestic e-commerce operations business currently up for sale.
Bolan Castings suspends production
Bolan Castings Limited (PSX: BCL) will halt production from August 26, 2024, due to a significant drop in customer orders and delayed payments from its main customer.
Mari Petroleum refutes Gas discovery claims
Reiterating its commitment to transparency, Mari Petroleum Company Limited (PSX: MARI) has denied social media reports about a gas discovery in Chagai, Balochistan.
Fatima Fertilizer eyes stake in Agritech Limited
Fatima Fertilizer Company Limited (PSX: FATIMA) is planning to acquire a stake in Agritech Limited (PSX: AGL) through investments in various financial instruments, including convertible preference shares, non-convertible preference shares, and zero-coupon Sukuks.
Cherat Packaging adjusts strategy amid industry shift
Cherat Packaging Limited (PSX: CPPL) has decided to sell its Papersack Line IV in response to the cement industry's move from paper to polypropylene bags.
Millat Tractors halts production
Millat Tractors Limited (PSX: MTL) has temporarily paused production due to ongoing problems with GST refunds. The disparity between the GST on tractors (10%) and on input raw materials (18%) has caused a significant backlog in refund claims.
JS Global disassociates from fraudulent WhatsApp Groups
JS Global Capital Limited (PSX: JSGCL) has clarified that it has no affiliation with WhatsApp groups falsely claiming collaboration under the names 'A54 – JS account opening group / SEBI, and UBS Securities Exchange Academy.'
Crescent Steel expands K-IV project contract
Crescent Steel and Allied Products Limited (PSX: CSAP) has revised its contract with China Harbour Engineering Company Limited (CHEC) – Al-Fajr International (AFI) JV to supply an additional 65,000 meters of coated steel line pipes for the K-IV project, increasing the contract's value from Rs5.886 billion to Rs8.595bn.
Big Bird Foods enters strategic partnerships
Big Bird Foods Limited (PSX: BBFL) has formed strategic partnerships to distribute premium products across Pakistan, targeting both B2C customers and select B2B clients.
SkyElectric enters Japan
SkyElectric, a leading Pakistani solar technology brand, has completed the first phase of the Japan Electrical Safety & Environment Technology Laboratories (JET) testing programme.
Descon Engineering completes Engro Fertilizer’s EnVen Project
Descon Engineering has completed the EnVen Project at the Engro Fertilizer Plant (EFERT) in Dharki, emphasizing its commitment to operational excellence and safety.
Air Link joins hands with Acer
Air Link Communication Limited (PSX: AIRLINK) has entered into an exclusive partnership with Acer Gadget Inc. to introduce the Acer Gadget e10 series, including laptops, tablets, and all-in-one devices, to the Pakistani market.
FFBL approves sale of land
The shareholders of Fauji Fertilizer Bin Qasim Limited (PSX: FFBL) have approved the sale of 166.387 acres of land in Pindi Bhattian to Fauji Foundation for Rs856.46 million.
K-Electric plans major solar expansion
K-Electric Ltd. (PSX: KEL) is planning to nearly double Pakistan's solar capacity by adding 640 megawatts of clean energy to its portfolio within the next two years.
Ghandhara Tyre signs technical agreement with Chinese firm
Ghandhara Tyre and Rubber Company Limited (PSX: GTYR) has entered into a 7-year Technical Services Agreement with Shandong Huasheng Rubber Co., Ltd. (SHRC) to enhance its tyre manufacturing processes.
Chakwal Spinning ventures into AI with PNO Capital
As part of its strategic push towards artificial intelligence (AI), Chakwal Spinning Mills Limited (PSX: CLOUD) has signed a term sheet for a Rs7.784bn investment with PNO Capital Limited to the launch data center and cloud operations in Pakistan.
Bank Alfalah opens for further acquisitions
Bank Alfalah Ltd. (PSX: BAFL) is in the final stages of acquiring a majority stake in Samba Bank Ltd.. It remains open to further acquisitions as it seeks to boost growth in Pakistan's challenging economic environment.
AWT Financial Sector Income Fund activates NCCPL account
AWT Financial Sector Income Fund has activated its Non-Broker Clearing Member account with the National Clearing Company of Pakistan Limited (NCCPL).
Pakistan Oilfields, OGDC discover hydrocarbons in Kohat
Pakistan Oilfields Limited (PSX: POL) and Oil & Gas Development Company Limited (PSX: OGDC) have discovered hydrocarbons at the Razgir-1 Exploratory well, located in district Kohat, Khyber Pakhtunkhwa province following a successful Drill Stem Test (DST).
PostEx Raises $7.3m
Pakistani fintech PostEx has raised $7.3m in a pre-Series A funding round led by Conjunction Capital, with participation from Dash Ventures, Sanabil500, and existing investors.
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.
- Dawood Hercules Corporation Limited (PSX: DAWH) recorded a decrease of 38.5% in its profitability, clocking in its profit after tax at Rs3.83bn [EPS: Rs7.96] in Q2 CY24.
- Soneri Bank Limited (PSX: SNBL) posted a profit worth Rs1.44bn[EPS: Rs1.3093] for the quarter ended on June 30, 2024, depicting a growth of 39.11% compared to the same period last year (SPLY).
- GlaxoSmithKline (Pakistan) Limited (PSX: GLAXO) made a strong recovery in the second quarter of 2024, earning a profit after tax of Rs1.09bn [EPS: Rs3.41] driven by a substantial surge in gross margins.
- Habib Metropolitan Bank Limited (PSX: HMB) reported a 7.46% decrease in profit for the second quarter of 2024, falling to Rs5.82bn (EPS: Rs5.41).
- Philip Morris (Pakistan) Limited (PSX: PMPK) recorded a profit after tax of Rs96.25m [EPS: Rs1.56] in the second quarter of 2024 despite a plunge in gross margins
- Pakistan Oxygen Limited (PSX: PAKOXY) rebounded strongly in the second quarter of 2024, earning a profit after tax of Rs132.52m [EPS: Rs1.52] driven by a surge in sales revenue.
- Rafhan Maize Products Limited (PSX: RMPL) earned a profit after tax of Rs1.9bn [EPS: Rs205.95] in the second quarter of 2024 as it paid a significantly lower tax compared to a year ago.
- International Industries Limited (PSX: INIL) reported its profit after tax of Rs1.47 billion [EPS: Rs11.17] for 2024.
- Cherat Packaging Limited (PSX: CPPL) witnessed a meagre drop of 2.46% YoY in profitability during 2024 as the profit stood at Rs885.89m [EPS: Rs18.04].
- Haleon Pakistan Limited (PSX: HALEON) recorded a massive jump in its earnings for the June 30, 2024 quarter, as its profit after tax spiked to Rs1.22bn [EPS: Rs10.45].
- Bata Pakistan Limited (PSX: BATA)’s profit after tax clock dropped to Rs256.5m [EPS: Rs33.93] in Q2CY24.
- Cherat Cement Company Limited (PSX: CHCC) saw its profit surge by 24.9% in the fiscal year 2024 (FY24), reporting earnings of Rs5.5bn [EPS: Rs 28.31].
- Lotte Chemical Pakistan Limited (PSX: LOTCHEM) recorded a significant increase of 307.7% in its profits during the second quarter of 2024 despite a fall in gross margins.
- Allied Bank Limited (PSX: ABL) experienced a rise of over 25% YoY in its profitability in Q2 CY24, clocking in its profit after tax at Rs12.47bn [EPS: Rs10.89].
- Thatta Cement Company Limited (PSX: THCCL) observed an increase of 312.9% YoY in its profitability, clocking in its profit after tax at Rs1.28bn [EPS: Rs13.97] for FY24.
- Baluchistan Wheels Limited (PSX: BWHL) earned a profit after tax of Rs77.27m [EPS: Rs5.8] during the second quarter of 2024.
- Pakistan Refinery Limited (PSX: PRL) recorded an increase of 122.6% YoY in its profitability, clocking in its profit after tax at Rs4.06bn [EPS: Rs6.45] in FY24.
- Engro Corporation Limited (PSX: ENGRO) unveiled its profit and loss statement for Q2 FY24, wherein the profit after tax from continued operations clocked in at Rs2.22bn[EPS: Rs6.45].
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Posted on: 2024-08-25T10:48:37+05:00
