⚡ Flash Summary

Kohat Cement Company Limited (KOHC) reported its first quarter results for the period ended September 30, 2025. The company experienced a modest increase in net sales, reaching PKR 10.287 billion, primarily driven by higher domestic dispatches. However, profitability was impacted by competitive pricing pressures, leading to a decline in gross profit and net profit after tax. Despite these challenges, the company is progressing with the construction of a 28.5 MW coal-fired power plant, expected to enhance energy self-sufficiency and reduce costs.

📌 Key Takeaways

• ✅ Net sales increased by 2.0% year-on-year to PKR 10.287 billion.
• ⚠️ Gross profit decreased by 19.1% to PKR 3.488 billion.
• 📉 Gross profit margin contracted to 33.9% from 42.8%.
• 稳定 Other income remained stable at PKR 1.467 million.
• 📉 Profit before tax declined by 13.0% to PKR 4.486 billion.
• 📉 Net profit after tax decreased by 14.4% to PKR 2.944 billion.
• 📉 Net profit margin dropped from 34.1% to 28.6%.
• 📉 Earnings per share (EPS) declined from PKR 3.51 to PKR 3.20.
• 🏭 Clinker production decreased by 13.6% to 541,585 metric tons.
• ⬆️ Cement production increased by 11.2% to 682,610 metric tons.
• ⬆️ Total sales volumes surged by 18.8% to 702,887 tons.
• ⬆️ Export sales exhibited exceptional growth of 314.7%.
• ⚡ Construction of a 28.5 MW coal-fired power plant is progressing as scheduled.
• ✔️ Company is current on all its debt obligations.

🎯 Investment Thesis

Given the decline in profitability and ongoing competitive pressures, a HOLD recommendation is warranted. While the company is strategically positioned for growth through its coal-fired power plant and export initiatives, current financial performance is challenged. A price target cannot be confidently established without further data.