⚡ Flash Summary

KAPCO’s corporate briefing presentation provides an overview of the company’s performance and future outlook. The company is pursuing diversification plans, including a potential acquisition of a stake in Attock Cement and bidding for K-Electric solar projects. Key financial data includes balance sheet and profit & loss account information. The operational timeline extends the generation license and tariff agreements.

📌 Key Takeaways

• ✅ KAPCO’s 25-year PPA extended to Oct-22 following settlement of LDs.
• ✅ Generation License for 495 MW extended for 3 years in April 2025.
• ✅ TPPA signed for 3 years in June 2025.
• ✅ NEPRA issued final generation tariff for 495 MW in September 2025.
• ✅ GT-3 & GT-4 sold for Rs. 800 million; dismantling by February 2026.
• ✅ Management evaluating CTBCM option for a block of power generation.
• ✅ Hybrid Take or Pay (ROE firmed upto 25% load factor).
• ✅ Total Dividend Payments since 1996: Rs. 168 Billion (Rs. 191.04/share).
• ✅ Total Dividend payment since listing in 2005 Rs. 132 Billion (Rs. 150.35/share).
• ✅ KAPCO has paid ~ Rs. 73.20 Billion in Taxes.
• ✅ KAPCO invested approximately Rs. 41 billion in Mutual Funds as of June 30, 2025, for diversification.
• ✅ Joint bid with Fauji Foundation to acquire 84.06% stake in Attock Cement (42.03% each).
• ✅ NEPRA approval pending for K-Electric solar projects: 150 MW in Sindh, 120 MW in Karachi.
• ✅ Bid tariff for solar projects: 9.8319 PKR/kWh (3.4061 Cents/kWh).

🎯 Investment Thesis

HOLD. KAPCO faces challenges in maintaining profitability due to changing market conditions. The company’s diversification plans represent a potential upside but require further evaluation. The stock’s price target should reflect the uncertainty of the diversification initiatives. We await further detail.