⚡ Flash Summary

Al Shaheer Foods reported its first quarter results for September 30, 2025, indicating a period of rebuilding and redefining. The company is engaged in the processing, packaging, and marketing of halal meat products. During September 2025, the SECP removed caution imposed on the operations of the company’s bank accounts, which will positively affect operations. The company reported a net revenue of PKR 91.845 million but incurred a net loss after tax of PKR 201.808 million, reflecting the challenges of operating at a limited scale with significant fixed overheads.

📌 Key Takeaways

• 📉 Net Revenue increased slightly to PKR 91.845 million from PKR 88.197 million year-over-year.
• ❌ Gross Loss significantly worsened to PKR (100.355) million from PKR (72.850) million year-over-year.
• ⚠️ Operating Loss increased to PKR (123.108) million from PKR (108.809) million year-over-year.
• ⛔ Net Loss After Tax ballooned to PKR (201.808) million from PKR (109.912) million year-over-year.
• 💸 Loss per Share deteriorated to PKR (0.54) from PKR (0.29) year-over-year.
• 🏦 SECP removed caution on bank accounts, expected to positively impact operations.
• 🥩 Revenue primarily from toll processing and raw meat sales.
• 🎯 Targeting 40%-50% capacity utilization within the next two years.
• 🤝 Collaborating with food service partners to ensure consistent demand.
• 🌍 Aiming to expand footprint across domestic and international markets.
• 🛠️ Restructured loan agreements with Habib Metro Bank and Bank Makramah Limited.
• ✅ Completed AGM for the years ended 2024 and 2025.

🎯 Investment Thesis

HOLD. The company is in a turnaround phase with potential upside from increased capacity utilization and strategic initiatives. However, significant financial risks and ongoing losses warrant caution. A price target is not provided, as the current situation is too speculative. The time horizon is medium-term, contingent on successful execution of the revival plan.