⚡ Flash Summary

Cherat Cement Company Limited’s corporate briefing session for the year ended June 30, 2025, reveals a mixed performance. While the company experienced a slight decrease in overall industry dispatches by 0.5%, its total company dispatches decreased by 9%. However, the company has improved its EPS from 28.31 to 44.68, a 58% increase, driven by operational efficiencies and increased profitability due to alternate power options and focus on renewables.

📌 Key Takeaways

• 📉 Total Industry Dispatches saw a slight increase of 0.5%.
• 📉 Local Dispatches decreased by 5% from 38,185,002 to 36,293,663.
• 📈 Export Dispatches increased significantly by 30%, totaling 9,213,178.
• 📉 Total Company Dispatches (tons) declined by 9%.
• 📉 Local sales volume decreased by 10% from 2,221,187 to 1,995,003 tons.
• 📉 Export sales volume decreased slightly by 3% from 405,700 to 395,161 tons.
• 📉 Turnover-net decreased by 2% from 38,433,747 to 37,810,806.
• 📈 Gross profit increased by 18% from 11,840,386 to 13,969,625.
• 📈 Other Income increased significantly by 222% from 493,426 to 1,588,443.
• 📈 Operating profit increased by 27% from 10,609,162 to 13,478,636.
• 📈 Finance Cost decreased by 57% from 1,381,082 to 591,775.
• 📈 Profit before taxation increased by 40% from 9,228,080 to 12,886,861.
• 📈 Profit after tax increased significantly by 58% from 5,499,751 to 8,681,356.
• 📈 EPS increased from 28.31 to 44.68.
• ⚡️Total renewable energy capacity will stand at 45 MW. Includes WHR capacity at all cement lines is 21 MW and solar capacity is 24 MW.

🎯 Investment Thesis

HOLD. While the company has shown improved profitability and EPS growth, the slight decrease in revenue and overall dispatch volumes warrants a cautious approach. The significant increase in other income also needs further investigation to ascertain its sustainability. Price target: Maintain current levels, pending further stabilization and revenue growth.