⏸️ FASM: HOLD Signal (5/10) – Financial Results for the Quarter Ended

📌 Key Takeaways

• 📉 Loss after taxation reduced to PKR (92.175) million from PKR (406.932) million year-over-year.
• 📉 Sales slightly decreased to PKR 11.950 billion from PKR 12.157 billion year-over-year.
• ✅ Gross profit increased significantly to PKR 1.030 billion from PKR 621.411 million year-over-year.
• ⚠️ Finance costs decreased to PKR (457.532) million from PKR (342.314) million year-over-year.
• ❌ Share of loss from associated undertaking increased to PKR (8.941) million from PKR (35.687) million year-over-year.
• ⚠️ Loss before levies & taxation improved but still negative at PKR (93.517) million compared to PKR (412.285) million year-over-year.
• ✅ Trade and other payables increased significantly to PKR 6.793 billion from PKR 4.899 billion.
• ⚠️ Short term borrowings decreased to PKR 13.662 billion from PKR 16.171 billion.
• ✅ Cash generated from operations increased to PKR 4.026 billion from PKR 792.899 million.
• ⚠️ Net cash used in financing activities amounted to PKR (2.699) billion.
• ✅ Basic and diluted loss per share improved to (PKR 9.22) from (PKR 40.69).
• ✅ Property, plant, and equipment increased to PKR 12.129 billion from PKR 11.828 billion.

🎯 Investment Thesis

HOLD recommendation. The company is still loss-making, but the reduced loss compared to the previous year and improved gross profit margin are positive signs. A more positive view requires consistent profitability and improved financial stability. Price target is maintained at the current level until clearer signs of sustained recovery emerge. Time horizon: Medium Term