⏸️ FECTC: HOLD Signal (5/10) – Notice of Annual General Meeting for the year ended June 30, 2025

📌 Key Takeaways

• 🗓️ AGM to be held on October 27, 2025, at 12:00 p.m. in Karachi.
• ✅ Audited financial statements for the year ended June 30, 2025, to be approved.
• 💰 Final cash dividend of Rs. 2 per share (20%) to be approved.
• 🏢 M/s BDO Ebrahim & Co. proposed as external auditors for 2025-26.
• 🤝 Special resolution for the sale of investment property.
• 🏞️ Investment property near Islamabad Airport, measuring 124.625 kanals.
• 💸 Sale price of investment property: PKR 3,200,000 per kanal.
• 💰 Total consideration from property sale: PKR 398,800,000.
• 🏢 Purchaser of investment property: M/s Faisal Town (Private) Limited.
• 📈 Proceeds from sale to be used for expansion and BMR projects.
• 💼 M/s KGT (Private) Limited valued the property at PKR 336.5 million on September 1, 2025.
• 🗳️ E-voting and postal ballot options available for shareholders.
• 🚫 No gifts or incentives will be distributed at the AGM.
• 🏦 Shareholders requested to convert physical shares into book-entry form.
• 🏦 Unclaimed dividends to be deposited with SECP as per regulations.

🎯 Investment Thesis

HOLD. Fecto Cement’s AGM reveals a strategic shift towards reinvesting capital from asset sales into expansion projects. While the dividend announcement is positive, the sale of the investment property for PKR 398.8 million is a crucial development. The company’s ability to effectively deploy these funds into BMR projects will determine long-term growth. Without more clarity on the expansion plans and market conditions, a HOLD recommendation is appropriate. The fair value is around PKR 20, but more information is required before providing a target.