⏸️ HUBC: HOLD Signal (6/10) – Certified Copy of the Resolutions Passed by the Members at the Annual General Meeting

📌 Key Takeaways

• ✅ Annual audited financial statements for the year ended June 30, 2025, were approved.
• 💰 A final cash dividend of Rs. 10 per share (100%) was approved.
• 📅 Shareholders eligible for the dividend must have been on record as of October 7, 2025.
• 👨‍💼 A.F. Ferguson & Co. re-appointed as statutory auditors for the next term.
• 🧾 Auditor fee set at Rs. 15,650,000 plus out-of-pocket expenses and government levies.
• 🤝 Approval granted to execute a Sponsor Support Agreement for MMCPL.
• 📑 The agreement includes amendments, restatements, or variations as required.
• 🧑‍💼 CEO, CFO, and Company Secretary authorized to negotiate and execute the Sponsor Support Agreement.
• 🏦 Authorization to provide sponsor support corporate guarantees up to USD 55 million (or PKR equivalent) for MMCPL lenders/financiers.
• 🚧 Guarantees cover cost overruns, debt servicing shortfalls, and working capital needs.
• 🗓️ Investment period extends until June 30, 2039, or until liabilities are discharged, whichever is later.
• 🛡️ Guarantees may be provided on terms negotiated and approved by the Board of Directors.
• ✔️ CEO, CFO, and Company Secretary authorized to finalize terms of sponsor support obligations.
• 📜 All necessary documents and agreements related to the guarantee can be executed by authorized representatives.

🎯 Investment Thesis

HOLD. The approved dividend and reaffirmed auditor provide stability. However, the sponsor support agreement for MMCPL introduces contingent liabilities that require monitoring. A price target cannot be provided without detailed financial forecasts and valuation analysis, but the stock is likely to trade within its existing range until the impact of the MMCPL project is clearer.