⏸️ PASM: HOLD Signal (6/10) – Transmission of Annual Report fot the year Ended 30.06.2025

📌 Key Takeaways

• ✅ Profit after taxation soars to PKR 39.137 million, a substantial increase from PKR 14.086 million in 2024.
• 📈 Earnings per share (EPS) jumps to PKR 2.26, a significant improvement from PKR 0.81 the previous year.
• 💼 Scheme of Arrangement successfully implemented, realigning operations.
• ❌ No dividend recommended for the year ended June 30, 2025.
• 🏢 Total Assets decreased from PKR 40.77 million to PKR 26.009 million.
• 📉 Total Equity improves slightly from negative PKR 588.893 million to negative PKR 576.243 million.
• 🏦 Deferred liability for gratuity stands at PKR 2.241 million.
• ⚠️ Auditor’s observations highlight pending litigation with banks.
• 🔍 Qualified audit opinion due to unavailable information on fixed assets, bank balances, and payables.
• 🤝 Company sold its entire holding of 202,777 ordinary shares in Gulistan Spinning Mills Limited for PKR 2.844 million.
• ✔️ The company has been complying with the rules & regulations of Securities and Exchange Commission of Pakistan
• ✔️ There were four (4) meetings of the Board of Directors were held and attendance thereof by each director.
• ⚠️ The financial statements are presented in breakup value and the going concern basis is no longer appropriate
• ✔️ M/s Malik Haroon Ahmad & Co., Chartered Accountants have been recommended for reappointment.

🎯 Investment Thesis

HOLD. The company shows signs of recovery with increased profitability and EPS. However, lingering concerns include negative equity, lack of dividend, and pending litigation. A stronger BUY signal would require sustained profitability, positive equity, and resolution of outstanding legal issues.