⚡ Flash Summary

Pak-Gulf Leasing Company Limited (PGLC) held a corporate briefing session for FY 2025. The company reported a decrease in asset base by 25.85% year-over-year, net asset by 13.12%, and revenue by 20.93%. Profit after tax also declined by 6.59%. However, the company declared a dividend of 39.5%, a significant increase from 0% in the previous year.

📌 Key Takeaways

• 💰 Asset Base decreased to Rs. 1,446,326,140, a 25.85% YoY decline.
• 📉 Net Asset reduced to Rs. 790,961,800, showing a 13.12% YoY decrease.
• 📉 Revenue dropped to Rs. 222,464,272, a 20.93% YoY reduction.
• 📉 Profit After Tax fell to Rs. 73,604,310, a 6.59% YoY decrease.
• 📉 Earning per Share (EPS) decreased to Rs. 1.49, down by 6.3% YoY.
• 📈 Dividend increased to 39.5%, up from 0% in the previous year.
• ⭐ Company maintains a credit rating of “A-” (Long Term) and “A-2” (Short Term).
• 🏢 PGLC is engaged in leasing and vehicle financing.
• 🏦 The company’s bankers include Bank Al-Habib Limited, Allied Bank Limited, and others.
• 📜 PGLC was incorporated on December 27, 1994.
• 📅 Business commencement date was September 16, 1996.
• 💼 The company operates as a public listed company and a deposit-taking leasing company (NBFC).
• 🎯 Future plans include increasing financing exposures and recovering dues through out-of-court settlements.

🎯 Investment Thesis

HOLD. While the increased dividend is a positive sign, the overall financial performance indicates significant challenges. Given the declines in revenue, asset base, and profitability, it’s prudent to maintain a HOLD stance until the company demonstrates a turnaround. There are no financials to establish a proper price target.