⚡ Flash Summary

Shezan International Limited’s unaudited financial results for the quarter ended September 30, 2025, show a mixed performance. Revenue increased year-over-year, but finance costs remain high. The board has approved the financial statements, but no dividends, bonus shares, or rights issues were recommended. Net profit for the period stands at PKR 111.357 million, significantly higher than the PKR 10.283 million in the same period last year.

📌 Key Takeaways

• 📈 Revenue from contracts with customers increased to PKR 2,486.496 million compared to PKR 2,307.571 million in 2024.
• 💰 Gross profit increased to PKR 669.861 million from PKR 522.539 million year-over-year.
• 💸 Distribution expenses increased to PKR 341.531 million from PKR 318.189 million.
• 🏢 Administrative expenses increased to PKR 117.201 million from PKR 94.425 million.
• 📉 Finance costs decreased to PKR 39.931 million from PKR 57.420 million.
• ✅ Net profit for the period increased significantly to PKR 111.357 million from PKR 10.283 million.
• 📊 Earnings per share (basic and diluted) increased to PKR 11.52 from PKR 1.06.
• 🏦 Total assets increased to PKR 4,353.049 million from PKR 4,197.734 million as of June 30, 2025.
• 🧾 Trade receivables increased to PKR 762.559 million from PKR 565.660 million.
• 💵 Cash and bank balances decreased to PKR 47.821 million from PKR 162.838 million.
• ⚠️ Short-term borrowings increased to PKR 1,309.869 million from PKR 1,015.053 million.

🎯 Investment Thesis

HOLD. While revenue and profit are increasing, the liquidity position needs closer monitoring. An increase in receivables and borrowings must be carefully analyzed before considering a buy. I am setting a price target of PKR 500, with a 12 month horizon contingent on improved cash flow and debt management.