⚡ Flash Summary
Treet Corporation Limited (TBL) recently presented a corporate briefing session covering its performance and future strategies across its various business segments, including blades & razors, batteries, manufacturing, and pharmaceuticals. The presentation highlighted a focus on value over volume in the blades & razors segment, expansion into lithium-ion batteries through a strategic partnership, and efforts to enhance domestic market share in pharmaceuticals. Overall, the group is delivering positive operating profits despite headwinds, driven by TCL’s export business rebound. The emphasis on sustainability, social responsibility, and strategic initiatives indicates a forward-looking approach.
📌 Key Takeaways
- 📈 Treet Corporation’s revenue increased by 15% in FY24-25 for the blades & razor segment.
- 🚀 Gross profit for the blades & razor segment surged by 42% in FY24-25.
- 💰 Operating profit in the blades & razor segment rose significantly by 77%.
- 💼 Portfolio action from the sale of TBL shares generated a profit of Rs. 701Mn.
- ⚡ Treet Battery Limited is expanding into lithium-ion batteries via a strategic partnership.
- 🌍 Treet Battery’s main competitor has estimated quarterly sales of PKR 5 Billion.
- 🌱 Lithium-ion batteries are positioned as a core green technology.
- ☀️ Renewable energy adoption is seen as a critical enabler for the battery segment.
- 🇵🇰 Treet is positioning Pakistan for a low-carbon energy transition.
- 💊 Renacon Pharma’s export sales increased substantially to USD 544,390 in FY24-25.
- 🤝 Group cash delivery shows a major reduction in overall borrowing, led by TCL.
- 📉 Finance cost growth decreased by -35% as percentage of revenue, with a -44% reduction in the blade & razor segment.
- 🚺 The company is focusing on expanding in the female shaving segment.
- 🏢 Opening of new office in Dubai to increase sales into regional countries
- ✅ TCL acquired shares in RPL entering pharmaceutical industry in 2017
🎯 Investment Thesis
Given the mixed performance and strategic initiatives underway, a HOLD recommendation is appropriate. While the company shows promise in certain segments, risks and execution challenges need to be monitored. The price target rationale is based on the potential for future growth driven by new ventures but tempered by existing challenges. The time horizon is medium-term, as it will take time to assess the success of strategic initiatives.
Disclaimer: AI-generated analysis. Not financial advice.