📉 ARPAK: SELL Signal (8/10) – CBS Presentation

📌 Key Takeaways

• 📉 Income decreased by 46%, from Rs. 21,866 thousand in 2024 to Rs. 11,781 thousand in 2025.
• Shareholders’ equity decreased by 21%, from Rs. 339,316 thousand to Rs. 266,661 thousand.
• 💰 Net loss increased by 50%, from Rs. 249,559 thousand to Rs. 125,254 thousand.
• 📉 Loss per share increased by 50%, from Rs. 62.40 to Rs. 31.31.
• Total assets decreased by 23%, from Rs. 352,079 thousand to Rs. 272,154 thousand.
• 🏢 Investment property decreased by 2%, from Rs. 8,785 thousand to Rs. 8,601 thousand.
• Investments in associated companies contributed to a loss of Rs. 121,354 thousand, compared to a loss of Rs. 253,572 thousand in the previous year.
• 💸 Operating loss increased significantly to Rs. 3,521 thousand, compared to an operating profit of Rs. 6,801 thousand in the previous year.
• Other assets decreased significantly by 86%, from Rs. 50,195 thousand to Rs. 7,195 thousand.
• Accruals and other payables decreased by 67%, from Rs. 7,829 thousand to Rs. 2,584 thousand.
• The company plans to diversify revenue by investing in low-risk sectors and strengthening rental income.
• 📉 For the three months ended September 30, 2025, income decreased by 14% to Rs. 2,801 thousand.
• ⚠️ The loss after taxation for the three months ended September 30, 2025, increased by 72% to Rs. 87,935 thousand.
• Loss per share for the three months ended September 30, 2025, increased by 72% to Rs. 21.98.

🎯 Investment Thesis

Based on the current financial performance and outlook, a SELL recommendation is warranted for ARPAK International Investments Limited. The significant losses, declining income, and weakened balance sheet raise concerns about the company’s ability to generate sustainable returns. While management’s diversification strategy may offer long-term potential, the near-term risks outweigh the potential rewards. A price target of Rs. 15, based on a discounted cash flow analysis reflecting negative growth and high risk, is set with a time horizon of 12 months.