📉 KHYT: SELL Signal (7/10) – Transmission of Quarterly Report for the Period Ended 2025-09-30

📌 Key Takeaways

• ❌ Textile production remains halted due to credit constraints from ongoing banking litigation.
• 🌾 Revenue generated from agricultural business and renting vacant buildings.
• 📉 Comprehensive loss of PKR (4,676,717) for the quarter ended September 30, 2025, compared to a loss of PKR (3,955,884) in the same period last year.
• 📉 Basic and diluted earnings per share (EPS) is negative at PKR (3.81), compared to PKR (3.22) for the same quarter last year.
• 🏦 Ongoing banking litigation restricts access to credit facilities, hindering the modernization and replacement of equipment.
• 🚜 Vacant land repurposed for agricultural livestock business, including cattle rearing and sale.
• 🏢 Management continues to rent out vacant buildings and warehouses to generate additional income.
• 💰 Loan from Director remained constant at PKR 16,500,757 as of September 30, 2025 and June 30, 2025.
• 💸 Short-term loan from director decreased from PKR 5,559,718 to PKR 5,409,718.
• 📉 Cash and Bank Balances decreased from PKR 17,050,510 to PKR 13,618,402.
• 🏢 Property, Plant and Equipment decreased slightly from PKR 1,280,756,896 to PKR 1,279,060,574.
• 🚫 Sales revenue remained at zero.

🎯 Investment Thesis

Given the company’s current financial state, ongoing litigation, and halted textile production, a SELL recommendation is warranted. The company lacks a clear path to profitability and faces significant headwinds. A price target is not applicable given the lack of revenue and uncertain future. The time horizon is short-term.