📉 SGPL: SELL Signal (8/10) – Financial Results for the Year Ended 2025-06-30

📌 Key Takeaways

• 📉 SGPL reported a net loss of PKR 8.405 million for FY2025, a sharp reversal from a profit of PKR 1.668 million in FY2024.
• ⚡ Sales of electricity plummeted by 64.5% YoY, from PKR 17.302 million in FY2024 to PKR 6.146 million in FY2025.
• 💰 Generation costs remained high at PKR 7.932 million, contributing significantly to the gross loss.
• ❌ No cash dividend, bonus shares, or right shares were recommended for the fiscal year.
• 🏢 Operating loss stood at PKR 8.401 million, a stark contrast to the operating profit of PKR 1.670 million in the previous year.
• 💸 Administrative and selling expenses surged to PKR 6.615 million, impacting overall profitability.
• 📉 Loss per share amounted to PKR 0.47, compared to earnings per share of PKR 0.094 in FY2024.
• 🏦 Cash and bank balances marginally increased from PKR 2,536 to PKR 3,273.
• liabilities increased substantially, driven by amounts due to associated undertakings, more than tripling from PKR 2.953 million to PKR 9.317 million.
• ⬆️ A loan from the director increased from PKR 593,262 to PKR 1.913 million, indicating increased reliance on internal financing.
• ⚠️ Accumulated losses worsened, increasing from PKR 258.374 million to PKR 266.778 million.

🎯 Investment Thesis

Given the severe financial downturn, characterized by significant losses, plummeting revenue, and increasing reliance on debt, a **SELL** recommendation is warranted for SG Power Limited. The price target will depend on a thorough analysis of the company’s assets, liabilities, and potential turnaround strategies, but currently, the financial performance does not justify investment. The time horizon is **SHORT_TERM** due to the immediate financial concerns.