⚡ Flash Summary

Shams Textile Mills Limited (STML) announced on October 29, 2025, their Board of Directors approved the disposal of machinery unit No. 1 located at Chiniot. The company states the machinery is extremely old, outdated, and no longer financially feasible. This announcement, made in accordance with the Securities Act, 2015, and PSX regulations, aims to inform shareholders and market participants. A disclosure form (Annexure A) is attached for further information.

📌 Key Takeaways

• ❌ STML is disposing of machinery unit No. 1 in Chiniot.
• 👴 The machinery is described as ‘extremely old and outdated’.
• 📉 Management deems the machinery ‘no longer financially feasible’.
• 📅 Announcement date: October 29, 2025.
• 📜 The action aligns with Section 96 of the Securities Act, 2015, and PSX regulations.
• 📍 The machinery is located at the Chiniot unit.
• ℹ️ The company released Annexure A for more details.
• 📢 The announcement is for shareholders and market participants.
• 🏢 Registered address: Tricon Corporate Center, Lahore.
• 💼 Muhammad Haroon Arif is the Company Secretary.

🎯 Investment Thesis

SELL. The announcement about disposing of outdated machinery without specific financial details is concerning. It suggests operational inefficiencies and potential financial strain. Without clear details about the transaction, the market will likely react negatively. Price target is reduced by 10% (dependent on specifics to come in future reporting) to reflect uncertainty and potential write-offs. Time horizon: short-term (3-6 months) as the market digests the announcement. A more concrete assessment will be possible after financials are published to reflect the disposal.