PRET

⚡ Flash Summary

Premium Textile Mills (PRET) plans to purchase a 7.5 MW wind turbine for USD 4.15 million. This investment aligns with the company’s commitment to sustainable practices and will increase renewable energy in their power mix. Once installed, PRET’s total wind power capacity will reach 15 MW, expected by the end of December 2026. The company anticipates producing 55.2 GWh annually, avoiding 30,000 metric tons of carbon emissions, and covering 67% of its energy needs through green energy.

📌 Key Takeaways

• ✅ PRET to purchase a 7.5 MW wind turbine.
• 💰 Investment of USD 4.15 million in renewable energy.
• 🗓️ Project completion expected by December 2026.
• ⚡ Total wind power capacity to reach 15 MW.
• ♻️ Will produce 55.2 GWh annually.
• 💨 Will avoid 30,000 metric tons of carbon emissions per year.
• 🔆 Will cover 67% of energy needs through green energy.
• ☀️ PRET already has 20 MW of operational solar capacity.
• 🤝 Aligns with commitment to sustainable practices.
• 🇵🇰 Project located in Pakistan.

🎯 Investment Thesis

HOLD. The investment in a 7.5 MW wind turbine signals a positive long-term strategy for PRET, aligning with sustainable practices and potentially reducing future energy costs. However, the lack of immediate financial impact and the presence of execution and market risks warrant a HOLD rating. A more detailed financial analysis, incorporating projected savings and environmental benefits, is needed to assess the long-term impact on PRET’s valuation.

⚡ Flash Summary

Premium Textile Mills (PRET) released its revised Corporate Briefing Session presentation. Annual turnover exceeds PKR 29 billion. The company manufactures premium yarn and socks, operating in local and international markets. Exports account for 96.30% of gross sales in FY25. Net profit attributable to owners increased to PKR 190 million in 2025, compared to a loss of PKR 452 million in 2024.

📌 Key Takeaways

• 🏭 Inception of company in 1989.
• 💰 Annual Turnover in excess of 29+ billion.
• 🧶 Manufactures premium quality yarn and socks.
• 🌎 Operates in local (3.69%) and international markets (96.30% of Gross Sales) in FY25.
• ⬆️ No. of spindles increased from 12,230 to 93,471 as of today.
• 🧶 No of knitting machines have increased to 272 compared to 208 initially.
• ♻️ Preserving natural resources by widely producing recycled yarn.
• ☀️ Solar energy system obtained for reliance on green energy to the extent of 20MW.
• 🌱 Margasa Recycling Plant with capacity of 12 tons/day transforms textile waste into reuseable fibers.
• ⬆️ Sales increased by 7% in 2025 to PKR 29,012 million.
• ⬆️ Gross Profit increased by 1.5% to PKR 3,881 million.
• ⬇️ Operating Profit decreased by 1.5% to PKR 2,800 million.
• ⬆️ EPS increased to PKR 30.98 from (PKR 73.36) in 2024.
• ✅ Dividend of PKR 2 per share declared.

🎯 Investment Thesis

Based on the limited information, I recommend a HOLD rating for Premium Textile Mills. The company has shown a turnaround in profitability and has resumed dividend payments, which are positive signs. However, the risks associated with the Pakistani textile industry and the company’s operational challenges warrant a cautious approach. Further analysis of the company’s financials and strategic plans is needed before making a more definitive investment decision.

⚡ Flash Summary

Premium Textile Mills Limited held its Annual General Meeting on October 28, 2025, where shareholders confirmed the minutes of the previous AGM, adopted the audited financial statements for the year ended June 30, 2025, and approved a final cash dividend of Rs. 2.00 per share, equivalent to 20%. The meeting also re-appointed M/s Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants as external auditors for the fiscal year ending June 30, 2026. The CEO and Company Secretary are authorized to complete all necessary actions for implementing these resolutions. This demonstrates a commitment to rewarding shareholders and maintaining financial oversight.

📌 Key Takeaways

• ✅ Minutes of the previous Annual General Meeting held on October 25, 2024, were confirmed.
• 📈 Audited Financial Statements for the year ended June 30, 2025, were received and adopted.
• 💰 A final cash dividend of Rs. 2.00 per share (20%) was approved for the year ended June 30, 2025.
• 🗓️ Dividend will be paid to members appearing in the Register of Members as of October 20, 2025.
• ✍️ CEO and Company Secretary are authorized to implement the resolutions.
• 👨‍💼 M/s Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants re-appointed as external auditors.
• audit The auditors will serve for the financial year ending June 30, 2026.
• 🤝 Terms for the auditors’ re-appointment to be agreed with management.
• 🏢 Meeting demonstrates compliance with PSX rulebook.
• ⭐ AGM reflects standard operational procedures and shareholder engagement.

🎯 Investment Thesis

Given the limited information, a HOLD recommendation is appropriate. The approval of a dividend is a positive sign, but a comprehensive analysis requires a review of the company’s financial statements. Without this, it is difficult to establish a firm price target. The time horizon depends on the investor’s objectives and risk tolerance, but a medium-term horizon (1-3 years) may be appropriate to assess the company’s financial performance and dividend sustainability.