SGPL

⚡ Flash Summary

On November 10, 2025, S.G. Power Limited disclosed that Mr. Sohail Ahmed, the Chief Executive/Director, executed a sale of 12 shares of the company on July 11, 2025. The shares were sold at a rate of Rs. 12.3 per share. The shares were held in CDC form. This transaction will be presented to the Board for consideration as per PSX Regulations.

📌 Key Takeaways

• 🚨 Director/CEO Sohail Ahmed sold shares.
• 🗓️ Transaction date: July 11, 2025.
• 📉 Nature of transaction: Sale.
• 🔢 Number of shares sold: 12.
• 💰 Sale rate: Rs. 12.3 per share.
• 🏦 Shares held in CDC form.
• 📜 Disclosure made on November 10, 2025.
• 🏢 Company: S.G. Power Limited.
• 📌 Transaction to be presented to the Board.
• 🇵🇰 PSX Regulations compliance.
• 👨‍💼 Sohail Ahmed’s position: Chief Executive/Director.
• 📑 Disclosure u/c 5.6.1.(d) of PSX Regulations.

🎯 Investment Thesis

Based on the disclosure of a director selling a small number of shares, a HOLD recommendation is appropriate. While the transaction itself is not significantly impactful, it warrants monitoring for further insider selling activity. A BUY or SELL recommendation would require a more thorough analysis of S.G. Power’s financials and market position. The price target is difficult to determine without a full valuation, so it is kept at the current price. Time horizon is MEDIUM_TERM until more information is available.

⚡ Flash Summary

SG Power Limited’s un-audited financial results for the quarter ended September 30, 2025, reveal a concerning financial situation. The company experienced no sales, a stark contrast to the PKR 3,032,700 in sales from the previous year. This resulted in a net loss of PKR 265,990, although this is an improvement compared to the loss of PKR 1,258,604 in the corresponding period last year. The company has not recommended any cash dividend, bonus shares, or right shares. Management expresses hope for increased sales in the future as the sister company’s business activities grow.

📌 Key Takeaways

• ⛔ No cash dividend, bonus shares, or right shares were recommended for the quarter.
• 📉 Sales plummeted to NIL compared to PKR 3,032,700 in the previous year.
• 💰 Net loss stood at PKR 265,990, an improvement from the PKR 1,258,604 loss last year. ✅
• Accumulated losses have reached PKR 267,044,170. 😥
• 🚫 No demand from sister concern, SG Allied Business Limited, impacted sales. 😔
• 🤝 Management is hopeful for increased sales in the upcoming financial year 2025-26, contingent on the growth of SG Allied Business Limited.🤞
• Long-term receivables and trade debts from associated company are fully provided for as doubtful of recovery. ⚠️
• A major portion of equity stake (38.05%) has been acquired by Crescent Star Insurance Limited for PKR 45.662 million (PKR 6 per share). 🏢
• ❌ The company’s current liabilities exceed its current assets, indicating potential liquidity issues. 💸
• 👀 Management is evaluating alternative sources of electricity generation, including solar energy, to reduce production costs. 🔆
• 👍 Management is confident that by adopting low-cost energy sources, the Company will be able to achieve sustainable profitability in the future.
• Loans from Directors are treated as equity. 🏦
• Employee numbers remain at a very low 4 people. 🧑‍💼

🎯 Investment Thesis

Based on the analysis, a SELL recommendation is warranted for SG Power Limited. The lack of revenue, mounting accumulated losses, negative working capital, and reliance on a single customer create a high-risk investment profile. While management is exploring alternative energy sources, the near-term outlook remains bleak. The recent equity acquisition by Crescent Star Insurance Limited, while potentially a positive sign, does not outweigh the fundamental financial weaknesses. Investors should seek opportunities with more stable and diversified revenue streams. High risk due to related party transactions.

⚡ Flash Summary

Crescent Star Insurance Limited, a substantial shareholder of SG Power Limited (SGPL), sold 370,000 shares on October 29, 2025, at a rate of PKR 11.71 per share. This transaction was executed through the CDC (Central Depository Company) in the regular market. Following this sale, Crescent Star Insurance Limited’s cumulative shareholding in SGPL decreased to 5,641,236 shares, representing 31.63% of the total shareholding. The disclosure was made to the Pakistan Stock Exchange (PSX) as per regulation 5.6.4.

📌 Key Takeaways

• 📝 Crescent Star Insurance Limited sold 370,000 shares of SG Power Limited (SGPL).
• 📅 The transaction occurred on October 29, 2025.
• 🏢 The sale was executed through the Central Depository Company (CDC) in the regular market.
• 💰 The selling price was PKR 11.71 per share.
• 📉 Post-transaction, Crescent Star Insurance Limited holds 5,641,236 shares.
• 📊 Their cumulative shareholding percentage now stands at 31.63%.
• 📜 The disclosure was made under PSX Regulation 5.6.4.
• 🏢 SG Power Limited’s registered office is in Karachi, Pakistan.
• 📞 Contact details for SG Power Limited include telephone numbers 02132593410-12 and 021-32593500.
• 📧 Email contact for SG Power Limited is Sohail.ahmed@sglyne.com.
• 🌐 SG Power Limited’s website is www.sgpl.com.pk.
• 🏢 The disclosure was addressed to the General Manager of the Pakistan Stock Exchange Limited.

🎯 Investment Thesis

Based on the information provided, a HOLD rating is suggested with caution. The sale by a substantial shareholder warrants careful monitoring of SGPL’s stock performance and investor sentiment. Further investigation is needed to understand the motives behind the sale and the potential long-term impact on the company’s stability and growth prospects. A price target cannot be accurately determined without additional financial data and analysis. Time horizon: MEDIUM_TERM.