SGPL

⚡ 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.

⚡ Flash Summary

SG Power Limited’s 2025 annual report reveals a tumultuous year with significant financial challenges. Sales plummeted from PKR 17.30 million to PKR 6.15 million, resulting in a loss of PKR 8.40 million compared to a profit of PKR 1.67 million the previous year. The company’s accumulated losses have ballooned to PKR 266.78 million, raising concerns about its ability to continue as a going concern. Despite these challenges, management is exploring alternative energy sources and has received financial support commitments from directors and associated companies.

📌 Key Takeaways

• 📉 Sales decreased significantly from PKR 17.30 million in 2024 to PKR 6.15 million in 2025.
• ⛔ Company reported a net loss of PKR 8.40 million in 2025, a stark contrast to the PKR 1.67 million profit in 2024.
• ⚠️ Accumulated losses increased to PKR 266.78 million, raising concerns about long-term viability.
• ⛽ Generation costs decreased to PKR 7.93 million but are still a major burden.
• ⬆️ Administrative and selling expenses rose dramatically to PKR 6.62 million.
• 💸 Loss per share is PKR -0.47.
• 😬 Auditors express material uncertainty related to the company’s ability to continue as a going concern.
• 🤝 Crescent Star Insurance Limited acquired a 38.05% stake in SG Power post-year-end for PKR 6 per share.
• 🚫 The company has negative cash flow from operations of PKR (1,319,265).
• ✔️ Management is exploring alternative energy sources, such as solar, to mitigate costs.
• 🧾 There were instances of non-compliance with the code of corporate governance.
• 🏛️ The Board of Directors decided to forgo fees to improve company financial state.
• 🏦 There is director loan of PKR 1,913,262.

🎯 Investment Thesis

Given the significant financial challenges, a SELL recommendation is appropriate. The company’s going concern status is under question, and the substantial accumulated losses indicate a high degree of financial distress. The recent acquisition by Crescent Star Insurance does provide some liquidity, but it is only for the shares sold to them. The negative outlook for the near-term future makes investment in SG Power Limited highly speculative and risky.

⚡ Flash Summary

SG Power Limited (SGPL) reported disappointing financial results for the year ended June 30, 2025, with a significant loss of PKR 8.405 million compared to a profit of PKR 1.668 million in the previous year. The primary driver for this downturn was a substantial decrease in sales of electricity, dropping from PKR 17.302 million to PKR 6.146 million. This decline in revenue, coupled with high generation and operating costs, resulted in a substantial operating loss. The company did not recommend any cash dividend, bonus shares, or right shares for the year.

📌 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.