⚡ Flash Summary

PACE (Pakistan) Limited’s financial performance for the period ended September 30, 2025, reveals a significant decrease in revenue to PKR 151.567 million compared to PKR 474.139 million in the prior period. Despite the revenue decline, the company achieved a substantial net profit of PKR 362.148 million, a notable increase from PKR 156.870 million in the previous year. This was primarily driven by a substantial increase in other income, mainly from a gain on the disposal of investment in Pace Super Mall (Pvt.) Limited. The earnings per share (EPS) also increased from PKR 0.56 to PKR 1.30. The company is actively managing its borrowings and exploring new revenue streams, including advertising income and co-working spaces.

📌 Key Takeaways

• ⬇️ Revenue decreased significantly to PKR 151.567 million from PKR 474.139 million.
• ⬆️ Net profit substantially increased to PKR 362.148 million from PKR 156.870 million.
• ⬆️ Earnings per share (EPS) increased to PKR 1.30 from PKR 0.56.
• 💰 Cost of sales decreased to PKR 64.8 million from PKR 251 million.
• 📈 Other income surged to PKR 363.7 million, driven by gain on disposal of investment.
• 💹 Administrative expenses reduced to PKR 39.7 million from PKR 79.9 million.
• 💸 Finance costs increased to PKR 49 million from PKR 39 million due to KIBOR rate changes.
• 🤝 Management is actively engaged in settling company borrowings.
• 🏢 Company is shifting its mall structure to shared office spaces.
• 🏗️ Partial completion of Pace Tower project.
• 🏢 Renting out vacant spaces on co-working basis to increase revenue.
• 🏘️ Started sale of allocated unit in Shadman project through zameen.com.
• 📣 Focusing on advertisement income stream.
• ✔️ Shareholders approved issuance of new shares through Employee Stock Option Scheme.
• 🌱 Company plans to diversify into Print and Social Media business.

🎯 Investment Thesis

HOLD. Despite the improved EPS and net profit due to the one-time gain, the significant revenue decline raises concerns about the sustainability of future earnings. Management’s strategic initiatives to manage borrowings and diversify revenue streams are promising, but their success is uncertain. Given the mixed signals and current market conditions, a HOLD recommendation is appropriate with a price target based on normalized earnings and successful implementation of strategic initiatives. The time horizon is MEDIUM_TERM, pending further evidence of sustained revenue growth and effective cost management.