SURC

⚡ Flash Summary

Suraj Cotton Mills Limited will hold a Corporate Briefing Session on November 21, 2025, to discuss the company’s financial performance for the year ended June 30, 2025, and its future outlook. The briefing will take place at the Tricon Corporate Center in Lahore and will also be accessible via video conferencing (Zoom). Interested participants must register by November 20, 2025, providing their details to the specified email address. The Chief Financial Officer, Mr. Muhammad Naeem Sheikh, is available for queries regarding the Corporate Briefing Session.

📌 Key Takeaways

• 🗓️ Corporate Briefing Session scheduled for November 21, 2025.
• 🏢 Location: Tricon Corporate Center, Lahore.
• 💻 Session will cover FY 2025 financial performance.
• 🧑‍💻 Accessible via Zoom video conferencing.
• 📧 Registration required by November 20, 2025.
• ✉️ Send registration details to naeem.sheikh@suraj.com.
• 🏢 Senior Management to brief analysts and shareholders.
• CFO Mr. Muhammad Naeem Sheikh is the contact person for queries.
• 📞 Contact number: 042-35711138.
• 📄 Intended for analysts and shareholders.
• 📊 Discussion will include the Company’s future corporate outlook.

🎯 Investment Thesis

HOLD. This announcement is purely informational about an upcoming briefing session. Without financial details, a BUY/SELL recommendation cannot be justified. The briefing on November 21, 2025, should provide necessary data to re-evaluate. The recommendation is based on the lack of immediate financial information, with a medium-term horizon pending further details from the briefing. The price target will be determined after assessing the FY25 financial performance.

⚡ Flash Summary

SURC announced: Disclosure of Interest by a Director CEO, or Executive of a listed company and their Spouses and the Substantial Shareholders u/c 5.6.1.(d) of PSX Reg. Basic analysis suggests neutral sentiment. Professional review recommended.

📌 Key Takeaways

• SURC made announcement: Disclosure of Interest by a Director CEO, or Executive of a listed company and their Spouses and the Substantial Shareholders u/c 5.6.1.(d) of PSX Regulations
• Automated analysis: HOLD signal detected
• Signal strength: 5/10
• This is basic analysis – manual review recommended
• Professional CFA analysis unavailable

🎯 Investment Thesis

Basic HOLD indication for SURC. Manual verification required.

⚡ Flash Summary

Suraj Cotton Mills Limited (SCML) reported its FY 2025 results, showing a mixed performance. While fabric sales increased slightly, yarn sales experienced a significant decline. Overall profitability metrics such as gross profit ratio and net profit margin saw slight improvements compared to the previous year. Investors should closely monitor yarn sales trends and any potential impacts from increasing energy costs and raw material supply challenges.

📌 Key Takeaways

• 🏭 Suraj Cotton Mills operates in spinning and weaving, producing cotton yarn and woven fabrics.
• 🌍 Products are sold both locally and internationally, mainly to Asia and Europe.
• 📉 Yarn production decreased by 10.11% from 434,800 bags in FY23-24 to 390,830 bags in FY24-25.
• 📈 Fabric production increased by 4.94% from 42,619,000 meters to 44,725,000 meters.
• 📉 Yarn sales decreased by 14.14% from 438,180 bags to 376,230 bags.
• 📈 Fabric sales increased by 4.10% from 42,694,000 meters to 44,445,000 meters.
• 📈 Gross profit ratio slightly increased from 8.1% to 8.3%.
• 📈 Operating profit margin slightly increased from 8.0% to 8.0%.
• 📈 Net profit margin increased from 3.4% to 4.1%.
• 🔻 Debt to equity ratio improved from 25:75 to 21:79.
• 📈 Current ratio increased from 2.6 to 2.7.
• 💰 Sales decreased from PKR 29,744.29 million to PKR 27,411.46 million.
• 💰 Net Income increased from PKR 1,006.42 million to PKR 1,118.68 million.
• ⚠️ The company faces risks from high energy costs and unreliable cotton supply.

🎯 Investment Thesis

Hold. The company’s mixed performance, with declining yarn sales offset by increasing fabric sales, presents uncertainty. While profitability metrics show slight improvement and the balance sheet appears stronger, negative operating cash flow is a concern. Therefore, a hold rating is appropriate until trends become clearer and the impact of risks is better understood.

⚡ Flash Summary

Suraj Cotton Mills Limited held its 41st Annual General Meeting on October 27, 2025, where resolutions were passed and adopted. Key decisions included the approval of the annual audited financial statements for the year ended June 30, 2025, along with the Directors’ and Auditor’s reports. A final cash dividend of Rs. 5 per share (50%) was also approved, payable to shareholders on record as of October 20, 2025. Additionally, Riaz Ahmad & Company, Chartered Accountants, were re-appointed as auditors for the next term.

📌 Key Takeaways

• ✅ Annual General Meeting held on October 27, 2025.
• 📜 Approved annual audited financial statements for the year ended June 30, 2025.
• 🤝 Directors’ and Auditor’s reports were adopted.
• 💬 Chairman’s Review Report was also approved.
• 💰 Approved a final cash dividend of Rs. 5 per share.
• 💸 The dividend represents a 50% payout.
• 📅 Dividend payable to shareholders on record as of October 20, 2025.
• 👨‍💼 CEO/Director/CFO/Secretary authorized to execute dividend payment.
• 🧑‍⚖️ Riaz Ahmad & Company re-appointed as auditors.
• 🗓️ Auditors appointed for the next term ending June 30, 2026.
• 🏢 Remuneration of auditors to be fixed by the CEO.
• 🏦 Meeting held at Tricon Corporate Center, Lahore.

🎯 Investment Thesis

Based on the announcement, a HOLD recommendation is appropriate. The approval of financial statements and dividend indicates stable operations. Further information is needed to ascertain the stock’s potential for future capital appreciation. Price target cannot be accurately calculated without current financial performance.

⚡ Flash Summary

SURC announced: Financial Results for the Quarter Ended 30 September 2025. Basic analysis suggests neutral sentiment. Professional review recommended.

📌 Key Takeaways

• SURC made announcement: Financial Results for the Quarter Ended 30 September 2025
• Automated analysis: HOLD signal detected
• Signal strength: 5/10
• This is basic analysis – manual review recommended
• Professional CFA analysis unavailable

🎯 Investment Thesis

Basic HOLD indication for SURC. Manual verification required.

⚡ Flash Summary

Suraj Cotton Mills Limited will hold a board meeting on October 29, 2025, to review and approve the un-audited financial statements for the period ending September 30, 2025. The meeting will take place at Tricon Corporate Center in Lahore via video link (Zoom). The board will also consider the declaration of any entitlement. A closed period has been declared from October 22, 2025, to October 29, 2025, during which directors, the CEO, and executives are prohibited from dealing in the company’s shares.

📌 Key Takeaways

• 📅 Board meeting scheduled for October 29, 2025.
• 🏢 Meeting to be held at Tricon Corporate Center, Lahore.
• 💻 Option for virtual participation via Zoom.
• 💰 Purpose: Review and approve quarterly un-audited financial statements.
• 🗓️ Financial period under review: Quarter ended September 30, 2025.
• 📢 Consideration of entitlement declaration.
• 🔒 Closed period declared from October 22 to October 29, 2025.
• 🚫 Restrictions on directors, CEO, and executives dealing in company shares during the closed period.
• 📜 Compliance with Clause 5.6.1(d) of PSX Regulations.
• 📢 TRE Certificate Holders to be informed.

🎯 Investment Thesis

HOLD. The announcement is simply a notification of a board meeting. A more informed decision can be made after the release and analysis of the quarterly financial statements. Without specific financial data, there is no basis to upgrade or downgrade the rating. We will revisit our recommendation after reviewing the financials.