YOUW

⚡ Flash Summary

Yousaf Weaving Mills Limited (YOUW) reported a challenging year, with a significant shift from a gross profit to a substantial gross loss, primarily due to rising production costs and reduced sales volumes. The company incurred a net loss of Rs. 306.713 million, a stark contrast to the previous year’s loss of Rs. 49.205 million. Despite these difficulties, management remains confident in the company’s ability to continue as a going concern, citing successful renegotiations of financing arrangements and cost rationalization measures. The board has initiated a BMR plan and received financial support from sponsors to address liquidity issues and improve operational efficiency. Investors should exercise caution and closely monitor the company’s performance and restructuring efforts.

📌 Key Takeaways

• ❌ YOUW recorded a gross loss of Rs. 254.473 million, a significant drop from the previous year’s gross profit of Rs. 3.050 million.
• 📉 The company’s net loss surged to Rs. 306.713 million, compared to a net loss of Rs. 49.205 million in the prior year.
• 🏭 Production costs increased sharply, leading to reduced capacity utilization and lower sales volumes.
• 🤝 Management successfully renegotiated and restructured major financing arrangements with lending banks.
• ✅ Regular installment payments are now being made to the Bank of Punjab.
• 👍 Restructuring with the National Bank of Pakistan has been finalized and implemented.
• 💬 Negotiations with the remaining financial institution are at an advanced stage and expected to conclude favorably.
• 💲 Sponsors and directors injected Rs. 81 million during the current year to meet liquidity requirements.
• 🔄 A Balancing, Modernization and Replacement (BMR) plan has been initiated to improve production efficiency.
• 🌱 The company had no female employees on the payroll during the year, emphasizing the need for increased gender diversity.
• ⚠️ Statutory auditors have highlighted material uncertainty regarding the company’s ability to continue as a going concern.
• 📅 The 38th Annual General Meeting will be held on October 28, 2025, to adopt the audited accounts and appoint auditors.
• 🚫 No gifts, hampers, or giveaways will be distributed at the upcoming Annual General Meeting, complying with SECP directives.
• 💻 Financial statements for the year ended June 30, 2025, will be uploaded on the company’s website 21 days prior to the AGM.
• 🔒 Share transfer books for ordinary shares will be closed from October 21-28, 2025.

🎯 Investment Thesis

Given the substantial losses, material uncertainty regarding going concern, and weakened financial standing, a SELL recommendation is warranted for YOUW. The company’s restructuring efforts and potential BMR plan might offer some upside, but these are not yet reflected in improved financial performance. A price target cannot be accurately assessed currently due to these uncertainties and the lack of detailed future projections. Any time horizon is speculative.

⚡ Flash Summary

Yousaf Weaving Mills Limited (YOUW) reported a net loss of PKR 306.71 million for the year ended June 30, 2025, a significant increase from the PKR 49.21 million loss in the previous year. Sales increased to PKR 639.74 million from PKR 527.64 million. However, the company’s cost of sales surged to PKR 894.21 million, resulting in a gross loss of PKR 254.47 million. The substantial increase in losses raises concerns about the company’s operational efficiency and financial stability.

📌 Key Takeaways

• 🚨 YOUW’s net loss dramatically increased to PKR 306.71 million in 2025 from PKR 49.21 million in 2024.
• 📈 Sales saw an increase, reaching PKR 639.74 million in 2025 compared to PKR 527.64 million in 2024.
• 📉 Cost of sales spiked to PKR 894.21 million, leading to a gross loss of PKR 254.47 million.
• ⚠️ Operating loss widened to PKR 294.73 million from PKR 38.03 million.
• 💸 Loss per share ballooned to PKR (2.26) from PKR (0.39).
• 💰 Net cash used in operating activities was PKR 28.73 million compared to cash generated of PKR -8.69 million in 2024.
• 🏦 Short-term borrowings decreased significantly to PKR 517.92 million from PKR 611.65 million.
• 📊 The company’s accumulated loss increased to PKR 1.85 billion.
• ❌ Total comprehensive loss for the year was PKR 310.12 million, a stark contrast to the income of PKR 197.72 million in the previous year.
• 📉 Negative experience adjustment on remeasurement of staff retirement of PKR -3.41 million.
• 💵 Loan from directors increased significantly to PKR 81.96 million vs PKR 34.18 million in 2024.

🎯 Investment Thesis

Based on the significant losses, deteriorating profitability, and weak financial position, a SELL recommendation is warranted for Yousaf Weaving Mills. The increasing losses and negative cash flow raise serious concerns about the company’s ability to sustain operations. A price target cannot be provided due to the fundamental issues, but it is likely to be substantially lower than the current market price. Time horizon: Short-term.

⚡ Flash Summary

Yousaf Weaving Mills Limited (YOUW) reported a net loss of PKR 306.71 million for the year ended June 30, 2025, a significant increase from the PKR 49.21 million loss in the previous year. Sales increased to PKR 639.74 million from PKR 527.64 million. However, the company’s cost of sales surged to PKR 894.21 million, resulting in a gross loss of PKR 254.47 million. The substantial increase in losses raises concerns about the company’s operational efficiency and financial stability.

📌 Key Takeaways

• 🚨 YOUW’s net loss dramatically increased to PKR 306.71 million in 2025 from PKR 49.21 million in 2024.
• 📈 Sales saw an increase, reaching PKR 639.74 million in 2025 compared to PKR 527.64 million in 2024.
• 📉 Cost of sales spiked to PKR 894.21 million, leading to a gross loss of PKR 254.47 million.
• ⚠️ Operating loss widened to PKR 294.73 million from PKR 38.03 million.
• 💸 Loss per share ballooned to PKR (2.26) from PKR (0.39).
• 💰 Net cash used in operating activities was PKR 28.73 million compared to cash generated of PKR -8.69 million in 2024.
• 🏦 Short-term borrowings decreased significantly to PKR 517.92 million from PKR 611.65 million.
• 📊 The company’s accumulated loss increased to PKR 1.85 billion.
• ❌ Total comprehensive loss for the year was PKR 310.12 million, a stark contrast to the income of PKR 197.72 million in the previous year.
• 📉 Negative experience adjustment on remeasurement of staff retirement of PKR -3.41 million.
• 💵 Loan from directors increased significantly to PKR 81.96 million vs PKR 34.18 million in 2024.

🎯 Investment Thesis

Based on the significant losses, deteriorating profitability, and weak financial position, a SELL recommendation is warranted for Yousaf Weaving Mills. The increasing losses and negative cash flow raise serious concerns about the company’s ability to sustain operations. A price target cannot be provided due to the fundamental issues, but it is likely to be substantially lower than the current market price. Time horizon: Short-term.