SELL - FoxLogica

📉 SHCI: SELL Signal (9/10) – Transmission of Annual Financial Statements for the Year Ended 2025-06-30

⚡ Flash Summary

Shaffi Chemical Industries Limited’s 2025 annual report reveals a company in significant financial distress, despite attempts at revival through diversification into furniture manufacturing and trading. The company experienced a substantial after-tax loss of Rs. (29.107) million, doubling from Rs. (14.984) million the previous year. An independent auditor’s report expressed an adverse opinion, citing a net capital deficiency of Rs. 70.545 million. While management seeks to address the dire financial straits, the company’s ability to continue as a going concern is highly questionable.

Signal: SELL 📉

Strength: 9/10

Sentiment: NEGATIVE

Time Horizon: SHORT_TERM

📌 Key Takeaways

📉 Significant Loss: The company reports a loss after taxation of Rs. (29.107) million in 2025, compared to Rs. (14.984) million in 2024.
⚠️ Adverse Audit Opinion: The independent auditor expresses an adverse opinion on the financial statements.
⛔️ Net Capital Deficiency: The company faces a net capital deficiency of Rs. 70.545 million.
🔻 Revenue Increase: Sales revenue increased to Rs. 23.661 million from Rs. 20.238 million the previous year.
furniture🪑Business Shift: The company diversified into furniture manufacturing and trading, aiming for revival.
⬆️ Authorized Capital Increase: Authorized capital increased from Rs. 120 million to Rs. 400 million to facilitate rights issue fundraising.
➖ Operating Profit Decline: Gross profit decreased to Rs. 3.653 million from Rs. 4.240 million.
➖ EPS Decline: Earning per share is Rs. (2.43) compared to Rs. (1.25) for the preceding year.
🏛️ Ongoing Litigation: The company is contesting winding-up petition and disputed cases related to First Capital ABN AMRO equities.
🏦 Loan Increase: Loan from associated company increase to Rs. 4.481 million from Rs. (3.705) million in the prior year.
🚧 Non-Compliance: The company faces non-compliance issues regarding independent directors and other corporate governance matters.
❗Material Uncertainty: The auditor highlights material uncertainty related to the company’s ability to continue as a going concern.

🎯 Investment Thesis

Given the financial distress, adverse audit opinion, and substantial risks, a SELL recommendation is warranted. There is a high probability of further downside. Any investment is purely speculative. No price target or meaningful time horizon can be assigned given the severe financial instability.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements FECM Signal: SELL

📉 FECM: SELL Signal (7/10) – Transmission of Annual Report for the Year Ended 30-06-2025

⚡ Flash Summary

First Elite Capital Modaraba reported a significant decrease in profit after taxation, falling from Rs. 23.64 million in 2024 to Rs. 4.69 million in 2025. This decline is primarily attributed to fair value gain on investment properties. While the Modaraba’s gross revenue was Rs. 52.32 million, largely from investment property gains, Ijraha/Lease, and mutual fund investments, earnings per certificate also decreased to Rs. 0.41 from Rs. 2.08. The company did not recommend any dividend this year due to accumulated losses.

Signal: SELL 📉

Strength: 7/10

Sentiment: NEGATIVE

Time Horizon: SHORT_TERM

📌 Key Takeaways

📉 Profit after taxation decreased significantly to Rs. 4.69 million from Rs. 23.64 million yoy.
⚠️ Earnings per certificate declined from Rs. 2.08 to Rs. 0.41 yoy.
💰 Total income decreased to Rs. 52.32 million from Rs. 69.32 million yoy.
🏢 Revenue was mainly derived from fair value gain on Investment Properties, Ijraha/Lease and profit on Investment in Mutual Funds.
🧾 Depreciation of Assets Leased Out increased to Rs. 26.39 million from Rs. 23.69 million yoy.
💸 Administrative & General Expenses increased to Rs. 19.17 million from Rs. 18.08 million yoy.
❌ No dividend was recommended due to accumulated losses.
📊 The portfolio of Ijarah remained at Rs.113.69 million.
🛡️ Certificate holders equity stood at Rs.137.90 million.
💰 Breakup value per certificate was Rs.12.16.
📈 Pakistan’s economy showed signs of strengthening in FY 2025, but high debt servicing and energy sector arrears persist.
🔮 Management intends to concentrate on small ticket Ijrah financing and explore new avenues for profitable business.
💼 There are ongoing proceedings for multiple tax years.
⚖️ The auditor has issued a going concern opinion.

🎯 Investment Thesis

SELL. The company’s declining profits, earnings, and dividends, combined with increasing operational costs, render it as an unattractive investment. A reasonable price to set may be its net asset value (NAV) less 10%.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements FNBM Signal: SELL

📉 FNBM: SELL Signal (8/10) – Transmission of Annual Report for the Year Ended June 30, 2025

⚡ Flash Summary

First National Bank Modaraba (FNBM) reported a net loss of Rs. 3.9 million for the year ended June 30, 2025, a stark contrast to the previous year’s net profit of Rs. 34.7 million. This decline is attributed to reduced income from short-term deposit placements and ongoing finance costs related to legacy borrowing. Recoveries from non-performing loans (NPLs) slowed, amounting to Rs. 14.75 million compared to Rs. 73.90 million in FY24. Management is actively evaluating strategic options for business revival, including potential balance sheet restructuring. The company remains committed to Shariah compliance and adherence to applicable audit mechanisms.

Signal: SELL 📉

Strength: 8/10

Sentiment: NEGATIVE

Time Horizon: SHORT_TERM

📌 Key Takeaways

📉 FNBM reports a net loss of Rs. 3.9 million in FY25, a significant drop from the Rs. 34.7 million profit in FY24.
💸 Income from short-term placements decreased to Rs. 40.5 million in FY25 from Rs. 49.7 million in FY24 due to SBP policy rate reduction.
⚠️ Accrued finance costs on a short-term loan facility amounted to Rs. 34.2 million in FY25, down from Rs. 49.5 million in FY24.
💰 Recoveries from non-performing portfolio totaled Rs. 14.75 million in FY25, a substantial decrease from Rs. 73.90 million in FY24.
⚖️ Recoveries included Rs. 1.89 million from reversal of doubtful recoveries, Rs. 6.37 million from reversal of suspended income, and Rs. 6.49 million in principal recovered.
💼 Operating expenses were managed at Rs. 16.30 million.
📜 FNBM faces challenges with accumulated losses exceeding 50% of its paid-up fund and a winding-up petition filed by SECP.
🚫 No dividends were declared for the year ended June 30, 2025.
🌱 Management is actively evaluating strategic options under a comprehensive business revival plan.
⚖️ The financial statements have been prepared on the basis of estimated realizable/settlement values of assets and liabilities.
✔️ The company is fully committed to Sharia’h compliance.

🎯 Investment Thesis

SELL. FNBM faces significant financial and legal challenges, with accumulated losses exceeding 50% of its paid-up fund and a winding-up petition filed by SECP. The transition to estimated realizable values signals distress. No dividends were declared, and recovery momentum from NPLs has significantly slowed. There is no price target given the uncertainty.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

AASM announcements Signal: SELL

📉 AASM: SELL Signal (9/10) – Transmission of Annual Financial Statement for the year ended on June 30, 2025

⚡ Flash Summary

Al-Abid Silk Mills Limited’s 57th Annual Report for the year ended June 30, 2025, reveals a company facing significant financial headwinds. The company has accumulated losses of Rs. 2,314 million, and current liabilities exceed current assets by Rs. 1,902 million, raising doubts about its ability to continue as a going concern. The Directors’ Report indicates that the textile industry remains under pressure due to increased taxes and duties. The company is negotiating with buyers for production and processing, but no dividend is planned due to prevailing financial constraints. The auditors have expressed an adverse opinion on the financial statements.

Signal: SELL 📉

Strength: 9/10

Sentiment: NEGATIVE

Time Horizon: SHORT_TERM

📌 Key Takeaways

❌ Accumulated losses stand at a negative Rs. 2,314 million, indicating severe financial distress.
⚠️ Current liabilities exceed current assets by Rs. 1,902 million, highlighting liquidity concerns.
📉 No production or sales during the year, reflecting operational challenges.
🚫 No dividend declared for the year ended June 30, 2025, due to financial constraints.
🏦 Company engaged in litigation with certain banks, preventing direct balance confirmations.
💼 One Non-Executive Director resigned; the Board intends to appoint a new director.
📜 Auditors issued an adverse opinion on the financial statements.
🏭 The company is negotiating production and processing deals with buyers, awaiting approval for bulk production to commence.
📈 Revaluation surplus on property, plant, and equipment increased from Rs. 1,905.75 million to Rs. 2,400.54 million.
💰 Cash and bank balances decreased from Rs. 103.43 million to Rs. 50.47 million.
📉 Loss per share is negative, reflecting losses for shareholders, (-10.36).
⛔ No material departure from corporate governance practices, according to the listing regulations.
📅 Next AGM scheduled for October 28, 2025.
🚫 No internal audit function due to company not operational.

🎯 Investment Thesis

Given the precarious financial condition and operational stagnation, a SELL recommendation is warranted. The company has high risk and low to no potential for return, and potentially a risk for bankruptcy. Price target 0.00 (near zero).

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements DWTM Signal: SELL

📉 DWTM: SELL Signal (8/10) – Transmission of Annual Report for the Year Ended June 30,2025

⚡ Flash Summary

Dewan Textile Mills Limited’s 56th Annual General Meeting announcement reveals a company grappling with significant financial challenges. Operational sales are nil due to a factory shutdown since December 2015. The company faces an adverse opinion from auditors regarding its ability to continue as a going concern, coupled with defaults in restructured liabilities. A restructuring proposal is pending with lenders, with management hopeful for a resolution.

Signal: SELL 📉

Strength: 8/10

Sentiment: NEGATIVE

Time Horizon: SHORT_TERM

📌 Key Takeaways

❌ Operations have been suspended since December 2015 due to industry challenges and working capital constraints.
📉 The company reported a loss after taxation of Rs. 126.36 million for the year ended June 30, 2025.
⚠️ Auditors express an adverse opinion on the going concern assumption.
🏦 Defaults in repayment of restructured liabilities have led to lenders filing execution suits.
🤝 The company is pursuing further restructuring of its liabilities with lenders.
🚫 No provision for markup amounting to Rs. 428.480 million was made in the financial statements.
🏛️ Certain lenders continue to pursue suits in the High Court for recovery of liabilities amounting to Rs. 419.065 million.
🌱 GDP is expected to grow by 3.6% in FY 202526, according to IMF estimates.
🌪️ Devastating monsoon floods in mid-2026 severely disrupted agricultural output and supply chains.
📉 The textile sector was particularly impacted by losses in the local cotton crop.
⚖️ The company is involved in legal disputes regarding Gas Infrastructure Development Cess Ordinance, 2014.
👨‍💼 Six Board meetings were held during the financial year ended June 30, 2025.
🔒 The share transfer books will remain closed from October 20, 2025, to October 27, 2025.

🎯 Investment Thesis

Given the very high levels of financial and operational risk, a SELL recommendation is warranted. There is no clear path to profitability or long-term sustainability, and investors should avoid this stock until significant and material improvements are made.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements POML Signal: SELL

📉 POML: SELL Signal (7/10) – Financial Results for the Year Ended

⚡ Flash Summary

Punjab Oil Mills Limited reported a net loss of PKR 69.02 million for the year ended June 30, 2025, compared to a net loss of PKR 37.41 million in the previous year. Revenue increased to PKR 9.24 billion from PKR 8.05 billion. The company did not declare any cash dividend, bonus shares, or right shares. Operating profit decreased significantly from PKR 270.87 million to PKR 152.73 million due to higher operating expenses.

Signal: SELL 📉

Strength: 7/10

Sentiment: NEGATIVE

Time Horizon: MEDIUM_TERM

📌 Key Takeaways

🚨 Net loss increased to PKR 69.02 million, a significant decline from the previous year’s loss of PKR 37.41 million.
⬆️ Revenue increased to PKR 9.24 billion from PKR 8.05 billion, indicating sales growth.
📉 Operating profit decreased substantially from PKR 270.87 million to PKR 152.73 million.
💰 No cash dividend was declared for the year ended June 30, 2025.
❌ No bonus shares or right shares were announced.
💸 Finance costs decreased from PKR 168.81 million to PKR 131.34 million.
📉 Loss per share worsened to (PKR 8.89) from (PKR 4.82).
⚠️ Other operating expenses decreased from PKR 77.94 million to PKR 54.45 million.
✅ Other income increased from PKR 42.43 million to PKR 61.09 million.
📉 Levy expense increased from PKR 55.78 million to PKR 93.02 million.
⬇️ Trade and other payables increased significantly from PKR 527.61 million to PKR 1.10 billion.
⬇️ Short term borrowings decreased from PKR 817.40 million to PKR 732.87 million.

🎯 Investment Thesis

SELL. The company’s worsening net loss, absence of dividends, and increasing operating expenses make it an unattractive investment. While revenue grew, the lack of profitability raises concerns about the company’s operational efficiency and financial stability. The price target should reflect the negative earnings and uncertainty, indicating the stock price is likely to decrease. This recommendation has a MEDIUM_TERM horizon.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements FNEL Signal: SELL

📉 FNEL: SELL Signal (9/10) – Financial Results for the Year Ended 30-06-2025

⚡ Flash Summary

First National Equities Limited (FNEL) reported a significant loss for the year ended June 30, 2025, with a loss after income tax of PKR 78.68 million compared to a loss of PKR 51.47 million in the prior year. The company’s operating revenue decreased substantially from PKR 33.92 million to PKR 8.56 million. This decline in revenue and increased losses raise concerns about the company’s financial health and operational efficiency. The statement of cash flows shows significant cash outflow from operating and investing activities.

Signal: SELL 📉

Strength: 9/10

Sentiment: NEGATIVE

Time Horizon: SHORT_TERM

📌 Key Takeaways

📉 Operating revenue plummeted by 74.77% from PKR 33.92 million in 2024 to PKR 8.56 million in 2025.
❗ Loss after income tax widened by 52.85% from PKR 51.47 million in 2024 to PKR 78.68 million in 2025.
⛔ Loss per share increased from PKR 0.19 in 2024 to PKR 0.29 in 2025.
Investments generated a gain of PKR 6.31 million in 2025, a swing from a loss of PKR 6.05 million in 2024. 💰
⚖ Unrealized gain on re-measurement of investments improved to PKR 4.89 million from a loss of PKR 4.39 million in 2024.
💸 Administrative expenses decreased significantly from PKR 73.42 million to PKR 41.77 million.
💵 Finance costs increased slightly from PKR 24.06 million to PKR 25.30 million.
🙁 Loss before levies and taxation increased from PKR 50.26 million to PKR 71.39 million.
Taxation expense decreased from PKR 277,609 to an income of PKR 6,689,457.
Cash outflows from operating activities increased from PKR 59.95 million to PKR 85.48 million. 💸
Cash outflows from investing activities decreased from PKR 62.69 million generated in 2024 to PKR 147.63 million utilized in 2025. 💸
The company’s cash and cash equivalents decreased from PKR 274.34 million to PKR 9.23 million. 📉
Non-current assets increased from PKR 1.23 billion to PKR 1.37 billion. 📈
Total liabilities decreased from PKR 708.41 million to PKR 634.37 million. 📉

🎯 Investment Thesis

Given the poor financial performance, increasing losses, and strained cash flow, a SELL recommendation is warranted for FNEL. The drastic decline in revenue and the substantial net loss indicate significant challenges for the company’s future prospects. A price target of PKR 0.10 is set, based on the continued losses and the low cash position, with a short-term time horizon of 6 months, reflecting the high uncertainty surrounding the company’s ability to turn around its performance. The recommendation is based on the expectation of continued losses and the potential for further deterioration of the company’s financial position.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements DSFL Signal: SELL

📉 DSFL: SELL Signal (8/10) – Transmission of Annual Report for the Year Ended June 30,2025

⚡ Flash Summary

Dewan Salman Fibre Limited’s (DSFL) Annual Report for the year ended June 30, 2025, reveals a challenging financial landscape marked by continued operational closure and significant accumulated losses. The company’s turnover remained nil due to the cessation of manufacturing activities since December 2008. While management is actively pursuing debt restructuring with financial institutions, an adverse opinion has been issued by the auditors regarding the use of the going concern assumption, adding further uncertainty. The report highlights the Company’s endeavors to navigate these difficulties, including efforts to reduce costs and manage feedstock price changes.

Signal: SELL 📉

Strength: 8/10

Sentiment: NEGATIVE

Time Horizon: SHORT_TERM

📌 Key Takeaways

❌ DSFL reported zero revenue for the year ended June 30, 2025.
📉 The company experienced a Gross Loss of PKR 283.045 million.
😓 Operating Loss widened to PKR 345.904 million.
⛔ Auditors issued an adverse opinion due to concerns about the ‘going concern’ assumption.
⚠️ Financial statements preparation is questionable.
🔍 Trade debts are stagnant, raising concerns about recovery.
📉 Loss per share stood at (PKR 1.04).
🚫 No dividend declared due to adverse financial conditions.
🏢 Company’s operations have been closed since December 2008.
🤝 Debt restructuring proposals are ongoing with financial institutions.
🌍 PSF market faces significant competition from international players.
🇵🇰 The company is exposed to Pak Rupee depreciation risk against the US Dollar.
🚫 The company is lacking the Non-availability of banking lines.

🎯 Investment Thesis

Due to the adverse opinion from auditors, continued operational closure, increasing losses, significant debt and the inherent risks, a SELL recommendation is warranted. There is no reason to expect a turnaround, considering existing challenges and auditors’ concerns. A price target is based on potential asset liquidation value, though highly uncertain. Any potential investor should avoid this security, as per the current situation and report.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

AKDHL announcements Signal: SELL

📉 AKDHL: SELL Signal (7/10) – Financial Results for the Year ended 30th June 2025

⚡ Flash Summary

AKD Hospitality Ltd. reported its financial results for the year ended June 30, 2025. The company declared no final dividend for the year. Revenue remained flat at PKR 6,000,000 compared to the previous year. Profit after tax and levy decreased significantly from PKR 8,360,910 in 2024 to PKR 1,266,304 in 2025.

Signal: SELL 📉

Strength: 7/10

Sentiment: NEGATIVE

Time Horizon: SHORT_TERM

📌 Key Takeaways

❌ No dividend declared for the year ended June 30, 2025.
📊 Revenue stagnated at PKR 6,000,000, same as last year.
📉 Profit after tax and levy plummeted to PKR 1,266,304 from PKR 8,360,910.
⚠️ Earnings per share (EPS) dropped drastically to PKR 0.51 from PKR 3.33.
💰 Cash and bank balances increased slightly to PKR 14,118,089 from PKR 14,024,199.
📉 Reserves decreased from PKR (14,734,180) to PKR (1,003,876).
📉 Total Equity increased to PKR 37,018,858 from PKR 23,288,554.
⬆️ Current assets increased to PKR 16,954,313 from PKR 16,492,198.
⬆️ Non-current assets increased significantly to PKR 28,085,065 from PKR 15,635,539.
⬆️ Total Assets increased to PKR 45,039,378 from PKR 32,127,737.
⬆️ Other comprehensive income increased significantly to PKR 12,464,000 from PKR 3,838,000.
❌ No bonus shares or right shares were declared.
📅 Annual General Meeting scheduled for October 28, 2025.

🎯 Investment Thesis

Given the stagnant revenue, drastically reduced profitability, negative reserves, and poor EPS, a SELL recommendation is warranted. The company’s financial health is concerning, and the lack of dividend payout further reduces its attractiveness to investors. Unless there are significant improvements in operational efficiency and revenue growth, the stock is likely to underperform.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

announcements DWAE Signal: SELL

📉 DWAE: SELL Signal (8/10) – Transmission of Annual Report for the Year Ended June 30,2025

⚡ Flash Summary

Dewan Automotive Engineering Limited’s annual report for the year ended June 30, 2025, reveals a challenging financial situation. The company experienced negative gross and operating profits, alongside a net loss after tax of PKR 51.943 million. The auditor’s report was qualified due to concerns about the company’s ability to continue as a going concern. The company is facing severe working capital constraints and has accumulated significant losses, resulting in a net capital deficiency of PKR 1,576.553 million. Despite these challenges, the management is actively seeking financing to resume normal manufacturing operations.

Signal: SELL 📉

Strength: 8/10

Sentiment: NEGATIVE

Time Horizon: SHORT_TERM

📌 Key Takeaways

📉 Net loss after tax: PKR (51.943) million in 2025 vs PKR (67.912) million in 2024.
📉 Gross loss: PKR (13.249) million in 2025 vs PKR (13.933) million in 2024.
📉 Operating loss: PKR (21.053) million in 2025 vs PKR (16.752) million in 2024.
⚠️ Auditors qualified the report: Due to concerns about going concern.
❗ Accumulated losses: Increased to PKR (2,020.547) million.
❗ Net capital deficiency: PKR (1,576.553) million.
❌ No dividend recommended: Due to losses.
✅ Management is actively seeking financing: To resolve working capital constraints.
📈 Automotive industry in Pakistan: Recovering with a 43% increase in auto sales.
⚖️ Legal compliance: Compliant with corporate governance provisions.
🧑‍💼 Limited workforce: Only two male employees during the year.
🔍 Key risks: Depreciation of PKR vs USD and lack of working capital.
🏢 Main activities: Manufacturing, assembling, and selling vehicles.
🔒 The company’s operations are closed: Due to working capital constraints.

🎯 Investment Thesis

Due to severe financial distress, ongoing losses, auditor qualifications, and high risks, a SELL recommendation is warranted. The company’s ability to continue as a going concern is uncertain. Any price target is highly speculative given the lack of financial stability. Time horizon: Immediate.

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Disclaimer: AI-generated analysis. Not financial advice.

Written by: FoxLogica News Analysis

Published on: October 6, 2025

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