Waves Home Appliances Limited (WAVESAPP) reported earnings per share of PKR 0.57 for CY24, compared to PKR 0.68 in CY23. Furthermore, in 3QCY25, the company reported earnings per share of PKR 0.39, compared to earnings per share of PKR 0.05 in the same period last year (SPLY).
The appliance market in Pakistan is valued at PKR 750bn, led by refrigerators (PKR 230bn) and air conditioners (PKR 190bn). Waves lead the deep freezer segment, catering to both retail and corporate customers. Its refrigerator line spans five widths, covering most market needs, while ACs, washing machines, and microwaves will be relaunched under a CKD model. The company also makes geysers and plans to revive water dispensers soon.
Management targets to grow sales from PKR 5bn to PKR 25bn in 2–3 years, driven by re-entry into CKD-based categories. Even a 5% share in the 1.2–1.5mn-unit AC market could meaningfully lift sales. The clean balance sheet structure positions Waves well for potential foreign joint ventures or acquisitions, with several MNCs showing interest post-US tariff shifts. The company exports refrigerators and freezers to Afghanistan, though shipments have been temporarily paused in recent weeks due to the prevailing war-like situation.
The company has partially booked the unrealised gain on its Kasur land, whose market value is estimated at nearly four times the book value. This gain is being recognized gradually and conservatively rather than as a one-off. Additionally, loan restructuring gains also contributed to other income. Appliance demand is increasingly shifting toward larger, higher end products. This has resulted in topline growth in value terms, while volumes have remained broadly stable. To drive retail penetration, Waves plans to expand installment based sales via its 100%-owned Waves Marketplace, serving 400k customers, and is exploring a consumer financing partnership or bank tie-up.
Important Disclosures
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