In CY24, Pak Elektron Limited (PAEL) reported a net profit of PKR 2.37 billion (EPS: PKR 2.72), marking a 79% increase from PKR 1.33 billion (EPS: PKR 1.50) recorded in CY23. During the year, the Power Division generated sales of PKR 29.53 billion, while the Appliance Division reported gross sales of PKR 40.08 billion and PKR 13.09 billion in 1QCY25.
PAEL successfully preserved its market share and is focused on penetration of appliances division. Revenue contribution stood at 43% from the Power Division and 57% from the Appliance Division. Management noted that 65% of washing machine sales consisted of older models, while demand is growing for automatic machines. PAEL’s market share across various product categories is as follows:
Refrigerators (19%), Air Conditioners (9%), Water Dispensers (25%), and Washing Machines (4%). In the power segment, PAEL holds a dominant 90% share in power transformers, 17% in distribution transformers, 25% in switchgears, and 18% in energy meters. In CY24, PAEL formed strategic partnerships with Electrolux and Panasonic to develop and market appliances. The company also plans to develop 15,000 LED units domestically.
The Appliance Division operates with a 70:30 ratio of imported to locally sourced raw materials, although the remaining 30% is reportedly imported indirectly via third parties. The retail-retention price difference was recorded at 16–18%. For CY25, PAEL targets revenue of PKR 50 million in the Power Division. The company is expanding its transformer manufacturing capacity with a capex plan of PKR 1.5–1.8 billion.
The Power Division has secured confirmed orders worth USD 44 million as of May 2025, targeting USD 50 million. Notably, PAEL has received orders from global industry leaders, including TESLA. Distribution transformer orders total USD 41 million for units rated between 225 kVA and 9,000 kVA. Additionally, big DTs account for USD 3 million in orders. Under the current tariff regime, the company has successfully passed on a 10% tariff increase and operates on a 90-day deferral arrangement, maintaining competitiveness in both lead times and pricing as global peers face similar challenges.
Management also indicated that export margins are higher than domestic ones. Over the next five years, PAEL expects greater appliance penetration driven by urbanization, product replacement, and sustained demand. For CY25, sales targets include 265,000 refrigerators (28% YoY growth), 100,000 air conditioners (57% growth), 40,000 deep freezers (33% growth), and 155,000 units across other categories (40% growth). In the Power Division, the company targets sales of 3,800 distribution transformers (169% growth), 38 power transformers (34% decline), and 544,000 energy meters (28% growth). In CY24, PAEL sold 220,082 refrigerators, 63,359 air conditioners, 28,779 deep freezers, and 122,657 units in other appliance categories. Looking ahead, PAEL aims to expand penetration in its domestic market while increasing exports in the Power Division.
The company aims to further increase market share in key categories while improving margins. The management remains focused on export expansion and margin preservation through CY25 and CY26, with an annual exports target of USD 100 million.
Important Disclosures
Disclaimer: This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.
