Security Papers Limited (SEPL) reported earnings per share of PKR 25.72 for FY25, compared to PKR 25.12 in FY24. Furthermore, in 4QFY25, the company reported earnings per share of PKR 7.14, compared to earnings per share of PKR 6.85 in the same period last year (SPLY). During the year, the members of the Company, in an Extraordinary General Meeting, approved a capital investment of PKR 3.4 billion for the upgradation of the paper-making machine (PM-2). The upgraded facility will enable the Company to produce banknote paper with enhanced security features, in line with the requirements of its key customer.
An advance payment of 15% has already been made from the Company’s internal cash reserves. Previously, the contract with Pakistan Security Printing Corporation (PSPC) was maintained at a 28% margin, which concluded in June. Negotiations for a revised pricing structure are currently in progress and are expected to be finalized in accordance with prevailing industry benchmarks.
The Company has a limited requirement for cotton comber, most of which is sourced through imports; therefore, it is not expected to be materially impacted by the recent floods affecting domestic cotton supply. During FY25, the Company produced approximately 3,500 tons of banknote paper. Management indicated that FY26 will serve as a transition year, during which inventory levels are expected to be reduced.
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.
