Board Change • May 20
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. 2 independent directors (5 non-independent directors). Independent Director Md. Hossain was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. New Risk • Sep 25
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: ৳1.18b (US$9.81m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported March 2023 fiscal period end). Revenue has declined by 41% over the past year. Market cap is less than US$10m (৳1.18b market cap, or US$9.81m). Minor Risks Profit margins are more than 30% lower than last year (0.2% net profit margin). Revenue is less than US$5m (৳434m revenue, or US$3.6m). New Risk • Nov 18
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended March 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Shares are highly illiquid. Earnings have declined by 58% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported March 2023 fiscal period end). Profit margins are more than 30% lower than last year (0.2% net profit margin). Revenue is less than US$5m (৳434m revenue, or US$3.9m). Market cap is less than US$100m (৳2.71b market cap, or US$24.5m). Board Change • Oct 18
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Director Md. Hossain was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • May 23
AFC Agro Biotech Limited to Report Q3, 2023 Results on May 25, 2023 AFC Agro Biotech Limited announced that they will report Q3, 2023 results on May 25, 2023 Reported Earnings • Feb 07
Second quarter 2023 earnings released: EPS: ৳0.02 (vs ৳0.04 in 2Q 2022) Second quarter 2023 results: EPS: ৳0.02 (down from ৳0.04 in 2Q 2022). Revenue: ৳87.1m (down 28% from 2Q 2022). Net income: ৳1.76m (down 63% from 2Q 2022). Profit margin: 2.0% (down from 3.9% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Nov 16
Upcoming dividend of ৳0.05 per share Eligible shareholders must have bought the stock before 20 November 2022. Payment date: 29 January 2023. Trailing yield: 0.2%. Lower than top quartile of Bangladeshi dividend payers (3.8%). Lower than average of industry peers (2.4%). Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 6 non-independent directors. Independent Director Md. Hossain was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Nov 01
AFC Agro Biotech Limited Recommends Cash Dividend for the Year Ended June 30, 2022 AFC Agro Biotech Limited announced the board of directors has recommended 0.50% cash dividend for general shareholders only other than board of directors for the year ended June 30, 2022. Cash dividend payable to the general shareholders is BDT 4,016,005.00. Announcement • Jun 10
AFC Agro Biotech Limited Elects Mr. S.M. Saifur Rahman as Chairman AFC Agro Biotech Limited has informed that the Board of Directors has elected Mr. S.M. Saifur Rahman, as the Chairman of the Company with immediate effect. Reported Earnings • May 29
Third quarter 2022 earnings released: EPS: ৳0.05 (vs ৳0.03 in 3Q 2021) Third quarter 2022 results: EPS: ৳0.05 (up from ৳0.03 in 3Q 2021). Revenue: ৳136.5m (up 24% from 3Q 2021). Net income: ৳6.09m (up 95% from 3Q 2021). Profit margin: 4.5% (up from 2.8% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 89 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 6 non-independent directors. Independent Director Md. Hossain was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 13
Second quarter 2022 earnings: Revenues and EPS in line with analyst expectations Second quarter 2022 results: EPS: ৳0.04 (up from ৳0.03 in 2Q 2021). Revenue: ৳120.9m (up 7.9% from 2Q 2021). Net income: ৳4.77m (up 40% from 2Q 2021). Profit margin: 3.9% (up from 3.0% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 90 percentage points per year, which is a significant difference in performance. Reported Earnings • Jun 27
Third quarter 2021 earnings released: EPS ৳0.03 (vs ৳0.20 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ৳109.9m (down 20% from 3Q 2020). Net income: ৳3.12m (down 86% from 3Q 2020). Profit margin: 2.8% (down from 16% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 54 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improved over the past week After last week's 21% share price gain to ৳20.60, the stock is trading at a trailing P/E ratio of 7.5x, up from the previous P/E ratio of 6.1x. This compares to an average P/E of 28x in the Chemicals industry in Bangladesh. Total return to shareholders over the past three years is a loss of 43%. Is New 90 Day High Low • Jan 07
New 90-day high: ৳20.60 The company is up 7.0% from its price of ৳19.20 on 08 October 2020. The Bangladeshi market is up 13% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Chemicals industry, which is up 4.0% over the same period. Reported Earnings • Dec 30
First quarter 2020 earnings released: EPS ৳0.50 The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2020 results: Revenue: ৳229.1m (down 13% from 1Q 2019). Net income: ৳57.7m (down 25% from 1Q 2019). Profit margin: 25% (down from 29% in 1Q 2019). The decrease in margin was driven by lower revenue. Announcement • Nov 26
AFC Agro Biotech Limited, Annual General Meeting, Dec 31, 2020 AFC Agro Biotech Limited, Annual General Meeting, Dec 31, 2020, at 10:00 Bangladesh Standard Time. Agenda: To recommend no dividend for the year ended on June 30, 2020. Is New 90 Day High Low • Nov 05
New 90-day low: ৳17.20 The company is down 9.0% from its price of ৳18.90 on 06 August 2020. The Bangladeshi market is up 14% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 1.0% over the same period. 
