New Risk • Mar 02
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Pakistani stocks, typically moving 9.2% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Share price has been highly volatile over the past 3 months (9.2% average weekly change). Announcement • Feb 14
K-Electric Limited Announces Resignation of Syed Moonis Abdullah Alvi as Director K-Electric Limited announced that Resignation of Syed Moonis Abdullah Alvi as Director. New Risk • Dec 30
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Share price has been volatile over the past 3 months (8.3% average weekly change). New Risk • Nov 20
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Pakistani stocks, typically moving 9.3% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.7x net interest cover). Share price has been highly volatile over the past 3 months (9.3% average weekly change). Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to PK₨6.21, the stock trades at a trailing P/E ratio of 40.4x. Average trailing P/E is 17x in the Electric Utilities industry in Asia. Total returns to shareholders of 123% over the past three years. Announcement • Sep 24
K-Electric Limited, Annual General Meeting, Nov 11, 2025 K-Electric Limited, Annual General Meeting, Nov 11, 2025. Location: karachi Pakistan New Risk • Apr 09
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Pakistani stocks, typically moving 6.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Latest financial reports are more than 1 year old (reported June 2023 fiscal period end). Minor Risk Share price has been volatile over the past 3 months (6.3% average weekly change). New Risk • Sep 15
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended June 2023. This is considered a major 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. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported June 2023 fiscal period end). Debt is not well covered by operating cash flow (20% operating cash flow to total debt). New Risk • Apr 02
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 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 Debt is not well covered by operating cash flow (20% operating cash flow to total debt). Earnings have declined by 55% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported June 2023 fiscal period end). Share price has been volatile over the past 3 months (7.7% average weekly change). New Risk • Dec 08
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Pakistani stocks, typically moving 8.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (20% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (8.9% average weekly change). Earnings have declined by 55% per year over the past 5 years. Board Change • Sep 27
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 1 independent director. 9 non-independent directors. Independent Director Saad Khan 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. Lack of board continuity. New Risk • Jul 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Pakistani stocks, typically moving 6.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 48% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (6.3% average weekly change). Reported Earnings • Mar 06
Second quarter 2023 earnings released: PK₨0.39 loss per share (vs PK₨0.015 profit in 2Q 2022) Second quarter 2023 results: PK₨0.39 loss per share (down from PK₨0.015 profit in 2Q 2022). Revenue: PK₨111.1b (up 7.6% from 2Q 2022). Net loss: PK₨10.7b (down PK₨11.1b from profit in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Announcement • Jan 21
Shanghai Electric Power Co., Ltd. agreed to acquire a 66.40% stake in K-Electric Limited (KASE:KEL) from KES POWER LTD. Shanghai Electric Power Co., Ltd. agreed to acquire a 66.40% stake in K-Electric Limited (KASE:KEL) from KES POWER LTD on January 20, 2023. Shanghai Electric Power will acquire 18,335 million shares of K-Electric Limited. Transaction has been approved by Development and Reform Commission of the People's Republic of China and the approval of the Pakistan Competition Commission and other prerequisites. Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 1 independent director. 9 non-independent directors. Independent Director Saad Khan 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. Lack of board continuity. Announcement • Oct 25
K-Electric Limited Announces Resignation of Ms. Sadia Khurram as Non-Executive Director K-Electric Limited informed that Ms. Sadia Khurram has resigned as non-executive director nominated by the company on the Board of the company. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment improved over the past week After last week's 22% share price gain to PK₨3.73, the stock trades at a trailing P/E ratio of 25.5x. Average trailing P/E is 16x in the Electric Utilities industry in Asia. Total returns to shareholders of 12% over the past three years. Announcement • Aug 12
K-Electric Limited Appoints Mr. Mark Gerard Skelton as Chairman of the Company with Effect from August 11, 2022 in Place of Mr. Shan A. Ashary K-Electric Limited appointed Mr. Mark Gerard Skelton as Chairman of the company with effect from August 11, 2022 in place of Mr. Shan A. Ashary. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improved over the past week After last week's 21% share price gain to PK₨3.09, the stock trades at a trailing P/E ratio of 10.1x. Average trailing P/E is 16x in the Electric Utilities industry in Asia. Total loss to shareholders of 29% over the past three years. Announcement • Apr 06
K-Electric Limited Announces Board Changes K-Electric Limited informed Pakistan Stock Exchange that Dr. Imran Ullah Khan has been appointed as Director of the company with effect from April 05, 2022 in place of Mr. Sajid Mehmood Qazi. Announcement • Dec 30
Shanghai Electric Power Company Limited cancelled the acquisition of 66.4% stake in K-Electric Limited (KASE:KEL). Shanghai Electric Power Company Limited has made a fresh public announcement of intention to acquire 66.4% stake in K-Electric Limited (KASE:KEL) on June 30, 2020. Shanghai Electric Power Company Limited will acquire up to 66.4% voting shares of K-Electric Limited. The transaction is subject to receipt of regulatory and other approvals. As of September 21, 2020, Shanghai Electric obtained prerequisites such as the approval of the Development and Reform Commission of the People's Republic of China and the approval of the Pakistan Competition Commission.
On December 28, 2020, Shanghai Electric Power Company Limited communicated four conditions of resolution of past receivables/payables of KE, decisions from The National Electricity Regulatory Authority of Pakistan (NEPRA) on long pending issues of Midterm review of Multiyear Tariff and Write-Offs claims, certainty on exclusivity till the validity of existing license of KE (till 2030) and certainty on configuration of future commercial agreements and tariff for KE.
February 5, 2021, the top management of K-Electric Limited has withdrawn its main conditions of Principle of Reciprocity and arbitration through London Court from its draft terms of reference (ToRs) to resolve once for all the decade old disputes over receivables and payables between the K.E and the government entities. The unresolved dispute had also resulted in delays in the transaction. As announced on February 23, 2021, K-Electric Limited 's new multi-year electricity price mechanism (MYT) were reconsidered by NEPRA in October 2017 and there are still differences between the "reconsidered" MYT and the pre-delivery conditions stipulated in the "Share Sale and Purchase Agreement" which was signed in 2016. Shanghai Electric Power Company Limited will continue to promote the related work of this transaction, including financing matters, share transfer and payment of consideration for this transaction.
Shanghai Electric Power Company Limited cancelled the acquisition of 66.4% stake in K-Electric Limited (KASE:KEL) on December 29, 2021. Arif Habib Limited acted as the manager to Shanghai Electric Power Company Limited. Shanghai Electric will submit a fresh PAI to acquire K-Electric shares. Reported Earnings • Oct 30
First quarter 2022 earnings released: EPS PK₨0.11 (vs PK₨0.04 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: PK₨114.1b (up 33% from 1Q 2021). Net income: PK₨2.90b (up 161% from 1Q 2021). Profit margin: 2.5% (up from 1.3% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 18% per year. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improved over the past week After last week's 18% share price gain to PK₨4.00, the stock trades at a trailing P/E ratio of 9.2x. Average trailing P/E is 15x in the Electric Utilities industry in Asia. Total loss to shareholders of 23% over the past three years. Reported Earnings • Sep 14
Full year 2021 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: PK₨325.0b (up 13% from FY 2020). Net income: PK₨12.0b (up PK₨15.0b from FY 2020). Profit margin: 3.7% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Executive Departure • Aug 10
Non-Executive Director Muhammad Abid Lakhani has left the company On the 6th of August, Muhammad Abid Lakhani's tenure as Non-Executive Director ended after 2.0 years in the role. We don't have any record of a personal shareholding under Muhammad's name. A total of 3 executives have left over the last 12 months. The current median tenure of the management team is 3.17 years. Executive Departure • Jun 08
Director Mustafa Farooki has left the company On the 28th of May, Mustafa Farooki's tenure as Director ended after less than a year in the role. We don't have any record of a personal shareholding under Mustafa's name. A total of 2 executives have left over the last 12 months. The current median tenure of the management team is 3.13 years. Reported Earnings • Apr 30
Third quarter 2021 earnings released: EPS PK₨0.09 (vs PK₨0.03 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: PK₨73.7b (up 17% from 3Q 2020). Net income: PK₨2.56b (up 221% from 3Q 2020). Profit margin: 3.5% (up from 1.3% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 04
Second quarter 2021 earnings released: EPS PK₨0.21 (vs PK₨4.60 in 2Q 2020) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were flat. Second quarter 2021 results: Revenue: PK₨67.8b (flat on 2Q 2020). Net income: PK₨5.76b (up PK₨5.63b from 2Q 2020). Profit margin: 8.5% (up from 0.2% in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 01
New 90-day high: PK₨4.52 The company is up 17% from its price of PK₨3.87 on 03 November 2020. The Pakistani market is up 15% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Electric Utilities industry, which is up 18% over the same period. Is New 90 Day High Low • Jan 12
New 90-day high: PK₨4.50 The company is up 19% from its price of PK₨3.79 on 14 October 2020. The Pakistani market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electric Utilities industry, which is up 5.0% over the same period. Announcement • Dec 10
K-Electric Limited Announces Directorate Changes K-Electric Limited informed Pakistan Stock Exchange that Mr. Mustafa Nasir Farooki has been appointed as Director with effect from December 05, 2020 in place of Mr. Riyadh S. A. A. Edrees. Reported Earnings • Nov 29
First quarter 2021 earnings released: EPS PK₨0.04 The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2021 results: Revenue: PK₨85.5b (down 4.9% from 1Q 2020). Net income: PK₨1.11b (down 58% from 1Q 2020). Profit margin: 1.3% (down from 3.0% in 1Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Nov 11
New 90-day low: PK₨3.69 The company is down 4.0% from its price of PK₨3.83 on 13 August 2020. The Pakistani market is up 1.0% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Electric Utilities industry, which is also down 4.0% over the same period. Reported Earnings • Oct 29
Full year earnings released Over the last 12 months the company has reported total losses of PK₨2.96b, with earnings decreasing by PK₨20.2b from the prior year. Total revenue was PK₨288.8b over the last 12 months, largely unchanged from the prior year. Announcement • Jun 29
Shanghai Electric Power Company Limited (SHSE:600021) cancelled the acquisition of 66.4% stake in K-Electric Limited (KASE:KEL) from KES Power Limited. Shanghai Electric Power Company Limited (SHSE:600021) entered into definitive agreement to acquire 66.4% stake in K-Electric Limited (KASE:KEL) from KES Power Limited for $1.8 billion on October 28, 2016. Under the terms of the transaction, Shanghai Electric Power Company Limited will acquire 18.3 billion shares of K-Electric Limited using cash. The transaction needs authorization from Pakistan’s power authorities. The deal was approved at the Directorate meeting of Shanghai Electric Power held on October 28, 2016. As on December 5, 2016, the Competition Commission of Pakistan approved the transaction. On December 16, 2016, the transaction was approved by shareholders of Shanghai Electric Power Company Limited. As of January 14, 2017 Ministry of Commerce approved the transaction. National Development and Reform Commission approved the deal on February 15, 2017. As of March 31, 2018, Cabinet Committee on Privatization of Pakistan approved the transaction. The transaction is expected to close on March 17, 2017. As of October 23, 2018, K-Electric Limited has filed a law suit against The National Electricity Regulatory Authority of Pakistan and the transaction has not been completed yet. As of December 24, 2018, Shanghai Electric Power Company filed fresh public announcement of the transaction. As a result, Shanghai Electric Power Company has got a nine-month extension for the acquisition of 66.4% stake in K-Electric.
Guotai Junan Securities Co., Ltd. (SHSE:601211) acted as financial advisor for Shanghai Electric Power Company Limited. Omran Alrasheed, Michael Dennison, Mark Dighero, Laura Marie Franklin, Brian Gillespie, Emily Lang, Macky O'Sullivan, Andrew Schoorlemmer, Mehreen Shafiq, Nicholas Stuart and Adam Wells of Allen & Overy LLP acted as legal advisors to KES Power Limited. Credit Suisse acted as the financial advisor to The Abraaj Group, parent co. of KES Power Limited.
Shanghai Electric Power Company Limited (SHSE:600021) cancelled the acquisition of 66.4% stake in K-Electric Limited (KASE:KEL) from KES Power Limited on June 27, 2020.