Avanceon Ltd. (AVN) held its analyst briefing today to discuss the company’s financial results for CY24 and its future outlook.

Following are the key points. 

• The company posted a topline of PKR 16.2 billion in CY24, compared to PKR 17.8 billion in SPLY, representing a decline of 9.1% Yoy.
• Gross margins for the year declined to 26.4%, compared to 31.5% in the same period last year. The lower margins in CY24 compared to CY23 were primarily due to the absence of one-off high-margin project worth US$ 11 million from Ashkal Qatar, which had margins exceeding 50%.
• The company has backlog orders of PKR 21 bn for CY25 and forecasts revenue for CY25 to reach PKR 20.8 bn.
• Management has diversified its operations across various geographic regions and 15 distinct business segments.
• Additionally, the company is pre-qualified for 13 projects globally, with a total estimated value of approximately US$ 180 million.
• Management plans to launch a small initial public offering (IPO) in the international market upon surpassing the US$ 100 million revenue milestone.
• The land for the Lahore Tech Park has already been procured, and management expects construction to be completed within two years at an estimated cost of PKR 2 billion.
• Management anticipates benefiting from exemption from income tax and customs duties related to the import of machinery and hardware, as provided under the STZ regulations.
• The scrip is not in our formal coverage.

Courtesy – AKD Research