Airlink Communication (AIRLINK) has partnered with Acer Gadget Inc., a subsidiary of Acer Inc., to introduce “Acer Gadget e10” laptops, tablets, and all-in-one devices to the Pakistani market.
AIRLINK has been granted distribution rights and an exclusive assembling agreement to manufacture these products at its Lahore facility as part of this collaboration. This move is expected to boost AIRLINK’s annual revenue by Rs15-20bn, with a 5-6% net profit margin.
The company targets selling 10,000 units monthly, with an estimated annual revenue of Rs15-20bn. The production and assembly of laptops and tablets will start in 2QFY25, with laptops expected to make up the majority of production in the initial years.
AIRLINK management believes that this partnership will open up opportunities for engagement with federal and provincial governments in their laptop and tablet schemes. The annualized EPS impact from this partnership is expected to be Rs2.5-3.0/share, representing 14-18% of annual earnings.
Analysts maintain a Buy stance on AIRLINK with a target price of Rs155/share.
Courtesy – Topline Pakistan Research
