Waves Corporation Ltd. (WAVES) held its analyst briefing yesterday to discuss CY24 and 9MCY25 results and its future outlook.  The following are the key highlights as reported by AKD Research:

·        To recall, company posted net revenue of PkR3.9bn in CY24 compared to PkR5.2bn in SPLY, down 24%YoY. In 9MCY25, the topline clocked in at PkR3.5 billion, up from PkR3.1 billion in SPLY, a 15% year-over-year increase, primarily driven by demand recovery.

·        Company reported earnings of PkR1.1bn (EPS: PkR3.9) during CY24, compared to PkR257mn (EPS: PkR0.91) in SPLY, up 4.2xYoY. During 9MCY25, earnings clocked in at PkR648mn (EPS: PkR2.30), compared to PkR282mn (EPS: PkR1.00) in SPLY, up 2.3xYoY. This increase was primarily driven by other income.

·        Management highlighted that “Other Income” is a significant component, mainly from two sources: (1) unrealized gains on real estate (holding company land on Multan Road and WAVESAPP’s new factory land), booked gradually to avoid one-off effects; and (2) gains from loan restructuring were recognized for approved loans, with any remaining gains recorded once the final approvals are obtained.

· Waves Corporation Ltd. (WAVES) is a holding company with a controlling interest in three core businesses.

https://research.akdsl.com/638979398734036286.pdf

AKD Research