Key Takeaways:
• Commissioning of a 1.6 MW solar plant.
• Starting the Sunshine Project, which aims to double the company’s production capacity.
The Stylers International Limited reported earnings per share of PKR 3.35 in FY24 against an earnings per share of PKR 5.7 in FY23. Furthermore, in 1QFY25 the company reported earnings per share of PKR 0.63 against PKR 0.58 in SPLY.
Stylers has initiated the Sunshine Project, increasing its production capacity from 6 million to 10–12.5 million garments annually. By 2025, the company expects daily production to reach 20,000 pieces, with potential growth to 40,000 pieces per day.
The Sunshine Project is estimated to cost PKR 10 billion, with 70% of the investment already completed. This project was planned in response to rising demand signals from the international market. The company primarily focuses on export sales, targeting European markets, while local sales are limited to waste materials. As Stylers advances its expansion, it aims to establish itself as a significant industry player, with plans to consider increasing its free float percentage afterward.
The company has expressed optimism about the Sunshine Project’s success, citing the US Group’s 50-year legacy and an existing customer base as key advantages. Stylers has also installed a 1.6 MW solar plant, which became fully operational this year. Regarding energy usage, the company recently revised its fuel mix to use 100% biomass, with furnace oil utilized only during monthly maintenance.
The Sunshine Plant has already commenced operations and is expected to fully ramp up by 2025.
The company acknowledges challenges, including rising minimum wages, a shift to the normal tax regime, higher electricity costs, and freight issues.
However, Stylers remains confident in addressing these challenges by reducing its COGS. When the Sunshine Project was launched in 2022, the company generated PKR 47 million in revenue. By 2025, Stylers expects this figure to reach PKR 75 million, with further growth to PKR 85 million by 2026. Going Forward, Stylers projects a production output of 10 million garments by the end of 2024, rising to 11 million garments by the end of 2025.
Important Disclosures
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