DH Partners (PSX: DHPL) – 3QCY25 Summary Directors Report
Proposed Amalgamation
DH Partners’ Board has granted in-principle approval for the amalgamation of the Company with Dawood Lawrencepur Limited and Cyan Limited through a court-sanctioned Scheme of Arrangement. The move aims to simplify the investment structure, strengthen the balance sheet, and unlock shareholder value through consolidation of holdings, optimized capital allocation, and governance streamlining. The merger is expected to yield administrative and regulatory cost savings, broaden the shareholder base, and improve market visibility. The proposal remains subject to Board, shareholder, regulatory, and court approvals.
Portfolio Performance and Outlook
DH Partners delivered a 9M-2025 portfolio return of 63.5%, significantly outperforming the KSE-100’s 43.7% gain. Strong performance was driven by the banking sector, particularly UBL (benefiting from yield curve positioning and deposit growth) and Meezan Bank, where management remains trusted to navigate lower-rate challenges.
Holdings in OGDC and PPL underperformed the index but are viewed as long-term beneficiaries of energy sector reforms and Reko Diq investment. The firm maintained its position in Systems Limited, citing its USD-based revenues and potential from AI-driven industry shifts, though it remains cautiously optimistic given sector uncertainty.
DH Partners exited Image Pakistan Limited, noting the fashion sector’s high capital intensity and cyclicality. The portfolio is being reoriented toward sustainable, scalable businesses with resilient earnings profiles.
See Report: https://dps.psx.com.pk/download/document/264274.pdf
