• Snapshot   /   HUBC - The Hub Power Company Ltd. Consolidated   /   Analyst Opinion
Analyst Opinion
HUBC - The Hub Power Company Ltd. Consolidated
Hub Power Company Limited – Gradual earning shift | Result Review (9MFY26)
Ahsan Muhammad Asif    4/22/2026 12:00:00 AM
HUBC reflecting ‘earning shift’ from JV business We see HUBC may have recouped revenues in 9MFY26 from ‘newer’ ventures, viz., joint ventures, after agreeing to end CPP payment on the base plant last year. HUBC reported a YoY decline in revenue, with 3QFY26 sales at Rs16.5 bn, down 3.5%, and 9MFY26 revenue at Rs50.6 bn, down from Rs64.6 bn. Gross profit remained relatively stable in the quarter at Rs6.6 bn vs Rs7.0 bn last year, which actually supports our analysis. Earnings Support from JV is a positive sign We see decreasing finance costs provided some relief during the period, while income from associates and joint ventures increased to Rs11.0 bn (quarterly) and Rs32.3 bn (9MFY26). This continued reliance on non-core income highlights a gradual shift in the earnings mix. Profitability reflecting SOME's earning shift.’ Net profit slightly decreased on a YoY basis. HUBC posted Rs12.1 bn in 3QFY26 (vs Rs12.7 bn) and Rs37.7 bn for 9MFY26 (vs Rs39.0 bn). The EPS is PKR 8.33 in 3QFY26 and PKR 25.49 in 9MFY26 on the consolidated basis. Balance Sheet: Long-term liabilities decreasing is a positive sign The balance sheet remained stable with total assets around Rs. 413.6 bn. Equity saw a modest increase, while long-term liabilities declined, indicating deleveraging. However, higher current liabilities point toward increased working capital requirements. Dividend & Valuation The company announced a PKR 5/sh dividend in 3QFY26, taking the cumulative payout to PKR 15/sh for 9MFY26, implying a payout ratio of ~59% and a P/BV of ~1.31x, with a dividend yield of ~8.7%. HUBC yield FY26 PE of 6.5x below the KSE 100 PE range of 8x - 9x. POSITIVE
Link: https://www.linkedin.com/in/mahsan178/
HUBC - The Hub Power Company Ltd. Consolidated
Hub Power Value Investment
Ahsan Muhammad Asif    3/25/2026 12:00:00 AM
Hub Power: Re Visited | leading PE range 5.7x | PBV 0.94x | D/Y 10% The Hub Power Company Limited (HUBC) is Pakistan’s premier independent power producer, with a focus on thermal power under long-term PPAs. It has since broadened its scope beyond traditional generation into coal mining, electric vehicles, oil and gas exploration, and energy logistics. • During 1HFY26, the company’s finance cost has decreased from PKR 9.56bn to PKR 4.59bn, which is 50% decreased due to lower interest rates, debt repayments, or improved financing terms. • Our thrust of coverage in HUBC is mainly due to the reduction of financial debt in the balance sheet. • The total chunk of debt is reduced to PKR 74.69bn, which is a major development in HUBC’s books. • The HUBC is Pakistan’s largest Independent Power Producer (IPP) company, and is exploring some game-changing projects at its Hub-based plant. • The company’s core assets include the Hub Plant (1,292 MW), Narowal Plant (225 MW), and investments in subsidiaries and associates such as CPHGC and LEL (hydropower). Electric Vehicle Segment (BYD via Mega Motor Company) • HUBC has entered the electric vehicle (EV) market through a joint venture with BYD Company, which owns 50% stakes in Mega Motor Company. The imported EV units are already present in the local market, indicating initial operational activity. The company plans to establish a local assembly facility as per various analyst briefings (CBS), with expectations of producing between 25,000 and 50,000 units annually once the plant becomes operational. In parallel, HUBC is developing EV charging infrastructure across major transport corridors. • This segment represents a move into a growth-oriented and competitive market. While it aligns with global trends toward electrification, its success will depend on factors such as consumer adoption, pricing, regulatory incentives, and infrastructure development within Pakistan, as per our thinking. Single Point Mooring (SPM) – Fuel Logistics • As per media reports, HUBC was evaluating the feasibility of developing a Single Point Mooring (SPM) facility to handle petroleum imports for Pakistan State Oil (PSO). The proposed project would allow offshore handling of fuel shipments and their transfer into inland pipeline networks. This initiative was intended to utilize HUBC’s existing coastal location and storage capabilities on the Hub coast to import petroleum products for PSO, using existing storage tanks and the Asia Petroleum Pipeline (in which PSO holds 49%). • If implemented, the SPM project would position HUBC within the midstream segment of the energy value chain, generating fee-based revenues. However, the project is currently at a conceptual or feasibility stage, and its execution will depend on regulatory approvals, capital allocation, and coordination with existing infrastructure operators. • This should move the product up to Zulfiqarabad Terminal (ZOT) and then into the White Oil Pipeline (WOP). We see this as a major game-changer in HUBC. Soon, we will come up with a detailed outlook on this. Upstream Segment – Prime International Oil & Gas • HUBC has also entered the upstream oil and gas sector through its involvement in Prime International Oil & Gas Company (POGCL). This segment focuses on exploration and production activities, with the company holding interests in multiple onshore exploration blocks. The upstream operations typically involve higher risk due to geological uncertainty and capital intensity, but they also offer potential for significant returns in the event of successful discoveries. • At present, this segment is in the early stages of development, and its financial contribution remains limited. Its long-term impact will depend on exploration outcomes and the broader regulatory and pricing environment for hydrocarbons in Pakistan. Valuation…Leading PE range 5.7x | Maintains dividend-paying status HUBC yields FY26 leading PE range of 5.7x. ‘POSITIVE’ as per our methodology. We are encouraged by HUBC’s annual dividend payout of PKR 20/sh. This signals a dividend payout ratio of 55% - 60%. This also translates into a probable expected dividend yield status of 10%, which is better than the bank deposit rate.
Link: https://www.scstrade.com/research/Research%20Reports/General/Hub%20Power%20Value%20Investment.pdf
HUBC - The Hub Power Company Ltd. Consolidated
HUBC Reports Impressive 2QFY26 Earnings – 2Q Dividend PKR 5/sh
Ahsan Muhammad Asif    2/24/2026 12:00:00 AM
The Hub Power (HUBC) reported a robust consolidated earnings performance in 2QFY26, with net profit clocking in at PKR 12.35bn (EPS: PKR 8.19), registering a substantial increase compared to PKR 5.48bn (EPS: PKR 3.25) in 2QFY25. The strong year-over-year growth was primarily underpinned by improved operational profitability and a notable rise in income from associates and joint ventures. Revenue and Gross Profit Revenue for the quarter stood at PKR 16.7bn, reflecting modest YoY growth, while gross profit increased to PKR 7.43bn (+16% YoY), indicating relatively stable cost dynamics and improved margin retention. Consequently, profit from operations strengthened materially, highlighting the resilience of HUBC’s core earnings base. Cumulative Performance (1HFY26) On a cumulative basis, 1HFY26 profitability stood at PKR 25.62bn (EPS: PKR 17.16), largely consistent with PKR 25.79bn (EPS: PKR 17.99) recorded in the corresponding period last year. While the half-year comparison remains broadly flat, the sharp recovery in quarterly earnings suggests improved earnings momentum and better income visibility. Dividend Yield 10% Alongside the result, HUBC announced an interim dividend of PKR 5/share. Notably, the company had already paid PKR 5/share earlier, bringing the cumulative payout to PKR 10/share for the period.
Link: https://www.linkedin.com/in/mahsan178/