Islamabad, 16 Apr 2025: Wah Noble Chemicals Limited, a prominent player listed on the Pakistan Stock Exchange under the symbol WAHN, has been a cornerstone of Pakistan’s industrial chemicals sector since its incorporation as a public limited company in 1983.
Specializing in the manufacturing and marketing of urea-formaldehyde molding compound, formaldehyde, and advanced resin-based solutions, the company serves as a vital supplier to the board, plywood, and flush door manufacturing industries.
As of June 30, 2024, the company’s equity structure comprises 9 million outstanding shares, distributed among 827 stakeholders. A significant 56.69% of shares are held by associated enterprises, while the local general public controls 25.82%.
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Institutional investors, such as insurance companies and NIT & ICP, own 9.98% and 6.41% respectively. The remaining shares are dispersed among miscellaneous investors.
From 2019 through 2024, Wah Noble Chemicals Limited experienced a series of fluctuations, reflecting both macroeconomic volatility and strategic operational shifts.
The fiscal year 2019 brought about a 34.6% surge in revenues, driven by product demand, although rising input costs pressured gross margins.
The pandemic-stricken 2020 saw a 13.8% revenue dip due to lockdowns, despite a lean cost base helping maintain profitability.
In 2021, the company rebounded robustly with a 39.7% jump in net sales, backed by favorable pricing strategies and optimized plant utilization. A strong 92.9% increase in operating profit signaled operational resilience.
However, inflationary pressures and a weakened currency led to margin compression in 2022, though gains resumed in 2023 with an impressive 32.5% top-line growth and nearly 100% boost in operating profit.
By 2024, despite challenges, Wah Noble Chemicals Limited recorded its highest-ever gross profit margin of 22.52%, underscoring its growing industrial footprint and process efficiencies.
The first half of FY25, however, saw minor setbacks due to reduced market demand and rising utility costs, resulting in a 1.93% drop in sales and a 30.1% fall in gross profit.
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Net earnings declined 28.6%, yet prudent financial management led to an 80.15% drop in finance cost.
Looking ahead, the company’s future hinges on the commissioning of a new molding compound plant with a capacity of 6,000 MT, taking annual capacity to 19,000 MT.
Nevertheless, external risks such as high raw material costs, increased competition, and consumer affordability remain critical. Strategic foresight and agile cost control will be key.
