Hakkani Pulp director anounces to sell shares

Hosne Ara Begum, a director of Hakkani Pulp & Papers, Tuesday declared to sell 50,000 shares, out of her total holding of 10,91,666 shares, in the next 30 working days at the prevailing market price.

The sale will take place in the block market through the Chittagong Stock Exchange (CSE).

Earlier, Mohammed Golam Kibria, Golam Rasul Muktadir and Mohammed Golam Morshed, all sponsor directors of the company, sold 100,000 shares each from their total holdings of 12.45 lakh, 15.67 lakh and 15.67 lakh shares, respectively.

The company recorded negative EPS of Tk 0.82 in second half of 2022.

However, the net operating cash flow per share (NOCFPS) for the six-month period ending December 2022 was Tk 0.37, a significant improvement from negative Tk 1.45 during the same period in the previous year.

The company’s net asset value (NAV) per share, with revaluation, was Tk 22.70 as of December 31, 2022, down from Tk 23.56 as of June 30, 2022. But the NAV per share (without revaluation) was Tk 9.31 as of December 31, 2022.

One of the reasons behind the improvement in NOCFPS is the increase in sales revenue. From July to September 2022, the revenue of the paper producer and marketer stood at Tk 20.30 crore, up from Tk 7.23 crore a year ago. It reported a net loss of Tk 0.87 crore and its net loss per share stood at Tk 0.45.

The company’s board has recommended a 1 per cent cash dividend for its general shareholders, for the fiscal year 2021-22. During the year, the company logged revenue of Tk 53.82 crore and incurred a loss of Tk 2.60 crore.

On Tuesday’s trading session, Hakkani Pulp & Paper Mills has been the second highest loser on the DSE trading floor selling each share at Tk 53.20, losing 5.17 per cent of its trading value.

As of February 2023, sponsors and directors of the company held 44.69 per cent of the company’s shares, institutional investors 2.87 per cent and general investors held 52.44 per cent.

The company was listed in 2001, and its main goals are to manufacture various types of pulp, paper and tissue products.