KARACHI, December 24 2024: Airlink Communication Limited (AIRLINK) is on the brink of an extraordinary transformation, driven by its upcoming export launch and diversification into new markets. With a revised target price of PKR 312.4/share by December 2025, the company offers an impressive 44.9% upside, presenting a compelling opportunity for investors.
Shifting Gears with Exports
For the first time, Airlink plans to enter international markets by exporting 1 million mobile phone units in FY26, marking a significant milestone in its growth journey. The export initiative is projected to elevate earnings to PKR 30.3/share, including an incremental boost of PKR 4.2/share from a 3% export rebate.
The company’s robust production infrastructure—capable of manufacturing 11.5 million units annually on a double-shift basis—offers substantial headroom to scale operations from its current 28% utilization rate in FY24.
Strategic Diversification in TVs and Laptops
Airlink is not just banking on exports; it is also entering new product categories, expanding its horizons in the electronics market.
- Xiaomi Smart TVs:
In collaboration with Xiaomi, Airlink will commence production of smart TVs in January 2025. Estimated sales of 85,000 units in FY26 are expected to contribute PKR 7.9 billion in revenue, making up 3% of total revenues. - Laptop Market Entry:
The laptop segment will roll out by July 2025, with anticipated sales of 200,000 units adding PKR 12.6 billion to revenues in FY26, accounting for 5% of the company’s overall income.
Why Airlink Stands Out
Airlink’s growth is rooted in four strategic pillars:
- Competitive Pricing: Locally assembled smartphones are poised to drive affordability and demand.
- Market Expansion: Increasing smartphone penetration is supported by population growth and digital transformation.
- Diversified Portfolio: Ventures into smart TVs and laptops mark a significant step in market diversification.
- Export Potential: Leveraging its large-scale manufacturing capabilities, Airlink aims to establish itself as a global player.
Looking Ahead
With a projected 45% compound annual growth rate (CAGR) in earnings through FY28, Airlink’s trajectory is nothing short of remarkable. The company also promises lucrative dividend payouts, estimated at PKR 12.0/share for FY25 and PKR 16.0/share for FY26, further sweetening the deal for investors.
Final Word
As Airlink Communication steps into a transformative phase with exports and diversified product offerings, it stands as a beacon of innovation and growth in Pakistan’s tech industry. For investors seeking long-term potential, Airlink presents a compelling narrative of success and opportunity.
