At its annual general meeting today, the Board of Directors of Hub Power Company Limited (PSX: HUBC) unveiled plans to establish a plant capable of producing 50,000 electric vehicles annually. The company aims to export 30 to 40 percent of this output to markets in Australia and Africa.
The company, through its associated entity Mega Motor Company (Private) Limited, has partnered with BYD Auto Industry Company Limited to enter the electric vehicle sector in Pakistan. The launch of Completely Knocked Down (CKD) cars is anticipated between December 2025 and March 2026, featuring 8-9 variants across different segments.
The Board expressed optimism about strong future cash flows, expecting significant contributions to the company’s dividends from the burgeoning auto segment.
In financial updates, HUBC reported receiving two dividend payments from the China Power Hub Generation Company (CPHGC) project, totaling $150 million in FY24, with HUBC’s share amounting to $69 million. The CPHGC project, with a total cost of $1.8 billion, has seen $600 million paid to date, with five years remaining for debt repayment amid rising interest costs.
The Board also addressed recent media reports, dismissing claims of ongoing negotiations between Independent Power Producers (IPPs) and the government. They highlighted that once a power plant reaches the end of its operational life, options such as selling or repurposing the facility are considered.
Looking ahead, HUBC plans to venture into the mining sector, focusing on mineral exploration to identify lithium, and aims to develop a battery manufacturing unit. A Reserves Report is underway to assess potential, with completion expected in 12-18 months, positioning the company to meet long-term battery demand.
Additionally, HUBC is preparing to increase its shareholding in Sindh Engro Coal Mining Company (SECMC) from 8 percent to 17 percent, with plans to assume management control in the future. This strategic move aligns with the company’s broader vision of diversification and growth in emerging sectors.
