Sinobangla Industries financial analysis: 1.3% net margin on ten-year-high turnover (Oct 2026)

Investment considerations: turnover at a ten-year high in FY2025, net margin at 1.3% after financial expenses and exchange losses

Sinobangla Industries Ltd. (SINOBANGLA) makes flexible intermediate bulk containers (FIBC, or jumbo bags), multiply kraft paper bags and woven polypropylene (WPP) bags "for packing building materials, cement, fertilizer, rice, animal & fish feed, salt, foodgrain, etc." [1 p.49]. It was incorporated on 13 November 1996 as a China-Bangladesh joint venture, began commercial operation on 1 November 1997 and has been listed on the Dhaka and Chittagong exchanges since 1999 [1 p.6] [1 p.49]. The plant is at Boro Baluakandi, Gazaria, Munshiganj, on the Dhaka-Chattogram highway [1 p.4]. This note uses the plastics and packaging format (F18) and covers FY2016 to FY2025 from the company's annual reports, the nine months to March 2026 from the quarterly statements, and FY2026 from the DSE announcement posted on 29 October 2026.

Turnover was BDT 1,376.1m in FY2017, BDT 2,382.0m in FY2022 and BDT 2,865.0m in FY2025, the highest of the ten years in the printed tables [6 p.10] [1 p.8]. Profit after tax was BDT 31.8m in FY2017 and BDT 38.6m in FY2025, and net margin fell from 2.3% to 1.3% [6 p.10] [1 p.8] [15]. Unit-II booked BDT 2,750.0m of export sales in FY2025 and Unit-I BDT 132.2m of local sales [1 p.62]. In FY2025 operating profit was BDT 167.2m, financial expenses BDT 92.8m and the exchange loss BDT 15.6m [1 p.46] [15].

The share count changed twice. A 1% bonus for FY2022 took the shares from 19,996,600 to 20,196,566 [1 p.8] [1 p.57]. In FY2024 a one-for-two rights issue added 10,098,283 shares and raised BDT 202.0m, half as share capital and half as premium, taking the shares to 30,294,849 [1 p.48] [1 p.57]. EPS was BDT 1.73 in FY2023 (the management discussion on p.9 prints "1.73/1.34(R)", with 1.34 restated) [1 p.9], BDT 1.38 in FY2024 and BDT 1.27 in FY2025; profit after tax was BDT 35.0m, BDT 37.7m and BDT 38.6m in the same years [1 p.8]. The directors' report states that the rights money "has been fully utilized in the current FY 2024-25" [1 p.12]. In FY2025 long-term loans fell by BDT 118.4m and closing cash fell from BDT 236.5m to BDT 33.2m [1 p.48].

Cash dividends of 10% have been paid for every year from FY2017 to FY2025 except FY2020 (5%), with a 1% bonus added for FY2022; FY2016 was an eight-month year with no dividend [6 p.10] [1 p.8] [11]. The board recommended 11% cash for FY2026 [10]. On 1-Nov-2026 the shares closed at BDT 48.1, which is 35.90x FY2026 EPS and 1.80x the June 2026 NAV per share of BDT 26.73 [14] [10]. The share-price and peer sections show these multiples next to the company's own printed history and three listed packaging and plastics makers.

Business: an exporter of jumbo bags from one Munshiganj site, with 95% of gross sales abroad

How the company makes money. Sinobangla buys polypropylene resin and other raw materials, much of them imported, and converts them through an integrated line "starting from polymer extrusion to weaving, coating, printing and sewing" [1 p.4]. It sells bulk bags to overseas buyers and woven and paper bags to local industry. The annual report describes it as "the leading manufacturer and exporter of FIBCs and woven polypropylene (WPP) bags in Bangladesh" and an affiliate member of the European Flexible Intermediate Bulk Container Association [1 p.4]. The nine-month report of March 2026 uses the words "the largest manufacturer and exporter of FIBCs" and adds membership of the FIBCA in the USA [2 p.6].

Two units. The accounts are kept for two units. Unit-I, which started in 1997, booked BDT 132.2m of local sales before VAT in FY2025 and a loss after tax of BDT 20.5m; Unit-II, which started production on 2 May 2001 and added an expansion in September 2012, booked BDT 2,750.0m of export sales and profit after tax of BDT 59.0m [1 p.46] [1 p.49] [1 p.62]. Unit-I has reported a loss in each of FY2020, FY2021, FY2023 and FY2025 in the statements we read: BDT -36.5m, BDT -48.7m, BDT -34.4m and BDT -20.5m [6 p.42] [5 p.42] [4 p.45] [1 p.46].

Capacity and use. The brief history gives a yearly production capacity of 13,800 MT [1 p.4]. The Schedule XI disclosure gives monthly capacity of 1,000 tonnes of FIBC and 250 tonnes of WPP, with actual monthly production of 835.87 and 248.87 tonnes, or 83.59% and 99.55% utilisation [1 p.67]. Note 35 of the same report states that "capacity utilization for Unit-I and Unit-II was 95% and the Expansion Project it was 96%" [1 p.65]. Both printings are given here; the filings do not reconcile them. The March 2026 report gives "a daily production capacity of over 40 tons" [2 p.6].

Customers and pricing. The filings do not name customers or give tonnes sold or prices. Advance income tax deducted at source by local buyers names some of them, including Berger Paints Bangladesh, Renata, Syngenta Bangladesh, South Bengal Fertilizer Mills, Naafco and Sadat Jute Industries [1 p.55]. The FY2025 export value was US$ 22,797,536.50, which at BDT 2,750.0m implies BDT 120.63 per US dollar (derived) [1 p.67] [15]. The directors' report says "While devaluation of the Taka benefits the Company, an appreciation of Taka against USD may adversely affect the company earning" [1 p.11].

Investment in Dutch-Bangla Pack. Sinobangla holds 10% of Dutch-Bangla Pack Ltd. (DBPL), described as "a 100% export oriented Bangladesh-Netherlands joint venture FIBC manufacturing Company", at a cost of BDT 35.06m [1 p.12] [1 p.52]. DBPL's NAV per share was BDT 2,594.55 at December 2024 and its cost BDT 1,000 a share, and it declared a dividend of BDT 27.85 a share for 2024 [1 p.12] [1 p.52]. The related-party note describes DBPL as "Under common control of the directors" and records purchases from it of BDT 16,727,588 in FY2025 [1 p.52]. Vice-chairman Enamul Hoq is listed as an advisor of DBPL [1 p.26].

Ten-year history: turnover doubled from FY2017 to FY2025 and profit after tax rose 21%

The ten-year tables. The annual reports print a five-year table of operating results. The FY2020 report covers FY2016 to FY2020, where FY2016 is an eight-month period, and the FY2025 report covers FY2021 to FY2025 [6 p.10] [1 p.8]. Turnover rose in six of the eight full-year changes and fell in FY2020 (-11.1%) and FY2023 (-14.6%) [15]. Profit after tax stayed between BDT 26.2m and BDT 38.6m in every full year [15].

What changed. Gross margin moved in a band of 10.2% (FY2021) to 13.0% (FY2017) [15]. Financial expenses rose from BDT 39.0m in FY2022 to BDT 92.5m in FY2024 and BDT 92.8m in FY2025, and exchange losses appeared in every year from FY2022 [4 p.45] [1 p.46]. Pre-tax margin was 2.2% in FY2025 against 3.5% in FY2017 [15]. NAV per share has stayed between BDT 24.64 and BDT 28.34 across the ten years [6 p.10] [1 p.8].

Line items: raw materials at 62% of turnover; financial expenses and exchange losses took BDT 108m of BDT 167m operating profit in FY2025

This section takes each line of the income statement for FY2019-FY2025 from the audited statements, read from the page images [6 p.42] [5 p.42] [4 p.45] [1 p.46]. Each year's recomputed profit after tax ties to the printed figure within BDT 0.001m [15].

Turnover. FY2025 turnover rose by BDT 527.9m, almost all in export sales, which rose from BDT 2,208.2m to BDT 2,750.0m; local sales fell from BDT 148.2m to BDT 132.2m [1 p.62]. The directors' report describes production during the year as "smooth" with an "upward trend" [1 p.10]. The filings give no tonnage sold; price and volume cannot be separated from the pages we read. In the nine months to March 2026 turnover was BDT 2,138.5m against BDT 2,184.1m, down 2.1% [2 p.3] [15].

Cost of goods sold. Raw materials consumed were BDT 1,763.9m in FY2025, 61.6% of turnover, against 60.5% in FY2024; conversion cost was BDT 799.9m [1 p.62] [15]. Inside conversion cost, wages and salary were BDT 434.2m (FY2024: BDT 353.9m), gas for industry BDT 128.9m (BDT 120.2m), stores and spares BDT 61.7m (BDT 40.0m) and repair BDT 39.8m (BDT 24.6m) [1 p.63]. Workers rose from 1,768 to 2,032 [1 p.8], and wages and salary per worker from BDT 200k to BDT 214k (derived) [15]. Gross margin was 11.0% in FY2025 against 12.4% in FY2024 [15].

Operating expenses. Administrative expenses rose from BDT 62.6m to BDT 82.7m in FY2025; the note includes a "VAT Claim" of BDT 5.3m, overseas travel of BDT 2.9m and right-share issue expenses of BDT 1.2m [1 p.63]. Selling expenses rose from BDT 45.9m to BDT 64.7m, with freight charges up from BDT 14.4m to BDT 26.6m [1 p.63]. Operating profit fell from BDT 180.8m to BDT 167.2m and operating margin from 7.7% to 5.8% [15].

Financial expenses. The FY2025 charge of BDT 92.8m is split in note 29 into interest on working-capital loans, term loans, lease finance, BDT 4.6m of interest on right-of-use assets and bank charges [1 p.64]. The sanction letters print rates of 13.00% at Eastern Bank, 13.50% at HSBC and Mutual Trust Bank, and 15.50% at United Finance [1 p.60] [1 p.61]. Financial expenses were 4.0% of turnover in FY2024, the highest of FY2019-FY2025, and 3.2% in FY2025 [15]. In the nine months to March 2026 they were BDT 76.4m against BDT 66.2m [2 p.3].

Exchange gain and loss. The company prints exchange results on their own line. The loss was BDT 62.9m in FY2022, equal to 76.1% of profit before WPPF and exchange; it was BDT 24.3m in FY2023, BDT 37.7m in FY2024 and BDT 15.6m in FY2025 [4 p.45] [1 p.46] [15]. Of the FY2025 loss, BDT 13.3m was realised and BDT 2.2m unrealised [1 p.64]. In the nine months to March 2026 the line was a gain of BDT 2.2m [2 p.3].

Other income. Other income rose from BDT 2.3m to BDT 9.5m in FY2025, including wastage sales of BDT 6.4m and the DBPL dividend of BDT 1.3m [1 p.63].

Tax. Note 31.a prints line [A], 12% on net profit under SRO-158-Law/Income Tax/2022 (BDT 10,041,863 for Unit-II), and line [B], "Minimum Tax - 1.00% on gross receipts" (BDT 28,916,803), with the provision taken as the greater of A and B [1 p.64]. FY2025 current tax of BDT 28.9m equals 1.00% of gross receipts of BDT 2,891.7m (turnover before VAT adjustment plus other income, as printed) [1 p.64]. Current tax was 0.61% of turnover in FY2024 and 1.01% in FY2025 [15]. With deferred tax income of BDT 3.4m, the effective rate was 39.8% [15]. FY2022 deferred tax income was BDT 33.3m, profit before tax BDT 17.2m and profit after tax BDT 36.1m [4 p.45].

FY2026 to date. The nine-month statement to March 2026 shows gross profit of BDT 228.9m (10.7% of turnover), financial expenses of BDT 76.4m and profit after tax of BDT 32.5m, against BDT 27.7m a year earlier [2 p.3] [15]. Current tax was BDT 21.6m against BDT 13.2m [2 p.3]. The full-year EPS of BDT 1.34 implies fourth-quarter EPS of BDT 0.27 against BDT 0.36 a year earlier and profit after tax of about BDT 40.6m (derived) [10] [15].

Ratios: ROE of 4.8% in FY2025 and interest cover of 1.80x, both the lowest in the series

Returns. ROE on average equity was between 4.8% and 6.9% in FY2017-FY2025, and 4.8% in FY2025 [15]. Equity rose from BDT 572.3m to BDT 791.2m in FY2024 with the rights issue, and profit after tax rose by BDT 2.7m [1 p.8]. Operating profit covered financial expenses 1.80x in FY2025 against 3.10x in FY2022 [15].

Working capital. At June 2025 trade debtors were 34 days of turnover, inventories 93 days of cost of goods sold and creditors plus expense liabilities 114 days, a cash cycle of 13 days against -5 days a year earlier [15]. Inventory rose from BDT 511.3m to BDT 647.4m, with raw materials at BDT 397.7m [1 p.45] [1 p.62]. At March 2026, on nine-month figures scaled to a year (derived), the cycle was 16 days [2 p.2] [15].

Cash conversion. Printed NOCF per share has been positive in nine of the ten years and was BDT -9.02 in FY2019 [6 p.10] [1 p.8]. In FY2025 operating cash flow of BDT 66.2m was 1.72x profit after tax; after fixed-asset purchases of BDT 24.3m, financial expenses paid of BDT 88.2m and dividends of BDT 28.4m, the residual was BDT -74.7m [1 p.48] [15]. The cash-flow statement classifies financial expenses paid under financing activities [1 p.48].

The half-year to December 2025 showed operating cash flow of BDT -108.8m and a BDT 205.2m rise in short-term loans [3 p.5]. The company told DSE that "NOCFPS decreased due to an increase in trade receivables ... higher inventory accumulation during the period ... and a reduction in trade payables" [10]. By March 2026 nine-month operating cash flow was BDT 96.3m, and the FY2026 announcement gave NOCF per share of BDT 7.61, about BDT 230.5m on 30.29m shares (derived) [2 p.5] [10].

Balance sheet: bank borrowing down to BDT 209m at June 2025, cash down to BDT 33m, BDT 218m of advance tax unsettled

Inter-unit balances. The statement of financial position shows four balances between the two units: "Investment in Unit-II" of BDT 447.2m and "Inter transfer to Unit-I" of BDT 413.8m among assets, with equal liabilities "Investment from Unit-I" and "Inter transfer from Unit-II" [1 p.45]. Note 41 states that each such asset has a corresponding liability and that for the overall company there is no net asset created [1 p.68]. Printed total assets of BDT 2,882.9m at June 2025 are BDT 2,021.9m without them (derived), and the ratios in this note use the derived figure where assets are involved [15].

Debt. Bank borrowing was BDT 342.9m at June 2024, BDT 208.8m at June 2025 and BDT 229.0m at March 2026 [1 p.45] [2 p.2] [15]. Long-term loans, including the current portion, fell from BDT 222.5m to BDT 33.9m in FY2025; the IPDC loan of BDT 49.6m and a director's loan were repaid [1 p.58]. Short-term secured loans were BDT 174.8m at June 2025 with Eastern Bank, HSBC and Mutual Trust Bank, and BDT 200.1m at March 2026 [1 p.60] [2 p.2]. Net of cash and FDRs, bank debt was BDT 163.4m at June 2025 against BDT 86.4m a year earlier (derived) [15].

Facilities and security. The note lists combined limits of BDT 940m at Eastern Bank (expiry 30 September 2025), BDT 600m at HSBC (expiry 28 February 2026) and BDT 500m at Mutual Trust Bank (expiry 30 June 2025), secured on inventory, book debts, plant and machinery and mortgaged land at Gazaria and office space at Navana DH Tower, with personal guarantees of four local directors [1 p.60]. HSBC's collateral includes 152 decimals of land "in the name of the Directors" [1 p.60]. All three expiry dates have passed; the filings we read do not show the renewals.

Receivables. Trade debtors of BDT 269.8m at June 2025 were aged BDT 222.7m up to three months, BDT 23.5m three to six months and BDT 23.6m over six months [1 p.54]. The accounting policy states that receivables "are unsecured and considered good and collectable" [1 p.50]. Other receivables include VAT balances of BDT 64.5m ("Opening Balance of DEDO Balance" and "Opening Balance of Current Register"), for whose refund "the company is in the process to file an application before the Honorable High Court Division" against the National Board of Revenue [1 p.54].

Tax balances. Advance income tax was BDT 218.2m (Unit-I BDT 82.2m, Unit-II BDT 136.0m) and the provision for income tax BDT 119.5m at June 2025 [1 p.45] [1 p.55]. The company wrote to its tax circle on 9 April 2023 for certified orders for assessment years 2008-09 to 2017-18 "for final settlement of Advance Income Tax and Provision for Income Tax carried forward since long" [1 p.55]. The contingent-liability note says assessments for 2005-2006 and 2006-2007 "are currently pending before the Hon'ble High Court" and those for 2007-2008 to 2013-2014 are with the Appellate Tribunal [1 p.65].

Audit. Malek Siddiqui Wali, Chartered Accountants (Md. Waliullah, FCA) signed the FY2025 report on 02 November 2025 [1 p.44]. The Opinion paragraph reads: "We have audited the financial statements of Sinobangla Industries Limited which comprise the financial position as at June 30, 2025, the Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information. In our opinion, the accompanying financial statements give true and fair view, in all material respects, of the financial position of the Company as at June 30, 2025, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the company act 1994, the Securities and Exchange Rules, 2020 and other applicable law and regulations." [1 p.41]. The Basis for Opinion paragraph reads: "We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion." [1 p.41]. The Other Matter paragraph reads: "The statutory auditor of the Company for the year ended June 30, 2024 (comparative financial statements of 2025), was Fames & R Chartered Accountants, who issued an unmodified audit opinion on the financial statements. As Fames & R Chartered Accountants were also the auditors of the preceding financial year, we do not express a separate opinion on the opening balances of the financial statements." [1 p.41]. The three key audit matters, risk column as printed: Revenue Recognition, "At the year ended, the company's reported total revenue of Tk. 2,864,953,520. Revenue is measured net of trade discount and VAT. Time of revenue recognition is matter. The revenue may overstated for the early recognition of revenue to achieve the desire result." [1 p.41]; Valuation of inventory, "The balance of inventory of the Company at the year-end was Tk. 647,394,237 held in the company's warehouse. Inventories should carried at the lower of cost and net realizable value. As a result, the managements apply judgment in determining the appropriate values of inventory." [1 p.42]; and Measurement and recognition of deferred tax, "The balance of reported deferred tax liability of the company was Tk. 45,753,209 as on June 30, 2025. The risk for the financial statements is that these provisions may not properly measured for all types of temporary difference as per IAs 12: Income Tax." [1 p.42]. Note 36 records board approval of the statements on 27 October 2025 [1 p.65].

Peers: 11.0% gross margin and 3.2% financial expenses on turnover, with three listed packaging and plastics makers

The peer set is three DSE-listed companies with published AnalystBro notes, compared on their own FY2025 statements (year to 30 June 2025, company basis). Khan Brothers PP Woven Bag Industries (KBPPWBIL) describes its business as "Manufacturing different types of Polypropylene Woven Bags" [7 p.10], and its FY2025 revenue is labelled "Toll Manufacturing Revenue" [7 p.55]; National Polymer Industries (NPOLYMER) states that it "manufactures a wide range of plastic products for water supply, sanitation, construction and agricultural applications" [8 p.19]; KDSALTD states that its "principal activities" are "producing different types of standard cartons, display cartons, woven labels, smart labels, offset, silk screen, web thermal printing, button, cold peel, hot peel, puff, glitter, hanger, image and sublimation transfers and marketing thereof" [9 p.92]. The businesses differ and no margin ranking is drawn; the table shows each company's figures.

As facts: Sinobangla's gross margin was 11.0% on BDT 2,865.0m of turnover; NPOLYMER's was 14.0% on BDT 5,614.9m and KDSALTD's 17.2% on BDT 2,888.2m [1 p.46] [8 p.84] [9 p.89] [15]. Financial expenses were 3.2% of revenue at Sinobangla and 6.7% at NPOLYMER [15]. On the 1-Nov-2026 closes, P/E on FY2025 printed EPS was 37.9x for Sinobangla, 18.5x for KDSALTD, 116.3x for KBPPWBIL and 370x for NPOLYMER [14] [15].

Governance: sponsors hold 30.61%, directors rent land and buildings to the company, two capex decisions in 24 months

Ownership. Sponsors and directors held 30.61% at 30 September 2026, institutions 2.45%, foreign investors 0.08% and the public 66.86%; at 30 June 2025 institutions held 7.57% [11]. Note 10 splits sponsors into local sponsors with 7,340,478 shares and foreign sponsors with 1,933,746 shares [1 p.57]. The shareholding annexure states that no shareholder holds ten percent or more [1 p.39].

Board and committees (FY2025 report). The board lists Mr. Ma Jiang (Chairman), Mr. Enamul Hoq (Vice-Chairman), Mr. Abdur Rashid (Director and Managing Director), Mr. Tsui Ki Lam, Mr. Abdul Ahad and Mr. Abul Hasnat Khan (Directors), and Mr. Md. Mahfuzur Rahman and Mr. Md. Rafiqul Islam (Independent Directors) [1 p.5]. The audit committee is chaired by Mr. Md. Mahfuzur Rahman with Mr. Md. Rafiqul Islam, Mr. Enamul Hoq, Mr. Abdul Ahad and Mr. Abul Hasnat Khan; the nomination and remuneration committee is chaired by Mr. Md. Rafiqul Islam with Mr. Md. Mahfuzur Rahman, Mr. Enamul Hoq, Mr. Abdul Ahad and Mr. Abdur Rashid [1 p.23] [1 p.24]. Four board meetings, four audit committee meetings and two NRC meetings were held in FY2025 and "the Directors' attendance in these meetings averaged 85%" [1 p.14]. The NRC report states "All the members were present in the meeting" [1 p.24]. Per-director attendance at board and audit committee meetings is not printed on pp.13-14, 23-24 or 28-38. The CFO is printed as "Md. Didarul Alam, FCMA" (p.5, p.46) and "Mohammad Didarul Alam FCMA" (p.25, p.39), and Mr. Md. Habibur Rahman is GM & Company Secretary [1 p.5] [1 p.25] [1 p.39].

Pay and related parties. Shareholder directors decided "not to involve any operational activities from January'22" and receive no monthly remuneration; key management compensation was BDT 12,119,900 in FY2025 [1 p.65]. Board meeting fees were Tk. 347,000 and audit committee fees Tk. 98,000 [1 p.13]. The company rents factory premises, land of 15,86,330 sft and dormitories from Mr. Abdur Rashid, Mr. Abdul Ahad, Mr. Enamul Hoq and Mr. Abul Hasnat Khan; the rent for the year was Tk. 14,723,320 [1 p.52]. An interest-free loan from Mr. Tsui Ki Lam of Tk. 17,212,993 at June 2024 was repaid in FY2025 [1 p.52]; note 15 prints the June 2024 long-term portion of that loan as Tk. 5,212,993 [1 p.58]. Purchases from DBPL were Tk. 16,727,588 [1 p.52]. Profiles. Mr. Enamul Hoq is printed as "Director / Chairman of Paradise Corporation (Pvt) Ltd, Eden Multi- Care Hospital Ltd, Human Resources Development Co. Ltd., Federal Insurance Co. Ltd., Sinobangla Industries Ltd., Central Hospital Ltd. Central Physiotherapy & Rehabilitation Center Ltd." and "Advisor of Dutch-Bangla Pack Ltd." [1 p.26]. The FY2025 report prints profiles for the two directors up for re-appointment, Mr. Enamul Hoq and Mr. Abul Hasnat Khan, and lists no other company positions for Mr. Abul Hasnat Khan [1 p.26]. The FY2023 report describes Mr. Ma Jiang as "A Chinese national" who "worked for a private Company in Hong Kong" before establishing Sinobangla, and Mr. Tsui Ki Lam as "the Managing Director of Zhejiang Orchid Electronics Group and Bright Rank Investment Ltd." when he joined; it records that Mr. Md. Rafiqul Islam was appointed by the Board on 18th October, 2023 in place of Mr. Mohammad Nazrul Islam [4 p.26].

Compliance. Kazi Zahir Khan & Co. certified on 08 November 2025 that "The Company has complied with the conditions of Corporate Governance as stipulated in the above-mentioned Corporate Governance Code issued by the Commission" and that "The standard of governance in the Company is satisfactory" [1 p.27]. In the compliance statement (pp.28-38, read from the page images) every condition is ticked "Complied" or marked N/A; none is ticked "Not Complied" [1 p.28] [1 p.38]. Three entries sit beside other disclosures. Condition 1(5)(xxii), "The total number of Board meetings held during the year and attendance by each director", is ticked Complied [1 p.31]; the directors' report gives "averaged 85%" [1 p.14]. Condition 5(5)(m), on whether rights-share proceeds were used as stated, is marked N/A [1 p.35]; the directors' report says the 2023-24 rights money was fully used in FY2024-25 [1 p.12]. On independent-director tenure (1(2)(e)) the remark reads "Mr. Rafiqul Islam is his 1st term and Mr. Mahfuzur Rahman is his 2nd term of Office." [1 p.29]. The 29th AGM agenda (26-Jan-2026) included "To appoint an Independent Director of the Company" [1 p.7]. On 14 July 2025 the company transferred BDT 3,651,851 of unclaimed dividends for 2019-2021 to the Capital Market Stabilization Fund [1 p.62].

Twenty-four months of DSE news. The archive from November 2024 to October 2026 holds quarterly and annual results, dividend and record-date notices, CRISL ratings of A+ long term and ST-3 short term (posts 3-Dec-2024 and 3-Dec-2025), two auditor's reports on the use of rights proceeds (posts 20-Feb-2025 and 2-Jun-2025), a reply on 1-Sep-2025 that there was "no undisclosed price sensitive information" after a DSE query on price and volume, and two capital-spending decisions [10]. On 29-Jan-2026 the company posted a board decision to import a brand new recycling machine from Changzhou Dyun Environmental Technology Co. Ltd., China at a cost of USD 0.14 million, "construct a 7,100 sq. ft. steel structure building including machine installation at a cost of BDT 13.00 million" and "import an additional brand new Loom machine at a cost of USD 0.15 million to increase fabric production capacity which will be financed partially from internal source and partially from Bank Loan". On 29-Oct-2026 it posted a decision "to invest approximately BDT 14.00 crore with Bank finance" in a 33 kV line replacing an 11 kV line, a diesel generator and machinery [10].

Share price: BDT 48.1 on 1-Nov-2026, 35.9x FY2026 EPS and 1.80x June 2026 NAV

On 1-Nov-2026 the shares closed at BDT 48.1; the closing range over the 52 weeks from 2-Nov-2025 was BDT 38.0 (13-Nov-2025) to BDT 60.1 (15-Jul-2026), unadjusted daily closes with no ties [14]. The DSE page gives an intraday 52-week range of BDT 37.70-62.30 [11]. Market capitalisation at the close was about BDT 1,457.2m [14]. P/E was 35.90x on FY2026 EPS of BDT 1.34 and 37.87x on FY2025 EPS; P/B was 1.80x on the June 2026 NAV per share; the cash yield on the 11% FY2026 dividend was 2.29% [10] [15].

Against its own printed history, the year-end P/E ranged from 27.93x (FY2021) to 42.08x (FY2023) [6 p.10] [1 p.8].

What's next: record date 2-Dec-2026, AGM 28-Jan-2027 and a BDT 140m power and machinery plan

Two dates are notified by the company. The others are inferred from earlier board-meeting, statement and post dates (the DSE archive returns 24 months) and labelled; as of 1-Nov-2026 no board meeting date for the first quarter of FY2027 had been posted [10]. The FY2026 annual report had not reached our corpus.

Capital spending. Two board decisions are in the DSE news. The January 2026 decision covers a recycling machine (US$ 0.14m), a 7,100 sq. ft. steel structure building including machine installation (BDT 13.00 million) and a loom (US$ 0.15m), with the stated aims to "reduce material costs and enhance production capacity" and "increase fabric production capacity" [10]. That decision has passed; fixed-asset purchases in the nine months to March 2026 were BDT 16.1m and the statements we read do not identify the machines, and the outcome is unknown [2 p.5]. The October 2026 decision is about BDT 140m with bank finance for a 33 kV line, a generator and machinery "to reduce power disruptions and improve production efficiency" [10]; no completion date was given. Bank borrowing was BDT 229.0m at March 2026 [2 p.2] [15].

Already announced, and therefore not in the table: FY2026 EPS of BDT 1.34, NAV per share of BDT 26.73, NOCF per share of BDT 7.61 and the 11% dividend, posted on 29-Oct-2026 after the board meeting of 28-Oct-2026 [10]. The audited FY2026 statements behind these figures are not in the corpus at 1-Nov-2026. Bangladesh's LDC graduation date is 24-Nov-2029 [12] [13]; the FY2025 report gives no estimate of any effect on the company [1 p.10].

Risks: raw materials at 61.6% of turnover, exchange losses of BDT 15.6m-62.9m a year and BDT 92.8m of financial expenses

Each risk below gives the scale printed in the filings. The filings do not state which line each risk moves; that column reads None disclosed.

In FY2025 profit before tax was BDT 64.1m on turnover of BDT 2,865.0m [1 p.46]. Exchange losses ranged from BDT 15.6m to BDT 62.9m in FY2022-FY2025 [4 p.45] [1 p.46].

Key questions: FY2026 margins, the cash-flow swing and the bank-financed capex

In one line: the filings describe an exporting bag maker whose FY2025 turnover was a ten-year high of BDT 2,865.0m and whose net margin was 1.3% after BDT 92.8m of financial expenses and BDT 15.6m of exchange losses [1 p.8] [1 p.46].

FAQ

What does Sinobangla Industries make?

FIBC (jumbo) bags, multiply kraft paper bags and woven polypropylene bags for cement, fertiliser, rice, feed, salt and food grain [1 p.49].

How much of its sales are exports?

Export sales were BDT 2,750.0m of BDT 2,882.2m gross sales in FY2025, 95.4% [1 p.62] [15].

When does the financial year end?

On 30 June [11].

What was SINOBANGLA's EPS for FY2026?

BDT 1.34, against BDT 1.27 for FY2025, as posted on 29-Oct-2026 [10].

What dividend did the company declare for FY2026?

11% cash, BDT 1.10 a share; record date 2-Dec-2026 and AGM 28-Jan-2027 [10].

How much does the company borrow?

Bank borrowing was BDT 208.8m at June 2025 and BDT 229.0m at March 2026; financial expenses were BDT 92.8m in FY2025 [1 p.45] [2 p.2] [1 p.46].

Who owns the company?

Sponsors and directors held 30.61% at 30-Sep-2026 and the public 66.86%; no shareholder holds 10% or more [11] [1 p.39].

Who audits Sinobangla Industries?

Malek Siddiqui Wali, Chartered Accountants, which gave an unmodified opinion on FY2025 with an Other Matter paragraph on the predecessor auditor [1 p.41].

What is the credit rating?

CRISL rated the company A+ long term and ST-3 short term with a stable outlook, posted 3-Dec-2025 [10].

Sources

1. Sinobangla Industries Ltd. Annual Report 2024-2025 (year to 30-Jun-2025; PDF page numbers) · link · accessed 2026-11-02
2. Sinobangla Industries Ltd. un-audited financial statements, nine months to 31-Mar-2026 · link · accessed 2026-11-02
3. Sinobangla Industries Ltd. un-audited financial statements, six months to 31-Dec-2025 · link · accessed 2026-11-02
4. Sinobangla Industries Ltd. Annual Report 2022-2023 · link · accessed 2026-11-02
5. Sinobangla Industries Ltd. Annual Report 2020-2021 · link · accessed 2026-11-02
6. Sinobangla Industries Ltd. Annual Report 2019-2020 (five-year table FY2016-FY2020) · link · accessed 2026-11-02
7. Khan Brothers PP Woven Bag Industries Ltd. Annual Report 2025 (peer; statement of profit or loss p.55) · link · accessed 2026-11-02
8. National Polymer Industries PLC Annual Report 2024-2025 (peer; statement of profit or loss p.84) · link · accessed 2026-11-02
9. KDS Accessories Limited Annual Report 2024-2025 (peer; statement of profit or loss p.89) · link · accessed 2026-11-02
10. Dhaka Stock Exchange news archive for SINOBANGLA, 6-Nov-2024 to 29-Oct-2026 (results, dividends, board meetings, capex decisions, credit ratings) · link · accessed 2026-11-02
11. Dhaka Stock Exchange company page for SINOBANGLA (shareholding to 30-Sep-2026, dividend history, market data), accessed 2-Nov-2026 · link · accessed 2026-11-02
12. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (30-Oct-2026) · link · accessed 2026-11-02
13. The Business Standard, 'Bangladesh gets 3 more years before LDC graduation' (30-Oct-2026) · link · accessed 2026-11-02
14. AnalystBro price data (TradingView feed): DSE:SINOBANGLA daily and monthly bars to 1-Nov-2026; DSE:KBPPWBIL, DSE:NPOLYMER, DSE:KDSALTD closes 1-Nov-2026 · link · accessed 2026-11-02
15. AnalystBro history and ratio model for SINOBANGLA (model.xlsx, the workbook below) · link · accessed 2026-11-02
16. Sinobangla Industries Ltd. un-audited statements, first quarter to 30-Sep-2020 (dated 12-Nov-2020) · link · accessed 2026-11-02
17. Sinobangla Industries Ltd. un-audited statements, first quarter to 30-Sep-2021 (dated 13-Nov-2021) · link · accessed 2026-11-02
18. Sinobangla Industries Ltd. un-audited statements, first quarter to 30-Sep-2022 (dated 12-Nov-2022) · link · accessed 2026-11-02
19. Sinobangla Industries Ltd. un-audited statements, first quarter to 30-Sep-2023 (dated 13-Nov-2023) · link · accessed 2026-11-02