External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Interloop Limited is a textile based B2B manufacturing company based in Faisalabad, Pakistan. It supplies socks and leggings to retailers consisting of Nike, Adidas, H&M, Puma, Levi's, Reebok and Target. The company has five hosiery manufacturing divisions, located in Pakistan, Bangladesh and Sri Lanka.

<ul><li>Interloop Limited (ILP) held its corporate briefing and AGM to discuss its financial outlook.</li><li>ILP recorded revenue of US$654mn in FY26 and is targeting low double-digit revenue growth in FY27.</li><li>We maintain our BUY call on ILP and is currently trading at FY27E PE of 6.9x..</li></ul>

Interloop Limited (ILP) held its corporate briefing and AGM to discuss its financial outlook.ILP recorded revenue of US$654mn in FY26 and is targeting low double-digit revenue growth in FY27.We maintain our BUY call on ILP and is currently trading at FY27E PE of 6.9x..

Topline Flash Note: Interloop Limited (ILP) - AGM & Corporate Briefing Takeaways

Thematic (Sector/Industry)

<ul>
<li>We present a profitability analysis of the top 20 listed companies in Pakistan’s textile sector, comprising composite, spinning, weaving, woollen, and apparel companies.</li>
<li>The Pakistan textile sector’s profitability increased by 11% YoY to Rs51.9bn in FY26, driven by lower effective tax along with decline in finance cost.</li>
<li>Sales of listed textile companies remained broadly flat YoY at Rs1,403bn in FY26, Similarly, sales in US dollar terms remained stable at ~US$5.0bn, despite geopolitical headwinds and internal freight issues.</li>
</ul>


We present a profitability analysis of the top 20 listed companies in Pakistan’s textile sector, comprising composite, spinning, weaving, woollen, and apparel companies.
The Pakistan textile sector’s profitability increased by 11% YoY to Rs51.9bn in FY26, driven by lower effective tax along with decline in finance cost.
Sales of listed textile companies remained broadly flat YoY at Rs1,403bn in FY26, Similarly, sales in US dollar terms remained stable at ~US$5.0bn, despite geopolitical headwinds and internal freight issues.


Pakistan Textile – Profits Rise 11% in FY26; Top 20 Listed Companies Generates US$5bn in Sales

<ul><li>Pakistan car sales (as reported by PAMA) clocked in at 15,104 units in Sep 2026, declined by 12% YoY and 3% MoM.</li><li>The decline in total sales is attributable to delayed clarity on the HEV/PHEV sales tax policy, restricting invoicing by companies.</li><li>We expect a positive momentum in auto sales in FY27, with double digit growth supported by the launch of new variants and the entry of new brands in the market.</li></ul>

Pakistan car sales (as reported by PAMA) clocked in at 15,104 units in Sep 2026, declined by 12% YoY and 3% MoM.The decline in total sales is attributable to delayed clarity on the HEV/PHEV sales tax policy, restricting invoicing by companies.We expect a positive momentum in auto sales in FY27, with double digit growth supported by the launch of new variants and the entry of new brands in the market.

Pakistan Automobiles: Car Sales Declined by 12% YoY and 3% MoM to 15,104 Units in Sep 2026

Pioneer Cement Limited / Equity Bottom-Up

Pioneer Cement Limited produces ordinary portland cement and sulphate resistant cement.

<ul><li>Pioneer Cement (PIOC) conducted FY26 analyst briefing today to discuss business performance and outlook.</li><li>Management expects local cement industry sales to grow by 7-7.5% in FY27, in line with recent trends. Subsidized housing finance schemes at both federal and provincial levels could provide further upside to demand.</li><li>PIOC’s solar power plant expansion to 28.3MW is in the final installation stage, with commissioning underway in phases. Overall project is expected to be completed by Dec-2026.</li></ul>

Pioneer Cement (PIOC) conducted FY26 analyst briefing today to discuss business performance and outlook.Management expects local cement industry sales to grow by 7-7.5% in FY27, in line with recent trends. Subsidized housing finance schemes at both federal and provincial levels could provide further upside to demand.PIOC’s solar power plant expansion to 28.3MW is in the final installation stage, with commissioning underway in phases. Overall project is expected to be completed by Dec-2026.

Topline Flash Note: Pioneer Cement (PIOC): Corporate Briefing Key Takeaways

Macroeconomics

<ul><li>On the pre-text of rising law and order and terrorism situation in KPK province of Pakistan, The President of Pakistan has approved a State of Emergency (Article 232) and Governor's rule (Article 234) in Khyber Pakhtunkhwa (KP) under the Constitution of Pakistan on the advice of Prime Minister of Pakistan on Oct 11, 2026.</li><li>As per news reports, governor’s rule can be imposed for an initial period of two months, with a joint sitting of Parliament able to approve an extension of up to two months at a time.</li><li>We have reviewed and analyzed previous such events of last 2 decades, under which market has initially reacted negatively however, later the returns of market remains quite strong.</li></ul>

On the pre-text of rising law and order and terrorism situation in KPK province of Pakistan, The President of Pakistan has approved a State of Emergency (Article 232) and Governor's rule (Article 234) in Khyber Pakhtunkhwa (KP) under the Constitution of Pakistan on the advice of Prime Minister of Pakistan on Oct 11, 2026.As per news reports, governor’s rule can be imposed for an initial period of two months, with a joint sitting of Parliament able to approve an extension of up to two months at a time.We have reviewed and analyzed previous such events of last 2 decades, under which market has initially reacted negatively however, later the returns of market remains quite strong.

Topline Flash Note: Pakistan Politics - Imposition of Emergency and Governor Rule in KPK, Understanding Its Implication for Market From Historical Perspective