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

<ul><li>We had a meeting with the senior management of Engro Holding Company (ENGROH), comprising of Mr. Farooq Barkat Ali, CFO of Engro Holdings, and Mr. Usman Hassan, GM Group Portfolio Performance Management.</li><li>The company concluded a US$563mn transaction with VEON Group Pakistan, making it the 16th largest Independent Telecom Company (ITC) globally. The company sees strong growth potential in the independent tower business and may explore future opportunities with the right time and correct partner.</li><li>On the fertilizer segment, management expects current flood situation is not worse than 2022 floods. At present, they do not see demand falling by more than 4–5%.</li></ul>

We had a meeting with the senior management of Engro Holding Company (ENGROH), comprising of Mr. Farooq Barkat Ali, CFO of Engro Holdings, and Mr. Usman Hassan, GM Group Portfolio Performance Management.The company concluded a US$563mn transaction with VEON Group Pakistan, making it the 16th largest Independent Telecom Company (ITC) globally. The company sees strong growth potential in the independent tower business and may explore future opportunities with the right time and correct partner.On the fertilizer segment, management expects current flood situation is not worse than 2022 floods. At present, they do not see demand falling by more than 4–5%.

Engro Holding (ENRGOH) - Management Meeting Takeaways; Strong Growth Potential In Tower Business

<ul><li>We reiterate our BUY stance on ENGROH as company is trading at discount of 39% at current price of Rs229 compared to SOTP value of Rs373/share.</li><li>Our liking for this scrip is based on (1) addition of thermal assets back to its continued operations as its divestment deal couldn’t materialized previously and (2) the completion of the deodar deal and turning of Enfrashare into profit.</li><li>We expect thermal assets including Engro Powergen Thar Limited (EPTL), Sindh Engro Coal Mining (SECMC) and Engro Power Qadirpur (EPQL) to add Rs16.91/share to the consolidated profits of the company in 2026.</li></ul>

We reiterate our BUY stance on ENGROH as company is trading at discount of 39% at current price of Rs229 compared to SOTP value of Rs373/share.Our liking for this scrip is based on (1) addition of thermal assets back to its continued operations as its divestment deal couldn’t materialized previously and (2) the completion of the deodar deal and turning of Enfrashare into profit.We expect thermal assets including Engro Powergen Thar Limited (EPTL), Sindh Engro Coal Mining (SECMC) and Engro Power Qadirpur (EPQL) to add Rs16.91/share to the consolidated profits of the company in 2026.

Engro Holdings (ENGROH) - Earnings Revised Up; Buy Stance Maintained

<ul><li>The company stated that it has reassessed its strategic decision regarding the divestment of thermal assets but remains open to explore opportunities for the divestment of EPQL.</li><li>Engro Connect reported 75% revenue growth, driven by an increase in site count to 14,975, placing it among the top 20 independent tower companies globally.</li><li>EFERT sales declined by 29% YoY to Rs80.6bn in 1H2025, due to lower offtakes. To highlight, urea volumes decreased by 22.5% YoY to 2,351K tons.</li></ul>

The company stated that it has reassessed its strategic decision regarding the divestment of thermal assets but remains open to explore opportunities for the divestment of EPQL.Engro Connect reported 75% revenue growth, driven by an increase in site count to 14,975, placing it among the top 20 independent tower companies globally.EFERT sales declined by 29% YoY to Rs80.6bn in 1H2025, due to lower offtakes. To highlight, urea volumes decreased by 22.5% YoY to 2,351K tons.

Topline Flash Note: Engro Holdings (ENGROH): Corporate Briefing Key Takeaways

<ul><li>The company stated that it has reassessed its strategic decision regarding the divestment of thermal assets but remains open to explore opportunities for the divestment of EPQL.</li><li>Engro Connect reported 75% revenue growth, driven by an increase in site count to 14,975, placing it among the top 20 independent tower companies globally.</li><li>EPCL reported a challenging period as the business remains under pressure due to lower core delta (at decade-low levels) led by decline in China demand, and rising energy costs.</li></ul>

The company stated that it has reassessed its strategic decision regarding the divestment of thermal assets but remains open to explore opportunities for the divestment of EPQL.Engro Connect reported 75% revenue growth, driven by an increase in site count to 14,975, placing it among the top 20 independent tower companies globally.EPCL reported a challenging period as the business remains under pressure due to lower core delta (at decade-low levels) led by decline in China demand, and rising energy costs.

Topline Flash Note: Meezan Bank (MEBL): Corporate Briefing Key Takeaways

<ul><li>Engro Holdings (ENGROH) announced its 2Q2025 results today, reporting a profit attributable to equity owners of Rs33.7bn (EPS of Rs28.0), up 17.4x YoY. This includes one-off thermal asset and other related. Adjusted for these one offs, the recurring EPS in 2Q2025 has clocked in at Rs6.0.</li><li>This takes 1HFY25 earning to Rs.35.6bn (EPS of PKR29.5) up by 9.1x YoY. Excluding above one-off adjustment, earnings clocked in at Rs9.0bn (EPS of PKR7.5).</li><li>The company was in the process of divesting its thermal energy business; however, the share purchase agreement (SPA) was terminated as disclosed on April 7, 2025. Consequently, the company has reversed the earlier accounting adjustment of PKR 53.7bn (Attributable to owner: Rs26.5bn) and starting recording this business as continuing operations from Jun 2025.</li></ul>

Engro Holdings (ENGROH) announced its 2Q2025 results today, reporting a profit attributable to equity owners of Rs33.7bn (EPS of Rs28.0), up 17.4x YoY. This includes one-off thermal asset and other related. Adjusted for these one offs, the recurring EPS in 2Q2025 has clocked in at Rs6.0.This takes 1HFY25 earning to Rs.35.6bn (EPS of PKR29.5) up by 9.1x YoY. Excluding above one-off adjustment, earnings clocked in at Rs9.0bn (EPS of PKR7.5).The company was in the process of divesting its thermal energy business; however, the share purchase agreement (SPA) was terminated as disclosed on April 7, 2025. Consequently, the company has reversed the earlier accounting adjustment of PKR 53.7bn (Attributable to owner: Rs26.5bn) and starting recording this business as continuing operations from Jun 2025.

Engro Holdings (ENGROH): 2Q2025 EPS at Rs28.0, up 17.4x YoY - Earnings Higher Than Industry Expectations

Pakistan

Engro Corporation Ltd. manufactures and markets fertilizers and plastics; generates electricity; and processes food.  The Company produces nitrogenous, phosphatic and blended fertilizers; polyvinyl chloride resin; and industrial automation products; develops electricity generating plants; produces dairy foods; and operates a liquefied petroleum gas and liquid chemical terminal.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Engro Corporation (ENGRO PA)

Engro Holding (ENRGOH) - Management Meeting Takeaways; Strong Growth Potential In Tower Business

We had a meeting with the senior management of Engro Holding Company (ENGROH), comprising of Mr. Farooq Barkat Ali, CFO of Engro Holdings, and Mr....

Topline Securities

Engro Holdings (ENGROH) - Earnings Revised Up; Buy Stance Maintained

We reiterate our BUY stance on ENGROH as company is trading at discount of 39% at current price of Rs229 compared to SOTP value of...

Topline Securities

Topline Flash Note: Engro Holdings (ENGROH): Corporate Briefing Key Takeaways

The company stated that it has reassessed its strategic decision regarding the divestment of thermal assets but remains open to explore...

Topline Securities

Topline Flash Note: Meezan Bank (MEBL): Corporate Briefing Key Takeaways

The company stated that it has reassessed its strategic decision regarding the divestment of thermal assets but remains open to explore...

Topline Securities

Engro Holdings (ENGROH): 2Q2025 EPS at Rs28.0, up 17.4x YoY - Earnings Higher Than Industry Expectations

Engro Holdings (ENGROH) announced its 2Q2025 results today, reporting a profit attributable to equity owners of Rs33.7bn (EPS of Rs28.0), up 17.4x...

Topline Securities

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)