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>Engro Holdings (ENGROH) announced its 1Q2026 results today, reporting a profit attributable to equity owners of Rs10.2bn (EPS of Rs8.50) vs. Rs1.8bn (EPS of Rs1.52) in 1Q2025. The result came above our expectation mainly due to higher-than-expected other income and lower ETR.</li><li>Other income of the company came at Rs3.0bn, up by 23% YoY and 5.1x QoQ. Higher other income on YoY basis is mainly due to higher cash balances.</li><li>The Effective Tax Rate (ETR) of the company reported at 30% amounting to Rs6.7bn in 1Q2026 as against 60% in 1Q2025 and 18% in 4Q2025. To highlight, in 1Q2025, the tax rate was higher due to absence of thermal profitability.</li></ul>

Engro Holdings (ENGROH) announced its 1Q2026 results today, reporting a profit attributable to equity owners of Rs10.2bn (EPS of Rs8.50) vs. Rs1.8bn (EPS of Rs1.52) in 1Q2025. The result came above our expectation mainly due to higher-than-expected other income and lower ETR.Other income of the company came at Rs3.0bn, up by 23% YoY and 5.1x QoQ. Higher other income on YoY basis is mainly due to higher cash balances.The Effective Tax Rate (ETR) of the company reported at 30% amounting to Rs6.7bn in 1Q2026 as against 60% in 1Q2025 and 18% in 4Q2025. To highlight, in 1Q2025, the tax rate was higher due to absence of thermal profitability.

Engro Holdings (ENGROH): 1Q2026 EPS At Rs8.50, Up 5.6x YoY But Down 25% QoQ - Earnings Higher Than Our Expectations

Investing in high growth Asian frontier economies., Asia Frontier Capital

Scott Osheroff

Investing in high growth Asian frontier economies.

Asia Frontier Capital

Asia Frontier Capital Ltd. is a pioneering fund management company based in Hong Kong that specializes in investing in high growth Asian frontier economies by managing the AFC Asia Frontier Fund , AFC Iraq Fund and the AFC Vietnam Fund.

The AFC Asia Frontier Fund invests in public equities of Asian frontier countries that are seeing increasing consumption due to favorable demographic trends, rising incomes and high GDP growth. The fund invests in listed equities of companies that have their principal business activities in Bangladesh, Bhutan, Cambodia, Iraq, Laos, Maldives, Mongolia, Myanmar (Burma), Nepal, Pakistan, Papua New Guinea, Sri Lanka and Vietnam. The AFC Asia Frontier Fund is positioned to take advantage of the continuing economic shifts in these countries and offers high returns combined with significant diversification opportunities. This fund is directed by the founder and CEO of Asia Frontier Capital, Thomas Hugger, who has been investing in frontier markets across Asia and Africa for more than 20 years.

The AFC Iraq Fund was launched on the 26th June 2015 and aims to achieve long-term capital appreciation for investors by capturing value and growth potential in the post conflict high-growth & resource rich Iraq market. The fund emphasises long term investment horizon to truly capture the opportunity in Iraq. The fund's investable universe consists of locally listed companies that have their principal business activities in Iraq as well as foreign listed companies that have the majority of the business in Iraq as a whole including the prosperous Kurdish Region of Iraq (KRI). The AFC Iraq Fund offers access to investments in post conflict recovery potential of Iraq, including the KRI, and/or stability in its territory. The AFC Iraq Fund is managed by Asia Frontier Capital (Iraq) Limited, Cayman Islands under the executive leadership team of Thomas Hugger (CEO & Fund Manager) and Ahmed Tabaqchali (CIO) who have more than 47 years of investment experience as well as an extensive background covering global, emerging, frontier and MENA markets.

The AFC Vietnam Fund invests exclusively in listed Vietnamese equities to capture value in growth companies with a focus on the small to medium size companies. This market segment offers a unique investment opportunity as the valuation gap between large- and small-cap stocks in Vietnam is presently much wider than in comparable neighboring markets and the valuations are significantly depressed versus their regional peers. The fund adopts a fundamental-quantitative approach and employs an in-house earnings model to identify attractive companies where we see high growth opportunities. In conjunction with targeting the maximum upside potential the portfolio has been structured to mitigate corporate government and liquidity risks. The fund invests in a diversified portfolio of 70-90 attractively valued companies to carefully control concentration risk.  This approach allows the fund to sell, or buy, positions without having a significant market impact. The fund is directed under the executive leadership of Thomas Hugger and Andreas Vogelsanger who have more than 50 years combined experience managing investments in frontier markets, Asia and around the world.

For more information about the fund, management team and investment strategy please contact us at info@asiafrontiercapital.com.

Thematic (Sector/Industry)

I had the opportunity in early October 2016 to attend a three-day fund manager conference organized by one of our Pakistani brokers in Lahore (one day) and two days in Karachi, followed by my own visits to some of our investee companies and a number of promising companies pinned down by our research efforts...

I had the opportunity in early October 2016 to attend a three-day fund manager conference organized by one of our Pakistani brokers in Lahore (one day) and two days in Karachi, followed by my own visits to some of our investee companies and a number of promising companies pinned down by our research efforts...

Asia Frontier Capital Travel Report: Pakistan

Frontier and emerging markets (Vietnam)

Dylan Waller

Nomadic Equity

Pakistan's UpgradePakistan received its well deserved emerging market upgrade from MSCI last week, and valuation still remains below its historical high experienced when it was previously an emerging market.  Now is a strong time to swoop in to profit from Pakistan's future upside, as the market has the potential trade at up to 13.8X its earnings, based on its historical valuation.  Unfortunately, this is a case where simple exposure through an ETF, the <a href="https://www.smartkarma.com/entities/21016" target="_blank" data-smartkarma-citation="entities:21016">Global X Msci Pakistan Etf</a>, is not an…

Pakistan's UpgradePakistan received its well deserved emerging market upgrade from MSCI last week, and valuation still remains below its historical high experienced when it was previously an emerging market.  Now is a strong time to swoop in to profit from Pakistan's future upside, as the market has the potential trade at up to 13.8X its earnings, based on its historical valuation.  Unfortunately, this is a case where simple exposure through an ETF, the Global X Msci Pakistan Etf, is not an…

Top Industries for Investment as Pakistan Transitions to an Emerging Market

The cement industry in Pakistan has a flurry of advantages ahead of it, and can be considered a strategic industry for investment in Pakistan:<ul><li>Local demand for cement is growing, and companies are responding by constructing new cement plants.</li><li>Exports growth will slow, primarily driven by issues in South Africa, yet this is not strong enough to offset the strong domestic demand.</li><li>Investment in Pakistan's cement industry should be a long term endeavor.</li></ul>

The cement industry in Pakistan has a flurry of advantages ahead of it, and can be considered a strategic industry for investment in Pakistan:Local demand for cement is growing, and companies are responding by constructing new cement plants.Exports growth will slow, primarily driven by issues in South Africa, yet this is not strong enough to offset the strong domestic demand.Investment in Pakistan's cement industry should be a long term endeavor.

Pakistan's Cement Industry Poised for Further Growth

<ul><li>Engro Holdings (ENGROH) announced its 4Q2025 results today, reporting a profit attributable to equity owners of Rs13.6bn (EPS of Rs11.31) vs. Rs6.5bn (EPS of Rs13.57) in 4Q2024. Result is above our expectation mainly due to lower than expected Effective Tax Rate (ETR).</li><li>This takes 2025 Owner's PAT to Rs55.6bn (EPS of Rs46.20) vs. Rs12.9bn (EPS of Rs26.78). However, this includes one-off impairment reversal on thermal assets. Excluding this, Owner's PAT is Rs29bn (EPS of Rs24.13). To highlight, previously, company had been divesting its thermal energy business on which they have booked accounting adjustment, but the SPA was terminated so they have reversed back these adjustments.</li><li>Among the subsidiaries, Engro Fertilizers Limited (EFERT) earnings were down by 19% YoY to Rs8.4bn during 4Q2025 primarily due to lower gross margins and super tax adjustment.</li></ul>

Engro Holdings (ENGROH) announced its 4Q2025 results today, reporting a profit attributable to equity owners of Rs13.6bn (EPS of Rs11.31) vs. Rs6.5bn (EPS of Rs13.57) in 4Q2024. Result is above our expectation mainly due to lower than expected Effective Tax Rate (ETR).This takes 2025 Owner's PAT to Rs55.6bn (EPS of Rs46.20) vs. Rs12.9bn (EPS of Rs26.78). However, this includes one-off impairment reversal on thermal assets. Excluding this, Owner's PAT is Rs29bn (EPS of Rs24.13). To highlight, previously, company had been divesting its thermal energy business on which they have booked accounting adjustment, but the SPA was terminated so they have reversed back these adjustments.Among the subsidiaries, Engro Fertilizers Limited (EFERT) earnings were down by 19% YoY to Rs8.4bn during 4Q2025 primarily due to lower gross margins and super tax adjustment.

Engro Holdings (ENGROH): 4Q2025 EPS At Rs11.31, Down 17% YoY But Up 111% QoQ - Earnings Higher Than Our Expectations

Pakistan

Engro Fertilizers Limited is a fertilizer manufacturing and marketing company with products that focus on balanced crop nutrition and increased yield.

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Engro Fertilizer (EFERT PA)

Engro Holdings (ENGROH): 1Q2026 EPS At Rs8.50, Up 5.6x YoY But Down 25% QoQ - Earnings Higher Than Our Expectations

Engro Holdings (ENGROH) announced its 1Q2026 results today, reporting a profit attributable to equity owners of Rs10.2bn (EPS of Rs8.50) vs....

Topline Securities

Asia Frontier Capital Travel Report: Pakistan

I had the opportunity in early October 2016 to attend a three-day fund manager conference organized by one of our Pakistani brokers in Lahore (one...

Asia Frontier Capital

Top Industries for Investment as Pakistan Transitions to an Emerging Market

Pakistan's UpgradePakistan received its well deserved emerging market upgrade from MSCI last week, and valuation still remains below its historical...

Nomadic Equity

Pakistan's Cement Industry Poised for Further Growth

The cement industry in Pakistan has a flurry of advantages ahead of it, and can be considered a strategic industry for investment in...

Nomadic Equity

Engro Holdings (ENGROH): 4Q2025 EPS At Rs11.31, Down 17% YoY But Up 111% QoQ - Earnings Higher Than Our Expectations

Engro Holdings (ENGROH) announced its 4Q2025 results today, reporting a profit attributable to equity owners of Rs13.6bn (EPS of Rs11.31) vs....

Topline Securities

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