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.

Thematic (Sector/Industry)

<ul><li>We expect Topline Fertilizer universe earnings to decrease by 20% YoY due to lower other income coupled with higher selling cost.</li><li>Urea offtake is expected to increase by 21% YoY and 48% QoQ to 1.9mn tons in 3Q2025.</li><li>Average Urea prices during 3Q2025 declined by 7% YoY and 2% QoQ to Rs4,404 per bag led by discounts offered by select manufacturers.</li></ul>

We expect Topline Fertilizer universe earnings to decrease by 20% YoY due to lower other income coupled with higher selling cost.Urea offtake is expected to increase by 21% YoY and 48% QoQ to 1.9mn tons in 3Q2025.Average Urea prices during 3Q2025 declined by 7% YoY and 2% QoQ to Rs4,404 per bag led by discounts offered by select manufacturers.

Pakistan Fertilizer: Profits Likely To Decline 20% YoY In 3Q2025; Market Weight Maintained

<ul><li>KSE-100 index companies posted earnings of Rs445bn in 4QFY25, up 21% YoY from Rs366bn in 4QFY24.</li><li>Despite the decline in interest rates, the banking sector's earnings increased by 24% YoY to Rs160bn in 4QFY25.</li><li>The E&P sector posted a 6% YoY decline in profitability during 4QFY25 to Rs83bn.</li></ul>

KSE-100 index companies posted earnings of Rs445bn in 4QFY25, up 21% YoY from Rs366bn in 4QFY24.Despite the decline in interest rates, the banking sector's earnings increased by 24% YoY to Rs160bn in 4QFY25.The E&P sector posted a 6% YoY decline in profitability during 4QFY25 to Rs83bn.

Pakistan Strategy – Corporate Profitability In 4QFY25; Earnings Up 21%, While Dividends Grew By 7% YoY

Equity Bottom-Up

<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 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)

Pakistan Fertilizer: Profits Likely To Decline 20% YoY In 3Q2025; Market Weight Maintained

We expect Topline Fertilizer universe earnings to decrease by 20% YoY due to lower other income coupled with higher selling cost. Urea offtake is...

Topline Securities

Pakistan Strategy – Corporate Profitability In 4QFY25; Earnings Up 21%, While Dividends Grew By 7% YoY

KSE-100 index companies posted earnings of Rs445bn in 4QFY25, up 21% YoY from Rs366bn in 4QFY24. Despite the decline in interest rates, the...

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

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