External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

Pak Elektron Limited (Pael) / Equity Bottom-Up

<ul><li>Pak Elektron Limited (PAEL) announced its 3Q2025 result wherein it posted earnings of Rs681mn (EPS of Rs0.74) up by 52% YoY but down 60% QoQ. The result came in line with our expectations.</li><li>Earnings rose 52% YoY in 3Q2025, mainly on the back of improved gross margins.</li><li>In 9M2025, earnings rose by 64% YoY to Rs3.05bn, mainly driven by a 13% YoY increase in revenue, improved gross margins and decline in finance cost. The revenue growth stemmed from higher volumetric sales in the Appliance division in 1H2025.</li></ul>

Pak Elektron Limited (PAEL) announced its 3Q2025 result wherein it posted earnings of Rs681mn (EPS of Rs0.74) up by 52% YoY but down 60% QoQ. The result came in line with our expectations.Earnings rose 52% YoY in 3Q2025, mainly on the back of improved gross margins.In 9M2025, earnings rose by 64% YoY to Rs3.05bn, mainly driven by a 13% YoY increase in revenue, improved gross margins and decline in finance cost. The revenue growth stemmed from higher volumetric sales in the Appliance division in 1H2025.

PAEL: 9M2025 EPS at Rs3.3, Up 64% YoY – Earnings in Line with Our Expectations

<ul><li>We had a management meeting with the senior management of Pak Elektron CFO, Mr. Manzar Hasan and GM Finance, Mr. Nadeem Asghar on the recent financial results and outlook.</li><li>PAEL has expanded into new markets, mainly the United States, securing export orders worth US$44mn with a target of US$50mn by end-2025. It has also secured orders from global leaders such as Tesla, showcasing its engineering strength and competitiveness in international energy solutions.</li><li>We maintain a buy stance on PAEL, with the stock currently trading at a 2025E PE of 10.0x and a 2026F PE of 8.5x.</li></ul>

We had a management meeting with the senior management of Pak Elektron CFO, Mr. Manzar Hasan and GM Finance, Mr. Nadeem Asghar on the recent financial results and outlook.PAEL has expanded into new markets, mainly the United States, securing export orders worth US$44mn with a target of US$50mn by end-2025. It has also secured orders from global leaders such as Tesla, showcasing its engineering strength and competitiveness in international energy solutions.We maintain a buy stance on PAEL, with the stock currently trading at a 2025E PE of 10.0x and a 2026F PE of 8.5x.

Pak Elektron (PAEL) - Management Meeting Takeaways; Power Segment to Dominate in 2H2025

<ul><li>We had a management meeting with the senior management of Pak Elektron CFO, Mr. Manzar Hasan and GM Finance, Mr. Nadeem Asghar on the recent financial results and outlook.</li><li>PAEL has expanded into new markets, mainly the United States, securing export orders worth US$44mn with a target of US$50mn by end-2025. It has also secured orders from global leaders such as Tesla, showcasing its engineering strength and competitiveness in international energy solutions. Company has supplied 20-25% of the export order in 1H, while in 2H rest of the orders will be supplied.</li><li>In absolute terms, PAEL has supplied US$9mn till Jun 2025, while till Aug 2025, company has supplied a total of US$16mn. Company expects completion of this whole order book (US$40-44mn) by Dec 2025.</li></ul>

We had a management meeting with the senior management of Pak Elektron CFO, Mr. Manzar Hasan and GM Finance, Mr. Nadeem Asghar on the recent financial results and outlook.PAEL has expanded into new markets, mainly the United States, securing export orders worth US$44mn with a target of US$50mn by end-2025. It has also secured orders from global leaders such as Tesla, showcasing its engineering strength and competitiveness in international energy solutions. Company has supplied 20-25% of the export order in 1H, while in 2H rest of the orders will be supplied.In absolute terms, PAEL has supplied US$9mn till Jun 2025, while till Aug 2025, company has supplied a total of US$16mn. Company expects completion of this whole order book (US$40-44mn) by Dec 2025.

Pakistan Automobiles: Car Sales in Aug 2025 Up 62% YoY and 27% MoM to 14,050 Units

<ul><li>Pak Elektron Limited (PAEL) announced its 2Q2025 result wherein it posted earnings of Rs1,713mn (EPS of Rs1.85) up by 77% YoY and by 2.6x QoQ. The result came in line with expectations.</li><li>Earnings rose in 2Q2025, mainly on the back of higher net sales and improved gross margins. Net sales increased by 21% YoY and 45% QoQ to Rs21.1bn, driven by seasonal demand in the Appliance division—particularly Refrigerators and Air Conditioners—amid strong summer demand, according to our channel checks.</li><li>Gross margins in 2Q2025 increased to 27.7% compared to 26.6% in 2Q2024 and 26.0% in 1Q2025. The improvement in gross margins is on the back of stable currency, in our view.</li></ul>

Pak Elektron Limited (PAEL) announced its 2Q2025 result wherein it posted earnings of Rs1,713mn (EPS of Rs1.85) up by 77% YoY and by 2.6x QoQ. The result came in line with expectations.Earnings rose in 2Q2025, mainly on the back of higher net sales and improved gross margins. Net sales increased by 21% YoY and 45% QoQ to Rs21.1bn, driven by seasonal demand in the Appliance division—particularly Refrigerators and Air Conditioners—amid strong summer demand, according to our channel checks.Gross margins in 2Q2025 increased to 27.7% compared to 26.6% in 2Q2024 and 26.0% in 1Q2025. The improvement in gross margins is on the back of stable currency, in our view.

Pak Elektron (PAEL): 2Q2025 EPS at Rs1.85, Up by 77% YoY and 2.6x QoQ- Earnings in Line with Expectations

Thematic (Sector/Industry)

<ul><li>Pakistan listed Consumer sector is currently trading at 2025 PE of 13.2x which is at a discount to its historical average of 22.32x.</li><li>Segment wise, consumer staple (FMCG) is trading at 2025 PE of 16.1x vs. 10-year average of 26.95x, pharmaceutical is trading at 2025 PE of 18.0x vs. 10-year average PE of 20.74x and consumer discretionary is trading at PE of 8.2x vs. 10-year average PE of 19.27x.</li><li>Sector witnessed 5-year and 10-years sales/profit CAGR of 18%/25% and 13%/14% respectively.</li></ul>

Pakistan listed Consumer sector is currently trading at 2025 PE of 13.2x which is at a discount to its historical average of 22.32x.Segment wise, consumer staple (FMCG) is trading at 2025 PE of 16.1x vs. 10-year average of 26.95x, pharmaceutical is trading at 2025 PE of 18.0x vs. 10-year average PE of 20.74x and consumer discretionary is trading at PE of 8.2x vs. 10-year average PE of 19.27x.Sector witnessed 5-year and 10-years sales/profit CAGR of 18%/25% and 13%/14% respectively.

Pakistan

Pak Elektron Limited manufactures and sells electrical capital goods and domestic appliances primarily in Pakistan. It operates in two divisions, Power and Appliances. The Power division manufactures and distributes transformers, switchgears, energy meters, and power transformers; constructs grid stations; and provides electrification works. The Appliances division manufactures, assembles, and distributes refrigerators, deep freezers, air conditioners, microwave ovens, washing machines, water dispensers, and other home appliances. The company also exports its products to Qatar, Afghanistan, Zimbabwe, Yemen, Greece, Swaziland, Saudi Arabia, Tanzania, Kazakhstan, Bangladesh, Nepal, and Kenya. Pak Elektron Limited was founded in 1956 and is based in Lahore, Pakistan.

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Pak Elektron Limited (Pael) (PAEL PA)

PAEL: 9M2025 EPS at Rs3.3, Up 64% YoY – Earnings in Line with Our Expectations

Pak Elektron Limited (PAEL) announced its 3Q2025 result wherein it posted earnings of Rs681mn (EPS of Rs0.74) up by 52% YoY but down 60% QoQ. The...

Topline Securities

Pak Elektron (PAEL) - Management Meeting Takeaways; Power Segment to Dominate in 2H2025

We had a management meeting with the senior management of Pak Elektron CFO, Mr. Manzar Hasan and GM Finance, Mr. Nadeem Asghar on the recent...

Topline Securities

Pakistan Automobiles: Car Sales in Aug 2025 Up 62% YoY and 27% MoM to 14,050 Units

We had a management meeting with the senior management of Pak Elektron CFO, Mr. Manzar Hasan and GM Finance, Mr. Nadeem Asghar on the recent...

Topline Securities

Pak Elektron (PAEL): 2Q2025 EPS at Rs1.85, Up by 77% YoY and 2.6x QoQ- Earnings in Line with Expectations

Pak Elektron Limited (PAEL) announced its 2Q2025 result wherein it posted earnings of Rs1,713mn (EPS of Rs1.85) up by 77% YoY and by 2.6x QoQ. The...

Topline Securities

Pakistan Listed Consumer Comp Sheet

Pakistan listed Consumer sector is currently trading at 2025 PE of 13.2x which is at a discount to its historical average of 22.32x. Segment wise,...

Topline Securities

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