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>Pakistan car sales (as reported by PAMA) clocked in at 17,121 units in Feb 2026 a 42% YoY but down 26% MoM. This took 8MFY26 cumulative sales to 128,498 units, up 43% YoY from 89,770 units in 8MFY25.</li><li>The sharp MoM decline is primarily attributed to a high base effect, as January sales typically surge due to new-year vehicle registrations, coupled with fewer working days in February. Meanwhile, the strong YoY growth was supported by new market entrants, lower interest rates, easing inflation, and improving macroeconomic sentiment.</li><li>We expect positive momentum in auto sales to continue in 2026, supported by lower interest rates and new hybrid and plug-in hybrid models. Additionally, easing inflation and improved economic activity should further strengthen demand in the coming months.</li></ul>

Pakistan car sales (as reported by PAMA) clocked in at 17,121 units in Feb 2026 a 42% YoY but down 26% MoM. This took 8MFY26 cumulative sales to 128,498 units, up 43% YoY from 89,770 units in 8MFY25.The sharp MoM decline is primarily attributed to a high base effect, as January sales typically surge due to new-year vehicle registrations, coupled with fewer working days in February. Meanwhile, the strong YoY growth was supported by new market entrants, lower interest rates, easing inflation, and improving macroeconomic sentiment.We expect positive momentum in auto sales to continue in 2026, supported by lower interest rates and new hybrid and plug-in hybrid models. Additionally, easing inflation and improved economic activity should further strengthen demand in the coming months.

Pakistan Automobiles: Car Sales Rose 42% YoY But Down 26% MoM To 17,121 Units In Feb 2026

Sazgar Engineering Works Limited / Equity Bottom-Up

Sazgar Engineering Works Limited (SAZEW PK)

<ul><li>We revised up our earnings estimates for SAZEW for FY27F/28F by 61/60% following reveal of some details by the company in analyst briefing held on Sep 25, 2025.</li><li>Company revealed its likely sales figures post new model launches: We have revised up our unit sales forecast for the company by 39% in FY27F to 20,800 units, translating into monthly sales of ~1,730 units, comprising ~330 units from the new launches of Canon and TANK variants and ~1,400 units from the existing Haval variants.</li><li>New line to double the production capacity: Company revealed a hefty capex plan with outlay of Rs11.5bn for a new facility which will double the existing capacity of 24k units to 48k units.</li></ul>

We revised up our earnings estimates for SAZEW for FY27F/28F by 61/60% following reveal of some details by the company in analyst briefing held on Sep 25, 2025.Company revealed its likely sales figures post new model launches: We have revised up our unit sales forecast for the company by 39% in FY27F to 20,800 units, translating into monthly sales of ~1,730 units, comprising ~330 units from the new launches of Canon and TANK variants and ~1,400 units from the existing Haval variants.New line to double the production capacity: Company revealed a hefty capex plan with outlay of Rs11.5bn for a new facility which will double the existing capacity of 24k units to 48k units.

Sazgar Engineering (SAZEW): Earnings Revised Up By 61% For FY27; Target Price Revised Up To Rs2,656/Share

<ul><li>The management of Sazgar Engineering Works (SAZEW) held it's corporate briefing today to discuss the financial results for FY25 and share the company's future outlook.</li><li>Floods did not significantly affect Sazgar’s supplies. As per the management, deliveries are usually impacted when the Karachi–Lahore road is closed, but this disruption was very limited during floods.</li><li>We maintain our BUY stance with SAZEW trading at FY26E PE of 5.6x and dividend yield of 3%.</li></ul>

The management of Sazgar Engineering Works (SAZEW) held it's corporate briefing today to discuss the financial results for FY25 and share the company's future outlook.Floods did not significantly affect Sazgar’s supplies. As per the management, deliveries are usually impacted when the Karachi–Lahore road is closed, but this disruption was very limited during floods.We maintain our BUY stance with SAZEW trading at FY26E PE of 5.6x and dividend yield of 3%.

Topline Flash Note: Sazgar Engineering Works (SAZEW) – Corporate Briefing Key Takeaways

<ul><li>SAZEW announced its FY25 result, wherein the company recorded profit of Rs16.3bn (EPS of Rs270.22), up 2.06x YoY.</li><li>During 4QFY25, the company reported profit of Rs3.5bn (EPS 57.58) flattish YoY while down 44% QoQ. The result came lower than industry expectations as gross margins clocked in lower than expected.</li><li>The company reported gross margins of 25.1% in 4QFY25, compared to 29.1% in 4QFY24 and 32.6% in 3QFY25. This took FY25 gross margins to 29.1% in FY25 vs. 27.1% in FY24. We await detailed accounts to assess the reasons for this sharp decline in 4QFY25.</li></ul>

SAZEW announced its FY25 result, wherein the company recorded profit of Rs16.3bn (EPS of Rs270.22), up 2.06x YoY.During 4QFY25, the company reported profit of Rs3.5bn (EPS 57.58) flattish YoY while down 44% QoQ. The result came lower than industry expectations as gross margins clocked in lower than expected.The company reported gross margins of 25.1% in 4QFY25, compared to 29.1% in 4QFY24 and 32.6% in 3QFY25. This took FY25 gross margins to 29.1% in FY25 vs. 27.1% in FY24. We await detailed accounts to assess the reasons for this sharp decline in 4QFY25.

Sazgar Engineering (SAZEW): SAZEW FY25 EPS at Rs270.22, Up 2.06x YoY – Lower Than Industry Expectations

<ul><li>Sazgar Engineering Works Limited (SAZEW) has announced the official launch of its Plug-in Hybrid Electric Vehicle (PHEV) lineup of its existing H6 model and two more variants namely Tank 500 and Cannon Alpha.</li><li>In a notice to exchange today, the company has confirmed the commencement of pre-bookings for ‘HAVAL H6 Hi4 1.5L AT AWD Turbo PHEV’, with vehicle roll out from Aug 2025. The company has set price of Haval H6 PHEV at Rs12.895mn, which is 9.7% higher than its HEV version price of Rs11.75mn.</li><li>The H6 is already an established and growing model in Pakistan, and the upcoming PHEV variant will further boost its appeal and sales momentum, in our view.</li></ul>

Sazgar Engineering Works Limited (SAZEW) has announced the official launch of its Plug-in Hybrid Electric Vehicle (PHEV) lineup of its existing H6 model and two more variants namely Tank 500 and Cannon Alpha.In a notice to exchange today, the company has confirmed the commencement of pre-bookings for ‘HAVAL H6 Hi4 1.5L AT AWD Turbo PHEV’, with vehicle roll out from Aug 2025. The company has set price of Haval H6 PHEV at Rs12.895mn, which is 9.7% higher than its HEV version price of Rs11.75mn.The H6 is already an established and growing model in Pakistan, and the upcoming PHEV variant will further boost its appeal and sales momentum, in our view.

Topline Flash Note: Sazgar Engineering Works Limited (SAZEW): Sazgar Launches PHEV Lineup, H6 PHEV Pre Booking Started

Pakistan

Sazgar Engineering Works Limited was incorporated in Pakistan on September 21, 1991 as a Private Limited Company and converted into a Public Limited Company on November 21,1994. The Company is engaged in the manufacture and sale of automobiles, automotive parts and household electric appliances.

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Sazgar Engineering Works Limited (SAZEW PK)

Pakistan Automobiles: Car Sales Rose 42% YoY But Down 26% MoM To 17,121 Units In Feb 2026

Pakistan car sales (as reported by PAMA) clocked in at 17,121 units in Feb 2026 a 42% YoY but down 26% MoM. This took 8MFY26 cumulative sales to...

Topline Securities

Topline Flash Note: Sazgar Engineering Works (SAZEW) – Corporate Briefing Key Takeaways

The management of Sazgar Engineering Works (SAZEW) held it's corporate briefing today to discuss the financial results for FY25 and share the...

Topline Securities

Sazgar Engineering (SAZEW): SAZEW FY25 EPS at Rs270.22, Up 2.06x YoY – Lower Than Industry Expectations

SAZEW announced its FY25 result, wherein the company recorded profit of Rs16.3bn (EPS of Rs270.22), up 2.06x YoY. During 4QFY25, the company...

Topline Securities

Topline Flash Note: Sazgar Engineering Works Limited (SAZEW): Sazgar Launches PHEV Lineup, H6 PHEV Pre Booking Started

Sazgar Engineering Works Limited (SAZEW) has announced the official launch of its Plug-in Hybrid Electric Vehicle (PHEV) lineup of its existing H6...

Topline Securities

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Pakistan Automobiles: Car Sales Rose 42% YoY But Down 26% MoM To 17,121 Units In Feb 2026

Pakistan car sales (as reported by PAMA) clocked in at 17,121 units in Feb 2026 a 42% YoY but down 26% MoM. This took 8MFY26 cumulative sales to...

Topline Securities

Sazgar Engineering (SAZEW): Earnings Revised Up By 61% For FY27; Target Price Revised Up To Rs2,656/Share

We revised up our earnings estimates for SAZEW for FY27F/28F by 61/60% following reveal of some details by the company in analyst briefing held on...

Topline Securities

Topline Flash Note: Sazgar Engineering Works (SAZEW) – Corporate Briefing Key Takeaways

The management of Sazgar Engineering Works (SAZEW) held it's corporate briefing today to discuss the financial results for FY25 and share the...

Topline Securities

Sazgar Engineering (SAZEW): SAZEW FY25 EPS at Rs270.22, Up 2.06x YoY – Lower Than Industry Expectations

SAZEW announced its FY25 result, wherein the company recorded profit of Rs16.3bn (EPS of Rs270.22), up 2.06x YoY. During 4QFY25, the company...

Topline Securities

Topline Flash Note: Sazgar Engineering Works Limited (SAZEW): Sazgar Launches PHEV Lineup, H6 PHEV Pre Booking Started

Sazgar Engineering Works Limited (SAZEW) has announced the official launch of its Plug-in Hybrid Electric Vehicle (PHEV) lineup of its existing H6...

Topline Securities