External broker reports(aggregated public sources), Topline Securities

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External broker reports(aggregated public sources)

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Equity Bottom-Up

Sazgar Engineering Works Limited / Equity Bottom-Up

<ul><li>SAZEW announced its 1QFY26 result, wherein the company recorded profit of Rs4.4bn (EPS of Rs73.06), up 5% YoY. The result came higher than industry expectations due to higher-than-expected gross margins.</li><li>Net sales of the company surged by 28% YoY and 24% QoQ to Rs33.8bn in 1QFY26. This trend was largely driven by four-wheeler volumes, which increased 37% YoY and 26% QoQ, with sales clocking in at 3,557 units compared to 2,605 units in 1QFY25 and 2,817 units in 4QFY25.</li><li>We maintain our BUY call for SAZEW as company is currently trading at an FY26/FY27F PE of 6.5/5.3x.</li></ul>

SAZEW announced its 1QFY26 result, wherein the company recorded profit of Rs4.4bn (EPS of Rs73.06), up 5% YoY. The result came higher than industry expectations due to higher-than-expected gross margins.Net sales of the company surged by 28% YoY and 24% QoQ to Rs33.8bn in 1QFY26. This trend was largely driven by four-wheeler volumes, which increased 37% YoY and 26% QoQ, with sales clocking in at 3,557 units compared to 2,605 units in 1QFY25 and 2,817 units in 4QFY25.We maintain our BUY call for SAZEW as company is currently trading at an FY26/FY27F PE of 6.5/5.3x.

Sazgar Engineering (SAZEW): 1QFY26 EPS at Rs73.06, Up 5% YoY - Higher Than Industry Expectations

<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

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

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.

Sazgar Engineering Works Limited (SAZEW PK)

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Sazgar Engineering Works Limited (SAZEW PK)

Sazgar Engineering (SAZEW): 1QFY26 EPS at Rs73.06, Up 5% YoY - Higher Than Industry Expectations

SAZEW announced its 1QFY26 result, wherein the company recorded profit of Rs4.4bn (EPS of Rs73.06), up 5% YoY. The result came higher than...

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

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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Sazgar Engineering (SAZEW): 1QFY26 EPS at Rs73.06, Up 5% YoY - Higher Than Industry Expectations

SAZEW announced its 1QFY26 result, wherein the company recorded profit of Rs4.4bn (EPS of Rs73.06), up 5% YoY. The result came higher than...

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

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