External broker reports(aggregated public sources), Topline Securities

Topline Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

<ul><li>Systems Limited (SYS) held its corporate briefing session today to discuss 1Q2026 financial results and future outlook.</li><li>The company posted a consolidated PAT of Rs3.03bn (EPS: Rs2.05) in 1Q2026, up 21% YoY.</li><li>Gross margins declined to 25% during the quarter. Management noted that this decline was attributable to various factors including wage inflation, fuel price hike, PKR appreciation and less working days.</li></ul>

Systems Limited (SYS) held its corporate briefing session today to discuss 1Q2026 financial results and future outlook.The company posted a consolidated PAT of Rs3.03bn (EPS: Rs2.05) in 1Q2026, up 21% YoY.Gross margins declined to 25% during the quarter. Management noted that this decline was attributable to various factors including wage inflation, fuel price hike, PKR appreciation and less working days.

Topline Flash Note: Systems Limited (SYS) - Corporate Briefing Key Takeaways

<ul><li>Systems Limited (SYS) announced its 1Q2026 results, posting a consolidated PAT of Rs3bn (EPS of Rs2.05) up 21% YoY but down by 2% QoQ. The result came in below our expectations primarily due to lower-than-expected gross margins.</li><li>Net sales for the quarter clocked in at Rs24bn, up 33% YoY, supported by the Middle East segment, which grew from Rs10.2bn in 1Q2025 to Rs14.0 in 1Q2026.</li><li>The North American region also witnessed a revenue growth of 33% YoY and 39% QoQ, most likely due to the consolidation of Confiz accounts following the acquisition. The company expects the full impact of this acquisition to materialize in the second half of 2026.</li></ul>

Systems Limited (SYS) announced its 1Q2026 results, posting a consolidated PAT of Rs3bn (EPS of Rs2.05) up 21% YoY but down by 2% QoQ. The result came in below our expectations primarily due to lower-than-expected gross margins.Net sales for the quarter clocked in at Rs24bn, up 33% YoY, supported by the Middle East segment, which grew from Rs10.2bn in 1Q2025 to Rs14.0 in 1Q2026.The North American region also witnessed a revenue growth of 33% YoY and 39% QoQ, most likely due to the consolidation of Confiz accounts following the acquisition. The company expects the full impact of this acquisition to materialize in the second half of 2026.

Systems Limited (SYS): 1Q2026 EPS At Rs2.05, Up 21% YoY

<ul><li>Systems Limited (SYS) held its corporate briefing session today, following the announcement of 2025 financial results.</li><li>The company posted a consolidated PAT of Rs11.0bn (EPS: Rs7.52) in 2025, up 48% YoY.</li><li>Net sales clocked in at Rs80.4bn during the year, marking a 19% YoY increase. This is driven by growth across all geographical regions including 19% in Middle East, 6% in North America, 32% in Pakistan and 40% and 20% in Europe and APAC, respectively.</li></ul>

Systems Limited (SYS) held its corporate briefing session today, following the announcement of 2025 financial results.The company posted a consolidated PAT of Rs11.0bn (EPS: Rs7.52) in 2025, up 48% YoY.Net sales clocked in at Rs80.4bn during the year, marking a 19% YoY increase. This is driven by growth across all geographical regions including 19% in Middle East, 6% in North America, 32% in Pakistan and 40% and 20% in Europe and APAC, respectively.

Event-Driven

<ul><li>We have revised up our earnings estimates for Systems Limited (SYS) by 5-8% (pre dilution: 9-12%) for 2026/27 to Rs11.73/15.19 per share, primarily due to the ongoing acquisitions — particularly that of Confiz Limited.</li><li>Systems Limited (SYS) recently announced the acquisition of Confiz Limited, one of Pakistan’s top 3 IT services firms. Confiz has a strong specialization in the retail and consumer packaged goods (CPG) verticals, supported by a high-value client base that includes retail chains such as Walmart, Nordstrom and Macy’s.</li><li>The acquired company’s core offerings include software development, cloud enablement, data & analytics, and enterprise solutions with a particular focus on the Microsoft ecosystem, including Dynamics 365 and Power Platform.</li></ul>

We have revised up our earnings estimates for Systems Limited (SYS) by 5-8% (pre dilution: 9-12%) for 2026/27 to Rs11.73/15.19 per share, primarily due to the ongoing acquisitions — particularly that of Confiz Limited.Systems Limited (SYS) recently announced the acquisition of Confiz Limited, one of Pakistan’s top 3 IT services firms. Confiz has a strong specialization in the retail and consumer packaged goods (CPG) verticals, supported by a high-value client base that includes retail chains such as Walmart, Nordstrom and Macy’s.The acquired company’s core offerings include software development, cloud enablement, data & analytics, and enterprise solutions with a particular focus on the Microsoft ecosystem, including Dynamics 365 and Power Platform.

Systems Limited (SYS) - Growth Through Strategic Acquisitions; Earnings Revised Up; Buy Stance Maintained

<ul><li>Systems Limited (SYS) held its corporate briefing session to discuss the recent acquisitions and future outlook.</li><li>SYS recently announced the acquisition of Confiz Limited, one of Pakistan���s top 3 IT companies, with a strong specialization in retail and CPG segments.</li><li>SYS has acquired this company through a 100% share swap arrangement, as per which, Systems' shareholders will be diluted by 3.8-4.0% and revenue contribution from this new business will be roughly around 10% of the current business, according to management.</li></ul>

Systems Limited (SYS) held its corporate briefing session to discuss the recent acquisitions and future outlook.SYS recently announced the acquisition of Confiz Limited, one of Pakistan���s top 3 IT companies, with a strong specialization in retail and CPG segments.SYS has acquired this company through a 100% share swap arrangement, as per which, Systems' shareholders will be diluted by 3.8-4.0% and revenue contribution from this new business will be roughly around 10% of the current business, according to management.

Topline Flash Note: Systems Limited (SYS): Corporate Briefing Key Takeaways

Pakistan

Systems Ltd is a software and technology service company. The Company focuses on the finance and apparel industry in the United States. Systems operates in Pakistan and worldwide.

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Systems Limited (SYS PK)

Topline Flash Note: Systems Limited (SYS) - Corporate Briefing Key Takeaways

Systems Limited (SYS) held its corporate briefing session today to discuss 1Q2026 financial results and future outlook. The company posted a...

Topline Securities

Systems Limited (SYS): 1Q2026 EPS At Rs2.05, Up 21% YoY

Systems Limited (SYS) announced its 1Q2026 results, posting a consolidated PAT of Rs3bn (EPS of Rs2.05) up 21% YoY but down by 2% QoQ. The result...

Topline Securities

Topline Flash Note: Systems Limited (SYS) - Corporate Briefing Key Takeaways

Systems Limited (SYS) held its corporate briefing session today, following the announcement of 2025 financial results. The company posted a...

Topline Securities

Systems Limited (SYS) - Growth Through Strategic Acquisitions; Earnings Revised Up; Buy Stance Maintained

We have revised up our earnings estimates for Systems Limited (SYS) by 5-8% (pre dilution: 9-12%) for 2026/27 to Rs11.73/15.19 per share,...

Topline Securities

Topline Flash Note: Systems Limited (SYS): Corporate Briefing Key Takeaways

Systems Limited (SYS) held its corporate briefing session to discuss the recent acquisitions and future outlook. SYS recently announced the...

Topline Securities

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