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, 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.

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

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

<ul><li>Systems Limited (SYS) announced its 3Q2025 result, posting a consolidated PAT of Rs2.8bn (EPS: Rs1.90) up 28% YoY and 5% QoQ.</li><li>The growth in earnings is primarily driven by an improvement in gross margins to 29.7% in 3Q2025 (from 25.3% in 3Q2024), supported by enhanced operational efficiency.</li><li>The company also reported a 20% YoY increase in revenue during 3Q2025, likely reflecting sustained growth in IT exports, which were up 25% YoY.</li></ul>

Systems Limited (SYS) announced its 3Q2025 result, posting a consolidated PAT of Rs2.8bn (EPS: Rs1.90) up 28% YoY and 5% QoQ.The growth in earnings is primarily driven by an improvement in gross margins to 29.7% in 3Q2025 (from 25.3% in 3Q2024), supported by enhanced operational efficiency.The company also reported a 20% YoY increase in revenue during 3Q2025, likely reflecting sustained growth in IT exports, which were up 25% YoY.

Systems Limited (SYS): 3Q2025 EPS At Rs1.90, Up 28% YoY

Macroeconomics

<ul><li>Pakistan recorded highest ever monthly IT exports of US$437mn in Dec-25, up 26% YoY and 23% MoM. These monthly IT exports in Dec-25 are higher than the last 12-month average of US$341mn.</li><li>This takes 1HFY26 IT exports to US$2.2bn, up 20% YoY.</li><li>Net IT Exports (Exports-Imports) displayed a monthly number of US$377mn which is an increase of 70% YoY and 22% MoM. These net IT export numbers in Dec-25 are higher than the last 12-month average of US$298mn.</li></ul>

Pakistan recorded highest ever monthly IT exports of US$437mn in Dec-25, up 26% YoY and 23% MoM. These monthly IT exports in Dec-25 are higher than the last 12-month average of US$341mn.This takes 1HFY26 IT exports to US$2.2bn, up 20% YoY.Net IT Exports (Exports-Imports) displayed a monthly number of US$377mn which is an increase of 70% YoY and 22% MoM. These net IT export numbers in Dec-25 are higher than the last 12-month average of US$298mn.

Pakistan Technology - IT Exports Reach An All-Time High Of US$437mn In Dec-25; 1HFY26 Exports Up By 20% YoY

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, 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

Systems Limited (SYS): 3Q2025 EPS At Rs1.90, Up 28% YoY

Systems Limited (SYS) announced its 3Q2025 result, posting a consolidated PAT of Rs2.8bn (EPS: Rs1.90) up 28% YoY and 5% QoQ. The growth in...

Topline Securities

Pakistan Technology - IT Exports Reach An All-Time High Of US$437mn In Dec-25; 1HFY26 Exports Up By 20% YoY

Pakistan recorded highest ever monthly IT exports of US$437mn in Dec-25, up 26% YoY and 23% MoM. These monthly IT exports in Dec-25 are higher...

Topline Securities

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