⚡ Flash Summary

Trust Securities and Brokerage Limited (TSBL) released its annual report for the year ending June 30, 2025. The company reported an increase in operating revenue but a decrease in profit after tax compared to the previous year. The report highlights economic factors, the company’s commitment to sustainability and DE&I, and awards received. TSBL emphasizes transparency and ethical conduct in its operations.

📌 Key Takeaways

• 📈 Operating revenue increased from PKR 211.99 million to PKR 251.09 million.
• 📉 Profit after taxation decreased significantly from PKR 83.99 million to PKR 19.17 million.
• 😟 Earning per share (EPS) declined from PKR 2.80 to PKR 0.64.
• ⭐ TSBL was recognized as a ‘Top Emerging Broker’ and ‘Best Broker in Karachi’.
• 🤝 Assigned entity ratings of A-/A-2 by PACRA with a ‘Stable’ outlook.
• 🌍 Commitment to Environmental, Social, and Governance (ESG) principles is highlighted.
• 👩‍💼 Focus on Diversity, Equity, and Inclusion (DE&I) initiatives.
• 🏛️ Board of Directors includes 7 members: 6 male and 1 female.
• 📊 KSE-100 index showed a historic upward trend, closing 2024 at approximately 115,127.
• 💼 Total assets increased from PKR 707.27 million to PKR 883.62 million.
• 🏢 The company has 6 branches across Pakistan.
• 📜 Board has outsourced internal audit function and has formed several committees.
• 🌍 The company has corporate social responsibility initiatives such as Safaid Posh Dastarkhuwan and Hunar Ghar Welfare Organization.
• 💼 The Directors are pleased to report in full compliance with corporate governance.
• ⚠️ The auditors also noted non-compliance in director training program and nomination committee.

🎯 Investment Thesis

Given the revenue growth but significant profit decline and the existing risks, a HOLD recommendation is appropriate. While the company’s brokerage operation appears to be doing well, profitability needs to be stabilized and economic risks require constant evaluation. Therefore, it is prudent to maintain current positions while monitoring the company’s performance.