⚡ Flash Summary

Next Capital Limited announced its Corporate Briefing Session for the year ended June 30, 2025. The company reported a strong turnaround, reversing losses from the previous year. Brokerage income surged by 96.85%, driven by increased turnover in the Pakistan Stock Exchange (PSX). The company’s strategic expansion into fintech through Finqalab demonstrates a commitment to innovation and attracting new investors, with 83% being first-time investors.

📌 Key Takeaways

• 🚀 Brokerage income surged by 96.85% to PKR 238.4 million, fueled by higher client trading flows.
• 📈 The company reversed losses, reporting a profit before tax of PKR 38.13 million.
• 💰 Profit after tax reached PKR 28.73 million, indicating a significant financial recovery.
• ⭐ Earnings per share (EPS) improved to PKR 0.50.
• ✅ Advisory and related income increased to PKR 92.25 million, up from PKR 67.07 million.
• 📊 EBIT margin improved to 22.8%, compared to 15.4% in the previous year.
• 🌱 Net profit margin swung to 10.1%, a considerable improvement from -10.2%.
• 💼 Operating costs increased to PKR 147.957 million, reflecting investments in revenue-generating capabilities.
• 📉 Administrative costs slightly decreased to PKR 132.599 million.
• 💸 Total assets increased to PKR 1,113.2 million, driven by higher cash and investments in intangibles.
• 🏦 Cash and bank balances increased to PKR 424.9 million, supporting operations and working capital.
• 📉 Trade debts decreased by ~40.6% to PKR 73.0 million.
• ⬆️ Trade and other payables climbed ~89.3% to PKR 482.3 million, reflecting tighter collections and higher vendor financing.
• 🌐 Intangible assets increased to PKR 235.1 million, emphasizing investment in technology.
• 🤝 Shareholders’ equity rose to PKR 435.1 million as accumulated losses narrowed.

🎯 Investment Thesis

BUY. Next Capital’s demonstrated turnaround, significant growth in brokerage income, and strategic investment in fintech warrant a BUY recommendation. The company has shown its ability to capitalize on favorable market conditions and enhance operational efficiency. The expansion into Finqalab represents a growth catalyst, attracting new investors and diversifying revenue streams. Price Target: A 20-30% increase over the next 12-18 months, contingent on continued market stability and successful execution of growth strategies.