⚡ Flash Summary

Hinopak Motors Limited’s half-yearly report for September 2025 reveals a significant turnaround in the commercial vehicle market in Pakistan, with overall sales increasing by 117%. Hinopak’s sales volume also rose substantially to 306 units from 189 units in the prior year. This surge translated to a notable increase in sales revenue, reaching Rs. 6.92 billion compared to Rs. 4.62 billion previously. Consequently, the company reported a profit after tax of Rs. 540.28 million, a stark contrast to the loss of Rs. 47.24 million in the corresponding period last year, resulting in earnings per share of Rs. 21.78.

📌 Key Takeaways

• 📈 Total commercial vehicle sales in Pakistan increased by 117% year-over-year.
• 🚌 Hinopak’s sales volume surged from 189 to 306 units. 🚀
• 💰 Sales revenue grew significantly to Rs. 6.92 billion from Rs. 4.62 billion. 💸
• ✅ Gross profit increased to Rs. 1.32 billion compared to Rs. 614.86 million. 🎉
• 📉 Finance costs decreased to Rs. 189.63 million from Rs. 227.39 million. 👍
• 🌟 Profit after tax reached Rs. 540.28 million, a turnaround from a loss of Rs. 47.24 million. ✨
• 💲 Earnings per share (EPS) stood at Rs. 21.78, compared to a loss per share of Rs. 1.90 last year. 🍀
• ✔️ Finance cost includes Rs. 70.89 million in net exchange loss and Rs. 99.47 million in mark-up on short-term borrowings. 🏦
• 🛣️ Macroeconomic conditions and government focus on infrastructure are expected to support demand. 🏗️
• 🤝 Sincere gratitude expressed to parent companies, customers, and the Hinopak team. 🙌
• 📊 The Company issued bank guarantees amounting to Rs. 215 million in relation to Sindh infrastructure cess.
• ✔️ Sales to Indus Motor Company Limited amounted to Rs. 1.31 billion accounting for 18.92% of the net sales.

🎯 Investment Thesis

Based on the strong turnaround and positive outlook, a BUY recommendation is justified for Hinopak Motors Limited. The company has demonstrated resilience and growth potential, supported by improving macroeconomic conditions and effective cost management. A price target of Rs. 100 is set, based on a multiple of 4.5 times the annualized EPS, with a medium-term horizon of 18 months.