⚡ Flash Summary

First National Equities Limited (FNEL) reported a profit after tax of PKR 12.876 million for the quarter ended September 30, 2025, compared to a loss of PKR 16.393 million in the same period last year. This turnaround is primarily attributed to a significant increase in operating revenue driven by unrealized gains on re-measurement of investments. However, increased administrative and finance costs partially offset these gains, indicating areas needing closer scrutiny.

📌 Key Takeaways

• 💰 Operating revenue decreased significantly from PKR 5,678,883 to PKR 366,483.
• 📈 Realized gain on sale of investments decreased from PKR 2,048,695 to PKR 119,313.
• 📊 Unrealized gain on re-measurement of investments showed a significant positive change, from a loss of PKR 321,473 to a gain of PKR 18,185,904.
• ✅ Operating profit increased substantially from PKR 7,406,105 to PKR 18,671,700.
• expenses decreased significantly from PKR 21,895,717 to PKR 6,671,854.
• 💸 Finance costs decreased from PKR 5,869,952 to zero.
• 🌟 Profit/(loss) before tax turned positive, from a loss of PKR 15,758,690 to a profit of PKR 13,170,450.
• 📉 Taxation increased from PKR 78,970 to PKR 169,581.
• ✅ Profit/(loss) after tax turned positive, from a loss of PKR 15,837,660 to a profit of PKR 13,000,869.
• ✨ Earnings/(loss) per share – basic improved from a loss of PKR 0.061 to earnings of PKR 0.048.
• Total assets increased from PKR 1,716,315,987 to PKR 1,736,581,687.
• Total liabilities increased from PKR 634,374,642 to PKR 638,789,527.
• Net assets increased from PKR 1,081,941,345 to PKR 1,097,792,160.
• Cash and cash equivalents decreased from PKR 299,682,952 to PKR 5,463,284.

🎯 Investment Thesis

HOLD. While the company has shown a remarkable turnaround in profitability due to unrealized investment gains, it’s crucial to assess the sustainability of these gains. Further analysis is required to understand revenue strategies and expense management. A more concrete BUY or SELL recommendation would depend on subsequent quarters demonstrating sustained operational improvements. The price target will depend on future outlook.