⚡ Flash Summary

Intermarket Securities Limited (IMS) presented its corporate briefing for FY2025. The company’s brokerage commission for FY25 increased year-over-year despite the financial year covering only 6 months due to a change in the fiscal year end. IMS merged with EFG Hermes Pakistan Ltd, resulting in a market share of 8%. A dividend of 20% was also announced. The firm highlights its mission to offer best-in-class service and superior technology solutions, aiming to be the preferred brokerage firm in Pakistan.

📌 Key Takeaways

• 📈 IMS’s operating revenue for Jan-Jun 2025 stood at PKR 643.56 million, compared to PKR 996.21 million for the full year 2024.
• 🤝 IMS merged with EFG Hermes Pakistan Ltd, achieving a market share of 8%.
• 💰 The company announced a 20% dividend for FY25.
• 📊 Brokerage commission represents 85.64% of total revenue (Dec 31, 2024: 85.82%).
• 🌍 8.70% of brokerage commission earned relates to customers outside Pakistan (Dec 31, 2024: 8.89%).
• 🏢 Total assets as of June 30, 2025, were PKR 3,362.26 million, compared to PKR 3,940.52 million as of December 31, 2024.
• 💸 Profit after taxation for Jan-Jun 2025 was PKR 155.37 million, compared to PKR 477.02 million for the full year 2024.
• 📉 EPS for Jan-Jun 2025 was PKR 0.12, compared to PKR 0.37 for the full year 2024.
• 🏦 Short-term investments were PKR 265.11 million as of June 30, 2025, compared to PKR 280.37 million as of December 31, 2024.
• 💼 Shareholder’s equity was PKR 1,501.46 million as of June 30, 2025, compared to PKR 1,603.59 million as of December 31, 2024.
• 💹 Return on equity was 20.0% for Jan-Jun 2025.
• ✔️ Return on total assets was 9.2% for Jan-Jun 2025.

🎯 Investment Thesis

A HOLD recommendation is appropriate given the company’s recent merger and change in fiscal year-end. While IMS shows potential with its increased market share and brokerage commission revenue, the shortened reporting period and integration process create uncertainty. Further monitoring of post-merger performance is recommended before making a BUY or SELL decision.