⏸️ MCBIM-FUNDS: HOLD Signal (5/10) – PAKISTAN INCOME FUND FINANCIAL RESULT FOR THE QUARTER ENDED SEPTEMBER 30, 2025

📌 Key Takeaways

• 📉 Net income after taxation decreased significantly to PKR 60.323 million from PKR 134.849 million year-over-year.
• 📈 Total assets increased substantially to PKR 2,411.736 million, up from PKR 1,442.527 million.
• 📊 Investments grew to PKR 1,589.826 million from PKR 918.303 million, indicating portfolio expansion.
• 💸 Operating cash flow was negative at PKR (774.240) million due to increased investment activities.
• 🏦 Cash and cash equivalents increased to PKR 748.154 million from PKR 69.196 million.
• ⬆️ NAV per unit saw a slight increase to PKR 56.5412 from PKR 55.0236.
• 💰 Income from markup/return on investments decreased to PKR 45.672 million from PKR 84.890 million.
• 📉 Gain on sale of investments decreased to PKR 5.294 million from PKR 28.812 million.
• 🚫 Earnings Per Unit (EPU) was not disclosed due to impracticability of calculation.
• 💸 Positive cash flow from financing activities of PKR 973.282 million driven by unit issuances.
• ⬆️ Number of units in issue increased to 42,379,999 from 24,764,119.
• ⚠️ Unrealized depreciation on re-measurement of investments resulted in a loss of PKR (2.697) million.
• 📈 Expenses increased to PKR 12.505 million from PKR 10.568 million.

🎯 Investment Thesis

HOLD. The Pakistan Income Fund demonstrates mixed performance with decreased profitability offset by increased assets under management. While the increase in the number of units issued is positive, the fund needs to improve its income generation and cash flow management. Given the lack of EPS data, a HOLD recommendation is appropriate until a clearer picture of sustainable profitability emerges. Price target: PKR 58, Time Horizon: Medium Term. The price target is based on the potential for improved earnings, assuming the fund’s investment strategies begin to yield higher returns.