⚡ Flash Summary

PNSC’s financial results for the quarter ended September 30, 2025, reveal a mixed performance. While revenue from shipping business decreased, overall revenue was bolstered by other operating activities and rental income. Profitability declined compared to the same period last year, with net profit decreasing substantially. The company faces challenges in maintaining profitability amidst fluctuating revenue streams and rising expenses.

📌 Key Takeaways

• 🚢 Revenue from contract with customers decreased to PKR 10,180.53 million from PKR 10,757.80 million YoY.
• 💰 Income from shipping business declined to PKR 9,323.61 million from PKR 9,517.41 million YoY.
• 🏢 Other operating activities revenue decreased to PKR 856.92 million from PKR 1,240.39 million YoY.
• 🏢 Rental income increased slightly to PKR 86.16 million from PKR 81.38 million YoY.
• 📉 Gross profit decreased to PKR 3,301.59 million from PKR 4,764.95 million YoY.
• 📉 Operating profit decreased to PKR 4,422.86 million from PKR 6,508.22 million YoY.
• 💸 Finance costs decreased to PKR 54.79 million from PKR 140.24 million YoY.
• ⚠️ Profit before levies and taxation decreased to PKR 4,368.07 million from PKR 6,367.98 million YoY.
• ⚠️ Levies decreased to PKR 103.99 million from PKR 137.41 million YoY.
• ⚠️ Profit before taxation decreased to PKR 4,264.08 million from PKR 6,230.57 million YoY.
• ⚠️ Taxation decreased to PKR 549.37 million from PKR 596.61 million YoY.
• 📉 Profit for the period decreased to PKR 3,714.71 million from PKR 5,633.97 million YoY.
• 💸 Earnings per share (basic and diluted) decreased to PKR 18.75 from PKR 28.44 YoY.
• 🏛️ Total equity increased to PKR 107,219.07 million from PKR 103,504.36 million since July 1, 2025.

🎯 Investment Thesis

Based on the current financial results, a HOLD recommendation is appropriate for PNSC. The decline in revenue and profitability raises concerns about the company’s near-term performance. While the company has a strong current ratio, its earnings per share decreased. A price target of PKR 45 is set, based on a conservative earnings multiple, with a time horizon of 12 months, pending improved financial performance and clarity on the factors affecting the company’s profitability.