⏸️ SHFA: HOLD Signal (6/10) – Financial Results for the 1st Quarter Ended September 30, 2025

📌 Key Takeaways

• 🚀 Revenue increased by 7.85% from PKR 7,061.37 million to PKR 7,615.51 million.
• ✨ Other income more than doubled, rising by 139.6% from PKR 44.94 million to PKR 95.87 million.
• 💰 Operating costs increased by 7.11% from PKR 5,951.54 million to PKR 6,374.52 million.
• 📉 Finance costs decreased by 14.8% from PKR 98.92 million to PKR 84.28 million.
• 📉 Expected credit losses increased by 21.5% from PKR 19.89 million to PKR 24.15 million.
• 👍 Profit before levies and income tax rose by 18.6% from PKR 1,035.97 million to PKR 1,228.42 million.
• 📈 Income tax expense increased by 19.0% from PKR 407.30 million to PKR 484.84 million.
• 🎉 Profit for the period increased by 18.3% from PKR 628.68 million to PKR 743.58 million.
• ⭐ Earnings per share (basic and diluted) increased by 18.2% from PKR 9.95 to PKR 11.76.
• ❌ No cash dividend was recommended by the Board.
• Balance sheet analysis shows an increase in total assets from PKR 21,430.98 million to PKR 23,438.71 million.
• Non-current assets increased significantly from PKR 13,913.72 million to PKR 16,454.21 million, mainly due to higher long-term investments.
• Current assets decreased slightly from PKR 7,517.26 million to PKR 6,984.50 million.
• Total liabilities increased from PKR 7,124.36 million to PKR 8,388.51 million.

🎯 Investment Thesis

Based on the improved Q1 performance, a HOLD recommendation is appropriate. While the company shows positive momentum, further analysis is needed to understand the sustainability of this growth and the impact of increased long-term investments. A price target of PKR 130, reflecting a 10x multiple on the annualized EPS, is set with a time horizon of 12 months, pending more comprehensive analysis and future performance data.