⚡ Flash Summary

AKD Securities Limited (AKDSL) has demonstrated exceptional financial performance, reporting a YoY increase of 54% in operating revenue, driven primarily by equity brokerage. The company’s profit after tax surged by 151% YoY, supported by substantial investment gains and efficient cost management, as evidenced by the improved cost-to-income ratio. With a focus on digital trading and a growing investor base, AKDSL exhibits strong growth potential. Current Account Deficit is set to remain in control at 0.4% of GDP in FY25 with slight depreciation in currency.

📌 Key Takeaways

• 📈 Operating revenue increased by 54% YoY, reaching PKR 1,953.7 million.
• 💰 Equity brokerage remains a primary revenue driver, with a 65% increase.
• ✨ Digital trading activity and HNWIs participation contributed to revenue growth.
• 💸 Non-equity brokerage increased by 27% YoY.
• 📉 Investment gains surged by 479% YoY to PKR 2,494.8 million.
• ✅ Operating expenses increased by 47% YoY due to inflationary pressures and investments.
• 💡 Cost-to-income ratio improved by 29% YoY, indicating cost management.
• 📉 Financial charges decreased by 40% YoY due to debt repayment.
• 📊 Profit before tax increased by 148% YoY, totaling PKR 4,136.3 million.
• 🧾 Profit after tax increased by 151% YoY, reaching PKR 3,156.3 million.
• ✔️ Earning per share (EPS) increased by 150% YoY to PKR 5.66.
• 🏦 Break-up value per share increased by 28% to PKR 21.50.
• 💸 Dividend payout at 20%.
• 🌱 Return on equity (ROE) increased by 97% to 26%.
• ✔️ PSX average volumes per day increased by 35%.

🎯 Investment Thesis

AKDSL exhibits a strong BUY signal due to its impressive revenue and profit growth, efficient cost management, and robust digital trading platform. The company’s strategic focus on equity brokerage and high-net-worth individuals positions it well for future growth. The current price is expected to increase with a price target based on the current EPS and a conservative PE ratio in line with peers.