⚡ Flash Summary

First National Equities Limited (FNEL) reported a significantly improved financial performance for the quarter ended September 30, 2025. The company achieved a substantial increase in operating profit and turned a loss into a profit after taxation. This positive shift is attributed to realized gains from investment sales and unrealized gains on re-measurement of investments classified at fair value through profit or loss. The PSX’s strong performance, supported by improved macroeconomic indicators, appears to have positively impacted FNEL’s earnings.

📌 Key Takeaways

• 📈 Revenue increased significantly from PKR 5,678,883 to PKR 366,483
• 💰 Operating profit surged from PKR 7,406,105 to PKR 18,671,700
• ✅ Profit after taxation turned positive, reaching PKR 12,875,830 from a loss of PKR (16,393,465)
• ⭐ Earnings per share (EPS) improved from (PKR 0.061) to PKR 0.048
• 💹 The KSE-100 Index reached record highs above 163,000 points during the quarter.
• 💼 Investment of up to PKR 400 million approved for FNE Developments (Private) Limited.
• 🤝 Agreement executed to divest 20% equity stake in Kingbhai Digisol for PKR 280 million.
• 🏦 Short term investments increased from PKR 33,588,957 to PKR 54,983,325.
• 📜 The company continues to pursue strategic growth opportunities aimed at long-term value creation and portfolio diversification.
• 💊 Management has prioritized expansion into the pharmaceutical sector.
• 🏢 Investment in Kingbhai Digisol (Pvt.) Limited is at PKR 1,069,221,476.
• ✔️ Directors appreciate the cooperation from financial institutions and government authorities.

🎯 Investment Thesis

Based on the improved quarterly performance and strategic initiatives, a BUY recommendation is provided. The company’s focus on portfolio optimization and expansion into growth sectors, combined with positive market sentiment, makes it a potentially attractive investment. The price target cannot be accurately determined without more detailed financials and sector comparables. The investment horizon is MEDIUM_TERM, anticipating further gains as strategic initiatives mature.