⚡ Flash Summary

First National Equities Limited (FNEL) reported losses for the year ended June 30, 2025, with a loss after tax of Rs. 78.68 million compared to a loss of Rs. 51.47 million in the previous year. Operating revenue significantly decreased to Rs. 8.56 million from Rs. 33.92 million, influenced by a temporary trading closure and market volatility. The company is strategically pivoting towards new investments and pharmaceutical diversification to broaden its revenue base. Despite the losses, FNEL highlights its compliance with corporate governance standards and future growth prospects through strategic initiatives.

📌 Key Takeaways

• 📉 Loss after tax increased to Rs. 78.68 million in 2025 from Rs. 51.47 million in 2024.
• Revenue plummeted to Rs. 8.56 million from Rs. 33.92 million YoY. 📉
• Sale of investment resulted in gain of Rs.6.31 million compared to loss of Rs.6.05 million YoY. 💰
• Unrealized gain on investments saw an increase of Rs.4.88 million compared to loss of Rs.4.38 million YoY.📈
• Administrative expenses are down to Rs. 41.77 million compared to Rs. 76.83 million YoY. ✅
• Finance costs increased slightly to Rs. 25.30 million from Rs. 24.06 million. ⬆️
• Other income decreased to Rs. 35.37 million compared to Rs. 42.37 million YoY. 🔻
• KSE-100 Index closed June 2025 at 125,000 points, a 60% increase for FY25. 🚀
• Remittances reached a record US$38 billion in FY25, a 27% increase YoY. 💸
• The Company is exploring investment opportunities in its subsidiary, FNE Developments. 🏢
• Intends to diversify into the pharmaceutical sector with up to PKR 500 million in investments. 💊
• The company divested its 20% equity stake in Kingbhai Digisol for PKR 280 Million. 🤝
• Auditors have identified non-compliance issues including lack of Director Training. ⚠️
• Remuneration to Directors is provided according to policy guidelines. 💼

🎯 Investment Thesis

Given financial performance and risk factors, I recommend a SELL signal. The company is not profitable and has a variety of challenges to address. The company has non-compliance issues that must be resolved. I believe the price will continue to decline and I suggest a time horizon of medium term.