HINOON

⚡ Flash Summary

Highnoon Laboratories Limited reported unaudited financial results for the nine months ended September 30, 2025. The company experienced a 9.78% increase in net sales, driven by optimal product mix, volume expansion, and price-led growth. Gross margins expanded to 55% from 50% in the corresponding period of 2024, reflecting a 23% growth. The company achieved a 14% profit-to-sales ratio, with an 11% increase in profit after taxes compared to last year. Basic Earnings Per Share (EPS) increased to Rs. 49.61, compared to Rs. 44.54 in 2024.

📌 Key Takeaways

• 📈 Net sales surged by 9.78% to Rs. 18,615 million from Rs. 16,956 million in 2024.
• 💰 Gross profit increased to Rs. 10,313 million, up from Rs. 8,396 million in 2024.
• 📊 Gross margin expanded to 55% from 50% year-over-year.
• 🚀 Operating profit grew to Rs. 3,880 million, compared to Rs. 3,125 million in 2024.
• 💼 Operating profit margin improved to 21% from 18% in the previous year.
• 📉 Finance costs decreased to Rs. (91) million from Rs. (169) million in 2024.
• ✨ Profit before tax & levy increased to Rs. 4,122 million from Rs. 3,282 million.
• ✅ Profit after tax & levy rose to Rs. 2,628 million, up from Rs. 2,360 million in 2024.
• ⭐ Basic Earnings Per Share (EPS) increased to Rs. 49.61 from Rs. 44.54 in 2024.
• 🌱 Profit after tax and levy for the group increased to Rs. 2,681 million, compared to Rs. 2,396 million in 2024.
• 🌱 Earning Per Share for the group increased to Rs. 50.59 from Rs. 45.22.
• 🧪 Net sales surged by 9.78%, primarily driven by an optimal product mix and volume expansion and price-led growth
• ✅ Gross Margins expanded from 49.5% to 55.4%, reflecting a 23% growth as compared to corresponding period in 2024.
• 💼 Company is taking advantage of regulatory price changes

🎯 Investment Thesis

Highnoon Laboratories presents a favorable investment opportunity based on its strong financial performance, revenue growth, and improved profitability. The company’s strategic initiatives and efficient operations position it well for future growth. BUY with a price target of Rs. 55, based on the increased EPS and positive market trends.

⚡ Flash Summary

Highnoon Laboratories Limited’s (HINOON) unconsolidated financial results for the quarter ended September 30, 2025, show positive revenue growth and profitability. Revenue from contracts with customers increased to PKR 18.61 billion from PKR 16.96 billion in the same period last year. Profit after tax for the period also increased to PKR 2.63 billion compared to PKR 2.36 billion in the prior year, driven by effective cost management and increased operational efficiency. The company’s earnings per share (EPS) grew to PKR 49.61 compared to PKR 44.54, highlighting enhanced shareholder value.

📌 Key Takeaways

• 🚀 Revenue from contracts with customers grew by 9.78%, reaching PKR 18.61 billion compared to PKR 16.96 billion in 2024.
• 💰 Gross profit increased by 22.21%, from PKR 8.38 billion in 2024 to PKR 10.24 billion in 2025.
• 📈 Profit from operations rose by 24.17%, from PKR 3.12 billion to PKR 3.88 billion.
• 💸 Other income increased marginally by 1.78%, from PKR 326.80 million to PKR 332.61 million.
• 📉 Finance costs decreased significantly by 45.79%, from PKR 169.05 million to PKR 91.13 million.
• ✅ Profit before income tax increased by 25.57%, from PKR 3.27 billion to PKR 4.12 billion.
• 🧾 Taxation expenses increased by 63.68%, from PKR 912.21 million to PKR 1.49 billion.
• 🌟 Profit after tax for the period rose by 11.37%, from PKR 2.36 billion to PKR 2.63 billion.
• ✔️ Basic and diluted earnings per share (EPS) increased by 11.38%, from PKR 44.54 to PKR 49.61.
• Balance sheet shows an increase in total assets from PKR 16.06 billion in Dec 2024 to PKR 16.97 billion in Sept 2025
• Equity increased to PKR 11.73 billion compared to PKR 11.22 billion at the end of the prior year
• No cash or bonus dividends have been announced

🎯 Investment Thesis

Highnoon Laboratories presents a BUY opportunity due to its strong financial performance, consistent growth, and effective cost management. The company’s increased revenue, improved profitability, and enhanced earnings per share make it an attractive investment. With a positive outlook for the pharmaceutical sector in Pakistan, HINOON is well-positioned to continue its growth trajectory.