Positive

⚡ Flash Summary

Pakistan Capital Market Fund’s financial results for the quarter ended September 30, 2025, show a significant increase in net income. The fund’s net assets increased substantially compared to the previous period, driven primarily by unrealized appreciation on investments. This growth also reflects increased unit issuances during the quarter. However, earnings per unit (EPU) calculation was deemed impracticable by management.

📌 Key Takeaways

• ✅ Net assets increased to PKR 961.236 million as of September 30, 2025, compared to PKR 749.765 million as of June 30, 2025.
• 📈 Total income soared to PKR 189.692 million for the quarter ended September 30, 2025, from PKR 22.720 million in the same period last year.
• 💰 Capital gains on the sale of investments reached PKR 14.106 million, against a loss of PKR 9.044 million in the prior year.
• 🧾 Dividend income decreased from PKR 16.067 million to PKR 7.869 million YoY.
• 🏦 Profit on bank deposits declined from PKR 7.234 million to PKR 5.840 million YoY.
• 💹 Unrealized appreciation on investments was a major driver, contributing PKR 161.852 million to total income.
• expenses increased to PKR 8.774 million, up from PKR 6.423 million in the prior year.
• 🚀 Net income for the period stood at PKR 180.918 million, significantly higher than the PKR 16.297 million reported last year.
• 💵 Total number of units in issue increased to 32,573,748 from 31,505,019.
• 📊 Net asset value (NAV) per unit increased to PKR 29.51 from PKR 23.80 since June 30, 2025.
• 💸 Issuance of units generated PKR 87.466 million, while payments on redemption totaled PKR (56.913) million.
• 🏦 Cash and cash equivalents at the end of the period increased to PKR 308.297 million from PKR 222.058 million.
• 🚫 Earnings per unit (EPU) were not disclosed due to the impracticality of calculating the weighted average number of units.

🎯 Investment Thesis

Based on the strong financial performance, particularly the substantial increase in net income and NAV per unit, a BUY recommendation is justified. The fund’s exposure to unrealized gains suggests potential for further appreciation if market conditions remain favorable. The increase in unit issuances also indicates growing investor confidence. The price target is set at PKR 33.00 per unit, reflecting an anticipated continuation of the fund’s positive performance trajectory. Time horizon is MEDIUM_TERM, expecting the fund to sustain its growth momentum.

⚡ Flash Summary

MCB Pakistan Asset Allocation Fund’s financial results for the quarter ended September 30, 2025, reveal a significant surge in net income after taxation, jumping to PKR 277.124 million from PKR 20.472 million in the same period last year. This remarkable increase is primarily driven by substantial capital gains on the sale of investments and unrealized appreciation in their fair value. The fund’s total assets have more than doubled, reaching PKR 1,634.003 million, compared to PKR 795.157 million in June 2025. However, the fund management has deemed the calculation of earnings per unit (EPU) impracticable.

📌 Key Takeaways

• 🚀 Net income after taxation soared to PKR 277.124 million, a significant increase from PKR 20.472 million in Q3 2024.
• 📈 Total assets more than doubled to PKR 1,634.003 million compared to PKR 795.157 million as of June 30, 2025.
• 💰 Capital gains on the sale of investments reached PKR 26.554 million, compared to a loss of PKR 8.915 million in Q3 2024.
• ✨ Unrealized appreciation in the fair value of investments was a major contributor at PKR 250.243 million vs. PKR 10.290 million in Q3 2024.
• 🏦 Balance with banks increased substantially to PKR 282.435 million from PKR 124.675 million as of June 30, 2025.
• 📊 Investments grew significantly to PKR 1,342.876 million compared to PKR 653.603 million as of June 30, 2025.
• 💸 Total proceeds from the issuance of units amounted to PKR 927.314 million.
• 📉 Payments on redemption of units totaled PKR 349.583 million.
• 💼 Net asset value per unit increased to PKR 232.0017 from PKR 187.4224 as of June 30, 2025.
• 📝 Management Company remuneration increased to PKR 8.993 million from PKR 5.452 million.
• ✅ Total expenses increased to PKR 13.904 million from PKR 7.941 million in Q3 2024.
• 💸 Net cash used in operating activities amounted to PKR (399.806) million.
• Issuance of new units generated PKR 927.314 million in cash flow.
• Payouts for unit redemptions consumed PKR 349.583 million in cash flow.

🎯 Investment Thesis

Given the impressive growth in net income, total assets, and NAV per unit, a BUY recommendation is justified. The fund’s ability to generate substantial capital gains and attract new investors supports a positive outlook. Price Target: PKR 250 per unit. Time Horizon: Medium Term.

⚡ Flash Summary

Alhamra Islamic Asset Allocation Fund reported its financial results for the quarter ended September 30, 2025. The fund’s total assets increased to PKR 2,584.183 million from PKR 2,051.034 million in June 2025. Net income for the quarter stood at PKR 442.803 million, a significant increase compared to PKR 35.598 million in the same period last year. The Net Asset Value (NAV) per unit increased to PKR 213.3969 from PKR 174.5983 in June 2025, reflecting positive performance.

📌 Key Takeaways

• 📈 Total assets increased to PKR 2,584.183 million in September 2025 from PKR 2,051.034 million in June 2025.
• 💰 Investments grew to PKR 2,142.247 million from PKR 1,754.786 million.
• 📊 Net income for the period surged to PKR 442.803 million from PKR 35.598 million year over year.
• ⭐ Net gain on sale of investments significantly increased to PKR 21.964 million from PKR 2.429 million.
• ✨ Net unrealised gain on revaluation of investments rose substantially to PKR 418.346 million from PKR 27.927 million.
• 💼 Total income increased to PKR 465.056 million from PKR 53.562 million year over year.
• 💸 Management company remuneration increased to PKR 16.806 million from PKR 12.843 million.
• 🧾 Brokerage, settlement and bank charges decreased to PKR 948 thousand from PKR 1.239 million.
• ✅ The number of units in issue increased to 11,912,578 from 11,579,974.
• 💹 Net Assets Value per unit increased to PKR 213.3969 from PKR 174.5983 in June 2025.
• 💸 Cash and cash equivalents increased to PKR 426.136 million from PKR 280.462 million in June 2025.
• 👍 Net cash generated from operating activities was PKR 68.212 million compared to PKR 132.642 million last year.

🎯 Investment Thesis

Based on the strong financial performance, including significant growth in assets, income, and NAV per unit, a BUY recommendation is warranted. The fund’s ability to generate substantial unrealized gains indicates effective investment strategies. However, investors should monitor market conditions and regulatory changes that could impact the fund’s performance.

⚡ Flash Summary

MCB Pakistan Stock Market Fund reported a significantly improved financial performance for the quarter ended September 30, 2025. The fund’s net income after taxation surged to PKR 6,925.383 million, a substantial increase from PKR 410.817 million in the same quarter last year. This impressive growth was primarily driven by substantial gains in the value of investments and strategic capital gains on sales. The fund’s net asset value per unit also increased, reflecting the overall positive financial results.

📌 Key Takeaways

• 📈 Net income after taxation soared to PKR 6,925.383 million, up from PKR 410.817 million year-over-year.
• 💰 Capital gains on the sale of investments reached PKR 1,246.494 million compared to PKR 200.264 million last year.
• 📊 Dividend income increased to PKR 231.741 million from PKR 106.747 million.
• 🏦 Profit on balances with banks rose to PKR 27.785 million from PKR 14.874 million.
• 💹 Unrealized gain on revaluation of investments significantly contributed PKR 5,694.680 million vs PKR 177.181 million in 2024.
• 📉 Total expenses increased to PKR 275.503 million compared to PKR 88.377 million due to higher management and transaction costs.
• 💸 Remuneration of the Management Company increased to PKR 197.939 million from PKR 62.694 million.
• 🧾 Net Assets increased significantly to PKR 31,435.588 million from PKR 20,328.780 million.
• ✅ Number of units in issue rose to 92,607,810 from 78,686,850.
• ✨ Net Asset Value per Unit increased to PKR 339.4486 from PKR 258.3504.
• 💸 Cash flow from operating activities resulted in a net cash used of PKR (3,416.218) million, compared to PKR (788.723) million used last year.
• 🏦 Cash and cash equivalents at the end of the period stood at PKR 2,822.287 million, up from PKR 198.629 million.

🎯 Investment Thesis

BUY. The MCB Pakistan Stock Market Fund presents a compelling investment opportunity due to its significant income growth, driven by strategic investments and capital gains. Despite increased expenses, the fund’s overall financial health has improved substantially, leading to higher NAV per unit. The positive trajectory makes it an attractive option for investors. Target price is 400 PKR by end of 2026.