External broker reports(aggregated public sources), Topline Securities

Topline Securities

Topline Securities is one of the fastest growing brokerage houses in Pakistan. It has strong equity brokerage, economic / equity research, mutual fund distribution, commodity trading and corporate finance & advisory functions. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

External broker reports(aggregated public sources)

Equity Bottom-Up

<ul>
<li>Systems Limited (SYS) gross margins clocked in at 27% in 1H2023 vs 32% in 1H2022. The major reasons includes (1) inflationary adjustments in salaries, (2) increase in energy prices impacting local &amp; foreign travelling, (3) currency devaluation impacting onsite resources cost along with licenses &amp; subscription cost, (4) high amortization cost of intellectual property purchased by NDC, and (5) net addition in human capital.</li>
<li>SYS’s operating profit margins clocked in at 14% in 1H2023 vs 21% in 1H2022. The major reasons includes (1) additional cost of newly incorporated subsidiaries and NDC, (2) WHT on payments from subsidiaries classified as admin, (3) one-off adjustment of investment in JOMO, and (4) higher IFRS-9 adjustment on receivables.</li>
<li>Of the total other income of Rs 2.8 billion in 1H2023, Rs 1.7 billion is related to recognized exchange gains.</li>
</ul>
<p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>


Systems Limited (SYS) gross margins clocked in at 27% in 1H2023 vs 32% in 1H2022. The major reasons includes (1) inflationary adjustments in salaries, (2) increase in energy prices impacting local &amp; foreign travelling, (3) currency devaluation impacting onsite resources cost along with licenses &amp; subscription cost, (4) high amortization cost of intellectual property purchased by NDC, and (5) net addition in human capital.
SYS’s operating profit margins clocked in at 14% in 1H2023 vs 21% in 1H2022. The major reasons includes (1) additional cost of newly incorporated subsidiaries and NDC, (2) WHT on payments from subsidiaries classified as admin, (3) one-off adjustment of investment in JOMO, and (4) higher IFRS-9 adjustment on receivables.
Of the total other income of Rs 2.8 billion in 1H2023, Rs 1.7 billion is related to recognized exchange gains.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topline Flash Note: System Limited (SYS): Corporate Briefing Key Takeaways