With strong earnings and 49% upside, is SYS the smart bet?

Pakistan’s leading tech company, Systems Limited (SYS), is expected to post strong earnings for the April–June 2025 quarter (2QCY25). Here’s what you need to know:

Big jump in profit

SYS is expected to make a profit of PKR 2.9 billion this quarter. That’s a 71% jump from the same time last year! Earnings per share (EPS) are expected at PKR 1.9, up from PKR 1.1.

This increase is mainly due to:

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• Higher sales in the Middle East and North America
• Better cost control
• Less money spent on loans (finance cost is down 47% year-on-year)

Sales on the rise

SYS is likely to report PKR 19.5 billion in revenue, up 23% year-on-year. Growth in the Middle East & Africa (MEA) and North America continues to power the business forward.

Margins improving

The company’s gross margin, the profit left after basic costs, is expected to hit 25.5%, compared to 22% last year. This improvement is due to:

• Lower inflation
• No new risky expansions
• End of some loss-making local contracts

Simply put: better efficiency = more profit.

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Exchange gains help too

Since the Pakistani Rupee weakened a bit against the US Dollar during the quarter, SYS is also expected to book a PKR 309 million gain from its foreign currency assets.

Strategy shift paying off

Instead of growing too fast in new areas, SYS is focusing on strengthening its existing investments, improving operations, and trimming costs. This is helping boost profits and keep things stable.

What investors need to know?

AKD Securities Limited still recommend ‘BUY’ for SYS with a target price of PKR 176/share by Dec 2025, a possible 49% upside from current levels. Plus, SYS is supported by:

• Strong IT export trends (up 19% in 11 months of FY25)
• Healthy margins
• Steady growth in international markets

In summary: SYS is performing well, growing profitably, and managing its costs smartly. It remains a solid pick for long-term investors in Pakistan’s growing tech space.

Source: AKD Securities Limited

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →