{"id":9802,"date":"2025-07-15T14:24:44","date_gmt":"2025-07-15T09:24:44","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=9802"},"modified":"2025-07-15T14:24:48","modified_gmt":"2025-07-15T09:24:48","slug":"with-strong-earnings-and-49-upside-is-sys-the-smart-bet","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/with-strong-earnings-and-49-upside-is-sys-the-smart-bet\/","title":{"rendered":"With strong earnings and 49% upside, is SYS the smart bet?"},"content":{"rendered":"\n

Pakistan\u2019s leading tech company, Systems Limited (SYS<\/a>)<\/strong>, is expected to post strong earnings for the April\u2013June 2025 quarter (2QCY25). Here’s what you need to know: <\/p>\n\n\n\n

Big jump in profit<\/h2>\n\n\n\n

SYS is expected to make a profit of PKR 2.9 billion<\/strong> this quarter. That\u2019s a 71% jump<\/strong> from the same time last year! Earnings per share (EPS) are expected at PKR 1.9<\/strong>, up from PKR 1.1.<\/p>\n\n\n\n

This increase is mainly due to:<\/p>\n\n\n\n

    \n
  • Higher sales in the Middle East and North America<\/li>\n\n\n\n
  • Better cost control<\/li>\n\n\n\n
  • Less money spent on loans (finance cost is down 47% year-on-year)<\/li>\n<\/ul>\n\n\n\n

    Sales on the rise<\/h2>\n\n\n\n

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

    Margins improving<\/h2>\n\n\n\n

    The company\u2019s gross margin<\/strong>, the profit left after basic costs, is expected to hit 25.5%<\/strong>, compared to 22% last year. This improvement is due to:<\/p>\n\n\n\n

      \n
    • Lower inflation<\/li>\n\n\n\n
    • No new risky expansions<\/li>\n\n\n\n
    • End of some loss-making local contracts<\/li>\n<\/ul>\n\n\n\n

      Simply put: better efficiency = more profit<\/strong>.<\/p>\n\n\n\n

      Exchange gains help too<\/h2>\n\n\n\n

      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<\/strong> from its foreign currency assets.<\/p>\n\n\n\n

      Strategy shift paying off<\/h2>\n\n\n\n

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

      What investors need to know?<\/h3>\n\n\n\n

      AKD Securities Limited still recommend \u2018BUY\u2019<\/strong> for SYS with a target price of PKR 176\/share by Dec 2025<\/strong>, a possible 49% upside<\/strong> from current levels. Plus, SYS is supported by:<\/p>\n\n\n\n

        \n
      • Strong IT export trends (up 19% in 11 months of FY25)<\/li>\n\n\n\n
      • Healthy margins<\/li>\n\n\n\n
      • Steady growth in international markets<\/li>\n<\/ul>\n\n\n\n

        In summary: SYS is performing well<\/strong>, growing profitably, and managing its costs smartly. It remains a solid pick for long-term investors in Pakistan\u2019s growing tech space.<\/p>\n\n\n\n

        Source: AKD Securities Limited<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

        Pakistan\u2019s leading tech company, Systems Limited (SYS), is expected to post strong earnings for the April\u2013June 2025 quarter (2QCY25). Here’s what you need to know: <\/p>\n","protected":false},"author":9252,"featured_media":7018,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[123],"class_list":["post-9802","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-sys"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/SYS-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/SYS-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/SYS-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/SYS-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=9802"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9802\/revisions"}],"predecessor-version":[{"id":9803,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/9802\/revisions\/9803"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/7018"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=9802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=9802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=9802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}