Aba Ali Habib Securities (Pvt.) Limited (“AAH" or "The Company”) is a TREC holder of Pakistan Stock Exchange and a Member of Pakistan Mercantile Exchange Limited. The Company has been operating since 1970 and was incorporated under the "Companies Ordinance 1984" in 1996 as a Private Limited Company. The Company is registered with the Securities & Exchange Commission of Pakistan (SECP) under Securities Brokers (Licensing and Operations) Regulations 2016.

The Company’s service offering includes equity brokerage, commodity brokerage and research. The clientele of the Company is segmented into three categories: i) HNWIs ii) Institutions/Corporates, and iii) Retail iv)RDA.

The Company is primarily owned by a single family. The majority shares are owned by Mr. Aba Ali Habib who owns ~99.98% of the ownership.

The sponsors have sizeable net worth and may provide support to the business in the times of need. Formulation of a well defined succession plan at the shareholder level is encouraged for business sustainability.

The primary sponsor Mr. Aba Ali Habib has been associated with the capital markets for over forty years, and has diversified experience in the field of equity brokerage.

The sponsors have a sizeable net worth and provide support to the Company in the times of need.

AAH's board consists of six directors, including the CEO, Mr. Zahid Ali Habib. Of these, three are nonexecutive directors, one of whom is an independent director (C.A).

The Board is led by Founder and Non-Executive Director Mr. Aba Ali Habib, who provides strategic oversight, along with Ms. Ayesha Abid, also a Non-Executive Director, contributing to governance and HR oversight. The Executive Directors, including Mr. Abid Ali Habib and Mr. Muhammad Zahid Ali, bring strong experience in investment advisory, product development, and trading strategy, while Mr. Aayman Zahid adds expertise in audit, finance, and strategy. Mr. Muhammad Hanif, as a Non-Executive Director, strengthens the Board with his financial, tax, and corporate advisory background.

The Board of Aba Ali Habib Securities (Private) Limited has constituted key committees at the Board level, including the Audit Committee, Investment Committee, HR Committee, and Risk Management Committee. These committees facilitate focused oversight over financial reporting, internal controls, investment decisions, human resource matters, and risk governance, thereby strengthening the overall effectiveness of the Board and supporting structured decision-making processes.

AAH has appointed M/S Naveed Zafar Ashfaq Jaffery & Company as the external auditors who are placed in the 'A' category by the SBP. The auditors have expressed an unqualified opinion on the Company's financial statements for the year ended Jun'25. AAH has also outsourced its internal audit department to Afras & Co.

AAH has developed an adequate organizational structure and operates through eight departments namely i) Operations ii) Finance iii) Compliance iv) Sales v) Proprietary Trading vi) IT vii) Research and, viii) Human Resource. All of the departmental heads directly report to the CEO. However, the Internal Audit which is outsourced, directly reporting to the Board Audit Committee.

The senior management team of Aba Ali Habib Securities (Private) Limited comprises qualified professionals with diversified expertise across sales, finance, audit, research, HR, operations, IT, and client servicing. Institutional Sales is led by Mr. Zaheer Ahmed Channa, while Retail Sales is headed by Mr. Salman Naqvi. The finance function is managed by Mr. Muhammad Hasnain, CFO (CA – Finalist), and supported by Mr. Muhammad Faizan Raza (ACCA – Finalist), Manager Accounts. Internal audit oversight is handled by Mr. Shafqat Ali (ICMA). The research function is led by Ms. Shumaila Badar (CFA), and HR is supervised by Mr. Shoaib Waqas (M.Com). Client servicing is supported by Mr. Sagar Ashir, while operations are overseen by Mr. Rafiq Munshi. The IT function is managed by Mr. Shahzaib. Overall, the management team reflects adequate functional expertise and organizational depth to support the Company’s operational and strategic objectives.

AAH's front-end is sourced by 'Catalyst' while the back-end is supported by 'Micro Links'. There is smooth integration between the two which ensures smooth daily operations. Additionally, the Company maintains a strong corporate culture with regard to board meetings, staff management, system management, operational SOPs, and corporate training programs.

The company's risk management framework is overseen by the Risk Management Committee, chaired by Mr. Abid Ali Habib. To enhance operational efficiency and ensure the effective evaluation of internal controls, the company has outsourced its internal audit function. This department is responsible for implementing and monitoring the company's policies and procedures. Additionally, a dedicated Research Department is in place to drive continuous improvement. The Compliance Department plays a crucial role in the regular monitoring of controls and systems, ensuring that all functions adhere to the applicable policies, regulations, and procedures, thereby maintaining the highest standards of governance and compliance.

In the first half of FY26, the Pakistan brokerage industry continued to benefit from strong equity market performance, with the KSE-100 Index up more than 50% year-on-year and trading activity staying elevated amid improving valuations and broad participation. The market’s forward P/E multiple rose from low single-digit levels toward mid-single digits, reflecting better earnings prospects and continued investor interest in equities relative to fixed income. Domestic investor participation increased, and despite mixed foreign flows, the overall capital market remained attractive to both retail and institutional investors. While higher trading volumes supported brokerage commission income, intense competition among brokers and rising operational costs continued to exert pressure on margins. The favorable macroeconomic backdrop, including lower interest rates and better liquidity conditions, helped sustain market activity, but the industry remained sensitive to external economic developments and single-event risks.

AAH's revenue streams are derived from equity brokerage, commodity brokerage, debt markets, IPOs, MTS/MFS, fixed income from bank deposits, dividend income and capital gains.

During 1HFY26 (period ended Dec’25), Aba Ali Habib Securities (Private) Limited reported operating revenue of ~PKR 117.9mln (SPLY: ~PKR 158.9mln). The Company earned commission income of ~PKR 67.1mln, while profit on MFS/MTS amounted to ~PKR 40.0mln and dividend income contributed ~PKR 10.9mln. Profitability remained strong, supported primarily by capital gains of ~PKR 54.3mln on sale of equity securities and a significant gain of ~PKR 249.9mln on re-measurement of investments at FVTPL. Consequently, the Company reported a net profit of ~PKR 321.0mln during 1HFY26 (SPLY: ~PKR 358.9mln). Although overall profit slightly declined on a year-on-year basis, earnings remain substantially supported by unrealized gains on the proprietary investment portfolio.

AAH reported an operating expenses of ~PKR 92.6 mln at the end of Dec'25, as comapared to the operating expenses of ~PKR 59.6mln at the end of Dec'24. There is no long term liabilities owned by the Company.

As part of its long-term strategy, AAH has established a new branch in Lahore, which has been operational for over six months, aimed at expanding its retail clientele.

AAH has formulated KYC/CDD policies to assess the clients creditworthiness. Client risk profile with respect to the financial position is also maintained. Credit is allowed up to 35% on margin in cash or cash equivalent. Risk control parameters are inbuilt in the system preventing the clients from taking further positions.

AAH continues to actively manage a sizeable proprietary investment portfolio, reflected in short-term investments of ~PKR 1,315mln as of Dec’25 (Jun’25: ~PKR 1,008mln). The Company’s profitability remains materially exposed to market movements, as evidenced by the substantial re-measurement gain recorded during the period. Management mitigates market risk through strategic allocation between equity and fixed income instruments, guided by prevailing market outlook and risk appetite.

As of Dec’25, the Company reported current assets of ~PKR 2,363mln against current liabilities of ~PKR 761mln, indicating a strong liquidity position with comfortable coverage of short-term obligations. Cash and bank balances stood at ~PKR 182mln. The Company also maintains short-term borrowing lines with various banks to meet margin and working capital requirements, providing additional liquidity support if needed.

The Company maintains a low-leverage capital structure. Equity strengthened to ~PKR 1,639mln as of Dec’25 (Jun’25: ~PKR 1,318mln), driven by retained profitability during the period. While short-term borrowings (~PKR 229mln) are utilized primarily to meet trading and exposure-related requirements, overall gearing remains moderate relative to the equity base, supporting financial stability and risk absorption capacity.