Systems Limited (SYS): A good pick to yield on PKR devaluation; Maintain ‘BUY’ – By Insight Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Systems Limited (SYS PA) has gained 26% since CY2018TD, outperforming benchmark KSE-100 index by 16%. We attribute this to 9% PKR depreciation since Dec 2017 and healthy profits growth.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The scrip still has meaningful upside available considering i) PKR devaluation theme, where EPS could increase by PKR1.1 for every 5% depreciation, ii) improving Middle East operations - 2017 revenues up 61% YoY, iii) start of focus towards European markets, iv) Islamabad Airport revenue recognition and three year service contract, and v) growing OneLoad penetration (retailers up 306% to 11,825)</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">A...