Rating Details	Rating Type	BFR
	Dissemination Date	Current (15-Mar-24 )
	Action	Initial
	Rating	BFR 2
	Outlook	Stable
	Rating Watch	-

Rating Rationale	Factor	Comment
	Ownership	AAH is primarily owned by Mr. Aba Ali Habib with a shareholding of ~99.99%, he has been associated with the Capital Markets for over 40 years, and has diversified experience in the field of equity br
	Governance	The Company boasts a good governance structure with a six -member board, three of whom are executive and three are non-executive. The governance framework may be enhanced further with the induction of
	Management and Client Services	AAH has a lean organizational structure with all the required departments in place such as, research department, internal audit, compliance and risk management department.An experienced and qualified
	Internal Controls and Regulatory Compilance	AAH has a strong internal control environment, backed by outsourced internal audit services, and the active involvement of audit and risk management committees. A dedicated compliance head ensures ef
	Business Sustainability	AAH's topline is concentrated to equity brokerage; however, there is diversity present in the form of MFS & MTS. During 1HFY24, the company earned ~PKR 93mln ( SPLY: ~PKR 90mln) as operating revenue,
	Financial Sustainability	A low-leveraged capital structure provides support to the rating. AAH has a strong equity base of ~PKR1,362mln at end-Dec'23.

Key Rating Drivers

The brokerage industry exhibited a notable performance during 1HFY24 based on renewed investor interest. AAH is planning to diversify its geographical expansion to improve retail clientele and enhance its market share. The management also intends to improve the technological structure for swift on-boarding of retail clientele. Moving forward, the materialization of planned revenue and geographical diversification is important for the rating . Maintenance and improvement of market share and sustainability and growth in revenue and profitability remain vital. Meanwhile, it is imperative to uphold robust internal controls, retention of key management personnel, and diligently monitors risks.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	08-May-96
	Type of License	Trading and Self-clearing
	Majority Ownership	Mr. Aba Ali Habib (~99.99%)

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Hassaan Ahmad Hassaan.Ahmad@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-24	Sector Study | Brokerage & Securities | Jan-24

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