Hinopak Motors Limited (PSX: HINO) was incorporated as a public limited company in Pakistan in 1986. The company is engaged in the assembly, progressive manufacturing and sale of Hino buses and trucks as well as sale of its spare parts and accessories. HINO is the subsidiary of Hino Motors Limited Japan. The ultimate parent company of HINO is Toyota Motors Corporation Japan.
Pattern of Shareholding
As of March 31, 2026, HINO has a total of 24.801 million shares outstanding which are held by 2836 shareholders. Hino Motors limited (subsidiary of Hino Motors Limited, Japan) has the majority stake of 59.67 percent in the company followed by Toyota Tsusho Corporation Japan holding 29.83 percent shares of HINO. These are followed by local general public accounting for 6.58 percent shares and NIT & ICP holding 3.36 percent shares of the company. The remaining shares are held by other categories of shareholders.
Historical Performance (2021-26)
Except for a year-on-year slide in 2021 and 2024, HINO’s topline posted growth in all the years under consideration. The company posted net loss in 2021 followed by net profit in 2022. In 2023, net profit drastically fell followed by net loss registered in 2024. In 2025, HINO registered net profit which significantly improved in the following year. In 2021 and 2022, the company’s margins greatly recovered followed by a downtick in 2023. In 2024, gross margin registered significant growth while operating margin and net margin continued to slide. In 2025 and 2026, HINO’s margins notably recovered to boast their optimum level in 2026. The detailed performance review of the period under consideration is given below.
In 2021, the net sales of HINO posted 30.77 percent year-on-year plunge to clock in at Rs.9132.18 million. The automobile market also further contracted by 29 percent year-on-year in 2021. The sale of Hino Chassis and bus and other bodies plummeted by 54 percent and 21.5 percent year-on-year respectively in 2021 while the sale of Hilux frame showed signs of recovery and grew by 53 percent year-on-year (see graph of sales volume). The company was able to post gross profit of Rs.687.37 million in 2021 as against the gross loss of Rs.170.41 million in 2020. This was on the back of upward price revisions and cost control measures put in place by the company. GP margin clocked in at 7.53 percent in 2021. Distribution expense shrank by 11.68 percent year-on-year while administrative expense remained at almost the same level as recorded in 2020. Other income slid by 26.24 percent year-on-year in 2021 as there was no commission income from Group Company in 2021. No other expense was incurred during the year and impairment on trade receivables also shrank for second year in a row. Lesser expenses resulted in operating profit of Rs.70.60 million in 2021 as against operating loss of Rs.809.218 million posted in 2020. OP margin was recorded at 0.77 percent in 2021. Finance cost climbed down by 77.28 percent year-on-year not only because of lower discount rate but also because of the issuance of right shares during the year to pay its short-term loans. As of March 2021, the company had no short-term borrowings on its books. Despite significant reduction, finance cost was big enough to turn operating profit into net loss of Rs.288.29 million in 2021, down 85.97 percent year-on-year. The company posted loss per share of Rs.13.37 in 2021 versus loss per share of Rs.110.33 posted in 2020.
After three successive years of topline decline and net losses, in 2022, HINO posted year-on-year growth of 37.22 percent in its topline which clocked in at Rs.12,530.89 million. This came on the back of both volumetric growth as well as price increases. The sales volume of Hino Chassis, bus and other bodies as well as Hilux frame posted growth of 28 percent, 29 percent and 73 percent respectively in 2022. The overall size of automobile market also grew by 68 percent year-on-year in the financial year ending March’22 as the economy fully rebounded from COVID-19. Although cost of sales also grew by 34 percent year-on-year in 2022 on account of inflation, gross profit rebound of 75.97 percent speaks volume of the superior performance delivered in terms of revenues. GP margin grew to 9.65 percent in 2022. Owing to an increase in the company’s operations, distribution and administrative cost also increased by 14.96 percent and 5.52 percent respectively during 2022. Higher scrap sales and robust return on bank deposits pushed other income up by a huge 250.81 percent in 2022. Unlike last three years, where the company booked impairment loss on trade receivables, in 2022, the company booked reversal of Rs.16.62 million. After two years, the company was able to book provision for WWF and WPPF worth Rs.41.62 million in 2022. Operating profit grew by 844.17 percent in 2022 with OP margin climbing up to 5.32 percent. As the company paid off its short-term borrowings in 2021, finance cost majorly comprised of exchange loss and bank charges. This translated into 56.72 percent year-on-year drop in finance cost in 2022. The company posted net profit of Rs.417.13 million in 2022 with NP margin of 3.33 percent. EPS clocked in at Rs.16.82 in 2022.
In 2023, HINO’s net sales registered 5.23 percent year-on-year rise to clock in at Rs.13,185.97 million. This was for the second consecutive year that the company was able to drive its topline up. A glance at the sales volume shows that only HINO chassis posted a paltry 3 percent year-on-year rise in 2023, while the other two categories lost their ground (see the graph of sales volume). During the year, the commercial vehicle industry shrank by 15 percent due to sluggish economic activity. Import restrictions also created acute shortage of raw materials forcing many automobile industries to shut down. HINO was able to capture market share of 20 percent in 2023 as against its market share of 16.6 percent recorded in the previous year. Escalating prices of raw materials was further exacerbated by declining value of local currency during the year. This translated into 6.52 percent surge in cost of sales in 2023. Consequently, gross profit nosedived by 6.86 percent in 2023 while GP margin fell to 8.54 percent. Inflationary pressure pushed up distribution and administrative expenses by 13.71 percent and 7.49 percent respectively during the year. Other income contracted by 4.60 percent in 2023 particularly due to low return on deposit accounts. Other expense also shrank by 64.22 percent in 2023 due to lower profit related provisioning done during the year. Operating profit dipped by 22.51 percent in 2023 with OP margin slipping to 3.92 percent. Finance cost multiplied by 151.40 percent in 2023 due to high discount rate and hefty exchange loss. HINO’s borrowings significantly declined in 2023. Net profit slid by 96.16 percent to clock in at Rs.16.03 million in 2023 with EPS of Rs.0.65 and NP margin of 0.12 percent.
Unprecedented level of inflation, political uncertainties, economic slowdown, credit tightening and high discount rate as well as import restrictions resulted in many unproductive days for HINO and the auto industry as a whole. After two years of rise, HINO’s net sales drastically fell by 42.19 percent to clock in at Rs.7,622.71 million in 2024. This came on the back of 67 percent, 35 percent and 65 percent year-on-year decline in the sales volume of HINO chassis, bus & other bodies and HILUX frame respectively in 2024 (see the graph of sales volume). Due to shutdown of operations and thinner production volume, cost of sales shrank by 44.32 percent in 2024. Gross profit also dwindled by 19.41 percent in 2024; however, GP margin attained an unprecedented level of 11.91 percent. Distribution expense tumbled by 1.79 percent in 2024 mainly on account of lower product maintenance charges incurred during the year. Administrative expense registered 17.71 percent year-on-year surge in 2024 due to higher payroll expense. This was despite the fact that HINO right-sized its workforce from 763 employees in 2023 to 582 employees in 2024. Other income slumped by 19.59 percent in 2024 due to no return on deposit accounts recorded during the year. Scrap sales and return on saving accounts also fell in 2024. Unlike the last two years, the company didn’t book any provisioning for WWF and WPPF in 2024, hence no other expense. Operating profit contracted by 60.72 percent in 2024 with OP margin sliding down to 2.66 percent. Finance cost registered 6.47 percent slide in 2024 as the company didn’t incur any exchange loss during the year. However, short-term borrowings massively increased during the year to clock in at Rs.2285.314 million in 2024 versus Rs.19.309 million in 2023. This drove up mark-up expense in 2024. HINO registered net loss of Rs.131.10 million in 2024 with loss per share of Rs.5.29.
After registering the highest year-on-year fall in 2024, HINO posted a tremendous 35.60 percent growth in its topline in 2025 which clocked in at Rs.10,336.50 million. While the sales volume of bus & other bodies fell by 22 percent to clock in at 80 units in 2025, HINO Chassis and Hilux frame posted year-on-year growth of 22 percent and 36 percent in their sales volume respectively (see the graph of sales volume). This was in line with the improvement with the wider recovery witnessed in the overall automobile sector. Easing import restrictions, downing inflation and discount rate, stability in the value of local currency and restoration of investor confidence were the main drivers behind the staggering topline growth recorded in 2025. Downtick in cost due to stable currency coupled with operational efficiency achieved over the year resulted in 42.25 percent growth in HINO’s gross profit in 2025 with GP margin climbing up to 12.49 percent. Distribution expense remained largely intact at the last year level while administrative expense posted 4.84 percent downtick in 2025 due to lower payroll expense as HINO streamlined its workforce from 582 employees in 2024 to 501 employees in 2025. Other income ticked up by 8.58 percent in 2025 due to reimbursement of finance cost under cost compensation agreement with Hino Motors Japan for holding additional inventory by the company. While HINO recorded had incurred no other expense in 2024, it registered other expense to the tune of Rs.23.75 million in 2025 on account of profit related provisioning. Operating profit strengthened by 196.68 percent in 2025 with OP margin jumping up to 5.82 percent. Despite monetary easing, HINO’s finance cost grew by 17.81 percent in 2025 due to exchange loss and increased short-term borrowings. HINO posted net profit of Rs.161.957 million in 2025 with EPS of Rs.6.53 and NP margin of 1.57 percent.
HINO’s net sales ticked up by 6.43 percent to clock in at Rs.11001.47 million in 2026. This came on the back of improved sales volume of Hino Chassis and Hilux frame which grew by 23 percent and 29 percent respectively in 2026. This masked the impact of 53 percent decline in the sales volume of buses & other bodies during the year. The demand for commercial vehicles greatly improved during the year on the back of recovery of macroeconomic indicators. Cost of sales ticked down by 0.99 percent in 2026 due to better absorption of fixed cost, rationalization of provisions, improved sales volume and efficient sales mix. Gross profit rebounded by 58.45 percent in 2026, resulting in GP margin of 18.60 percent. Distribution expense and administrative expense surged by 56.71percent and 10.80 percent respectively in 2026 particularly on the back of increased payroll expense, impairment of property, plant & equipment and higher advertisement & sales promotion budget allocated for the year. Other expense escalated by 131.84 percent in 2026 due to increased provisioning done for WWF and WPPF. However, other expense was offset by 18.68 percent stronger other income recognized during the year which was the result of greater scrap sales and gain recognized on the disposal of property, plant and equipment. Operating profit strengthened by 80.25 percent in 2026 with OP margin climbing up to 9.86 percent. Finance cost spiked by 19.10 percent in 2026 despite monetary easing. This was due to massive increase in running financing obtained during the year. HINO posted net profit of Rs.541.253 million in 2026, up 234.20 percent year-on-year. This translated into EPS of Rs.21.82 and NP margin of 4.92 percent in 2026.
Recent Performance (First Quarter ended June 30, 2026)
During the first quarter of the ongoing year, HINO posted year-on-year decline of 17.25 percent in its net sales which clocked in at Rs.3278.13 million. This was the result of 13.33 percent decline in the sales volume of trucks and buses which clocked in at 156 units during the period under review. Gross profit deteriorated by 35.61 percent during the quarter as elevated energy prices and supply chain disruptions in the aftermath of Middle East crisis didn’t allow the company to cut down its cost as planned. GP margin clocked in at 16.61 percent in 1Q2026 versus GP margin of 21.34 percent recorded in 1Q2025. Inflationary pressure and elevated fuel prices resulted in 11.18 percent hike in distribution expense and 8.21 percent spike in administrative expense in 1Q2026 despite lower sales volume. Other expense dropped by 45.90 percent in 1Q2026 due to lesser provisioning done for WWF and WPPF. Other expense was wiped off by 62.44 percent stronger other income recognized during the period which was the consequence of greater scrap sales, return on saving accounts and reimbursement of finance cost by Hino Motors Limited, Japan. Operating profit dwindled by 47.41 percent in 1Q2026 with OP margin clocking in at 9.84 percent versus OP margin of 15.48 percent registered during the comparable period of last year. Finance cost tumbled by 51.38 percent in 1Q2026 despite the onset of monetary tightening. This was due to the massive repayment of outstanding short-term loans during the period. Net profit diminished by 49.69 percent in 1Q2026 to clock in at Rs.209.689 million. This translated into EPS of Rs.8.45 and NP margin of 6.40 percent in 1Q2026 versus EPS of Rs.16.81 and NP margin of 10.52 percent recorded in 1Q2025.
Future Outlook
The recovery of industrial activity and better politico-economic environment will bode well for the sale of buses and trucks. Moreover, with the government determined to develop and modernize urban public transport, HINO expects a brighter future. On the flipside, the introduction of NEV levy across all internal combustion vehicles including trucks & buses and restriction on the purchase of new vehicles by non-filers may take its toll on the sales volumes.