Jarir’s Q4 2019 net profit meets expectations: Aljazira Cap

Jarir Marketing Co.’s net income of SAR 276.9 million in fourth quarter of 2019 came broadly in-line with Aljazira Capital and consensus estimates of SAR 297.3 million and SAR 292.1 million respectively.

The brokerage firm said in a research note that it expects the sales momentum to continue in 2020, driven primarily by electronics.

“Considering Jarir’s position, we believe its top-line would grow further as the company gains market share following expansion in store network and rise in online sales,” it noted.

However, the brokerage expects margins to remain under pressure due to higher costs resulting from the employment of Saudis, along with higher selling and marketing expenses.

Aljazira Capital maintained its “neutral” recommendation towards the share, keeping the target price stable at SAR 168.

Jarir’s net profit after zakat and tax rose 3% year-on-year (YoY) to SAR 984.7 million for fiscal year 2019.