Arbah Capital issues Q4 profit forecasts for Saudi firms

Arbah Capital issued Q4 2017 earnings forecast for a number of Tadawul-listed companies.

In the healthcare sector, Al Hammadi Company for Development and Investment Co. is forecast to generate SAR 26.2 million in earnings, up by 11.5 percent year-on-year (YoY) and 144.6 percent quarter-on-quarter (QoQ), boosted by bed capacity expansion at Nozha hospital.

Mouwasat Medical Services Company and Middle East Healthcare Co. (Saudi German Hospital) are estimated to report a profit rise of 3 percent and 32.4 percent to SAR 79 million and SAR 75.5 million respectively.

The net income of National Medical Care Co. (Care) and Dallah Healthcare Co. (Dallah) is set to decline by 18.7 percent and 10.1 percent.

In the retail sector, Savola Group’s Q4 profit is forecast to plunge by 82.7 percent YoY to SAR 147.3 million. Almarai Co. is set to report SAR 515.0 million net profit in Q4 2017, 22.8 percent lower YoY.

Elsewhere, Aldrees Petroleum & Transport Services’ earnings are projected to tumble 8 percent YoY, but rise 26.0 percent QoQ to SAR 19.4 million.

Saudi Marketing Co. (Farm Superstores) is seen to make SAR 15 million in net profit, down by 10.5 percent QoQ and 108.5 percent YoY, on higher operating expenses.

Saudi Ground Services’ fourth quarter profit is forecasted to retreat by 33.9 percent YoY to SAR 106 million.

Herfy Food Services (Herfy) is estimated to generate SAR 51.4 million earnings, down by 8.3 percent YoY.

Al Hokair Group’s Q4 profit is expected to fall 35.2 percent YoY and 39.8 percent QoQ to SAR 12.2 million, due to weak performance of hotels segment.

Arbah Capital also recommended an overweight rating on Care, Al Hammadi, Saudi German Hospitals, Dallah, Savola and Al Hokair Group. Meanwhile, a neutral rating was assigned to Herfy, Saudi Ground Services, Farm Superstores, Aldrees, Almarai and Mouwasat.