Jarir Q2 results beat estimates, says Al Rajhi Capital

Jarir Marketing Co.’s net profit of SAR 163 million for the second quarter beat Al Rajhi Capital and consensus estimates of SAR 151 million and SAR 152 million, respectively, the research firm said in a report Wednesday.

Al Rajhi Capital forecasted the firm to benefit on the long term from the gradual shift of the retail segment in the Kingdom towards organized companies, adding that their customer base would not change, despite the shrinkage of the expat population in the Kingdom.

“However, the near-term outlook is expected to be impacted by headwinds in the form of tepid consumer sentiments amid structural reforms in the Kingdom,” the report added.

On the other hand, the research firm highlighted that the Saudi-listed firm is one of the best companies regarding the dividends distribution in Saudi Arabia, expecting it to collect dividend yield at 5.1 percent for fiscal year 2018.

Al Rajhi Capital maintained its Neutral recommendation on Jarir, with a target price at SAR 166 per share.