Equipment House H1 2023 net profit slumps 74% to SAR 8.8 mln; Q2 at SAR 1.9 mln

14/08/2023 Argaam Exclusive

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Scientific and Medical Equipment House Co.’s (Equipment House) net profit fell 74% to SAR 8.8 million in H1 2023, compared to SAR 34.1 million in the year-ago period.

Financials (M)

Item	6m 2022	6m 2023	Change‬
Revenues	338.86	355.72	5.0 %
Gross Income	84.74	60.77	(28.3 %)
Operating Income	44.02	20.56	(53.3 %)
Net Income	34.08	8.80	(74.2 %)
Average Shares	30.00	30.00	-
EPS (Riyals)	1.14	0.29	(74.2 %)

The company cited an overall rise in direct operating costs including labor, spare parts and subcontractors. In addition, it reported increases in salaries and wages of medical employees, along with additional costs incurred on discounts related to previous billings.

The profit drop came despite a 5% year-on-year (YoY) growth in revenue during H1 2023, as the corresponding period in 2022 recognized revenues for completed projects, leading to higher profit.

Current Quarter Comparison (M)

Compared With The

Item	Q2 2022	Q2 2023	Change‬
Revenues	176.30	190.78	8.2 %
Gross Income	46.82	29.89	(36.2 %)
Operating Income	22.17	8.27	(62.7 %)
Net Income	17.36	1.94	(88.8 %)
Average Shares	30.00	30.00	-
EPS (Riyals)	0.58	0.06	(88.8 %)

Item	Q1 2023	Q2 2023	Change‬
Revenues	164.94	190.78	15.7 %
Gross Income	30.88	29.89	(3.2 %)
Operating Income	12.30	8.27	(32.8 %)
Net Income	6.86	1.94	(71.7 %)
Average Shares	30.00	30.00	-
EPS (Riyals)	0.23	0.06	(71.7 %)

Higher profit margins were recognized in the previous period upon terminating and handing over some projects during 2022. On the other hand, new projects commenced in 2023 but, in early stages, they incur substantial mobilization and start-up costs.

In Q2 2023, the company’s net profit dropped 89% YoY to SAR 1.9 million, due to higher salaries and wages, additional costs incurred on discounts related to previous billings, increase in project costs, and higher provision of expected credit loss and finance costs.

Sequentially, the company’s net profit fell by 71.7% from SAR 6.86 million in Q1 2023 on higher direct operating costs, provisions for expected credit losses and finance costs.

Total shareholders’ equity, after minority interest, decreased to SAR 479 million by the end of the six-month period, from SAR 488 million a year earlier.

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Financial results (Million)

Period	Revenues	Change	Gross Income	Change	Operating Income	Change
Q1 2014	-	-	-	-	-	-
Q2 2014	-	-	-	-	-	-
Q3 2014	-	-	-	-	-	-
Q4 2014	-	-	-	-	-	-
2014	-	-	-	-	-	-
Q1 2015	-	-	-	-	-	-
Q2 2015	-	-	-	-	-	-
Q3 2015	-	-	-	-	-	-
Q4 2015	-	-	-	-	-	-
2015	-	-	-	-	-	-
Q1 2016	-	-	-	-	-	-
Q2 2016	-	-	-	-	-	-
Q3 2016	-	-	-	-	-	-
Q4 2016	-	-	-	-	-	-
2016	-	-	-	-	-	-
Q1 2017	-	-	-	-	-	-
Q2 2017	-	-	-	-	-	-
Q3 2017	-	-	-	-	-	-
Q4 2017	-	-	-	-	-	-
2017	556.27	-	108.44	-	54.70	-
Q1 2018	-	-	-	-	-	-
Q2 2018	-	-	-	-	-	-
Q3 2018	-	-	-	-	-	-
Q4 2018	-	-	-	-	-	-
2018	583.91	5.0 %	131.02	20.8 %	80.32	46.9 %
Q1 2019	-	-	-	-	-	-
Q2 2019	-	-	-	-	-	-
Q3 2019	-	-	-	-	-	-
Q4 2019	-	-	-	-	-	-
2019	597.02	2.2 %	133.81	2.1 %	68.09	(15.2 %)
Q1 2020	-	-	-	-	-	-
Q2 2020	-	-	-	-	-	-
Q3 2020	-	-	-	-	-	-
Q4 2020	-	-	-	-	-	-
2020	617.48	3.4 %	150.85	12.7 %	88.06	29.3 %
Q1 2021	151.56	-	32.66	-	19.39	-
Q2 2021	166.08	-	43.72	-	27.30	-
Q3 2021	176.51	-	37.54	-	19.21	-
Q4 2021	205.30	-	39.07	-	17.52	-
2021	699.45	13.3 %	152.98	1.4 %	83.42	(5.3 %)
Q1 2022	162.56	7.3 %	37.92	16.1 %	21.84	12.7 %
Q2 2022	176.30	6.1 %	46.82	7.1 %	22.17	(18.8 %)
Q3 2022	186.07	5.4 %	36.03	(4.0 %)	15.94	(17.1 %)
Q4 2022	188.89	(8.0 %)	34.08	(12.8 %)	(22.44)	(228.1 %)
2022	713.82	2.1 %	154.85	1.2 %	37.51	(55.0 %)
Q1 2023	164.94	1.5 %	30.88	(18.6 %)	12.30	(43.7 %)
Q2 2023	190.78	8.2 %	29.89	(36.2 %)	8.27	(62.7 %)

Period	Revenues	Change	Gross Income	Change	Operating Income	Change
2013	-	-	-	-	-	-
2014	-	-	-	-	-	-
2015	-	-	-	-	-	-
2016	-	-	-	-	-	-
2017	556.27	-	108.44	-	54.70	-
2018	583.91	5.0 %	131.02	20.8 %	80.32	46.9 %
2019	597.02	2.2 %	133.81	2.1 %	68.09	(15.2 %)
2020	617.48	3.4 %	150.85	12.7 %	88.06	29.3 %
2021	699.45	13.3 %	152.98	1.4 %	83.42	(5.3 %)
2022	713.82	2.1 %	154.85	1.2 %	37.51	(55.0 %)

Profit Performance (Million)

Period	Net Income	Change	EPS(Riyal)	Extraordinary Income/Expense	Net Profit Before Unusual Items	EPS Before XO Items
Q1 2014	-	-	-	-	-	-
Q2 2014	-	-	-	-	-	-
Q3 2014	-	-	-	-	-	-
Q4 2014	-	-	-	-	-	-
2014	-	-	-	-	-	-
Q1 2015	-	-	-	-	-	-
Q2 2015	-	-	-	-	-	-
Q3 2015	-	-	-	-	-	-
Q4 2015	-	-	-	-	-	-
2015	-	-	-	-	-	-
Q1 2016	-	-	-	-	-	-
Q2 2016	-	-	-	-	-	-
Q3 2016	-	-	-	-	-	-
Q4 2016	-	-	-	-	-	-
2016	-	-	-	-	-	-
Q1 2017	-	-	-	-	-	-
Q2 2017	-	-	-	-	-	-
Q3 2017	-	-	-	-	-	-
Q4 2017	-	-	-	-	-	-
2017	49.44	-	1.65	-	49.44	1.65
Q1 2018	-	-	-	-	-	-
Q2 2018	-	-	-	-	-	-
Q3 2018	-	-	-	-	-	-
Q4 2018	-	-	-	-	-	-
2018	68.08	37.7 %	2.27	-	68.08	2.27
Q1 2019	-	-	-	-	-	-
Q2 2019	-	-	-	-	-	-
Q3 2019	-	-	-	-	-	-
Q4 2019	-	-	-	-	-	-
2019	70.67	3.8 %	2.36	8.25	62.42	2.08
Q1 2020	-	-	-	-	-	-
Q2 2020	-	-	-	-	-	-
Q3 2020	-	-	-	-	-	-
Q4 2020	-	-	-	-	-	-
2020	74.76	5.8 %	2.49	-	74.76	2.49
Q1 2021	19.19	-	0.64	3.74	15.45	0.52
Q2 2021	23.92	-	0.80	-	23.92	0.80
Q3 2021	16.97	-	0.57	-	16.97	0.57
Q4 2021	17.45	-	0.58	-	17.45	0.58
2021	77.52	3.7 %	2.58	3.74	73.79	2.46
Q1 2022	16.73	(12.8 %)	0.56	-	16.73	0.56
Q2 2022	17.36	(27.4 %)	0.58	-	17.36	0.58
Q3 2022	8.79	(48.2 %)	0.29	-	8.79	0.29
Q4 2022	(25.31)	(245.0 %)	(0.84)	-	(25.31)	(0.84)
2022	17.57	(77.3 %)	0.59	-	17.57	0.59
Q1 2023	6.86	(59.0 %)	0.23	-	6.86	0.23
Q2 2023	1.94	(88.8 %)	0.06	-	1.94	0.06

Period	Net Income	Change	EPS(Riyal)	Extraordinary Income/Expense	Net Profit Before Unusual Items	EPS Before XO Items
2013	-	-	-	-	-	-
2014	-	-	-	-	-	-
2015	-	-	-	-	-	-
2016	-	-	-	-	-	-
2017	49.44	-	1.65	-	49.44	1.65
2018	68.08	37.7 %	2.27	-	68.08	2.27
2019	70.67	3.8 %	2.36	8.25	62.42	2.08
2020	74.76	5.8 %	2.49	-	74.76	2.49
2021	77.52	3.7 %	2.58	3.74	73.79	2.46
2022	17.57	(77.3 %)	0.59	-	17.57	0.59

Profitability

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
Q1 2014	-	-	-
Q2 2014	-	-	-
Q3 2014	-	-	-
Q4 2014	-	-	-
2014	-	-	-
Q1 2015	-	-	-
Q2 2015	-	-	-
Q3 2015	-	-	-
Q4 2015	-	-	-
2015	-	-	-
Q1 2016	-	-	-
Q2 2016	-	-	-
Q3 2016	-	-	-
Q4 2016	-	-	-
2016	-	-	-
Q1 2017	-	-	-
Q2 2017	-	-	-
Q3 2017	-	-	-
Q4 2017	-	-	-
2017	19.49 %	10.91 %	8.89 %
Q1 2018	-	-	-
Q2 2018	-	-	-
Q3 2018	-	-	-
Q4 2018	-	-	-
2018	22.44 %	14.56 %	11.66 %
Q1 2019	-	-	-
Q2 2019	-	-	-
Q3 2019	-	-	-
Q4 2019	-	-	-
2019	22.41 %	12.61 %	10.46 %
Q1 2020	-	-	-
Q2 2020	-	-	-
Q3 2020	-	-	-
Q4 2020	-	-	-
2020	24.43 %	15.84 %	12.11 %
Q1 2021	-	-	-
Q2 2021	-	-	-
Q3 2021	-	-	-
Q4 2021	21.87 %	13.81 %	10.55 %
2021	21.87 %	13.81 %	10.55 %
Q1 2022	22.27 %	14.03 %	10.57 %
Q2 2022	22.39 %	13.20 %	9.51 %
Q3 2022	21.89 %	12.78 %	8.26 %
Q4 2022	21.69 %	7.64 %	2.46 %
2022	21.69 %	7.64 %	2.46 %
Q1 2023	20.64 %	6.45 %	1.08 %
Q2 2023	17.91 %	4.70 %	(1.06 %)

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
2013	-	-	-
2014	-	-	-
2015	-	-	-
2016	-	-	-
2017	19.49 %	10.91 %	8.89 %
2018	22.44 %	14.56 %	11.66 %
2019	22.41 %	12.61 %	10.46 %
2020	24.43 %	15.84 %	12.11 %
2021	21.87 %	13.81 %	10.55 %
2022	21.69 %	7.64 %	2.46 %

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
Q1 2014	-	-	-
Q2 2014	-	-	-
Q3 2014	-	-	-
Q4 2014	-	-	-
Q1 2015	-	-	-
Q2 2015	-	-	-
Q3 2015	-	-	-
Q4 2015	-	-	-
Q1 2016	-	-	-
Q2 2016	-	-	-
Q3 2016	-	-	-
Q4 2016	-	-	-
Q1 2017	-	-	-
Q2 2017	-	-	-
Q3 2017	-	-	-
Q4 2017	-	-	-
Q1 2018	-	-	-
Q2 2018	-	-	-
Q3 2018	-	-	-
Q4 2018	-	-	-
Q1 2019	-	-	-
Q2 2019	-	-	-
Q3 2019	-	-	-
Q4 2019	-	-	-
Q1 2020	-	-	-
Q2 2020	-	-	-
Q3 2020	-	-	-
Q4 2020	-	-	-
Q1 2021	21.55 %	14.79 %	10.19 %
Q2 2021	26.32 %	18.48 %	14.40 %
Q3 2021	21.27 %	12.57 %	9.61 %
Q4 2021	19.03 %	10.37 %	8.50 %
Q1 2022	23.32 %	15.68 %	10.29 %
Q2 2022	26.56 %	14.84 %	9.85 %
Q3 2022	19.36 %	10.94 %	4.72 %
Q4 2022	18.04 %	(9.25 %)	(13.40 %)
Q1 2023	18.72 %	10.41 %	4.16 %
Q2 2023	15.67 %	7.48 %	1.02 %

Per Share Data (Riyal)

Compared With The

Period	Shares Outstanding (M)	EPS (Riyal)	Adjusted EPS (Riyal)	Book Value (BV)
Q1 2014	-	-	-	-
Q2 2014	-	-	-	-
Q3 2014	-	-	-	-
Q4 2014	-	-	-	-
Q1 2015	-	-	-	-
Q2 2015	-	-	-	-
Q3 2015	-	-	-	-
Q4 2015	-	-	-	-
Q1 2016	-	-	-	-
Q2 2016	-	-	-	-
Q3 2016	-	-	-	-
Q4 2016	-	-	-	-
Q1 2017	-	-	-	-
Q2 2017	-	-	-	-
Q3 2017	-	-	-	-
Q4 2017	-	-	-	-
Q1 2018	-	-	-	-
Q2 2018	-	-	-	-
Q3 2018	-	-	-	-
Q4 2018	-	-	-	-
Q1 2019	-	-	-	-
Q2 2019	-	-	-	-
Q3 2019	-	-	-	-
Q4 2019	-	-	-	-
Q1 2020	-	-	-	-
Q2 2020	-	-	-	-
Q3 2020	-	-	-	-
Q4 2020	-	-	-	-
Q1 2021	30.00	-	-	-
Q2 2021	30.00	-	-	14.70
Q3 2021	30.00	-	-	-
Q4 2021	30.00	2.58	2.46	15.78
Q1 2022	30.00	2.50	2.50	16.34
Q2 2022	30.00	2.28	2.28	16.25
Q3 2022	30.00	2.01	2.01	16.54
Q4 2022	30.00	0.59	0.59	15.68
Q1 2023	30.00	0.26	0.26	15.91
Q2 2023	30.00	(0.26)	(0.26)	15.97

Period	Shares Outstanding (M)	EPS (Riyal)	Adjusted EPS (Riyal)	Book Value (BV)
2013	-	-	-	-
2014	-	-	-	-
2015	-	-	-	-
2016	-	-	-	-
2017	30.00	1.65	1.65	8.47
2018	30.00	2.27	2.27	10.02
2019	30.00	2.36	2.08	11.86
2020	30.00	2.49	2.49	14.27
2021	30.00	2.58	2.46	15.78
2022	30.00	0.59	0.59	15.68

Multiple Ratios (End of Period Price)

Compared With The

Period	P/E	Adjusted P/E	Price/book
Q1 2014	-	-	-
Q2 2014	-	-	-
Q3 2014	-	-	-
Q4 2014	-	-	-
Q1 2015	-	-	-
Q2 2015	-	-	-
Q3 2015	-	-	-
Q4 2015	-	-	-
Q1 2016	-	-	-
Q2 2016	-	-	-
Q3 2016	-	-	-
Q4 2016	-	-	-
Q1 2017	-	-	-
Q2 2017	-	-	-
Q3 2017	-	-	-
Q4 2017	-	-	-
Q1 2018	-	-	-
Q2 2018	-	-	-
Q3 2018	-	-	-
Q4 2018	-	-	-
Q1 2019	-	-	-
Q2 2019	-	-	-
Q3 2019	-	-	-
Q4 2019	-	-	-
Q1 2020	-	-	-
Q2 2020	-	-	-
Q3 2020	-	-	-
Q4 2020	-	-	-
Q1 2021	-	-	-
Q2 2021	-	-	-
Q3 2021	-	-	-
Q4 2021	-	-	-
Q1 2022	21.32	21.32	3.27
Q2 2022	18.98	18.98	2.67
Q3 2022	21.69	21.69	2.64
Q4 2022	69.58	69.58	2.60
Q1 2023	More than 100	More than 100	2.93
Q2 2023	NEG	NEG	3.24

Period	P/E	Adjusted P/E	Price/book
2013	-	-	-
2014	-	-	-
2015	-	-	-
2016	-	-	-
2017	-	-	-
2018	-	-	-
2019	-	-	-
2020	-	-	-
2021	-	-	-
2022	69.59	69.59	2.60

Business Segments (Million)

Compared With The

Period	Operation and maintenance	Sales of medical devices and revenue from after-sales maintenance services	Construction	Medications and Medical Supplies	Meat and Food	Eliminations
Q1 2021	123.04	8.50	10.54	7.37	2.34	(0.22)
Q2 2021	137.92	8.50	10.44	8.00	2.87	(1.64)
Q3 2021	145.75	12.85	8.66	5.88	4.01	(0.65)
Q4 2021	164.19	33.17	20.44	(4.60)	1.30	(9.20)
Q1 2022	130.15	11.47	11.04	8.94	3.48	(2.51)
Q3 2022	144.11	11.32	15.37	14.70	1.19	(0.62)
Q4 2022	142.97	27.07	26.12	(5.58)	0.97	(2.66)
Q1 2023	132.79	14.34	10.87	9.24	1.86	(4.17)
Q2 2023	156.37	15.33	8.78	10.49	1.83	(2.01)

Period	Operation and maintenance	Sales of medical devices and revenue from after-sales maintenance services	Construction	Medications and Medical Supplies	Meat and Food	Eliminations
2018	454.10	-	121.33	14.12	-	(5.64)
2019	459.79	-	128.20	13.02	-	(3.99)
2020	498.98	-	76.16	41.79	5.71	(5.17)
2021	570.90	63.02	50.08	16.65	10.51	(11.70)
2022	560.83	52.89	65.12	33.76	7.60	(6.38)

Analysts Estimates (Million)

Item	Q2 2023 (e)	Q2 2023 (a)	Change‬
Average	11.00	1.94	(82.4 %)

Estimates vs Actual (Million)

Item	Q2 2023 (e)	Q2 2023 (a)	Change
Al Rajhi Capital	11.00	1.94	(82.4) %

Financial Ratios

	Current
Market Cap (M Riyal)	1,563.00
Enterprise Value (EV) (M)	1,770.09
Shares Outstanding ((M))	30.00
EPS ( Riyal) (TTM)	1.53
Book Value (BV) ( Riyal)	17.78
Par Value ( Riyal)	10.00
Adjusted P/E (Last12)	34.01
P/E (TTM)	34.01
Price/book	2.93
Return on Average Assets (%) (TTM)	4.3
Return on Average Equity (%) (TTM)	8.9

Scientific and Medical Equipment House Co. (EQUIPMENT HOUSE)

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Equipment House H1 2023 net profit slumps 74% to SAR 8.8 mln; Q2 at SAR 1.9 mln

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Financials (M)

Current Quarter Comparison (M)

Financial results (Million)

Financial results (Million)

Profit Performance (Million)

Profit Performance (Million)

Profitability

Profitability

Per Share Data (Riyal)

Per Share Data (Riyal)

Multiple Ratios (End of Period Price)

Ratios And Multiples

Business Segments (Million)

Revenue by Business Segment (Latest) 2023 Q2

Analysts Estimates (Million)

Analysts Estimates (Million)

Estimates vs Actual (Million)

Estimates Accuracy

Financial Ratios

Share Price

Scientific and Medical Equipment House Co. (EQUIPMENT HOUSE)

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Equipment House H1 2023 net profit slumps 74% to SAR 8.8 mln; Q2 at SAR 1.9 mln

View other reports

Financials (M)

Current Quarter Comparison (M)

Financial results (Million)

Financial results (Million)

Profit Performance (Million)

Profit Performance (Million)

Profitability

Profitability

Per Share Data (Riyal)

Per Share Data (Riyal)

Multiple Ratios (End of Period Price)

Ratios And Multiples

Business Segments (Million) Q2 2023

Revenue by Business Segment (Latest) 2023 Q2

Analysts Estimates (Million)

Analysts Estimates (Million)

Estimates vs Actual (Million)

Estimates Accuracy

Financial Ratios

Share Price

Scientific and Medical Equipment House Co. (EQUIPMENT HOUSE)

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Business Segments (Million)