Report
Mohammad Kamal
EUR 35.36 For Business Accounts Only

Arqaam Capital - Fawaz Alhokair Q1 18A prelim results

  • Domestic LFL sales decline y/y on weak overall consumer spending – Ramadan period sales fall short of expectations
  • Rent and other cost savings support gross margins which expanded 60bps y/y
  • Finance cost weigh down on EPS as adjusted net income decline 14% y/y.
  • We tweak our FY 18/19e assumptions and update our WACC parameters. This produces a new TP of SAR 48 in line with CMP. Downgrade to Hold   
Underlying
Fawaz Abdulaziz Alhokair & C

Fawaz Abdulaziz Alhokair Company SJSC Formerly known as Fawaz Abdulaziz Al Hokair And Company. Fawaz Abdulaziz Alhokair Co SJSC is a Saudi Arabia-based company. The Company's activities include the wholesale and retail trade in ready-made cloth for men, women and children, shoes, textiles, house and office furniture, perfumes, natural cosmetics, ornaments and beauty materials and their compounds and traditional jewelry; the wholesale and retail trading in sports wares and shoes and their complementary; the management and operation of optics centers, wholesale and retail trading in eye glasses and sun glasses, contact lenses, optical equipment and accessories; purchase of land and construction of building thereon for the purpose of running the Company's activities and business; the manufacture, wholesale and retail in Abayas, robes, scarfs and other women embroidered gowns; the wholesale and retail trading in gold and silver, among others.

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Mohammad Kamal

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