DEWA UH | Valuation full: Initiate at Neutral

Trading slightly above global peers. DEWA trades on a 2022e EV/EBITDA of 11.7x, falling to 11.1x in 2023e, representing 15.5% and 19.1% premium to global peers. This is despite its EBITDA CAGR of 7.1% over 2022e-24e vs. 8% for peers. The stock offers a decent dividend yield of 4.8%, surpassing 3.6% offered by industry peers. This is likely to keep supporting the stock despite its stretched valuation. DEWA is a potential candidate for inclusion in MSCI EM Index in November 2022. Steady demand gro...