reports
- Talha Nazr
Zain | Q4 Update | B2B to drive growth, tower deal a key driver
We maintain our Neutral rating on Zain with a revised PT of SAR12.9. We believe the higher contribution from B2B, Tamam business will support revenues, while the tower sale deal is expected to support the company’s profitability through lower depreciation expenses. We expect the company to deliver net income CAGR of 67.0% during 2021-24f to reach SAR997mn by 2024f. The stock is currently trading at 2023f P/E and EV/EBITDA of 13.5x and 12.0x, compared to the peer group average of 13.7x and 5.8...
- Talha Nazr
Zain Earnings Call Summary – Q3 22
Revenue and other KPIs * In Q3 22, revenues increased by 15.3% yoy (+3.7% qoq) to SAR2.29bn driven by growth in 5G, B2B, Zain micro finance division (Tammam) along with increased growth in inbound roaming during the Hajj season. * B2B segment and 5G continued represented over 15% of Q3 22 revenue. * Prepaid segment showed a recovery in Q3 while new revenue streams continued their growth momentum. * Zain’s 5G coverage reached to 53 cities at the end of Q3 22 with more than 5,00...
- Talha Nazr
Zain KSA: Q3 22 Results Analysis | Earnings miss on Higher OPEX
Zain reported a weaker than expected set of Q3 22 results. Although net income increased by 40.8% yoy (-36.5% qoq) to SAR85.0mn, this is significantly lower than the SNB Capital and consensus estimates of SAR136mn and SAR139mn, respectively. Revenues increased by 15.3% yoy (+3.7% qoq) to SAR2.29bn and came in-line with our estimates of SAR2.24bn. We believe the negative variance in earnings is primarily driven by 1) higher opex which increased by 43.2% yoy to SAR627mn vs our estimates of SAR4...
- Talha Nazr
Earnings Call Summary – Zain Q2 22
Revenue and other KPIs * In Q2 22, revenues increased by 16.4% yoy (+1.3% qoq) to SAR2.21bn driven by higher B2B, 5G, digital platforms and higher demand for visitor packages. However, the growth was partially mitigated by a decline in FTTH and prepaid data only revenues. * Revenue growth breakdown: 50% of the revenue growth is contributed by postpaid, prepaid, mobile broadbands, 5G and B2B segments. Around 15% of the growth is attributed to inbound roaming while Zain payments contribut...
- Talha Nazr
Zain KSA: Q2 results – Strong revenue and lower depreciation
Zain reported a stronger than expected set of Q2 22 results, with a net income of SAR134mn, increasing by 222% yoy (+66.4% qoq). This compares to the SNB Capital and consensus estimates of SAR90.0mn and SAR79.8mn, respectively. Revenue increased 16.4% yoy (+1.3% qoq) to SAR2.21bn and came in-line with our estimates of SAR2.18bn. We believe the positive variance in earnings is primarily driven by a decline in opex and lower than expected depreciation following the acquisition of Zain’s tower p...
- Iyad KhalidÊGhulam
Zain KSA: Higher revenue and lower depreciation
Zain KSA reported a better than expected set of Q1 22 results, with a net income of SAR81.0mn, increasing by 98.2% yoy (+14.1% qoq). This compares to the SNB Capital and consensus estimates of SAR42.9mn and SAR65.0mn, respectively. Revenue increased 12.5% yoy (+4.6% qoq) to SAR2.2bn, slightly ahead of our estimate of SAR2.1bn. Although the top-line was better than expected, it was offset by lower gross margins. However, the variance in the results were mainly attributed to lower than expected...
With a more favourable environment, SAUDI MOBILE TELECOM. improves to ...
SAUDI MOBILE TELECOM. (SA), a company active in the Mobile Telecommunications industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date February 25, 2022, the closing price was SAR 13....
- Iyad KhalidÊGhulam
Zain KSA: Improved operational efficiency drives qoq growth
Zain KSA reported a broadly in-line set of Q3 21 results, with a net income increasing marginally by 0.4% yoy (+45.0% qoq) to SAR60.4mn. This compares to the SNB Capital estimates of SAR56.8mn and is significantly higher than consensus estimates of SAR46.3mn. We believe the variance is mainly driven by improved operational efficiencies as opex-to-sales stood at 22.1% vs our estimate of 25.6%. Zain’s revenue increased by 2.9% yoy (+4.6% qoq) to SAR2.0bn driven by growth in B2B and 5G revenues ...
- Iyad KhalidÊGhulam
Zain KSA: Towers sale is a key driver
We remain Neutral on Zain with a PT of SAR13.6. Completing the capital restructuring helped in reducing Zain’s net debt to SAR10.6bn, with an estimated decline in finance expenses by 46.7% in 2021f. However, we expect earnings to decline by 22.5% yoy to SAR201mn in 2021f due to the end of royalty fees reversals and slow recovery of post-paid and prepaid segments. We believe the potential towers sale remains a key catalyst. The stock is trading at 2021f PE and EV/EBITDA of 62.7x and 7.3x compa...
- Iyad KhalidÊGhulam
Zain KSA: Inline results with low top-line growth
Zain KSA reported an inline set of Q2 21 results with a net income of SAR42mn, declining 28.8% yoy but increasing 2.4% qoq. This is in line with the NCBC estimates of SAR41mn and is slightly lower than the consensus estimates of SAR43.6mn. Although revenues of SAR1.90bn were lower than our estimates of SAR2.04bn, it was offset by lower than expected cost of service. After the profits recorded in Q2 21, Zain started to record retained earnings for the first time on record. Revenues increased 0...
- Iyad KhalidÊGhulam
Zain KSA: Weaker than expected results
Zain KSA reported a weak set of Q4 20 results, with a net income declining by -65.7% yoy (-40.2% qoq) to SAR36mn. This compares to the NCBC and consensus estimates of SAR258mn and SAR124mn, respectively. The decline in earnings is mainly attributed to lower revenues due to the limited number of visitors for business, Umrah and Hajj, as well as decrease in mobile termination charges. The company released certain provision in Q4 20 with a net impact of SAR149mn. Revenues declined -7.5% yoy (+6....
- Iyad KhalidÊGhulam
Zain KSA: Higher reversals and tower sale are key drivers
We remain Neutral on Zain with a PT of SAR13.4 (upside 0.7%). Completing the capital restructuring is a key milestone to reduce the debt burden. However, the end of the royalty reversal period by 2020 will put pressure on profitability going forward. We expect earnings to decline by -53.5% yoy to SAR224mn in 2021f. Higher reversal in Q4 20 and the potential towers sale are key catalysts. The stock is trading at 2021f PE and EV/EBITDA of 53.7x and 8.3x, respectively.
- Hassan Abdel Gelil
ZAINKSA AB | Remain sellers as potential improvement in financial posi...
Current valuation reflects improvement in cost of financing. Zain KSA’s general assembly approved a 23% capital reduction, with the stock trading scheduled to reopen on 13 October, with a price of SAR16.3/share, implying a 2021e EV/EBITDA of 6.50x, higher than the EM peer average of 5.80x, despite its low 2020-22e EBITDA CAGR. In our view, this comes on: i) the stock’s expected upgrade to the MSCI Standard Index, on 15 October, ii) reversals of provisions, inflating EBITDA margins, and iii) the ...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.