Lower RE transaction to impact demand outlook We maintain our Neutral rating on Dar Al Arkan with a revised PT of SAR15.6. We believe the overall slowdown in the real estate market and high interest rates will have a negative impact on the company’s earnings. In 2023f, we expect revenues to decline by 23.7% yoy to SAR3.0bn while net income is expected to reach SAR398mn (-9.9% yoy). The stock is trading at a 2023f P/B of 0.91x, higher than its historical average of 0.65x. We highlight that the...
Dar Al Arkan reported an in-line set of Q3 22 results, with net income of SAR79.4mn (+216% yoy, -14.2% qoq). This compares with the SNB Capital estimates of SAR82.5mn. Revenue increased by 24.7% yoy (+9.5% qoq) to SAR743mn, in-line with our estimate of SAR713mn. Gross margins improved by 461bps yoy to 41.0% vs our estimate of 37.0% due to higher margin developed properties in the sales mix. However, this was offset by the higher non-opex driven by increased finance costs and lower income from...
Dar Al Arkan reported a weaker than expected set of Q2 22 results, with net income of SAR92.6mn (+313% yoy, -58.1% qoq). This is significantly lower than our estimates of SAR153mn and the consensus estimate of SAR141mn. We believe the negative variance was mainly due to 1) lower than expected revenue on lower property sales, 2) higher opex due to an increase in marketing expenses related to the new projects. However, this was partially offset by higher than expected gross margins and a declin...
We maintain our neutral rating on Dar Al Arkan with a PT of SAR11.8. We believe project backlogs supported by new project sales should continue to drive future growth. However, rising interest rates may cause headwinds that may impact the industry for the next few years. We expect net income in 2022f to reach SAR459mn, up 246% yoy due to higher contribution from the sale of developed properties. The stock is trading at a 2022f P/B of 0.6x, in-line with its historical average. * Real-estate s...
FINANCIAL HIGHLIGHTS * Q1 22 revenues increased substantially by 192% yoy (+109% qoq) to SAR1.62bn compared to SAR0.56bn in Q1 21. * The growth came from Developed Properties sales which grew to SAR1.59bn in Q1 22 compared to only SAR0.53bn in Q1 21. This was driven by recognition of new sales from Shams Ar Riyadh and Urban Oasis Dubai projects. The management stated that this is in line with IFRS 15. * Leasing revenue, on the other hand, declined to SAR27mn in Q1 22 from SAR30mn i...
Dar Al Arkan reported a stronger-than-expected set of Q4 21 results, with net income increasing by 351% yoy (+124% qoq) to SAR56.4mn, coming-in higher than SNB Capital estimates of SAR28.5mn. We believe the positive variance was mainly driven by higher revenue, which stood at SAR775mn in Q4 21, increasing by 56.2% yoy (+30.2% qoq) and compares to our estimate of SAR604mn. We believe this came as a result of higher than expected land sales, as we expect the contribution from residential develo...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
DAR ALARKAN RLST.DEV. (SA), a company active in the Real Estate Holding & Development industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 2 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral...
Dar Al Arkan reported a better than expected set of Q1 21 results, with a net income of SAR28.5mn (+130% yoy) and was higher than our estimates of SAR15.2mn. The positive yoy variance was mainly driven by improved margins and lower opex which offset the impact of lower lease revenue and higher financing costs. Sales declined 6.4% yoy to SAR555mn but came-in slightly higher than our expectations of SAR522mn (+11.8% qoq). Sales declined 6.4% yoy to SAR555mn in Q1 21, but was slightly higher tha...
Dar Al Arkan reported a better-than-expected set of Q4 20 results, with a net income of SAR14.6mn (-78.9% yoy) vs our estimates of SAR8.0mn. The positive variance was mainly driven by higher than expected sales of SAR496mn (-41.0% yoy) vs our estimates of SAR437mn. We await for the full financials to update our PT and estimates. Sales decreased -41.0% yoy to SAR496mn in Q4 20, but was higher than our estimates of SAR437mn. We believe the variance was mainly due to higher than expected contrib...
Summary Mohammad Al-Mojil Group - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Mohammad Al-Mojil Group (MMG) is a construction company. It provides general contracting services for onshore and offshore oil and gas, and petrochemical projects. It offers constructi...
Dar Al Arkan announced a disappointing set of Q3 20 results, with a net loss of SAR18.6mn vs a net profit of SAR134.9mn in Q3 19. This is the first net loss on record and is significantly lower than our estimates of a net profit of SAR25.6mn. We believe the variance is driven by 1) lower than expected property sales, 2) higher operating expenses and 3) higher finance expenses and lower income from associates. Based on our last published update in Feb 2020, we are Overweight on Dar Al Arkan, w...
Dar Al Arkan reported a strong set of Q2 20 results. Net income declined -86.2% yoy to SAR10.4mn, compared to our estimates of a net loss of SAR32.5mn. We believe the variance was mainly due to higher than expected sales and margins despite the negative impact of COVID-19. Dar Al Arkan trades at a 2021f PB of 0.4x, below its historical average of 0.6x. We await the full financials to update our PT and estimates. Dar Al Arkan reported a better than expected set of Q2 20 results with a net inco...
Dar Al Arkan reported a stronger than expected set of Q2 19 results, though net income declining -31.0% yoy to SAR75.0mn. This compares to NCBC estimates of SAR32.0mn. We believe the variance is mainly due to higher land sales at improved margins. Dar Al Arkan trades at a 2019f PB of 0.6x, which is in-line with the company’s 5-year average.
Dar Al Arkan reported a stronger-than-expected set of Q1 19 results, despite net income declining -92.3% yoy to SAR25.5mn. This compares with NCBC estimates of SAR20.0mn. We believe the variance is mainly due to higher margin expansion. Dar Al Arkan trades at a 2019f PB of 0.6x, which is in line with the company’s five-year average.
Dar Al Arkan reported a weaker-than-expected set of Q4 18 results, with net income declining -89.7% yoy to SAR32.4mn. This compares to the NCBC estimates of SAR46.1mn. We believe the variance is mainly due to lower than expected land sales. Dar Al Arkan trades at a 2019f PB of 0.6x, which is in-line with the company’s 5-year average.
Dar Al Arkan reported a weaker than expected set of Q3 18 results. Net income declined -82.5% yoy to SAR36.7mn which is attributed to lower land sales and a gross margin contraction. This is the lowest net income recorded since Q2 17 and is significantly below the NCBC estimates of SAR90.1mn. Dar Al Arkan trades at a 2019f PB of 0.5x, broadly in-line with the 5-year average of 0.6x.
CORPORATES CREDIT OPINION 10 April 2017 Update RATINGS Dar Al Arkan Real Estate Development Company Domicile Saudi Arabia Long Term Rating B1 Type LT Corporate Family Ratings Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Analyst Contacts Rehan Akbar
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.