reports
- Iyad KhalidÊGhulam
Shaker: Q2 23 Update | Mega projects to drive demand, offset by lower ...
We upgrade Shaker to Neutral with a revised PT of SAR21.6. We believe the company’s position will allow it to benefit from the ongoing mega projects, being the region’s largest AC & Home Appliances wholesaler. Moreover, the successful completion of the “Breakthrough Program” has helped the company to return to profitability. However, we highlight that the slowdown in mortgages is considered a major downside concern. We expect earnings to recover to SAR38.5mn by 2025f, delivering 3-year earnin...
- Nauman Khan
Shaker: Q4 22 Result Analysis | Weak results on seasonality, higher fi...
Shaker reported a weak set of results with a net loss of SAR2.39mn in Q4 22 vs a net profit of SAR8.81mn in Q3 22 and a net loss of SAR3.38mn in Q4 21. We highlight that the company has deconsolidated its statements and divested its holding in EMS (UAE) and listed its shares in NV (Jordan) as held for sale. Therefore, the financials are not completely comparable to previous quarters. In Q4 22, the company reported a topline of SAR210mn, down 7.4% yoy (-10.9% qoq), and is lower than our adjust...
- Nauman Khan
Shaker: Q3 22 Results Analysis | Earnings miss on lower sales and high...
Shaker reported a weak set of Q3 22 results declining by 29.2% yoy (-26.9% qoq) to SAR8.5mn. This is lower than the SNB Capital and consensus estimates of SAR12.7mn and SAR13.4mn, respectively. We believe the variance in earnings is mainly driven by 1) lower-than-expected revenues which stood at SAR258mn (-0.9% yoy, -18.3% qoq) vs our estimates of SAR282mn due to weak sales from Home Appliance segment. 2) higher opex due to increased employee costs related to new hirings. However, this was pa...
- Nauman Khan
Shaker: Highest quarterly net income since Q2 16
Shaker reported a net income of SAR12.3mn in Q3 21 vs SAR3.8mn in Q3 20. This is the highest quarterly net income since Q2 16 and is in-line with the SNB Capital estimates of SAR12.5mn. Revenues increased 5.4% yoy (-9.9% qoq) to SAR261mn and were below our estimate of SAR281mn. Gross margins improved by 68bps yoy to reach 22.0% and were marginally higher than our estimate of 21.2%. We believe the variance in the top-line is due to lower than expected revenue from both AC and Home appliance se...
- Nauman Khan
Shaker: Major developments priced-in, downgrade to underweight
We downgrade Shaker to Underweight with a PT of SAR16.0. We believe Shaker is well placed to benefit from the ongoing construction growth (mortgages & Giga projects). The successful completion of the “Breakthrough program” and the increasing focus on the home appliances segment are also key positives. However, the stock has rallied by 157% since May 2020 and is trading at 2021f PE and EV/EBITDA of 68.3x and 60.5x, respectively. This is significantly higher than the peer group average of 29.9x...
- Nauman Khan
Shaker: Strong Q3 results on higher sales and margins
Shaker reported a significantly better than expected set of Q3 20 results, with net profit of SAR4.4mn vs Q3 19 net loss of SAR6.7mn and our estimates of net loss of SAR5.0mn. The variance is mainly due to higher than expected sales and margins. Sales were broadly flat yoy at SAR247mn, but were higher than our estimates of SAR227mn. We believe the better than expected top-line is due to higher home appliances and ACs sales supported by the Ministry of Housing’s (MoH) initiatives. We are Neutr...
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...
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