EFG-Hermes expects SRMG to join MSCI World Index

Logo of Saudi Research and Media Group

Saudi Research and Media Group (SRMG), a constituent of MSCI Saudi Arabia Small Cap Index, demonstrated excellent performance in 2021, surging nearly 150%. Accordingly, the stock is well-placed to join MSCI World Index, EFG-Hermes KSA said in a recent report.

The stock should maintain its current trading volumes until May 2022, to join MSCI World Index. The upgrade will attract $125 million cash inflows.

The upgrade could take place in early February instead of May, the report issuer added.

SRMG shares hit a life-time high today, Jan. 11, reaching SAR 237.60, gaining more than 200% since the beginning of 2021.

The stock closed 7% higher at an all-time high of SAR 233, after 500,000 shares were traded.

SRMG posted a net profit of SAR 204.9 million in Q3 2021, the highest quarterly earnings on record.

Established in 1987, SRMG transformed into a closed joint stock company in 2000. It was listed on the Saudi main market in May 2006.

The group ranks among top media houses regionally and globally. It is a leading source of news and information for more than 165 million readers, browsers and watchers on a monthly basis.

Led by Chief Executive Officer (CEO) Jomana Al-Rashid, SRMG’s digital transformation strategy is based on five key pillars.

The group has recently announced several deals and agreements, including the acquisition of Thmanyah as part of new digital-first growth strategy.

The following table shows the key financial indicators:

The following is a breakthrough of the company’s events as of 2021-to-date: