Mouwasat’s Q1 earnings in-line with estimates, says NCBC

Mouwasat Medical Services Co.’s (Mouwasat) first-quarter profit of SAR 106 million was broadly in line with NCB Capital’s estimates of SAR 99.5 million, the financial advisory firm said in an earnings review.

The Q1 profit was higher by 24.5 percent year-on-year (YoY) and 9.5 percent against the previous quarter.

“The YoY growth in earning is mainly due to 20.9 percent YoY growth in revenue and gross margin expansion. We believe the variance is mainly due to higher operational efficiencies,’ NCB Capital said.

Revenue of SAR 439 million was is in-line with NCB Capital’s estimates of SAR 429 million.

Gross margin for Q1 stood at 49.2 percent, compared to the estimated 49 percent.

NCB Capital reiterated its “neutral” rating on Mouwasat, with a revised target price of SAR 150.1.

“One of the company’s key positives is its on-going expansions, which will increase its bed capacity by 56 percent by 2021,” the report said. “However, we believe this is already priced-in at current levels.”