Riyadh – Mubasher: Albilad Capital recommended ‘Overweight’ on Advanced Petrochemical Company, setting the fair value at SAR 52.75 with an expected return of 10%, compared yesterday's closing price of SAR 47.94,
The think tank expected a decline in the company’s net income in 2016 by 16.3% year-on-year due to the drop in polypropylene prices and higher operating expenses.
Meanwhile, net income is expected to rise by 8.2% from 2016 to 2018 as result of recovery of polypropylene prices and improved demand for company’s products, according to the report released on Wednesday.
The company’s sales are expected to fall by 10.5% y-o-y this year, but projected to increase by 2.6% from 2016 to 2018.
Operating profit is forecasted to decline in 2016 by 13.4% y-y.
