Riyadh - Mubasher: Albilad Capital has ‘conservatively’ cut their fair value (FV) estimate for Jarir Marketing from SAR 120 to SAR 117 per share, with a neutral recommendation, according to a recent report.
The fourth-quarter profit beat our estimate of SAR 197 million and the market consensus of SAR 201 million, the report added.
The key performance indicators (KPIs) of Jarir Marketing for the fourth quarter of 2016 unveiled net earnings of SAR 215 million up 3.46% from SAR 208 million in the same quarter of the previous year, and down by 2.14% in comparison with Q3-16.
“We expect the reduction in some financial allowances for state employees and the recent decree to impose charges on the dependents of foreign workers to weigh on the company's sales going forward, taking into account that Jarir Marketing will incur additional cost from the anticipated adjustment of electricity tariffs this year and the additional cost of foreign labor employment starting from 2018,” the report stated.
