Mubasher: Aljazira Capital has set the target price of Middle East Healthcare Company, known as Saudi German Hospital (SGH), at SAR 29.63, maintaining its ‘Neutral’ recommendation, according to a statement released on Wednesday.
The increase in operating costs is expected to affect Saudi German’s earnings in 2019, Aljazira Capital said.
“Opening of a new hospital in Dammam, [and] hiring of management professionals and caregivers are expected to elevate costs over the next few quarters,” the research company added.
As per Aljazira’s estimates, Saudi German’s earnings per share will record SAR 0.44 in FY19, compared to a previous estimate of SAR 0.93 .
It worth noting that Saudi German’s net profits after zakat and tax declined by 64.1% to SAR 12.28 million in Q2-19, compared to SAR 34.27 million in Q2-18.
