MubasherTrade Research (MTR) maintained the price target (PT) of Gulf Warehousing Co. (GWCS) at QAR 72.4, while maintaing a “Buy/Low Risk” rating, according to a recent report.
GWCS reported a 16% year-on-year growth in earnings to reach QAR 54.8 million in Q2-16, in line with the MTR estimates of QAR 54 million (+1%) and consensus estimate of QAR 52.5 million (+4%).
Revenues rose 2% year-on-year to QAR 209.9 million in Q2-16, missing MTR estimates of QAR 225 million (-6%).
Growth was mainly attributed to the logistics business which grew 6% year-on-year to QAR 141 million, shrugging off a slowdown in the freight forwarding business which fell 5% year-on-year to QAR 69 million. “
Revenues is likely to stay under pressure in 2016 but expected to post higher growth in H2”, according to MTR.
MTR believes GWC will continue to focus on logistics in 2016 which should drive growth further.
The “long-awaited” LVQ Phase V will be operational by Q4-16, the report highlighted, adding that the new phase is seen as GWC's catalyst for 2017.
