Dubai-Mubasher: MubasherTrade Research (MTR) set Dubai-based courier Aramex’s fair value (FV) at AED 4.16, maintaining “Buy” recommendation.
The company’s annual profits beat the research unit’s estimates by 13%, according to a recent report on Thursday.
Financials showed a 36% year-on-year (y-o-y) decrease in earnings to AED 57.6 million in the fourth quarter of 2015.
The earnings fall is mainly attributed to booking a one-time provision to account for an employees' incentive scheme.
Clean earnings grew 16% y-o-y on strong growth of high-margin segments.
International express revenues grew 14% y-o-y to AED 382 million, backed by e-commerce growth in Aramex's core markets and supported by the strong performance in the express sector in Europe, the US and the Middle East.
MTR confirmed a positive view on Aramex on the back of the courier’s broad strategy to diversify away from poor performing, low-margin segments and focus on business with high growth and margin.
