BinDawood Holding Co.’s Q4 2020 net profit of SAR 57.4 million missed Al Rajhi Capital and consensus estimates’ of SAR 128 million and SAR 122 million, respectively.
The drop in earnings were as a result of lower religious tourism, delay in school reopening and change in consumer buying behavior, Al Rajhi Capital said, adding these factors might continue to impact in H1 2021 results.
The company is expected to witness recovery in H2 2021, driven by promotional activities and pick up in religious tourism.
BinDawood’s is expected to report a net profit of SAR 401 million in 2021 and SAR 555 million in 2022.
Al Rajhi Capital changed its recommendation to “Overweight” from “Neutral” on BinDawood shares, reducing the target price to SAR 102 from SAR 126 per share.
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