Dr. Sulaiman Al Habib Medical Group’s (HMG) Q1 20201 net profit of SAR 319 million came in-line with Riyad Capital’s estimates of SAR 320 million.
Continued travel restrictions reflected positively on hospital revenues in terms of both outpatients and inpatient occupancy numbers. Furthermore, it had a favorable knock-on impact on pharmacy revenues, while Al-Khobar hospital revenues continued to grow.
The recent rise in COVID-19 cases in Saudi Arabia may divert patients to HMG in Q2 2021, and beyond, the brokerage said.
Riyad Capital maintained its “Neutral” recommendation on HMG, raising the target price (TP) to SAR 120 from SAR 99 per share.
The “Neutral” recommendation means that the total expected returns will be between +15% and -15%.
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