Mouwasat Medical Services Co.’s net profit of SAR 256 million for 2016 missed Arbah Capital’s estimates of SAR 271 million by 5.6 percent, the brokerage said in an earnings review.
Mouasat Q4 net profit rose 43.5 percent quarter-on-quarter (QoQ), and 34.2 percent YoY, due to efficient utilization of resources, increase in other income due to higher revenue from training programs and realization of capital gain during Q4 2016 from the sale of Mouwasat Medical Services and its pharmacy in Al-Ahsa, eastern province, the report said.
The company reported a 35.7 percent increase in revenue to SAR 353 million for Q4 year-on-year (YoY), due to efficient utilization of resources, increase of patient inflow especially at Riyadh Hospital, and the expansion of Jubail Hospital and sub-specialty clinics.
Q4 revenue increased 25 percent QoQ, on lower revenue in Q3 due to summer vacations and Eid holidays.
Mouwasat revenue for 2016 jumped 24 percent YoY to SAR 1.24 billion, compared to SAR 1 billion in 2015, which came close to Arbah Capital’s estimate of SAR 1.22 billion.
The gross profit of SAR 668.7million was near the brokerage estimate of SAR 656 million.
Arbah Capital maintained a “Neutral” rating on the stock with the target price of SAR 145 per share.
“Going forward, we expect the earnings of the company to continue to grow around the current levels on the back of undergoing projects and improved resources utilization,” the report added.
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