Al Hammadi Q2 net profits came in below estimates: Al Rajhi Cap

Al Hammadi Development & Investment Co.’s SAR 19.9 million net profit posted for the second quarter came below Al Rajhi Capital and analysts’ forecasts of SAR 37.6 million and SAR 28.4 million, respectively.

The research firm expected the company’s utilization rates to accelerate as the seasonality factors partially end and Nuzha hospital related expenses would start to decrease slightly.

“The company is actively seeking memoranda of understanding (MoUs) for government projects which could be the future revenue driver.

The company is also looking for opportunities in the pharmaceutical segment as evidenced by acquisition of Medical Support Services and signing of MoU with Sudair pharma,” Al Rajhi Capital said.

It added that the second half of the year is forecasted to witness better utilization rates for the hospitals, with the end of the summer vacation.

Al Rajhi Capital kept its estimates on Al Hammadi unchanged, placing it under review. The estimates will be revisited after management discussion, the report said.