Leejam’s net profit expected to retreat in Q3 2022
In this report, Argaam captures the expected results of Leejam Sports Co. (Fitness Time) for the third quarter of 2022, in addition to its quarterly revenue and earnings growth, performance and profitability indicators.
The Q3 2022 revenue is expected to rise 2.84% year-on-year (YoY) to SAR 261.06 million.
Quarter Revenue Changes (M Riyal)
| Item | Q3 2021 |
Q4 2021 |
Q1 2022 |
Q2 2022 |
Q3 2022 (Average Estimate) |
|---|---|---|---|---|---|
| Sales | 253.84 | 261.03 | 231.62 | 232.99 | 261.06 |
| Change % | 20.03% | 13.94% | 55.93% | 5.01% | 2.84% |
Quarter Net Income Changes (M Riyal)
| Item | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 (Average Estimate) |
|---|---|---|---|---|---|
| Net Income | 76.20 | 85.91 | 46.01 | 36.02 | 59.44 |
| Extraordinary income/expense | 0.00 | 0.00 | 0.00 | 0.00 | - |
| Net Profit Before Unusual Items | 76.20 | 85.91 | 46.01 | 36.02 | - |
| EPS Before Unusual Items (Riyal/Share) | 1.45 | 1.64 | 0.88 | 0.69 | 1.13 |
Key events in Q3 2022
The Tadawul-listed company opened two new centers, Xpress Fitness Center for ladies and Fitness Time for men. Accordingly, the total number of the company’s centers inside and outside the Kingdom reached 153.
Leejam’s board recommended paying a cash dividend at 3.7% of capital, or SAR 0.37 per share, for Q2 2022.
Quarterly Profit and Revenue (M Riyal)
Average estimates
Leejam is likely to post a profit of SAR 59 million in Q3 2022, compared to SAR 76.2 million in the year-ago period, according to average estimates by five research firms.
Quarterly Actuals vs Estimates (M Riyal)
Average Estimate (M Riyal)
| Analyst | Million Riyals |
|---|---|
| EFG-Hermes KSA | 70.00 |
| AlJazira Capital Company | 64.40 |
| U-Capital Co. | 63.00 |
| Al Rajhi Capital Company | 60.00 |
| SICO Bank | 55.00 |
| SNB Capital Company | 52.70 |
| Arqaam Capital Limited Co. | 51.00 |
| Average | 59.44 |
| Net Profit Before Unusual Items (2021 - Q3) | 76.20 |
| Change % | (21.99%) |
Performance and profitability indicators
The following table compares the stock performance to the market, trailing 12 months and year to date, earnings per share (EPS) and price-to-earnings (P/E).
Stock Performance
| Item | The Company | TASI |
|---|---|---|
| YTD | (31.12 %) | 5.66 % |
| Change(12M) | (32.79 %) | 0.71 % |
| Previous Close | 76.00 | 11,973.86 |
| Recurring P/E (x) | 16.87 | 20.91 |
| EPS (TTM) before unusual items (SAR/Share) | 4.66 | - |
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Valuation Data (Latest Share Price)
| P/E (TTM) | 20.50 |
| P/E Before Unusual Items (TTM) | 21.09 |
| P/BV | 5.13 |
| Dividend Yield | 2.83 % |
| Market Cap. (M) | 6,689.32 |
| Return on Average Assets | 8.20 % |
| Return on Average Equity | 25.49 % |
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