Tasnee’s Q2 2019 earnings came below expectations: Al Rajhi Capital

National Industrialization Company’s (Tasnee) Q2 2019 results came below analysts’ expectations, Al Rajhi Capital said in a research note.

The research firm lowered its expectations for the firm, and said that the company will continue to face pressures in the second half due to lower petrochemical products prices, weak efficiency, and the continuous losses from the its subsidiary Tronx.

“Key risks affecting the company’s shares which led the share price to plunge lower than expectations, including lower prices of petrochemical products, writing off of assets, more decline of the assets of the firm’s sister companies, higher SIBOR, and closure of plants,” the research firm said in a note.

It also said that higher petrochemical products prices and better efficiency rate of sister firms may push Tasnee’s share prices higher.  

The research firm recommended maintaining positions for the share with a target price of SAR 14 per share.