Earnings Report /
Saudi Arabia

Alinma: Stronger-than-expected volumes growth; reiterate Neutral

    SNB Capital
    23 October 2019
    Published by

    Alinma reported a better-than-expected set of Q3 19 results, with a net income of SAR713mn, increasing 11.9% yoy (+5.5% qoq). 

    This is the highest quarterly net income on record and is higher than the NCBC and consensus estimates of SAR675mn and SAR680mn, respectively. 

    We believe the variance is attributed to higher than expected asset yields which increased c8bps yoy (+c15bps qoq). 

    Revenues grew 18.9% yoy to SAR1.44bn, coming higher than our estimates of SAR1.40bn.

    We are Neutral on Alinma with a PT of SAR24.1. We believe strong volume growth is the key driver for the stock.