Mouwasat’s Q3 figures in-line with estimates, says Albilad Cap

Mouwasat Medical Services Co. posted a net profit of SAR 76.7 million in Q3 2017 (up 55 percent year-on-year (YoY), in line with Albilad Capital’s estimates of SAR 74 million, while exceeding the consensus estimate of SAR 70 million, the brokerage said in an earnings note.

The growth in net profit compared to Q3 2016 and 9M 2016 was driven by higher revenues especially from the company’s hospital in Riyadh, expansion in subspecialty clinics operations, effective utilization of available resources and medical systems, as well as the enhancement of contractual terms with customers.  

“We believe Mouwasat will continue to achieve a good growth rate in the coming years in light of current expansion plan of the company which will significantly boost operating capacity, in addition to higher demand for medical services”, Albilad Capital said.

The brokerage maintained its “Neutral” rating on the stock and kept target price at SAR 160.