Yansab’s Q2 net profit below expectations: Riyad Capital

23/07/2019 Argaam

 

Riyad Capital said that Yanbu National Petrochemical Company’s (Yansab) net profit of SAR 316 million for the second quarter of 2019 is below its expectations and the market consensus estimates of SAR 344 million and SAR 401 million, respectively.

 

It added that margins deteriorated significantly from their distinctively high levels, which is “likely to put pressure on the stock price”.

 

Riyad Capital also said that the company still remains a strong FCF generator allowing for “handsome dividends” and an elevated price floor for the stock.

 

The company maintained its “neutrality” recommendations for the Yansab’s stock, and lowered its target price from SAR 74 to SAR 65.

 

The neutrality recommendation, according to Riyad Capital, means that the expected total return per share will be between +15 per cent and -15 percent.

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.