Jarir set to make SAR 236 mln profit in Q1 2018: Riyad Capital

Jarir Marketing Co. is estimated to make a net income of SAR 236 million in Q1 2018, 6 percent higher than SAR 221 million in Q1 2017, Riyad Capital said in a report.

The company is also expected to record an 8 percent year-on-year (YoY) rise in topline for Q1 2018 to SAR 1.84 billion, the report added. The bookstore operator opened two new showrooms in the Kingdom this quarter and this is also likely to boost topline.

“Jarir continues to dominate and increase its share in smartphones and other electronics and this is likely to continue this quarter,” Riyad Capital explained. “We tweak our target price to SAR 166.00, but maintain a Neutral rating.”

Jarir’s gross margins are forecast to marginally improve in Q1.

With two new stores already up and running in the first quarter of the year, Jarir is off to a good start, Riyad Capital said.

Both these stores are in the Kingdom (Hafr Al Batin and Tabuk), bringing the total number of Jarir’s network to 52 (43 in KSA). The company is also expected to open five new stores in 2018, similar to 2017 and 2016.