Top line surges YoY in 1Q25, exceeding our estimate
Al Moammar Information Systems’ (MIS) revenue in 1Q25 surged 21.6% YoY, beating our estimate. The overall top-line growth in 1Q25 was supported by an increase in the revenue of different segments of the company.
Net profit declines notably, but beats our expectations
Operating profit declined, despite gross profit soaring ~52% YoY, weighed down by an increase in employee benefit-related provisions and other operational expenses. Net profit fell at an even higher pace, as the company registered a lower one-off gain in 1Q25 of SAR 26mn vs. SAR 58mn gain booked in 1Q24 from the sale of a stake in Edarat. A net loss of 8.6mn of subsidiaries also negatively impacted net profit, though it still came in better than our expectations.
Place on Under Review
We place our rating and target price on MIS under review as of now, awaiting detailed financials. Currently, the stock trades at 61.7x FY25e P/E, and 39.3x EV/EBITDA, above its 2-year average daily blended forward (BF) P/E of about 24x and nine-month average daily BF EV/EBITDA of nearly 8x.