4Q 2022 revenue comes in about 50% higher than our estimate
MIS’ revenue in 4Q 2022 increased 82% YoY to SAR 313.2mn, coming in around 50% more than our forecast. While the company has not given any specific reason for the solid growth in the top line, we opine the company might have benefitted from higher project completion milestones as well as an increase in income from data centres.
Operating profit more than doubles YoY, thereby lifting net profit significantly and beating our estimate by a wide margin
Backed by strong top-line growth during the quarter, operating profit increased by slightly more than 100% YoY to SAR 42.1mn. However, the operating profit beat of 21% was lower (vs. the beat in revenue), implying the operating costs rose at a more than estimated-pace. Overall, net profit soared 233% YoY to SAR 49.3mn, 66% higher than our estimate.
Maintain target price
MIS’ 4Q 2022 results suggest the company’s business is gaining traction with the data centres likely contributing to earnings growth. The company has in the recent past secured several new contracts which give it decent revenue visibility. Hence, we maintain our SAR 135.40 target price on the stock.