| Operating revenue largely in line with our estimate |
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| The company reported operating revenue of QR 722mn for 4Q22 as against our estimate of QR 761mn which is a 5% deviation. From QoQ and YoY perspectives, operating revenue fell by 8% and 4%, respectively. While strong container and shipping rates boosted operating revenue, relatively lower volumes amid a slowdown in business acted as a speed breaker for revenue growth. | |||||
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| Operating profit beats, our estimate |
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| The company’s focus on strengthening operations led to enhancement in projects and vessels utilization, contributing operating profit growth by 3% YoY to QR 63mn which is above our estimate of QR 53mn. Going fowrward, operational efficiency will help the company to position itself strongly in the market. | |||||
| Net profit increased by 133% |
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| The company recorded strong growth in its net profit of 133% YoY to QR 163mn on the back of positive contributions from core business segments including Maritime & Logistics, Gas & Petrochems, Offshores, Milaha Capital and Milaha Trading. | |||||
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| Maintain target price |
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| The recovery in core business of the company suggests favorable market conditions which are likely to be further strengthened with the re-opening of China’s economy. In the meanwhile, the management’s focus on improving its operations, has also been yielding good results which will add value. However, the fear of likely recession might affect valuation of the company. | |||||