Revenue growth beats Bloomberg’s and U Capital’s estimates
BinDawood Holding’s (BDH) revenue in 1Q25 jumped 13.7% YoY, beating the Bloomberg consensus and our estimate (+8% variance). Revenue growth was driven by all the segments — (i) retail (3 new stores opened, full period impact of the stores opened in FY24), (ii) tech (IACo and Ykone registered growth, more dark stores added), (iii) distribution (rising sales registered), and (iv) pharmacy (3 standalone pharmacies and 4 in-store pharmacies were launched in 1Q25).
Net profit beats Bloomberg estimate; meets our expectations
Net profit rose 8.5% YoY, beating Bloomberg consensus (+41% variance), but coming primarily in line with our estimates. Healthy revenue growth and improved gross margin supported net profit growth, partially offset by higher operating costs, lower finance income, and increased finance costs as debt was raised for pharmacy acquisition.
Maintain target price
With the company’s 1Q25 financial performance meeting our expectations, we maintain our SAR 9.5 target price on BDH. Currently, the stock trades at 24.6x FY25e EPS, below its 3-year daily average forward P/E of 26.5x.