Revenue rises 9% YoY in 3Q25, broadly meeting our estimates
Mouwasat Medical’s revenue rose 9% YoY in 3Q25, broadly meeting our estimates. Improved occupancy in inpatient departments, an increase in outpatient visits, and continued positive impact from favorable revisions to contractual terms of some earlier contracts drove the revenue higher.
Net profit outshines revenue growth, ahead of our estimate
Net profit increased at a significantly higher pace (+33% YoY) vs. revenue, coming in better than our expectations. Apart from the revenue growth, lower impairment loss on receivables resulting from the collection of a considerable sum of outstanding receivables, and a decrease in zakat expense, boosted the net profit in 3Q25.
U Capital View
We reiterate our SAR 90.0/share target price on Mouwasat. We believe that, with its prudent financial management, the company is well-positioned to maintain its profitable growth as it is set to add more capacity over our forecast period. Mouwasat’s stock is currently trading at a P/E ratio of 18.5x, based on our FY26 estimates, which is below its 3-year daily average forward P/E of 26.3x.