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Satyendra Pathak
Doha
Aamal’s manufacturing segment has started to benefit from increased project activity as Aamal Cables won a QR694 million contract with Kahramaa to supply 11KV medium voltage and pilot power cables to be delivered over three years, QNB Financial Services (QNBFS) has said in its latest report.
On the other hand, the report said, completion of the phase 2 renovation works at City Center resulted in a 7.1 percent increase in the mall’s gross leasable area.
“As expected, the mall’s new dedicated jewellery retail area (the Gold Souq) was completed within the fourth quarter of 2020 with 34 units becoming available,” the report said.
“Aamal enjoys a well-diversified business portfolio across many major sectors of the Qatari economy. Thus, we are of the view that Aamal could be one of the top direct and indirect beneficiaries of the expected post-coronavirus recovery in Qatar. Moreover, it has Qatar’s leading pharma and medical device distribution companies in its portfolio, which should support the company’s top- & bottom-line resilience,” it said.
While Aamal’s 2020 results were affected by the coronavirus shock, the report said, “We believe Aamal’s 2021 prospects could be better with the completion of renovation works and expansion in the City Center Mall in 2020, Senyar’s new drum and copper factories becoming operational during the first quarter of 2021, coupled with the Kahramaa order. Ebn Sina Medical and Aamal Medical products are expected to see higher public sector demand in the remaining part of the year. In 2022, we believe Aamal could be one of the top beneficiaries of FIFA 2022 World Cup given its property, retail and trading exposures.”
Aamal’s net profit rose 114.1 percent quarter-on-quarter (QoQ) yet down 17.7 percent year-on-year (YoY) to QR67.9 million in the first quarter of 2021, in line with our estimate of QR67.6 million. The company’s earnings per share (EPS) amounted to QR0.01 in the first quarter of 2021 as compared to QR0.01 in the same quarter of 2020.
“The company’s gross profit in the first quarter of 2021 declined by 3.8 percent QoQ and 14.1 percent YoY to QR95 million, in-line with our estimate. Aamal’s revenue came in at QR312.7 million in the first quarter of 2021, with respective declines of 6.6 percent QoQ and 16.4 percent YoY. Gross margin rose from 29.6 percent in the first quarter of 2020 and 29.5 percent in the fourth quarter of 2020 to 30.4 percent in the first quarter of 2021,” the report said.
The report said, “Industrial Manufacturing segment recorded a 15.1 percent revenue growth YoY thanks to performances of Aamal Cement Industries and Aamal Cables. The company stated that rental income of the property segment shrank against the first quarter of 2020 as Aamal adjusted rents in parallel to the prevailing market conditions.
“The Trading and Distribution segment also saw a reduction in orders from the public sector for Ebn Sina Medical and Aamal Medical products. Ebn Sina Medical focused in 2020 on securing local stock including medicines, baby milk, face masks, gloves, and hand sanitisers and benefitted from the rising demand of these products,”
“We continue to rate Aamal as market perform and maintain our estimates for now,” the report said.
Doha
Aamal’s manufacturing segment has started to benefit from increased project activity as Aamal Cables won a QR694 million contract with Kahramaa to supply 11KV medium voltage and pilot power cables to be delivered over three years, QNB Financial Services (QNBFS) has said in its latest report.
On the other hand, the report said, completion of the phase 2 renovation works at City Center resulted in a 7.1 percent increase in the mall’s gross leasable area.
“As expected, the mall’s new dedicated jewellery retail area (the Gold Souq) was completed within the fourth quarter of 2020 with 34 units becoming available,” the report said.
“Aamal enjoys a well-diversified business portfolio across many major sectors of the Qatari economy. Thus, we are of the view that Aamal could be one of the top direct and indirect beneficiaries of the expected post-coronavirus recovery in Qatar. Moreover, it has Qatar’s leading pharma and medical device distribution companies in its portfolio, which should support the company’s top- & bottom-line resilience,” it said.
While Aamal’s 2020 results were affected by the coronavirus shock, the report said, “We believe Aamal’s 2021 prospects could be better with the completion of renovation works and expansion in the City Center Mall in 2020, Senyar’s new drum and copper factories becoming operational during the first quarter of 2021, coupled with the Kahramaa order. Ebn Sina Medical and Aamal Medical products are expected to see higher public sector demand in the remaining part of the year. In 2022, we believe Aamal could be one of the top beneficiaries of FIFA 2022 World Cup given its property, retail and trading exposures.”
Aamal’s net profit rose 114.1 percent quarter-on-quarter (QoQ) yet down 17.7 percent year-on-year (YoY) to QR67.9 million in the first quarter of 2021, in line with our estimate of QR67.6 million. The company’s earnings per share (EPS) amounted to QR0.01 in the first quarter of 2021 as compared to QR0.01 in the same quarter of 2020.
“The company’s gross profit in the first quarter of 2021 declined by 3.8 percent QoQ and 14.1 percent YoY to QR95 million, in-line with our estimate. Aamal’s revenue came in at QR312.7 million in the first quarter of 2021, with respective declines of 6.6 percent QoQ and 16.4 percent YoY. Gross margin rose from 29.6 percent in the first quarter of 2020 and 29.5 percent in the fourth quarter of 2020 to 30.4 percent in the first quarter of 2021,” the report said.
The report said, “Industrial Manufacturing segment recorded a 15.1 percent revenue growth YoY thanks to performances of Aamal Cement Industries and Aamal Cables. The company stated that rental income of the property segment shrank against the first quarter of 2020 as Aamal adjusted rents in parallel to the prevailing market conditions.
“The Trading and Distribution segment also saw a reduction in orders from the public sector for Ebn Sina Medical and Aamal Medical products. Ebn Sina Medical focused in 2020 on securing local stock including medicines, baby milk, face masks, gloves, and hand sanitisers and benefitted from the rising demand of these products,”
“We continue to rate Aamal as market perform and maintain our estimates for now,” the report said.
