Aamal Company reported a strong start to 2025, with ongoing delivery of its strategy while navigating dynamic market conditions. In Q125 the company recorded year-on-year growth in revenue and total net profit of 6.8% and 8.3%, respectively, to QAR580.3m and QAR101.8m. Aamal sustained its financial strength, reducing gearing by 0.33pp to 0.89%. The robust performance in the quarter means the company it is on track to achieve our FY25 estimates. The continued development of Qatar’s liquefied natural gas (LNG) capacity expansion projects and focus on non-oil sectors, through the Third National Development Strategy, is positive for both Qatar’s economic growth and Aamal’s long-term growth prospects. We maintain our previous estimates, as well as our valuation of QAR1.22/share, which represents c 45% upside to the current share price. For more information on Aamal please see our April 2025 initiation note.

Aamal Company is a highly diversified conglomerate in Qatar operating across four business segments: Trading and Distribution, Industrial Manufacturing, Property and Managed Services. The company offers exposure to Qatar’s forecast strong economic growth in the medium term, especially in the key non-hydrocarbon sectors, due to an increase in government spending to diversify the country away from its dependence on liquefied natural gas (LNG) exports. Aamal trades at a 26% discount relative to peers in the Middle East and North Africa (MENA) region on an FY25e EV/EBITDA basis and at a 43% discount on an FY25e P/E basis. We initiate coverage with a valuation of QAR1.22 per share, approximately c 40% above the current share price.