Aamal Company — H1 trading in line with full year expectations

Aamal Company (QSE: AHCS)

Last close As at 30/07/2025

QAR0.82

−0.01 (−0.72%)

Market capitalisation

QAR5,192m

More on this equity

Research: Industrials

Aamal Company — H1 trading in line with full year expectations

Aamal Company reported a strong H125 with revenue up 2.4% y-o-y and net profit up 17.5% y-o-y. The robust performance in the half year means Aamal 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, are positive for both the country’s economic growth and Aamal’s long-term growth prospects. We maintain our estimates and valuation of QAR1.22/share, which represents c 45% upside to the current share price.

Andy Murphy

Written by

Andy Murphy

Director of content, industrials

Diversified industrials

H125 results

30 July 2025

Price QAR0.84
Market cap QAR5,292m

Net (debt) at 30 June 2025

QAR(247.3)m

Shares in issue

6,300.0m
Free float 35.6%
Code AHCS
Primary exchange DSMD
Secondary exchange N/A
Price Performance

Business description

Aamal Company is a highly diversified Qatari conglomerate with a business model that provides resilience and balanced exposure across its four segments (Trading and Distribution, Industrial Manufacturing, Property and Managed Services). The company offers entry into the Qatari economy through high-growth sectors.

Analysts

Andy Murphy
+44 (0)20 3077 5700
Harry Kilby
+44 (0)20 3077 5700
Andrew Keen
+44 (0)20 3077 5700

Aamal Company is a research client of Edison Investment Research Limited

Note: PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Year end Revenue (QARm) PBT (QARm) EPS (QAR) DPS (QAR) P/E (x) Yield (%)
12/23 2,077.2 366.4 0.06 0.05 14.5 6.0
12/24 2,100.8 432.0 0.07 0.00 12.3 N/A
12/25e 2,262.1 492.5 0.08 0.06 10.8 7.1
12/26e 2,449.7 532.0 0.08 0.06 10.0 7.1

Aamal’s H125 trading was robust, resulting in a modest increase in revenue and a more material increase in net profit. Overall, revenue grew 2.4% to QAR1,070.1m, boosted by increases across all four divisions, and net profit attributable to Aamal shareholders increased 17.5% to QAR221.3m. EPS rose by the same percentage to QAR0.035 and gearing increased to 2.93% from 0.69% at the same point last year.

In Industrial Manufacturing, revenue increased by 3.2% to QAR92.1m and net profit increased by 23.1% to QAR33.0m, driven by increased demand for Aamal Readymix and Aamal Cement from new projects. The division continued to benefit from major infrastructure and energy projects including the expansion of Kahramaa’s power transmission system in Qatar.

Trading and Distribution reported revenue growth of 1.0% to QAR756.8m, but net profit declined 4.8% to QAR53.6m. Demand remained robust across most of the division, but in Aamal Medical demand from key sectors was down.

In the Property division, by far the largest division by net profit contribution, revenue increased by 7.7% to QAR170.0m and net profit rose by 12.3% to QAR138.7m. There were no revaluation profits in either H125 or H124. Aamal generated growth in City Centre Doha due to strong leasing and occupancy rates and new tenants in the new 4,000sqm expansion and other strategic initiatives. Aamal recently announced the purchase of Golden Tower, which adds to its market-leading position of prime rental assets.

The Managed Services division grew revenue by 2.0% to QAR80.7m and net profit by 0.8% to QAR9.6m as some business units suffered gross margin pressure. Aamal Services, MMS and ECCO Gulf suffered price competition and non-recurring orders, partially offset by improved marketing initiatives in the Family Entertainment Centre.

Management stated that the outlook for 2025 and beyond remains positive due to an abundant number of opportunities to expand into new markets and regions, while enhancing existing operations. We maintain our valuation of QAR1.22/share, representing c 45% upside to the current share price. On our estimates, Aamal trades on an FY25e P/E of 10.8x, a c 40% discount to the weighted average of a mix of relative peers across Aamal’s operating segments.

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