Aamal Company — Robust start to 2025

Aamal Company (QSE: AHCS)

Last close As at 05/05/2025

QAR0.83

0.01 (1.09%)

Market capitalisation

QAR5,179m

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Research: Industrials

Aamal Company — Robust start to 2025

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.

Andy Murphy

Written by

Andy Murphy

Director of content, industrials

Diversified industrials

Q125 results

6 May 2025

Price QAR0.84
Market cap QAR5,292m

Net cash/(debt) at end Q125

QAR(76.2)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 robust performance across Q125 was primarily driven by solid year-on-year revenue and net profit growth in its Property segment of 7.7% and 13.5%, respectively, to QAR81.9m and QAR67.6m. These increases were due to regular rental uplifts and new tenants at City Center Doha, as well as stable occupancy levels at Aamal Real Estate. The Trading and Distribution segment saw revenue and net profit growth of 8.3% and 2.6%, respectively, to QAR428.9m and QAR28.6m. This was driven by particularly strong revenue growth at Ebn Sina Medical, due to a change in business model, unlocking organic growth opportunities.The company’s Managed Services segment saw relatively flat performance in Q125, with revenue decreasing 0.9% y-o-y and total net profit remaining flat at QAR4.2m. Industrial Manufacturing, however, recorded decreases in revenue and net profit of 7.2% and 34.2% y-o-y to QAR44.9m and QAR10.9m, respectively. This was due to low levels of construction activity.

The outlook for Qatar remains positive. The World Bank recently introduced forecasts for 2027 oil and non-oil GDP growth of c 12% and c 5%, respectively, and real GDP growth of c 8%. The significant increase in oil GDP growth in both 2026 (c 8%) and 2027 is due to the LNG capacity expansion projects of Qatar’s North Field deposit. These projects are already beginning to flow through to Qatar’s construction sector, with Aamal’s Senyar Industries seeing profitability growth and high revenue volumes in Q125. Qatar’s Third National Development Strategy, which focuses on non-oil sectors, is expected to continue to have a positive impact on Aamal. 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 ratio of 10.8x, which is at a c 40% discount to the weighted average of a mix of relative peers across Aamal’s operating segments.

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