Major Estimate Revision • Jun 06
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from ر.س7.32 to ر.س6.54 per share. Revenue forecast steady at ر.س7.90b. Net income forecast to grow 9.9% next year vs 4.6% growth forecast for Specialty Retail industry in Saudi Arabia. Consensus price target down from ر.س112 to ر.س109. Share price fell 3.6% to ر.س76.65 over the past week. Reported Earnings • May 15
First quarter 2026 earnings released: EPS: ر.س1.24 (vs ر.س1.13 in 1Q 2025) First quarter 2026 results: EPS: ر.س1.24 (up from ر.س1.13 in 1Q 2025). Revenue: ر.س1.83b (up 5.0% from 1Q 2025). Net income: ر.س94.8m (up 10% from 1Q 2025). Profit margin: 5.2% (up from 4.9% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Specialty Retail industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Apr 21
United Electronics Company, Annual General Meeting, May 11, 2026 United Electronics Company, Annual General Meeting, May 11, 2026, at 18:30 Arab Standard Time. Location: khobar Saudi Arabia Buy Or Sell Opportunity • Apr 12
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.2% to ر.س81.40. The fair value is estimated to be ر.س102, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.6% over the last 3 years. Earnings per share has grown by 10.0%. For the next 3 years, revenue is forecast to grow by 6.1% per annum. Earnings are also forecast to grow by 8.1% per annum over the same time period. Buy Or Sell Opportunity • Feb 26
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.0% to ر.س82.85. The fair value is estimated to be ر.س104, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.4% over the last 3 years. Earnings per share has grown by 8.6%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 15% in the next 2 years. Reported Earnings • Nov 06
Third quarter 2025 earnings released: EPS: ر.س1.78 (vs ر.س2.04 in 3Q 2024) Third quarter 2025 results: EPS: ر.س1.78. Revenue: ر.س1.79b (up 12% from 3Q 2024). Net income: ر.س167.2m (up 7.0% from 3Q 2024). Profit margin: 9.3% (in line with 3Q 2024). Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Specialty Retail industry in Saudi Arabia. Buy Or Sell Opportunity • Aug 20
Now 21% undervalued Over the last 90 days, the stock has risen 1.3% to ر.س87.65. The fair value is estimated to be ر.س110, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.0% over the last 3 years. Earnings per share has grown by 6.9%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 17% in the next 2 years. Reported Earnings • Aug 07
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: ر.س1.63. Revenue: ر.س2.12b (up 11% from 2Q 2024). Net income: ر.س106.5m (flat on 2Q 2024). Profit margin: 5.0% (down from 5.5% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.2%. Earnings per share (EPS) also surpassed analyst estimates by 19%. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Specialty Retail industry in Saudi Arabia. Declared Dividend • Aug 02
Dividend of ر.س2.00 announced Shareholders will receive a dividend of ر.س2.00. Ex-date: 4th August 2025 Payment date: 14th August 2025 Dividend yield will be 11%, which is higher than the industry average of 4.2%. Sustainability & Growth Dividend is covered by earnings (74% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 28% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to grow by 24% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Jul 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 5.4% to ر.س88.00. The fair value is estimated to be ر.س110, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.4% over the last 3 years. Earnings per share has grown by 5.1%. Revenue is forecast to grow by 17% in 2 years. Earnings are forecast to grow by 15% in the next 2 years. Buy Or Sell Opportunity • Jul 01
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.2% to ر.س87.40. The fair value is estimated to be ر.س109, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.4% over the last 3 years. Earnings per share has grown by 5.1%. Revenue is forecast to grow by 17% in 2 years. Earnings are forecast to grow by 15% in the next 2 years. New Risk • May 15
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (27% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • May 13
First quarter 2025 earnings released: EPS: ر.س1.35 (vs ر.س1.23 in 1Q 2024) First quarter 2025 results: EPS: ر.س1.35 (up from ر.س1.23 in 1Q 2024). Revenue: ر.س1.74b (up 10% from 1Q 2024). Net income: ر.س103.4m (up 10% from 1Q 2024). Profit margin: 5.9% (in line with 1Q 2024). Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Specialty Retail industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Apr 29
United Electronics Company, Annual General Meeting, May 26, 2025 United Electronics Company, Annual General Meeting, May 26, 2025, at 18:30 Arab Standard Time. Location: khobar Saudi Arabia Buy Or Sell Opportunity • Apr 06
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.1% to ر.س87.60. The fair value is estimated to be ر.س113, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.0% over the last 3 years. Earnings per share has grown by 3.4%. For the next 3 years, revenue is forecast to grow by 7.9% per annum. Earnings are also forecast to grow by 7.5% per annum over the same time period. Declared Dividend • Mar 13
Dividend of ر.س3.00 announced Shareholders will receive a dividend of ر.س3.00. Ex-date: 19th March 2025 Payment date: 7th April 2025 Dividend yield will be 10%, which is higher than the industry average of 4.2%. Sustainability & Growth Dividend is not covered by earnings (101% earnings payout ratio) nor is it covered by cash flows (247% cash payout ratio). The dividend has increased by an average of 30% per year over the past 8 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 13% to bring the payout ratio under control. EPS is expected to grow by 20% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. New Risk • Feb 26
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 101% Cash payout ratio: 247% Dividend yield: 7.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Price Target Changed • Feb 24
Price target increased by 8.2% to ر.س118 Up from ر.س109, the current price target is an average from 8 analysts. New target price is 22% above last closing price of ر.س96.50. Stock is up 7.5% over the past year. The company is forecast to post earnings per share of ر.س6.67 for next year compared to ر.س6.68 last year. Reported Earnings • Feb 21
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: ر.س6.68 (up from ر.س5.12 in FY 2023). Revenue: ر.س6.78b (up 9.4% from FY 2023). Net income: ر.س534.4m (up 37% from FY 2023). Profit margin: 7.9% (up from 6.3% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.6%. Revenue is forecast to grow 7.9% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Specialty Retail industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has fallen by 1% per year. Reported Earnings • Nov 06
Third quarter 2024 earnings: EPS exceeds analyst expectations Third quarter 2024 results: EPS: ر.س1.95 (up from ر.س1.55 in 3Q 2023). Revenue: ر.س1.60b (up 10% from 3Q 2023). Net income: ر.س156.3m (up 32% from 3Q 2023). Profit margin: 9.7% (up from 8.1% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 28%. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Specialty Retail industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Sep 01
Now 20% overvalued Over the last 90 days, the stock has fallen 2.1% to ر.س92.50. The fair value is estimated to be ر.س77.00, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 2.6% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 7.4% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Reported Earnings • Aug 06
Second quarter 2024 earnings released: EPS: ر.س1.39 (vs ر.س0.81 in 2Q 2023) Second quarter 2024 results: EPS: ر.س1.39 (up from ر.س0.81 in 2Q 2023). Revenue: ر.س1.92b (up 9.8% from 2Q 2023). Net income: ر.س106.6m (up 73% from 2Q 2023). Profit margin: 5.5% (up from 3.5% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Specialty Retail industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Declared Dividend • Aug 02
Dividend of ر.س2.00 announced Shareholders will receive a dividend of ر.س2.00. Ex-date: 4th August 2024 Payment date: 15th August 2024 Dividend yield will be 4.3%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (67% earnings payout ratio) and cash flows (63% cash payout ratio). The dividend has increased by an average of 22% per year over the past 7 years. However, payments have been volatile during that time. EPS is expected to grow by 49% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Jun 13
Price target increased by 7.8% to ر.س107 Up from ر.س99.15, the current price target is an average from 9 analysts. New target price is 14% above last closing price of ر.س93.80. Stock is up 29% over the past year. The company is forecast to post earnings per share of ر.س5.76 for next year compared to ر.س5.12 last year. Reported Earnings • May 18
First quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2024 results: EPS: ر.س1.23 (up from ر.س1.12 in 1Q 2023). Revenue: ر.س1.58b (up 10.0% from 1Q 2023). Net income: ر.س93.9m (up 11% from 1Q 2023). Profit margin: 5.9% (in line with 1Q 2023). Revenue exceeded analyst estimates by 5.5%. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 9.6% growth forecast for the Specialty Retail industry in Asia. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 2% per year. Board Change • May 15
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 2 highly experienced directors. 2 independent directors (4 non-independent directors). Independent Director Mansour Abdul Aziz AlBosaily was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • May 15
United Electronics Company Announces Board and Committee Changes United Electronics Company announced that the Board of Directors, elected by the Ordinary General Assembly held on May 9, 2024, for the new term starting on May 13, 2024, and ending on May 12, 2027, has decided on the following on May 13, 2024: Appointing Mr. Yousef Ali Zaid AL Quraishi (Independent Member) as Chairman of the Board of Directors; Appointing Mr. Fozan Mohammed Ahmed AlFozan (Non-Executive Member) as Vice Chairman of the Board of Directors. Forming the Audit Committee as follows: Mr. Fahad Adnan Abdulrahman Almansour (Independent Member) - Chairman of the Committee; Mr. Mohammed Ibrahim Abdulaziz Al-Obeid (outside the Board) - Member and Mr. Mohammed Farhan Mohammed Nader (outside the Board) - Member. Forming the Nominations and Remuneration Committee as follows: Mr. Hazem Abdullah Abdulaziz Al Shaikh Mubarak (Independent Member) - Chairman of the Committee; Mr. Yousef Ali Zaid AL Quraishi (Independent Member) - Member; Mr. Abdullatif Ali Abdullatif Al Fozan (Non-Executive Member) - Member. Announcement • Apr 20
United Electronics Company, Annual General Meeting, May 09, 2024 United Electronics Company, Annual General Meeting, May 09, 2024, at 15:30 Coordinated Universal Time. Agenda: To consider and approve the Board of Directors' Report for the fiscal year ending on 31 December 2023 and discuss it; to consider and approve the Auditors Report for the fiscal year ending 31 December 2023; to consider and approve the interim dividends on a semi-annual or quarterly basis; and to consider and approve any other matters. Announcement • Mar 07
United Electronics Company Declares Distribution Cash Dividends to the Shareholders for the Second Half of 2023, Payable on March 21, 2024 The Board of Directors of United Electronics Company decided in its meeting held on March 06, 2024, to distribute cash dividends of 2 SAR to the shareholders of the company for the Second half of 2023. Distribution Date: March 21, 2024. The entitlement shall be for the shareholders who own the shares at the close of trading on March 11, 2024, and as per the shareholders' registry in Securities Depository Center (EDAA) at the end of 2nd trading day following the entitlement date. New Risk • Feb 28
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 14% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Minor Risk Dividend is not well covered by cash flows (204% cash payout ratio). Major Estimate Revision • Dec 27
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from ر.س5.38 to ر.س4.77 per share. Revenue forecast steady at ر.س6.23b. Net income forecast to grow 13% next year vs 18% growth forecast for Specialty Retail industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س93.74. Share price rose 2.3% to ر.س85.90 over the past week. Major Estimate Revision • Dec 12
Consensus EPS estimates increase by 27% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from ر.س4.24 to ر.س5.38. Revenue forecast steady at ر.س6.23b. Net income forecast to grow 13% next year vs 18% growth forecast for Specialty Retail industry in Saudi Arabia. Consensus price target of ر.س92.87 unchanged from last update. Share price rose 2.6% to ر.س81.90 over the past week. Reported Earnings • Nov 07
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: ر.س1.55 (up from ر.س1.25 in 3Q 2022). Revenue: ر.س1.45b (up 5.8% from 3Q 2022). Net income: ر.س118.3m (up 26% from 3Q 2022). Profit margin: 8.1% (up from 6.9% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) also surpassed analyst estimates by 38%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Specialty Retail industry in Asia. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 10% per year. Major Estimate Revision • Aug 25
Consensus EPS estimates fall by 18% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from ر.س5.29 to ر.س4.34 per share. Revenue forecast steady at ر.س6.18b. Net income forecast to grow 12% next year vs 15% growth forecast for Specialty Retail industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س89.84. Share price was steady at ر.س75.60 over the past week. Reported Earnings • Aug 08
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: ر.س0.81 (down from ر.س1.69 in 2Q 2022). Revenue: ر.س1.75b (up 2.9% from 2Q 2022). Net income: ر.س61.7m (down 52% from 2Q 2022). Profit margin: 3.5% (down from 7.5% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.5%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Specialty Retail industry in Asia. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 20% per year. Major Estimate Revision • May 31
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from ر.س6.29b to ر.س6.19b. EPS estimate also fell from ر.س5.90 per share to ر.س5.24 per share. Net income forecast to grow 13% next year vs 15% growth forecast for Specialty Retail industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س95.45. Share price was steady at ر.س72.50 over the past week. Upcoming Dividend • May 14
Upcoming dividend of ر.س2.00 per share at 5.2% yield Eligible shareholders must have bought the stock before 21 May 2023. Payment date: 04 June 2023. Payout ratio is a comfortable 68% but the company is not cash flow positive. Trailing yield: 5.2%. Within top quartile of Saudi dividend payers (4.2%). Higher than average of industry peers (4.3%). Price Target Changed • Jan 16
Price target decreased to ر.س100 Down from ر.س110, the current price target is an average from 7 analysts. New target price is 35% above last closing price of ر.س74.50. Stock is down 32% over the past year. The company is forecast to post earnings per share of ر.س5.81 for next year compared to ر.س5.39 last year. Announcement • Dec 21
United Electronics Company Announces Resignation of Khalid Malik Al Ghalib AlSharif from Board Member United Electronics Company (eXtra) Board of Directors decided, in their meeting held on December 20, 2022, to accept the resignation of Mr. Khalid Malik Al Ghalib AlSharif (independent member) from the membership of the Board of Directors, effective December 20, 2022. Major Estimate Revision • Nov 23
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from ر.س5.16 to ر.س6.01. Revenue forecast unchanged at ر.س6.09b. Net income forecast to grow 12% next year vs 13% growth forecast for Specialty Retail industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س112. Share price was steady at ر.س74.00 over the past week. Price Target Changed • Nov 16
Price target decreased to ر.س113 Down from ر.س123, the current price target is an average from 7 analysts. New target price is 53% above last closing price of ر.س73.90. Stock is down 33% over the past year. The company is forecast to post earnings per share of ر.س5.16 for next year compared to ر.س5.39 last year. Price Target Changed • Nov 09
Price target decreased to ر.س113 Down from ر.س123, the current price target is an average from 8 analysts. New target price is 51% above last closing price of ر.س74.90. Stock is down 34% over the past year. The company is forecast to post earnings per share of ر.س5.16 for next year compared to ر.س5.39 last year. Reported Earnings • Nov 02
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: ر.س1.37b (flat on 3Q 2021). Net income: ر.س94.2m (up 5.8% from 3Q 2021). Profit margin: 6.9% (up from 6.5% in 3Q 2021). Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Specialty Retail industry in Asia. Major Estimate Revision • Oct 10
Consensus EPS estimates increase by 12% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from ر.س5.92b to ر.س6.14b. EPS estimate increased from ر.س5.93 to ر.س6.65 per share. Net income forecast to grow 7.7% next year vs 17% growth forecast for Specialty Retail industry in Saudi Arabia. Consensus price target broadly unchanged at ر.س123. Share price fell 3.1% to ر.س84.30 over the past week. Valuation Update With 7 Day Price Move • Oct 05
Investor sentiment deteriorated over the past week After last week's 18% share price decline to ر.س87.97, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 14x in the Specialty Retail industry in Asia. Total returns to shareholders of 63% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ر.س89.37 per share. Announcement • Aug 10
United Electronics Company Announces Cash Dividend for the First Half of 2022, Payable on August 25, 2022 The Board of Directors of United Electronics Company (eXtra) decided on August 8, 2022 to distribute cash dividends to the shareholders of the company for the first half of 2022. The Total amount distributed: SAR 150,000,000. Dividend per share: SAR 2.5. Eligibility date: The entitlement shall be for the shareholders who own the shares at the close of trading on August 11, 2022 and as per the shareholders' registry in Securities Depository Center (EDAA) at the end of 2nd trading day following the entitlement date. Distribution Date: August 25, 2022. The Dividend will be through Riyadh Bank by direct bank transfer to shareholders bank accounts linked to their portfolios. Reported Earnings • May 12
First quarter 2022 earnings: Revenues and EPS in line with analyst expectations First quarter 2022 results: EPS: ر.س1.66 (up from ر.س1.41 in 1Q 2021). Revenue: ر.س1.41b (up 3.5% from 1Q 2021). Net income: ر.س97.5m (up 20% from 1Q 2021). Profit margin: 6.9% (up from 6.0% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Over the next year, revenue is forecast to grow 8.8%, compared to a 18% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 30% per year whereas the company’s share price has increased by 28% per year. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 6 experienced directors. 2 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Non-Executive Director Abdulhamid Abdulaziz Aloahly was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Apr 10
Upcoming dividend of ر.س2.50 per share Eligible shareholders must have bought the stock before 17 April 2022. Payment date: 28 April 2022. Payout ratio is a comfortable 65% but the company is not cash flow positive. Trailing yield: 3.7%. Lower than top quartile of Saudi dividend payers (3.9%). Higher than average of industry peers (2.2%). Announcement • Apr 02
United Electronics Company, Annual General Meeting, Apr 21, 2022 United Electronics Company, Annual General Meeting, Apr 21, 2022, at 21:30 Arabian Standard Time. Agenda: To consider Voting on the Board Report for the fiscal year ending 31 December 2021;To consider Voting on the Auditors Report for the fiscal year ending 31 December 2021;To consider Voting on the Financial Statements for the fiscal year ending 31 December 2021;To consider Voting on release Board of Directors members from liability for the fiscal year ending 31 December 2021;and discuss other matters. Announcement • Mar 31
United Electronics Company Proposes Distributed Profits for the First Half and Second Half of 2021 United Electronics Company proposed the distributed profits of the company for the first half and second half of 2021, SAR 4.5 per share, 45% of the company's capital, with a total amount of SAR 270,000,000 at the Ordinary General Assembly Meeting for shareholders to be held on April 21 2022. Reported Earnings • Feb 24
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: ر.س6.90 (up from ر.س4.86 in FY 2020). Revenue: ر.س5.83b (down 2.2% from FY 2020). Net income: ر.س396.8m (up 42% from FY 2020). Profit margin: 6.8% (up from 4.7% in FY 2020). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 3.9%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 13%, compared to a 18% growth forecast for the retail industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has increased by 36% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 03
Third quarter 2021 earnings released: EPS ر.س1.55 (vs ر.س0.93 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ر.س1.37b (up 12% from 3Q 2020). Net income: ر.س89.0m (up 67% from 3Q 2020). Profit margin: 6.5% (up from 4.4% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Aug 09
Second quarter 2021 earnings released: EPS ر.س1.75 (vs ر.س1.57 in 2Q 2020) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2021 results: Revenue: ر.س1.33b (down 14% from 2Q 2020). Net income: ر.س100.5m (up 11% from 2Q 2020). Profit margin: 7.6% (up from 5.8% in 2Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has increased by 53% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jul 18
Upcoming dividend of ر.س2.00 per share Eligible shareholders must have bought the stock before 25 July 2021. Payment date: 05 August 2021. Trailing yield: 3.0%. Lower than top quartile of Saudi dividend payers (4.5%). Lower than average of industry peers (3.4%). Announcement • Jul 14
United Electronics Company Announces Estimated Earnings Result for the Quarter and Six Months Ended June 30, 2021 United Electronics Company announced estimated earnings result for the quarter and six months ended June 30, 2021. For the quarter, the company announced estimated, sales/revenue of SAR 1,328.2 million against SAR 1,550.86 million for the same period last year. Operational profit of SAR 106.8 million against SAR 112.97 million for the same period last year. Net profit after zakat and tax of SAR 100.5 million compared to SAR 90.38 million for the same period last year.
For the six months, the company announced estimated sales/revenue of SAR 2,692.53 million against SAR 2,783.11 million for the same period last year. Operational profit of SAR 202.95 million against SAR 163.64 million for the same period last year. Net profit after Zakat and Tax of SAR 181.7 million compared to SAR 125.06 million for the same period last year. Profit per share of SAR 3.03 compared to SAR 2.08 for the same period last year. Price Target Changed • Jul 01
Price target increased to ر.س141 Up from ر.س128, the current price target is an average from 8 analysts. New target price is 5.8% above last closing price of ر.س134. Stock is up 135% over the past year. Price Target Changed • Jun 11
Price target increased to ر.س128 Up from ر.س114, the current price target is an average from 7 analysts. New target price is approximately in line with last closing price of ر.س127. Stock is up 153% over the past year. Major Estimate Revision • May 26
Consensus revenue estimates increase to ر.س6.84b The consensus outlook for revenues in 2021 has improved. 2021 revenue forecast increased from ر.س6.18b to ر.س6.84b. EPS estimate increased from ر.س5.35 to ر.س6.09 per share. Net income forecast to grow 0.8% next year vs 28% growth forecast for Specialty Retail industry in Saudi Arabia. Consensus price target up from ر.س110 to ر.س114. Share price rose 4.9% to ر.س120 over the past week. Reported Earnings • May 07
First quarter 2021 earnings released: EPS ر.س1.41 (vs ر.س0.60 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: ر.س1.36b (up 11% from 1Q 2020). Net income: ر.س81.2m (up 134% from 1Q 2020). Profit margin: 6.0% (up from 2.8% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year whereas the company’s share price has increased by 28% per year. Reported Earnings • Mar 02
Full year 2020 earnings released: EPS ر.س4.86 (vs ر.س3.57 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ر.س5.96b (up 16% from FY 2019). Net income: ر.س280.1m (up 36% from FY 2019). Profit margin: 4.7% (up from 4.0% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 27% per year. Analyst Estimate Surprise Post Earnings • Mar 02
Earnings beat expectations, revenue disappoints Revenue missed analyst estimates by 0.03%. Earnings per share (EPS) exceeded analyst estimates by 3.8%. Over the next year, revenue is forecast to grow 5.0%, compared to a 8.2% growth forecast for the Specialty Retail industry in Saudi Arabia. Is New 90 Day High Low • Feb 18
New 90-day high: ر.س94.10 The company is up 14% from its price of ر.س82.80 on 19 November 2020. The Saudi market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ر.س67.44 per share.