Riyad Capital Affirms Neutral Rating for SIIG After Q1 Earnings Results
Riyad Capital kept its neutral rating on Saudi Industrial Investment Group (SASE:2250), d/b/a SIIG, after its first-quarter financial results showed a significant year-over-year increase in net profit.The petrochemical industry-focused investor logged a surge in first-quarter net profit to 252 million Saudi riyals from 18 million riyals, compared with Riyad Capital's estimate of 66 million riyals, according to a Tuesday flash note."Other items had an insignificant effect in comparison, such as a decrease in G&A expenses, an increase in zakat expenses, and continued lower income from Murabaha financing vehicles. Investors will need to look past the noise of the assessment, volume changes, and shipping disruptions. Of note, operating and net profit were identical at SAR 252 mln this quarter, just highlighting as a potential error on Tadawul," analysts said.The stock has a price target of 13 riyals.
