Elm: Another strategic platform win

Research evidence excerpt

Elm: Another strategic platform win

Global Research

23 July 2026ab

First Read

EquitiesElm

Another strategic platform win Saudi Arabia

Diversified Technology Services

12-month rating Neutral

New agreement strengthens Elm's position in KSA digital infrastructure

Yesterday after close Elm announced a new five-year contract to develop and operate 12m price target SR710.00

Saudi Standards, Metrology and Quality Organization (SASO) product safety system, the

digital platform underpinning KSA's new product safety regime. The system is expected

Price (22 Jul 2026) SR659.00

to become the central platform for product registration, compliance, market

surveillance and recalls. We think the agreement reinforces Elm's role as the preferred RIC: 7203.SE BBG: ELM AB

digital transformation partner for government entities in KSA. Trading data and key metrics

52-wk range SR950.50-509.50

Long duration, transaction-driven revenue

Market cap. SR52.7b/US$14.0b

Unlike traditional fixed price implementation projects, the agreement is structured as a

Shares o/s 80.0m (ORD)

revenue-sharing model, with Elm's remuneration linked to the platform's transaction

Free float 30%

volumes. This provides recurring, usage based revenue with potential upside from

Avg. daily volume ('000) 116

increasing regulatory adoption and expanding product coverage over time.

Avg. daily value (m) SR77.6

Financial contribution: c3% revenue upside, we estimate Common s/h equity (12/26E) SR5.32b

P/BV (12/26E) 9.7x

The company's management estimates cumulative revenue contribution at c15% of

FY25 revenue. Over the five years, this implies up to 3% potential revenue upside to our Net debt to EBITDA (12/26E) NM

current forecasts. For now, we keep our numbers unchanged ahead of 2Q26 release EPS (UBS, diluted) (SAR)