Off the 2Q26 Call

Research evidence excerpt

Off the 2Q26 Call

Update

July 28, 2026 03:06 PM GMT

Morgan Stanley & Co. International plc+MDr. Sulaiman Al Habib Medical Group | Europe Ricardo Rezende, CFA

Equity Analyst

Off the 2Q26 Call Ricardo.Rezende@morganstanley.comSylvia C Richards +44 20 7677-9886

Research Associate

Sylvia.Richards@morganstanley.com +44 20 7677-3354

Bottom-line: positive. Q&A was constructive, with management indicating that H2

Giulia Faro

should outperform H1 on normal seasonality and that Q2 strength was not just a Research Associate

recovery of Q1 demand. The key focus was the ramp-up of new hospitals, margin Giulia.Faro@morganstanley.com +44 20 7425-7581

normalisation and expansion through medical centres and O&M contracts. Dr. Sulaiman Al Habib Medical Group (4013.SE,

SULAIMAN AB)

# H2 outlook. Management indicated that Q3 and Q4 are typically stronger than H1

Top Pick

and expects a materially better H2 if current trends continue. Q2 appears the more

EEMEA - Healthcare | Saudi Arabia

relevant underlying run-rate, as pent-up Q1 demand benefited April but was not

Stock Rating Overweight

evident in May or June. Visibility however remains limited, especially given the Industry View No Rating

regional disruption. Price target SAR 264.50

Shr price, close (Jul 28, 2026) SAR 237.10

52-Week Range SAR 281.20- 210.10

# Mature assets vs new assets metrics. New projects accounted for c.75% of Mkt cap, curr (mn) SAR 82,985

incremental revenue, versus c.25% from mature assets. Occupancy is c.70-75% Net debt (12/26e) (mn)* SAR 8,200

EV, curr (mn)* SAR 90,609

across existing hospitals and c.50-55% at newer facilities, with most new projects

now beyond EBITDA breakeven and management shifting its focus toward bottom- * = GAAP or approximated based on GAAP

line profitability.

# Number of operational beds.