Salik: Model update and Q2‘26 Preview

Research evidence excerpt

Salik: Model update and Q2‘26 Preview

J P M O R G A N CEEMEA Equity Research

03 August 2026

Salik Neutral

SALIK.DU, SALIK UH

Model update and Q2’26 Preview Price (30 Jul 26):Dh5.27

Price Target (Dec-27):Dh6.20

We make minor housekeeping changes to our model to incorporate the updated MENA Industrials

ACaccounting treatment of VAT on toll usage fees and tag activation fees, as per the Anna Antonova, CFA

latest comments provided by Salik. As previously communicated by the company (971) 4428-1766

(here and here), the 5% VAT has been passed through to customers effective 1st anna.antonova@jpmorgan.com

Jun’26, while the VAT applicable to the period from January through May 2026 J.P. Morgan Securities plc

will be fully compensated by the Roads and Transport Authority (RTA). According

to Salik, following the conclusion of the accounting assessment with external Key Changes (FYE Dec)

auditors, this will have no impact on Salik’s income statement in Q2’26 (including Prev Cur Δ

no retrospective impact on revenue) and the settlement will be reflected as a non- Adj. net income - 26E (Dh mn) 1,456 1,461 0.3%

cash transaction. We make the necessary adjustments and provide an updated Adj. net income - 27E (Dh mn) 1,720 1,704 -0.9%

Q2’26 preview below. Post the model update, our mid-term earnings forecasts Adj. EBITDA - 26E (Dh mn) 2,002 2,007 0.2%

Adj. EBITDA - 27E (Dh mn) 2,300 2,282 -0.8%

change by <1% and our PT remains unchanged at AED 6.2/sh (with a Neutral

rating). The Board will meet this Wednesday (Aug 5, at 3.00pm UAE/12.00pm Style Exposure

UKT) to approve the consolidated H1’26 financial statements and the earnings

conference call will be held on Thursday (Aug 6) at 12.00pm UAE/9.00am UKT

(registration link).

Figure 1: Salik – Preview of select Q2’26 results