Financials & valuation: Human Soft Holding Co

Research evidence excerpt

Financials & valuation: Human Soft Holding Co

Equities ● Diversified Consumer Services

3 August 2026

Investment thesis

We retain our Buy rating on Human Soft given its compelling valuation, relatively predictable

earnings stream and it has among the highest dividend yields across our coverage in the GCC,

underpinned by a solid balance sheet (c15% of its market cap is net cash). Human Soft, a

leading private university, currently offers a range of courses including Engineering,

Management, and vocational courses in Kuwait. It has launched a new major, the Bachelor of

Science in Artificial Intelligence, starting the Fall semester of the year 2026-2027.

The company can re-leverage its balance sheet through value-accretive acquisitions where it

had in the past indicated potential opportunities in the K-12 segment. Human Soft also actively

engages with the regulatory authorities to acquire license to launch health sciences such as

nursing. Re-leveraging the balance sheet could be a potential catalyst for this name.

Human Soft’s enrolments are normalising to pre-COVID-19 levels as the 2020-21 cohorts

graduate leading to graduating students outpace new enrolments. This would also pressurise

gross margins as operating leverage benefits wane. In addition to enrolments, revenue is further

impacted by removal of Library and Internet subscription fees, as the company now records net

revenue (excludes Library and Internet subscription fees); however, this partially benefits

margins with ECL provisions.

Human Soft distributed dividend of 275 fils (104% payout) for the year 2025 and we believe the

high payout will be sustained and assume payout of 100% in 2026 and in subsequent years,

despite its contribution of KWD2.0m to Kuwait Emergency response fund in support of national