The Point for CEEMEA

Research evidence excerpt

The Point for CEEMEA

Rahul Bajaj, CFA | Nitesh Agarwal

Elm Company (7203.SE) - Model update post 2Q26; TP to SAR690, keep Neutral

Updating estimates post weaker-than-expected 2Q26 results, which saw revenue

growth decelerating to +12%YoY and organic growth to c.6% on our estimates. On

the call, management highlighted that part of the weaker 2Q26 growth reflected

project execution timing, softer BPO momentum, some Hajj-related revenues

recognized in 1Q26, as well as the impact of the regional conflict on certain Digital

products. Thiqah was loss-making in 1H26, but turned marginally profitable in

2Q26; however, management did not provide any profitability guidance for the

business. Group FY26 guidance was maintained, with 1H26 revenue growth of

+21%YoY and EBIT margin of 22.8% tracking above or within the guided ranges of

17-19% and 21-23%, respectively. Following the results, we modestly reduce our

estimates to reflect slightly lower growth assumptions (now see +17.5% sales

growth in FY26e) and margins (22% in 2026e). Our TP moves to SAR690 from

SAR700; maintain Neutral.

Maxim Nekrasov

Solutions (7202.SE) - Model update post 2Q26; TP to SAR230

Updating estimates post stronger-than-expected 2Q26. While 1H26 revenue

growth of +9% YoY and EBITDA margin of 17.4% are ahead of FY26 guidance (6-8%

growth, 14-16% margin), management maintained its outlook. On the call,

management highlighted that part of the stronger 1H26 performance reflected

efforts to accelerate project delivery and monetization into the first half of the year

to improve resource utilization and reduce reliance on a concentrated year-end

delivery profile, rather than a change in FY26 revenue expectations. Nevertheless,

management reiterated confidence in achieving FY26 targets, supported by