Parkin Company: Positive earnings surprise, but valuation demanding

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Parkin Company: Positive earnings surprise, but valuation demanding

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Parkin Company

Positive earnings surprise, but valuation

demanding

Reiterate Rating: UNDERPERFORM | PO: 5.35 AED | Price: 5.52 AED

Earnings beat driven by fines and monthly passes 12 May 2026

PARKIN’s 1Q26 revenue and net income came in 23%/29% ahead of consensus, driven Equity

mainly by stronger-than-expected fine collections and seasonal card sales. Public parking

operations were impacted by the conflict-induced mobility slowdown in March, despite

Key ChangesJanuary and February showing continued momentum from 4Q25. Revenue guidance is

suspended, pending reassessment ahead of 1H results. We raise our medium-term revenue (AED) Previous Current

and EPS forecasts by 3%/5%, reflecting minor adjustments to public parking utilisation Price Obj. 5.25 5.35

and developer portfolio expansions. As a result, we raise our PO to AED5.35/share (+2% 2026E EPS 0.19 0.23

from AED5.25), which implies 21x forward P/E (2027E) and is 3% below closing price. We 2027E EPS 0.22 0.26

deem the risk/reward demanding and reiterate our Underperform rating. 2028E EPS 0.27 0.28

2026E DPS 0.30 0.24

Public parking momentum disrupted in March, as expected

The conflict-induced mobility slowdown led to a 4.1ppts MoM decrease in public parking Jameel Bakhsh, CFA >>

Research Analyst

space utilisation in March, compared to January and February levels (23.5% and 22.8%), Merrill Lynch (DIFC)

which showed a continuation of the momentum seen in 4Q25 (23% utilisation). Whilst +971 4 425 8252 jameel.bakhsh@bofa.com

the number of parking transactions unsurprisingly decreased by 23% MoM, the flat

Michael Jacks, CFA >>

growth in seasonal cards sales (flat MoM) and decrease in fines issued (-13% MoM) Research Analyst