Dr Sulaiman Al Habib Medical Group "Margin expansion ahead or a false dawn?"

研报英文原文证据摘录

Dr Sulaiman Al Habib Medical Group "Margin expansion ahead or a false dawn?"

Global Research

14 May 2026ab

Dr Sulaiman Al Habib Medical Group Equities

Saudi ArabiaMargin expansion ahead or a false dawn?

Healthcare Providers

12-month rating Neutral

1Q26 recap; seasonality, regional conflict and expansion weigh on performance

HMG reported YoY revenue growth of 8.8% to SAR 3,436m, driven by higher patient 12m price target SR230.00

volumes and contributions from newly commissioned hospitals, however, it missed both Prior : SR254.00

UBSe (SAR 3,775m) and VA cons. (SAR 3,626m). EBIT declined 6.1% YoY to SAR 588m,

Price (12 May 2026) SR221.40

below UBSe (SAR 684m) and cons. (SAR 670m), driven by higher fixed and D&A costs.

Net income came in at SAR 503m, also below UBSe (SAR 612m) and cons. (SAR 600m), RIC: 4013.SE BBG: SULAIMAN AB

pressured by lower operating profit and higher finance expenses.

Trading data and key metrics

52-wk range SR280.00-216.70

Operational update; expansion keeps going

Market cap. SR77.5b/US$20.7b

The existing hospitals commissioned prior to 2024 are currently operating at

Shares o/s 350m (ORD)

approximately 80% capacity, whereas the newly commissioned facilities are functioning

Free float 31%

at close to 48% capacity. Management noted that 300 additional beds were added

across all hospitals in Q1. Due to the ongoing conflict, hospitals in the Eastern Province/ Avg. daily volume ('000) 184

Riyadh experienced greater impact compared to others. The recently opened facilities, Avg. daily value (m) SR44

along with upcoming projects, have influenced overall margins, resulting in increased Common s/h equity (12/26E) SR9.11b

fixed costs (no more major additional hiring required for ramp up), higher D&A burden, P/BV (12/26E) 8.5x

and rising finance costs.