Value on the road to becoming a mobility champion; initiating at Overweight

研报英文原文证据摘录

Value on the road to becoming a mobility champion; initiating at Overweight

May 19, 2026

aims to deliver >1,800 public EV charging sockets. We believe EV charging

may offer high margins for the company.

Mobility transformation not fully reflected in valuation; high cash

conversion. Emirates Mobility offers an attractive valuation, in our view.

It trades on c.5x EV/EBITDA FY26E, well below the average for companies

within the broader mobility value chain, yet offers high EBITDA margin, on

average c.55% FY26-FY30E, and ROE at c.22%. We believe the company’s

mobility transformation from prudent acquisitions and enhanced business

opportunities and synergies within its core driving education business are

not fully reflected in the valuation.

Robust dividend outlook; balance sheet flexibility. Emirates Mobility has

an attractive dividend policy, in our view, and has gradually increased

dividend payout historically, with the company suggesting 20 fils/sh may

be the new minimum dividend level. The company’s dividend yield is c.7%

FY26E, which is broadly around the average for companies listed in Abu

Dhabi and global mobility related peers. The company has a net cash

balance sheet that allows it to focus on organic and inorganic growth and

returns maximisation.

Valuation. Our price target is based on a EV/EBITDA based valuation

multiple approach for Emirates Mobility relative to global/Middle East

peers. We use a 10x EV/EBITDA multiple, which derives a price target of

AED5.0/sh. We have also tested our valuation using a DCF methodology,

which provides a similar valuation. The company trades at the low range

relative to regional and global peers on an EV/EBITDA basis, partly owing to

share liquidity, limited direct comparables and its mobility transformation