DEWA (1K) | Buy | Hassyan eases the squeeze, TP adjusted

研报英文原文证据摘录

DEWA (1K) | Buy | Hassyan eases the squeeze, TP adjusted

#TPchange

Release date: 08 June 2026

Company research

BuyDEWA

United Arab Emirates | Utilities MCap: AED130.5bn

Target Price: AED3.15 (3.55) Change in TP: -11.3 % Bloomberg: DEWA UH Reuters: DEWAA.DU

Current Price: AED2.61 Change in Sales: -2.0% 26E/-1.7% 27E Free float 18%

Up/downside: 20.7% Change in Adj EBIT: -3.4% 26E/-2.8% 27E Avg. daily volume (AEDm) 30.7

YTD abs performance -5.8% Market data: 05 June 2026 Change in Adj. EPS: 0.8% 26E/0.1% 27E

52-week high/low (AED) 3.13/2.55

Hassyan eases the squeeze, TP adjusted Price

performance

Why this report?

We update our model and valuation for DEWA. The latest annual datapoints

show steady growth in Dubai's peak electricity and water demand, while

solid Q1 generation suggests demand held firm despite geopolitical tension.

Q2 matters more given seasonality. Hassyan SWRO's commissioning helps

restore Dubai's water reserve margin, after it reached critically low levels in

2025. We made small changes to our estimates but cut our TP from AED3.55 to

AED3.15, mainly reflecting a cleaner treatment of cash not distributable to

shareholders and a higher ERP. We stick to Buy, with DEWA offering monopoly

exposure to the emirate's growing utilities demand and an attractive yield.

Key findings

We have updated our model to factor in the latest company financials and key

Dubai power and water datapoints. In particular, we note that the emirate's peak FY to 31/12 (AED) 12/25 12/26E 12/27E

demand in FY 2025 rose 5.8% to c. 11.4 GW for power and 7.0% to 477 MIGD for Sales 32,842 33,444 34,785

water, slightly ahead of the expectations set out in our January initiation report. EBITDA adj. 17,028 17,387 18,220

EBIT adj. 10,319 10,691 11,297