Saudi Energy (1K) | Hold | Investment cycle now visible

研报英文原文证据摘录

Saudi Energy (1K) | Hold | Investment cycle now visible

#EstimatesRevision

Release date: 11 June 2026

Company research

HoldSaudi Energy

Saudi Arabia | Utilities MCap: SAR69.7bn

Target Price: SAR16.50 Change in TP: 0.0 % Bloomberg: SECO AB Reuters: 5110.SE

Current Price: SAR16.73 Change in Sales: 21.1% 26E/22.2% 27E Free float 19%

Up/downside: -1.4% Change in Adj EBIT: 2.6% 26E/4.9% 27E Avg. daily volume (SARm) 42.9

YTD abs performance 17.4% Market data: 10 June 2026 Change in Adj. EPS: 5.2% 26E/4.9% 27E

52-week high/low (SAR) 17.76/13.51

Investment cycle now visible Price

performance

Why this report?

Saudi Energy, formerly Saudi Electricity Company, is increasingly defined by

its investment cycle. Its new brand identity highlights a broader national role

in the energy sector, but the main change is financial. Capex is accelerating,

the SAR472bn 2025-30 plan looks increasingly credible, and RAB growth is

stronger than expected. This supports regulated earnings, but keeps FCF

deeply negative and pushes net debt higher. The balancing account remains

central to bridging the gap between actual and allowed regulated operating

revenue. We have updated our model, maintain our SOP-based TP at SAR16.5

and reiterate our Hold rating. In today's Middle East geopolitical context, we

think the company's regulated and State-backed profile remains a relative

strength for the shares.

Key findings FY to 31/12 (SAR) 12/25 12/26E 12/27E

The company has launched a new brand identity, changing its name from Saudi Sales 102,218 106,937 108,825

Electricity Company to Saudi Energy (SE). Management argues the new name EBITDA adj. 42,356 44,905 48,463

better reflects the company's broader strategic role in the national energy sector EBIT adj. 19,828 21,024 22,683 Net profit adj.