Burjeel Holding (BURJEEL UH) Hold: Refinancing first, growth second

研报英文原文证据摘录

Burjeel Holding (BURJEEL UH) Hold: Refinancing first, growth second

cashflows can be working-capital heavy. Burjeel’s debt capital markets 1.70

debut is to institutionalise funding and reduce refinancing friction, yet it also raises the 1.32

bar on cash and receivables discipline.

0.94

What to look for next: (1) several quarters of sustained receivable improvement 06/25 12/25 06/26

Target price: 1.25 High: 1.56 Low: 1.01 Current: 1.15

towards management’s 120-day target over 12-18 months, (2) evidence that the pivot

Source: LSEG IBES, HSBC estimates

to complex care at BMC translates into better case-mix (not just utilisation), and

(3) continued improvement in cash conversion (Q1 2026 showed AED161m operating

Raj Sinha*

cash flow, +13.1% y-o-y; AED131m FCF, with 65% cash conversion from EBITDA, Co-Head of Global Equity Research

encouraging, but not yet a trend. With the Sukuk issue Burjeel is prioritising maturity HSBC Bank Middle East Limited, Dubai branch

raj.sinha@hsbc.com

management and funding diversification, and headline leverage looks manageable +971 4 423 6932

(1.7x pre-IFRS 16 net debt to EBITDA at 31 Mar 2026; 2.8x including leases). Saikat Majumder*

Analyst, Emerging EMEA Healthcare & Saudi Consumer

Unchanged top line but slightly lower bottom line. We keep our sales forecasts HSBC Securities and Capital Markets (India) Private Limited

saikat1majumder@hsbc.co.in

unchanged, however, due to a higher coupon rate, we reduce net profit forecasts by +91 80 6737 2751

1-2% in 2026-28e. Our estimate of 6 days reduction in collection days and lower Jaina Heerabhai*

growth capex by 2028e implies strong near 50% FCF conversion from EBITDA in Analyst, EMEA Healthcare

HSBC Bank Middle East Limited, DIFC

2027-28e resulting in a strong FCF yield of 9-11%.