Dallah Healthcare (DALLAH AB): Upgrade to Hold: Execution improves amid tight valuation

研报英文原文证据摘录

Dallah Healthcare (DALLAH AB): Upgrade to Hold: Execution improves amid tight valuation

6 July 2026

Dallah Healthcare (DALLAH AB) EquitiesHealth Care Providers &

Srvcs

Upgrade to Hold: Execution improves amid tight

valuation Saudi Arabia

◆ Improving execution turns previously questioned assets into

meaningful contributors with further upside potential ahead UPGRADE TO HOLD

◆ Better ramp in Khobar and Namar lifts medium-term forecasts, TARGET PRICE (SAR) PREVIOUS TARGET (SAR)

but leverage and competition keep conviction in check for now 114.00 92.00

◆ Raise TP to SAR114 (from SAR92); rerating catalysts SHARE PRICE (SAR) UPSIDE/DOWNSIDE

depend on pricing gains, margin discipline and deleveraging 111.00 +2.7%

Dallah’s investment case has genuinely shifted: What used to look like a premium (as of 02 Jul 2026)

Riyadh franchise weighed down by integration risk is increasingly looking like a premium MARKET DATA

multi-city platform that is starting to absorb complexity and prepared for value-based Market cap (SARm) 11,275 Free float 43%

Market cap (USDm) 3,003 BBG DALLAH AB

healthcare. The key development behind our change in stance is that the Eastern 3m ADTV (USDm) 4 RIC 4004.SE

Region expansion—previously the main source of scepticism—now appears to be

moving from earnings drag to earnings lever, helped by faster-than-expected operational FINANCIALS AND RATIOS (SAR)

Year to 12/2025a 12/2026e 12/2027e 12/2028e

ramp-up at Khobar and clearer momentum on ownership simplification. HSBC EPS 5.32 4.97 4.81 5.76

HSBC EPS (prev) 5.32 4.79 4.54 4.73

Execution is improving, but the bar is rising. Our prior Reduce rating was Change (%) 0.0 3.6 6.1 21.8

anchored on (1) ownership complexity/minorities, (2) uneven execution outside Consensus EPS 5.33 4.49 4.66 5.44