Mobily: 2Q26 in line with SAR 1.4 interim DPS announced. FY26 guidance reiterated.

研报英文原文证据摘录

Mobily: 2Q26 in line with SAR 1.4 interim DPS announced. FY26 guidance reiterated.

Karin So AC CEEMEA Equity Research

(971) 4561-2090 20 July 2026 J P M O R G A N

karin.so@jpmorgan.com

Investment Thesis, Valuation and Risks

Mobily (Overweight; Price Target: SRls80.20)

Investment Thesis

As Saudi Arabia's second-largest telecom operator, Mobily is well-positioned in a

structurally attractive market, benefiting from resilient population dynamics (our

sensitivity work points to limited net profit impact from a ~5% consecutive decline in non-

Saudi population in 2026/27) and a supportive regulatory backdrop that limits new

infrastructure-based entrants. Despite a competitive landscape across MNOs and MVNOs,

Mobily's core consumer franchise continues to deliver solid net-adds momentum, which we

expect to sustain on higher usage demand and broader network coverage. The Business

segment is now a key growth engine, supported by broader IT services market growth (~9-

10% CAGR), specialised solutions to penetrate the SME market, and data centre expansion

(>122 MW, with an additional 26 MW expected in 26/27), while a balanced B2G/B2B mix

provides resilience against fiscal spending headwinds. Although ICT expansion introduces

some margin dilution, cost efficiencies and operating leverage should help stabilize margins

and, alongside solid performance at associate Sehhaty, we see a ~10% earnings CAGR as

achievable in the medium-term. Even factoring in a step-up in capex (JPMe high-teens %

over the next 5Y) for network capacity, data centers, and submarine cables, resilient cash

conversion should continue, with FCFE (post leases) conversion forecast above 75%. With

leverage at a healthy 0.9x and payout below peers, we see a credible path to further dividend