First Read Mobile Telecom Company SJSC Q2: The miss points to conflict-related issues

研报英文原文证据摘录

First Read Mobile Telecom Company SJSC Q2: The miss points to conflict-related issues

Global Research

28 July 2026ab

First Read

EquitiesMobile Telecom Company SJSC

Q2: The miss points to conflict-related issues Saudi Arabia

Fixed-Line Communications

12-month rating Buy

Q: How did the results compare vs expectations?

A: Q2 revenue came in 4% below consensus expectations, primarily due to supply chain 12m price target SR15.00

disruptions affecting devices. EBITDA was broadly in line with expectations, supported

by a favorable mix and faster cash collection at Tamam. Net income exceeded consensus

Price (27 Jul 2026) SR10.25

by 33%, helped by certain one-time gains recorded during the period. Excluding these

items, net income would have risen 5% y/y and appears to have missed consensus by RIC: 7030.SE BBG: ZAINKSA AB

13%. Note that it remains unclear whether consensus estimates include the Universal Trading data and key metrics

Service Fund credit, which management indicated could potentially recur in Q2.

52-wk range SR12.08-10.14

Market cap. SR9.21b/US$2.45b

Q: What were the most noteworthy areas in the results?

Shares o/s 899m (ORD)

A: Q2 revenue was largely unchanged y/y at SAR2,651m. Zain indicated that this reflects

Free float 63%

top-line resilience across revenue streams despite a decline in handset sales during the

Avg. daily volume ('000) 2,084

quarter. This has remained a persistent challenge for Saudi Arabia telecom operators,

and we believe commentary on developments during Q2 will be important on the call. Avg. daily value (m) SR22.6

Encouragingly, management highlighted q/q improvement in B2B revenue. Gross profit Common s/h equity (12/26E) SR11.2b

rose 1.8% y/y to SAR1,654m, supported by a more favorable revenue mix, primarily P/BV (12/26E) 0.8x