Riyadh-Mubasher: NCB Capital (NCBC) research said it will remain Overweight on Al Hassan Ghazi Ibrahim Shaker, with a price target (PT) of SAR 38.7 per share.

The research unit stated that Shaker remains attractive due to its strong retail base and market presence, noting that Increasing sales of non-AC products is a key positive, while higher competition from cheaper Chinese products and overall weakness in construction activities is a concern.

Shaker reported a lower than expected results for the second quarter of 2016, as net income declined 41.9% y-o-y to SAR47.7 million, compared with NCBC estimates of SR55.1 million.

NCBC the year-on-year decline in the comes earnings is mainly attributed to ower sales as a result of competition from Chinese products and Ramadan promotions, in addition to lower income from associates (LG Shaker).