Riyadh – Mubasher: Al Rajhi Capital maintained its “Neutral” recommendation on Abdullah Al Othaim Markets in the second quarter of 2017, as revenues were lower and operating profit margins were higher than expected.

Revenues levelled up 9.6% year-on-year in Q2-17 which was lower than Al Rajhi’s estimate of 15.7%, due to a 3.5% decrease in like-for-like (LFL) sales, excluding the branches in Egypt.

Al Rajhi Capital raised the price target (PT) of the stock to SAR 121.6 from SAR 111.

“The weak consumption environment has impacted the top-line of most consumer companies, notwithstanding the full impact of Ramadan in Q2 this year vs ~20 days last year,” Al Rajhi added.

Abdullah Al Othaim Markets said its net profits surged 43.11% in the second quarter of 2017, compared to the year-ago period.

Net profits amounted to SAR 71.21 million in Q2-17, compared to SAR 49.76 million in Q2-16.

By 1:19 pm KSA time, the stock rose 1.85% to SAR 125.