Riyadh – Mubasher: Al Rajhi Capital has raised United Electronics Company’s (eXtra) target price (TP) to SAR 80 per share instead of SAR 69.3 a share, implying a rating of “Overweight” with an upside potential of 15.4%, supported by higher growth from Tasheel Program expansion.

“We revise our topline growth estimate for 2019e to 14.3% y-o-y (from 9.7% previously) and 9.4% for 2020e (from 7%),” Al Rajhi Capital said in a report on Monday.

Extra revealed that it has securitised SAR166 million of its receivables from instalment sales “Tasheel program”, and the deal is considered the first non-asset backed securitisation transaction for the company as well as Saudi Arabia.

“Post factoring this securitization deal, we have a 34% increase in EPS in 2019e,” the Saudi financial services provider said. 

The receivables were sold to Al Rajhi Bank in exchange for a cash inflow of SAR 160 million.

“The securitised portion accounts for approx. 41% of their last outstanding balance of instalments sales,” the statement highlighted.