Al Rajhi Capital held its neutral level for Fawaz Abdulaziz Al Hokair & Co, including a " recommended to maintain the posts in its sections, and the target price reduced to SAR 19, compared to previous SAR 24.
The research company in a Sunday report stated that the price of a target came because it was expected that a sale of local sources would continue to go. weakening in the short term due to lower costs on non-essential goods and lower customer base.
The company's results for the second quarter ended 30 September, 2018. below the estimates and analysts average averages of 30 and 46 million peers, individually.
Al Rajhi Capital said it was likely that his company's income would be falling due to unnecessary branch closure.
The company has changed its strategy in terms of having a & # 39; improve its profit rather than to & # 39; increase the number of stores. The company currently has a & # 39; Focus on closing unwanted shops as long as they are going. Increase effective cost levels to increase their profit campaigns.
"In the future, we expect AlHokair to restructure and change its business model to expand its revenue numbers."
For the long term, the company's revenue is expected to be very low, with the impact of weak users as the user baskets change and drop on the base of customers ( the decline of the foreign population).
"Due to the expectation of positive reflection in the company's international business department and the expansion of added value results, together with the recent sale of the department of cosmetics, there will be a decline in sales existing stores in the medium term. "
The company's financial statements for the second quarter ended on 30 September 2018 showed a profit of 46.6% in SAR 10.03 million, compared to SAR 6.84 million for the same season last year.
The stock finished the Sunday session on 22.70 arrangements, a 2.83% decline.