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(The Group’s Comments) Investment Holding
Net Profit Up 43% to QR 58.36 in 2018
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Profits: Investment Holding’s net profit for the year 2018 amounted to QR
58.36 million compared to QR 40.71 million for the previous
year, an increase of 43.35%, while its earnings per share
reached QR0.70 in 2018, versus to QR0.49 for 2017. For the
fourth quarter, the company posted a profit of QR 26.79 million,
compared to QR 10.23 million for the corresponding period of
2017.
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Comprehensive income: The holding has no investments that appear in the statement of the
comprehensive income.
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Revenues: Despite improved profits, revenue fell by 9.14% to QR 426.3 million
in 2018, compared to QR 469.3 million for the previous year. The
company generates revenue from various sources (Fire Control
Systems, CCTV, and Maintenance Services) as well as revenues
from commercial contracts, all amounted to about QR29 million.
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Non-recurring profits: The results of the company included profits from the revaluation of
financial assets, which amounted to QR 28.75 million as a result
of the application of Accounting Standard No. 9. Excluding that,
the net profits from recurring activities amounted to QR 31.3
million.
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Shareholder's equity: decreased by 14% in 2018 to reach QR748.7 million compared to
QR869.7 million for 2017 as a result of the creation of a
special reserve account with a balance of QR152.5 million due to
the acquisition of minority non-controlling interests in United
Engineering Systems Company for QR193.5 million. It is worth
mentioning that the balance of goodwill at the end of 2018
amounted to QR 711 million representing 52% of total assets.
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Dividends:
The Board of Directors recommended the distribution of 2.5% (4.7%
dividend yield) and QR0.25 per share for the year 2018, which is
the same as the distribution ratio for the profits of 2017.
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Market ratios: The share is currently traded at a PE multiple of 7.62 times and a
repeat profit margin (excluding non-recurring profits) of 14.13
times, with a book value multiple of 0.60 times.
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