(The Group's Comment) Islamic Holding Group Posts Profit of QR 418,000 in 2018

January 29, 2019

• The profits of Islamic Holding amounted to about QR 417.9 thousand by the end of 2018, compared to a loss of about QR530.4 thousand in 2017, and the earnings per share hit QR 0.07 compared a loss of QR0.09 in 2017. The company recorded a loss amounted to QR 398,000 in the third quarter. The means profit posted in the fourth quarter stood at QR815.9 thousand. As for comprehensive income, the profit registered at the ended of 2018 was about QR 801.5 thousand compared to a loss of QR1.09 million at the end of 2017. The board of directors recommended no dividend for 2018.

• Islamic Holding is a brokerage company trading in Shariah-compliant shares. Therefore, its main revenue source is its trading commissions. It is fully affected by the activity and volume of trading on the Qatar Exchange. Net brokerage revenues decreased to QR 3.44 million in 2018, compared to QR 5.15 million in 2017, down by 33.2%. On the other hand, net operating income increased to QR 8.18 million at the end of 2018, compared to QR 7.97 million at the end of 2017.

• During the last quarter of 2018, the company sold some of its financial investments, resulting in a profit of QR 663, 000. This led to the company becoming profitable at the end of the fourth quarter after it had incurred losses at the end of the third quarter as mentioned above.

• Assets increased to QR 262.9 million at the end of 2018, compared to QR 200.2 million at the end of 2017, an increase of 31%. This increase resulted from an increase in customer balances (representing accounts receivable) which increased by QR 70 million between 2018 and 2017. On the other hand, accounts payable to customers increased by QR 62 million.

• The stock is currently traded at a PE multiple of 285, and a book value multiple of 0.84 times.