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(The Group’s Comments) Mazaya Qatar Net
Profit Drops by 41% to QR 16.59 MN in 2018
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Profits: Mazaya’s profits fell by 41% to QR 16.59 million for the year 2018,
compared to QR 28.15 million recorded in the previous year of
2017, while the company’s earnings per share reached QR 0.14 in
2018, versus QR 0.24 for the previous year. Quarter on quarter,
Mazaya recorded a loss of about QR 5.56 million in Q4 2018,
compared to a profit of QR10.5 million for the corresponding
period of 2017.
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Revenues: included the revenues from a construction development, which
consisted of the construction and operation of a residential
complex. Mazaya’s net revenues from the said development
amounted to about QR 57.86 million at the end of 2017, the time
the project was concluded. Qatar Foundation rents this complex
against a fixed amount for a period of 20 years.
The results of the completion of the previously mentioned project by
the end of 2017 reflected on the results of 2018, a year where
the company made no revenues from construction works, which
affected the profits.
The revenues of the company for 2018 included about QR 60 million
for compensation claims against the contractor for the delay of
completion of the project, which Mazaya’s management deduct from
the contractor’s due fees.
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Expenses: The company's expenses amounted to QR 68.46 million by the end of
2018, compared to QR 56.00 million in 2017, an increase of 22%
as a result of increased financing costs as well as higher
administrative and general expenses.
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Shareholders' equity: stood at about QR 1,495.3 million by the end of 2018, while the
return on shareholders' equity amounted to 1.10% versus 1.90%
for the year 2017. Mazaya’s book value per share stands at QR
12.92.
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Dividend distribution: The Board of Directors recommended a cash dividend of 5.0% of the
nominal value of the share (6.25% dividend yield), i.e. QR 0.50
per share, the same as the distribution ratio for 2017.
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Market ratios: The stock is currently traded at a PE multiple of 55.95 times and a
book value multiple of 0.62 times.
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