Fawaz Abdulaziz Al Hokair & Partners -Equity Report -12-04-2012

12-Month Fair Value: SAR 86.50
Recommendation: Accumulate – Risk Level: 3
Last Close (10 April, 2012): SAR 76.00

Alhokair posted today an earnings release with some preliminary numbers about the company’s financial performance for the fiscal year ending in March 2012.

Overall the results are positive. However, we would need to get a confirmation if the cost savings achieved in the 4Q2011/12 can be carried forward to the future. We wait for full financial statements and cues from Alhokair’s management to gain more clarity on the company’s operating and financial performance during the 4Q2011/12. For now we maintain our forecasts and valuation for Alhokair and reiterate our “Accumulate” recommendation on the stock.