Al Meera Consumer Goods Mohamed Hamdy Qatar Manager, Equity Analysis Equities | Consumer Goods | Initiation of Coverage Mubasher International Wednesday, 17 August 2016
[email protected] Return not in sync with expansions — Initiate with Hold Price Target: QAR231.5 Hold/Low Risk Low Risk ETR: +5.2% • Qatar is an attractive retail market with sustainable growth despite lower oil prices. MERS (QAR) vs. QE Rebased • Retail sector growth is fueled by high spending power and inflow of tourists and expats. Stock Details Volume (RHS) MERS QE Rebased Last price (QAR) 220.10 • MERS is leading the retail industry in Qatar through ownership of consumer outlets. mn 300.00 0.12 52-W High (QAR) 270.50 • Over the past five years, profitability ratios (ROE and ROIC) slipped as MERS ramped up 52-W Low (QAR) 165.30 250.00 0.10 its invested capital to fund its store expansion from 26 to 45. 6M -ADVT (QARmn) 3.08 200.00 0.08 % Chg: M oM 2.9 • MERS plans to expand by opening 15 stores in 2016 to reach a total of 60 (55 in Qatar). % Chg: YoY -18.63 150.00 0.06 • Initiate with Hold/Low Risk; PT of QAR231.5/share (+5.2%). % Chg: YTD 0.0 100.00 0.04 M ubasher Ticker M ERS.QE Bloomberg Ticker M ERS QD Expanding its leadership in domestic retail market: Expansions fueled top-line growth, yet profitability 50.00 0.02 Capital Details Al Meera Consumer Goods Co. (MERS.QE) is is weakening: MERS started its turnaround story in No.