GWC set to see earnings growth in 2022: QNBFS

THE year 2022 should be an up year in terms of earnings growth for Gulf Warehousing Company (GWC), QNB Financial Services (QNBFS) has said in a company report released recently.

Going forward, the report said, “With the Al Wukair Logistics Park project expected to start in earnest in 2022, along with the FIFA World Cup Qatar 2022 leading to growth in logistics freight, we expect net income to resume its growth track increasing approximately 5 percent YoY.”

“With major capex for announced projects ending, we expect FCF yield to progressively increase going forward, growing from low-to-midsingle digits to low-teens by 2022 202 . While we are not forecasting a significant uptick in DPS, with major Capex already done, there could be DPS upside medium-term,” it said.

The report said, “We remain an Outperform on GWC with a QR5. 0 price target. GWC stock continues to underperform, down percent YTD against a more than 18 percent gain in the QSE Index. We are hopeful that GWC’s relative underperformance could reverse given the earnings growth anticipated in 2022.

“We expect a pickup in news ow regarding Al Wukair Logistics Park, along with WC2022-related announcements, to act as positive catalysts. Future disclosures concerning new domestic and or international expansions could also be perceived positively by investors. In terms of fundamental drivers, corporate restructurings could boost outsourced logistics solutions and PL remains a growth area.”

Commenting on the first quarter results for 2022 announced by the company recently, the report said, “GWC earnings increase of . percent YoY in the first quarter of 2022 is in-line with our estimate. GWC registered a net profit of QR57.8 million in the first quarter of 2022, which was right in line with our estimate of QR5 . million. The company’s top line came in at QR 51. million in the first quarter of 2022, up 17. percent YoY. Revenue was also in line with our forecast of QR 50.7 million.”