Al Rajhi Capital stated that National Medical Care Co.’s (Care) Q4 2024 net income of SAR 45 million (adjusted for reversal of legal charges and Zakat) was lower than its estimate of SAR 64 million. 
Revenues reached SAR 373 million, surpassing the research house’s forecast of SAR 342 million, driven by a rise in patient volumes from newly acquired branches.
“Going forward, in 2025, we expect topline to grow by another 21% YoY, driven by Al Salam (consolidation to reflect fully) and full contribution of Prince Sultan Medical City contract,” Al Rajhi Capital said. It anticipates both revenue and cost synergies related to Al Salam hospital, that is currently loss making.
Beyond 2025, the brokerage estimates mid-single digit topline growth and some improvement in the operating margins. “Despite the assumption of flattish operating margins, reported bottom-line will be under pressure in 2025 due to absence of one offs and spike in finance costs,” it noted.
The medical services provider is expected to post net earnings of SAR 269 million and SAR 294 million in 2025 and 2026, respectively.
The brokerage reiterated its “Neutral” rating for the stock, lowering the target price (TP) from SAR 214 to SAR 176 per share.
Al Rajhi Capital stated that National Medical Care Co.’s (Care) Q4 2024 net income of SAR 45 million (adjusted for reversal of legal charges and Zakat) was lower than its estimate of SAR 64 million.
Revenues reached SAR 373 million, surpassing the research house’s forecast of SAR 342 million, driven by a rise in patient volumes from newly acquired branches.
“Going forward, in 2025, we expect topline to grow by another 21% YoY, driven by Al Salam (consolidation to reflect fully) and full contribution of Prince Sultan Medical City contract,” Al Rajhi Capital said. It anticipates both revenue and cost synergies related to Al Salam hospital, that is currently loss making.
Beyond 2025, the brokerage estimates mid-single digit topline growth and some improvement in the operating margins. “Despite the assumption of flattish operating margins, reported bottom-line will be under pressure in 2025 due to absence of one offs and spike in finance costs,” it noted.
The medical services provider is expected to post net earnings of SAR 269 million and SAR 294 million in 2025 and 2026, respectively.
The brokerage reiterated its “Neutral” rating for the stock, lowering the target price (TP) from SAR 214 to SAR 176 per share.
