Riyadh - Mubasher: Aljazira Capital said that the demand for Riyadh Cables Group products in the local and export markets witnessed a significant increase, in addition to the increase in demand for high-margin products, which led to an increase in the total profit.

The research company expected, in a report reviewed by Mubasher, today, Tuesday, that these trends will continue, which will lead to growth in revenues and total profits.

She pointed out that the increase in demand is likely to lead to growth in net profit, explaining that the low level of debt and good cash flows strengthen the company's financial position.

Aljazira Capital expects the company to continue to distribute stable dividends despite the expansions.

She said that her recommendation on the company was neutral, and set the target price at 139.4 riyals.

The research firm expects contracted project orders to support revenues in the near term, allowing the company to continue growth.

Demand for outlook products driven by urbanization, large-scale infrastructure projects and growth in the renewable energy sector is also expected to drive revenue growth.

Total revenues are expected to grow during the period 2023-2028, at a compound annual growth rate of 8.3% due to revenue growth at a compound annual growth rate of 5.8%.

Aljazira Capital expected that the growth in revenues and gross profit would lead to an increase in profits during the same period at a compound annual growth rate of 17.3%, and it also expected the company’s cash flows to continue to support dividend distributions.