Riyadh - Mubasher: A report issued by Aljazira Capital stated that the financial results of " Care " Company were good, supported by strong operational and financial performance, as the contribution of Al Salam Hospital, Category C, to the results came without pressure on the gross profit margin.

Aljazira Capital's report confirmed that it continues to recommend "overweight" on Care's stock, with a target price of SAR 188.

Aljazira Capital explained that the strong results were supported by efficiency initiatives, the acquisition of Seha Al Salam Medical Hospital, and the reversal of provisions. The strong operating performance also boosted revenue growth by 29.1% year-on-year and 3.4% quarter-on-quarter to SAR 385.3 million.

The research firm confirmed the strength of Care's financial and operational performance, boosting its net profit for the first quarter of 2025 to SAR 85.4 million (31.2% above our forecast of SAR 65.1 million), a 5% increase year-on-year and 2.1% lower than the previous quarter. Excluding non-recurring income in Q1 2024 and Q4 2024, Care's net profit growth was 30.4% year-on-year and 90.2% quarter-on-quarter.

Given Care’s ability to achieve a high gross profit margin despite adding a Category C hospital to its portfolio, along with the rapid improvement in the performance of Al Salam Health Medical Hospital and the strength of operational indicators in terms of referrals and occupancy rates, taking into account the impact of the full month of Ramadan during the first quarter of 2025,