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RETAL's(4322) Stock Doubling Over a Year: Where's the Next Opportunity —— In-Depth Analysis
RETAL +0.79%
RED SEA -0.26%
ALAKARIA +1.35%
Tadawul All Shares Index +0.11%
RETAL 4322.SA | 0.00 | |
RED SEA 4230.SA | 0.00 | |
ALAKARIA 4020.SA | 0.00 | |
Tadawul All Shares Index TASI.SA | 0.00 |
Hey, since January 2024, the stock of Retal Urban Development co.(4322.SA) has been really amazing. Its share price has increased by more than 110%, and at its highest point, the increase was almost 120%.
Take a look at that K-line chart. In the first quarter of 2024, the share price of Retal Urban Development reached a crucial turning point. Medium- and long-term moving averages like MA60 and MA120 have all started to turn upwards, and MA250 has stopped falling and shows signs of stabilizing.
I'm sure you're all curious about what on earth is going on here!
1/3 What exactly does $4322 do?
According to the information, Retal Urban Development co.(4322.SA) belongs to the Real Estate Management and Development industry. In Saudi Arabia, this company is mainly engaged in things like the construction, development, sales, leasing, agency services, management, and maintenance of real estate properties.
2/3 The real estate industry in Saudi Arabia is really booming right now, and Real Estate is also benefiting from it.
Saudi Arabia has the Vision 2030 aiming for economic diversification. The government is strongly promoting the expansion of the real estate supply and making great efforts to attract foreign investment. With so many favorable factors combined, the real estate industry in the Saudi stock market performed extremely well in 2024.
Data from the Saudi Stock Exchange shows that in 2024, the share price increase of the real estate sector ranked 6th among 21 sectors, with an increase of about 18%. Among the top 30 stocks with the best performance, three of them are from the real estate industry. Real Estate ranks 9th, and the other two are Red Sea International Co.(4230.SA) (ranking 1st) and Saudi Real Estate Co.(4020.SA) (ranking 16th).
This shows that Real Estate is riding on the upward trend of the entire industry, that is, the industry beta. This is really a key factor contributing to the rise of the stock price.
3/3 The development orders of $4322 have skyrocketed, and the revenue is increasing rapidly.
From the company's announcements, we can see that since November 2023, the company's development orders have been getting more and more. Throughout 2024, there were more than a dozen order contracts. This is the core reason for the company's good performance.
Looking at the financial data, in 2024, the company's revenue increased by 50.92% year-on-year. In 2022 and 2023, these figures were 1.98% and 23.52% respectively.
| 2022 Revenue Growth Rate | 2023 Revenue Growth Rate | 2024 Revenue Growth Rate |
|---|---|---|
| 1.98% | 23.52% | 50.92% |
In 2024, the company's revenue increased by 50.92%, the net profit increased by 31.51% year-on-year, and the earnings per share (EPS) increased by 32.5% year-on-year. Up to now, the static price-to-earnings ratio (PE) of $4322 is about 33, the price/earnings to growth ratio (PEG) is about 1.02, and the price-to-book ratio (PB) is about 1.67.
| Element List | Current Year | Previous Year | %Change |
|---|---|---|---|
| Sales/Revenue | 2,063.21 | 1,367.12 | 50.92 |
| Gross Profit (Loss) | 499.65 | 379.28 | 31.74 |
| Operational Profit (Loss) | 340.22 | 245.06 | 38.83 |
| Net profit (Loss) | 266.12 | 202.35 | 31.51 |
| Total Comprehensive Income | 263.41 | 199.94 | 31.74 |
| Total Shareholders Equity (after Deducting Minority Equity) | 833.97 | 742.51 | 12.32 |
| Profit (Loss) per Share | 0.53 | 0.4 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
What do you guys think? Can this company keep growing at such a high rate in the future? Will the share price keep rising? Come on and let's have a chat!