Saudi Arabia .. Al -Jazeera Capital submits its recommendation to the “fall” share and determines its target price

Al -Jazeera Capital has raised its recommendation to the share of the autumn water and energy technology company included in the Saudi market “Tadawul” to “increasing the centers”, despite reducing the target price to 161.5 riyals per share, compared to 163.8 riyals previously.

Al -Jazeera Capital said that the company is in a good situation to take advantage of the large flow of projects in the water and sanitation sector, with the support of the increasing government investments, and expected that the value of the contracted projects would increase by about 3.6 billion riyals during the year 2025, to reach 8.4 billion riyals, which supports the growth of revenue at an annual compound rate of 14.4% during the period from 2024 to 2029.

She added that the profit margins were affected by the high costs of raw materials, which led to reducing the expectations of the total profit margin for 2025 to 16.2% compared to 19.7% in 2024, with expectations of gradual recovery to reach 20.4% by 2029. It also expected the growth of a net profit margin at an annual rate of 17.9%.

She pointed out that the current assessments of the share have become attractive, as the expected profitability of the year 2025 and 2026 reached 21.8 times and 14.8 times, respectively, which enhances the opportunities for investment entry in light of the strong basics and long -term growth opportunities that the company enjoys.

And the fall company for water and energy technologies was established in September 1991 in Riyadh, as one of the autumn group companies, and its activities began in the design, implementation and operation of water and sanitation projects, including treatment stations, water networks, pumping stations, rain water projects.

The company gradually developed from a limited liability company to a closed joint stock company, before it turned into a public joint stock company with a paid capital of 250 million Saudi riyals.

In March 2021, the company’s shares were included in the Saudi financial market (Tadawul) within the public utilities sector, and since its insertion the company has continued to enhance its position in the market through the implementation of strategic projects in cooperation with major government agencies such as the Ministry of Environment, Water and Agriculture, the National Water Company, Aramco and SABIC, which made it one of the most prominent players in the water and energy infrastructure sector in the Kingdom.