Page 262 - SALIK ENGLISH PR REPORT NOVEMBER 2024

Earnings-wise for Q3, Salik delivered an average beat across all the consensus, with
utility operators’ revenue-generating trips showing strong guidance. Meanwhile, for
2025, Salik has given guidance for +25-26 per cent YoY revenue growth, primarily in
line with market forecasts. The number of vehicles registered with Salik continued to
show a near 10 per cent growth, with the Ebitda margin at 68 per cent.
Similarly, for Parkin, the Q3 reports showed a 25 per cent y-o-y revenue growth with a
stellar 40 per cent rise in Ebitda. The increase in Dubai’s car population is visible in
Parkin’s operational numbers, including public parking revenues and growth from the
developer’s parking side. The latter witnessed a 42 per cent growth due to the
company’s tie-up with new developers and the phased introduction of spaces in Dubai’s
privately developed areas.
A few days back, Dubai’s RTA approved a 5-year internal roads infrastructure
development plan worth Dh3.7 billion. The plan will see 634km of new roads built
across 12 districts during 2025 -2029. In line with Dubai’s Master Urban Plan Strategy,
the plan covers areas with urbanization rates ranging from 30-80 per cent and will be
executed in stages over the coming years. It should be noted that these plans
correspond to almost 50 per cent of the 2025 ( e ) government budget expenditures that
are being earmarked for various infrastructure projects, including roads, bridges, and
metro expansion. “These announcements are incredibly favorable for Salik as the
increase in the road network will only mean the likely addition of new toll gates. It should
be seen with the rise in residential projects across new areas like Dubai’s South District
& Jumeirah. In the current wave of new home buying, there is a popular trend of existing
families shifting from rental properties to buying their apartments & villas across new
Dubai locations. The likely addition of new cars on the road and growth in the driving
population is already seen with the current traffic rates,” Valecha says.
For Salik, with the 2024 guidance largely being maintained, the outlook for 2025 is
projected to be robust. The company expects next year’s revenue growth to range from
25 per cent to 26 per cent ( in line with market consensus). The additional and
incremental revenue from the two new toll gates is expected to equal nearly 5 per cent
y-o-y normalized annual growth. The revenue generation trips are expected to grow at a
rate of 24 per cent to 25 per cent, with the EBDITA margin expected to remain in the
current range of 67 per cent to 69 per cent. With the Dubai Master Urban plan already
approved, markets can likely expect the company to announce more new gates to be
operational next year in anticipation of traffic demand and new road construction.
For Parkin, the latest earnings release point towards the company meeting its FY24
guidance. “While the company has not officially provided any major forecast range for
next year, the market estimates a nearly 7 per cent to 8 per cent constant growth rate in
the net operating profit after tax. The total annual revenue growth rate is expected to be
10 per cent to 15 per cent,” Valecha says.

https://www.khaleejtimes.com/business/markets/rising-dubai-population-boosts-emirates-stock-
market