Page 80 - SALIK PR REPORT AUGUST 2024

9/2/24, 11:57 AM NEWS: Al Ramz Investment is 'Overweight' on Salik on growth expectations, dividend policy — TradingView News
Salik is expected to pay the instalments using its current cash position and

operating cash over the coming years. The company does not plan to take on

additional debt.

Al Ramz Investment expects minimal impact on its cash position and overall

balance sheet.

"Consequently, our leverage forecast for Salik improves in the near term, as we

had previously assumed higher payments for the new gates at the start of the

concession agreement or in 2024E. In the medium term, we expect leverage to

be broadly unchanged for the company."

Salik is expected to maintain its dividend policy. Al Ramz expects the company

to pay a dividend of 19 Fils for 2025E, yielding 4.3%.

It has lowered fair value to AED 4.20 per share, down from AED 4.25. "This new

target implies 15% potential upside to the current price, and we therefore
maintain our Overweight rating on the stock," Al Ramz said.

The Dubai DFM-listed stock is trading at AED 3.66 on Friday morning according

to LSEG data.

(Writing by Brinda Darasha; editing by Seban Scaria)

Brinda.darasha@lseg.com

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