Zawya
Summary
Rising global temperatures support the expansion plans of Dubai-listed cooling company Tabreed, an analyst has said, with the company planning circa 16% expansion on total existing capacity.
An update from Egypt-based CI Capital also said the company will benefit from macro developments driven by the UAE’s growing population and tourism and has valued its stock at 4.53 dirhams ($1.23) implying a 28.8% upside potential on current price.
The brokerage said it projected compound annual growth rate (CAGR) of 4.7% from 2023-2028, with net income to decline 8.8% in 2024 due to the 9% corporate tax rate, but to pick up to 16.1% in 2025.
“The rise in global temperature, efforts to reduce energy consumption and carbon emissions, coupled with the company’s expertise outside the UAE should bode well for Tabreed’s regional expansion strategy, currently at c16% of total capacity,” CI Capital said.
Tabreed is on track to expand its capacity with equity investments primarily in KSA to in addition to its Indian project, the update said.
Abu Dhabi based-Tabreed is one of two cooling companies listed on Dubai Financial Market (DFM) along with Dubai-based Empower.
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