Amlak Beats Forecasts with Record Q4 Profit
Amlak Finance AMLK.DU, the largest United Arab Emirates mortgage firm by market value, beat forecasts with a record profit in its third quarter of growth since a management shakeup designed to stem a slide in earnings.
A more than eight-fold rise in fourth-quarter profit helped Amlak beat its full-year target, set after the board replaced the chief executive in May and the two worst quarters on record had turned the stock into Dubai's second worst performer.
"Amlak has gone from a collapse story to a growth story," said Wadah al-Taha, head of strategy at Emaar Financial Services, who said he expected the stock to rise above 8 dirhams this year. Amlak shares closed on Wednesday at 5.51 dirhams.
Net profit grew 758 percent to 128.4 million dirhams ($35 million) in the fourth quarter and 131 percent to 301 million dirhams for the full year, Amlak said in a statement.
Forecasts for Amlak's fourth-quarter profit ranged from 69.43 million dirhams to 112.21 million dirhams, according to a Reuters survey last month.
The company, which complies with Islamic law, had set itself a goal of growing profit by 70 percent this year. In December it said full-year earnings would be at least 120 percent above the 2006 figure, firing a rally in Amlak's stock.
That announcement helped the stock turn the tables on smaller rival Tamweel TAML.DU. Tamweel's shares rose more than 65 percent last year compared with around 7 percent for Amlak's. In the past month, however, Amlak has climbed 18 percent and Tamweel has fallen more than 2 percent.
Amlak Chairman Nasser al-Shaikh attributed the return to earnings growth to a "clear focus of consolidating the company's core business by targeting real estate financing and investment," according to the statement. (Reuters)
A more than eight-fold rise in fourth-quarter profit helped Amlak beat its full-year target, set after the board replaced the chief executive in May and the two worst quarters on record had turned the stock into Dubai's second worst performer.
"Amlak has gone from a collapse story to a growth story," said Wadah al-Taha, head of strategy at Emaar Financial Services, who said he expected the stock to rise above 8 dirhams this year. Amlak shares closed on Wednesday at 5.51 dirhams.
Net profit grew 758 percent to 128.4 million dirhams ($35 million) in the fourth quarter and 131 percent to 301 million dirhams for the full year, Amlak said in a statement.
Forecasts for Amlak's fourth-quarter profit ranged from 69.43 million dirhams to 112.21 million dirhams, according to a Reuters survey last month.
The company, which complies with Islamic law, had set itself a goal of growing profit by 70 percent this year. In December it said full-year earnings would be at least 120 percent above the 2006 figure, firing a rally in Amlak's stock.
That announcement helped the stock turn the tables on smaller rival Tamweel TAML.DU. Tamweel's shares rose more than 65 percent last year compared with around 7 percent for Amlak's. In the past month, however, Amlak has climbed 18 percent and Tamweel has fallen more than 2 percent.
Amlak Chairman Nasser al-Shaikh attributed the return to earnings growth to a "clear focus of consolidating the company's core business by targeting real estate financing and investment," according to the statement. (Reuters)
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