MIDDLE EAST COMPANY FOR MANUFACTURING AND PRODUCING PAPER (1202.SR)

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7:19 AM

Thesis: The company faces increasing competition and rising raw material costs, which could pressure margins and overall profitability in the near term.

Revenue Outlook

Metric	FY2025	FY2026E	FY2027E
Revenue	$1.1B	$1.2B	$1.2B
Rev. Growth	-0.4%	+9.2%	+5.4%
EPS	$0.27	$0.17	$0.25
EPS Growth	+130%	-37.0%	+47.1%
P/E (fwd)	66.7×	105.9×	72.0×

★ Analysts see FY2026 revenue reaching $1.2B — +9.2% growth in a single year.

What Moves the Stock

1Changes in raw material prices, particularly pulp and recycled paper
2Demand fluctuations in the GCC region, especially from the packaging sector
3Regulatory changes affecting environmental compliance in paper production
4Currency fluctuations impacting export competitiveness
5Packaging paper - 50%
6Printing paper - 30%
7Specialty paper - 20%
8Sustainability in manufacturing processes

FY2025 Snapshot

Revenue: $1.1B
Rev. Growth: -0.4%
Gross Margin: 12.0%
Op. Margin: 3.5%
Net Margin: 2.2%
Net Income: $23M
NI Growth: +130%
EPS: $0.27
1Y Return: -36.8%

1202.SR Chart

My Notes

"Management indicated, 'We are closely monitoring market conditions and adjusting our strategies to maintain competitiveness.'"
Moat: The company's established distribution network and customer relationships provide a moderate level of competitive advantage.
value - Investors may be drawn to the stock due to its low price-to-book ratio and potential for recovery in margins.
The company is moderately sensitive to interest rates as rising rates can increase financing costs for capital expenditures…
Watch on earnings: Pulp price index, GCC manufacturing PMI, Operating cash flow.

One Sentence Summary:

Middle East Company for Manufacturing and Producing Paper: the story is balanced — changes in raw material prices, particularly pulp and recycled paper.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

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