Satyendra Pathak
Doha
The awarding of QR1.5 billion Al Wukair Logistics Park contract to Gulf Warehousing Company (GWC) will add to the logistics company’s long-term growth story, QNB Financial Services (QNBFS) has said in its latest company report.
Manateq, the national initiative working to diversify Qatar’s economy by providing premium infrastructure within strategic economic zones, awarded Al Wukair Logistics Park BOT project to GWC.
Under this agreement, GWC will build, operate and transfer (BOT) the development of this 1.48 square kilometer project in a public-private-partnership deal with 30-year lease term.
According to QNBFS, GWC’s new growth initiative could boost the company’s future revenue and earnings.
The contract, which was obtained via a competitive bidding process, will allow GWC to design, finance, develop, operate and maintain the project.
This park will eventually consist of dry, cold, frozen and chemical storage facilities, along with light workshops and warehousing open yards.
The park will also feature retail outlets, workers’ accommodation, first air clinic and a mosque.
This is the second such public, private, partnership (PPP) that GWC has entered with Manateq, with its Bu Sulba Warehousing Park already completed and running.
The report said that it is too early to quantify financial impact of the project on the company as the total area of Al Wukair Logistics Park is three times as large as Bu Sulba. The capital spending of QR1.5 billion on the project is about 1.5 times the capex of Bu Sulba.
Targeted toward ultra-small businesses unlike Bu Sulba that caters to SMEs, the report said, the financial impact of Al Wukair Logistics Park will be likely be lower on a proportional basis when compared to Bu Sulba.
"We note that Bu Sulba generates around QR100 million in revenue, QR70 million in EBITDA and less than QR20 million in annual net income,” the report said.
As announced, the report said, work on the park is set to begin right away with a first phase representing 40 percent of the park due for completion within two years, with the remainder due to be developed within five years.
"We remain market perform on GWC shares for now. But as mentioned in our recent detailed report, we note GWC management remains on the hunt for growth opportunities and announcements of new projects could provide some momentum to this stock,” it said.
"The stock has been treading water since mid-2019 and we believe expansion-related news flow and anticipation of 2019 dividends, we expect 5.3 percent growth in dividend per share (DPS) to QR0.20 to provide a lift to GWC shares. We expect this announcement to add some positive momentum to GWC shares,” the report said.
Doha
The awarding of QR1.5 billion Al Wukair Logistics Park contract to Gulf Warehousing Company (GWC) will add to the logistics company’s long-term growth story, QNB Financial Services (QNBFS) has said in its latest company report.
Manateq, the national initiative working to diversify Qatar’s economy by providing premium infrastructure within strategic economic zones, awarded Al Wukair Logistics Park BOT project to GWC.
Under this agreement, GWC will build, operate and transfer (BOT) the development of this 1.48 square kilometer project in a public-private-partnership deal with 30-year lease term.
According to QNBFS, GWC’s new growth initiative could boost the company’s future revenue and earnings.
The contract, which was obtained via a competitive bidding process, will allow GWC to design, finance, develop, operate and maintain the project.
This park will eventually consist of dry, cold, frozen and chemical storage facilities, along with light workshops and warehousing open yards.
The park will also feature retail outlets, workers’ accommodation, first air clinic and a mosque.
This is the second such public, private, partnership (PPP) that GWC has entered with Manateq, with its Bu Sulba Warehousing Park already completed and running.
The report said that it is too early to quantify financial impact of the project on the company as the total area of Al Wukair Logistics Park is three times as large as Bu Sulba. The capital spending of QR1.5 billion on the project is about 1.5 times the capex of Bu Sulba.
Targeted toward ultra-small businesses unlike Bu Sulba that caters to SMEs, the report said, the financial impact of Al Wukair Logistics Park will be likely be lower on a proportional basis when compared to Bu Sulba.
"We note that Bu Sulba generates around QR100 million in revenue, QR70 million in EBITDA and less than QR20 million in annual net income,” the report said.
As announced, the report said, work on the park is set to begin right away with a first phase representing 40 percent of the park due for completion within two years, with the remainder due to be developed within five years.
"We remain market perform on GWC shares for now. But as mentioned in our recent detailed report, we note GWC management remains on the hunt for growth opportunities and announcements of new projects could provide some momentum to this stock,” it said.
"The stock has been treading water since mid-2019 and we believe expansion-related news flow and anticipation of 2019 dividends, we expect 5.3 percent growth in dividend per share (DPS) to QR0.20 to provide a lift to GWC shares. We expect this announcement to add some positive momentum to GWC shares,” the report said.