Modern Mills for Food Products Co Kept at Overweight as Aljazira Capital Notes Q2 Results

06:00 AM EDT, 07/27/2026 (MT Newswires) -- Aljazira Capital reiterated its investment view on Modern Mills for Food Products Co (SASE:2284) after the flour milling company released its second-quarter results. Thanks to higher sales amid volume growth across its three main segments, the company logged a 7.6% year-over-year rise in its net income to 53 million Saudi riyals, aligning with Aljazira Capital's estimate of 52 million riyals, according to a Sunday note. Revenue grew 19.6% annually to 297 million riyals, higher than the research firm's estimate by 14.8%. "Modern [Mills] has shown very strong revenue momentum in Q2-26; the stock trades at a 2026e PE of 11.4x, which is a steep discount to Saudi food and beverage sector PE of 19.0x. Even on our worst-case scenario (complete abolishment of subsidy and no price limit) earnings estimate of SAR 2.0 per share, the company trades at a PE of 14.3x. Our liking for the stock is accentuated by the upcoming feed factory and recently announced food ingredients factory. Hence, we maintain our 'Overweight' rating on the stock with an unchanged TP of SAR 37.9 per share, which implies an upside of 32.7%," analysts said in a note.