Initiation of coverage
Saudi Consumer Electronics: Initiation - eXtra & Jarir
Thesis summary
We Initiate Coverage of two consumer electronics (CE) stocks in Saudi Arabia: United Electronics Company (eXtra) and Jarir Marketing Company (Jarir). Our preferred stock in the sector is eXtra. We believe the company is well-positioned to continue increasing its market share in the lucrative white goods sector, driven by its strong customer proposition and established omni-channel platform. We like eXtra’s growth initiatives, such as its partnership with Panda Retail and its entry into the fintech space.
The latter is particularly promising given the market’s low penetration, and the upcoming Tas’heel IPO could unlock significant value for shareholders. We view Jarir’s position as more vulnerable due to its less diversified product mix and its higher exposure to commoditized goods, such as smartphones. This makes the company more susceptible to intense competition, we believe.
marketing communication
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