2382:HKEXQuanta Computer Inc. Analysis
Data as of 2026-05-25 - not real-time
SAR 19.68
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
Undervalued price action: ADES trades at SAR 19.68, well below its DCF fair value of SAR 33.57, implying an upside of roughly 9%. The stock sits above its 20‑day SMA (SAR 19.33) and 50‑day SMA (SAR 18.36), confirming a bullish technical backdrop. RSI at 62 signals momentum without being overbought, while MACD shows a marginal bearish histogram but remains near the zero line, suggesting limited downside. Support sits at SAR 18.21 and resistance at SAR 19.94, leaving room for a short‑term rally.
Strong fundamentals with caveats: Revenue surged 62.6% YoY, margins are solid (gross 37%, operating 26%), and free cash flow exceeds SAR 1.5 bn, supporting a 2.29% dividend with a modest 27% payout. However, the balance sheet is leveraged (debt‑to‑equity >300%) and volume trends are decreasing, tempering the bullish outlook.
Strong fundamentals with caveats: Revenue surged 62.6% YoY, margins are solid (gross 37%, operating 26%), and free cash flow exceeds SAR 1.5 bn, supporting a 2.29% dividend with a modest 27% payout. However, the balance sheet is leveraged (debt‑to‑equity >300%) and volume trends are decreasing, tempering the bullish outlook.
Market Outlook
Short Term
< 1 yearPositive
Model confidence: 7/10
Key Factors
- Price above 20‑day SMA and near support
- Undervalued relative to DCF fair value
- Sustainable dividend with low payout
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Robust revenue growth and strong cash generation
- DCF upside of ~9% and attractive dividend yield
- Diversified geographic footprint reducing single‑country exposure
Long Term
> 3 yearsNeutral
Model confidence: 6/10
Key Factors
- High leverage (debt‑to‑equity >300%) may constrain flexibility
- Cyclical nature of oil & gas drilling sector
- Long‑term dividend sustainability and growth prospects
Key Metrics & Analysis
Financial Health
Revenue Growth62.60%
Profit Margin11.31%
P/E Ratio25.6
ROE13.22%
ROA4.99%
Debt/Equity301.06
P/B Ratio3.2
Op. Cash FlowSAR3.1B
Free Cash FlowSAR1.5B
Industry P/E21.6
Technical Analysis
TrendBullish
RSI61.7
SupportSAR 18.21
ResistanceSAR 19.94
MA 20SAR 19.33
MA 50SAR 18.36
MA 200SAR 17.02
MACDBearish
VolumeDecreasing
Fear & Greed Index91.61
Valuation
Fair ValueSAR 33.57
Target PriceSAR 21.41
Upside/Downside8.77%
GradeUndervalued
TypeGrowth
Dividend Yield2.29%
Risk Assessment
Beta0.34
Volatility20.59%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.