UAE Equity Research - Alef Education Holding PLC 1Q25 - First Look Note
Miqyas Al Dhad has reached 86% completion as of 1Q25 and is set to be launched during 3Q25. The Company has remained debt-free since its establishment. Alef Education extended its contract with ADEK for three more years providing revenue visibility till 2033.
Alef’s Education Holding’s net profit rose 2% YoY to AED 115.3 Mn in 1Q25 driven by consistent top line growth with the successful execution of new contracts, increase in Interest income and company’s continued focus on operational efficiency partially offset by increase in Income tax expense leading to a stable net profit margin of 64%. (EPS is 1.65 fils for 1Q25)
UAE Equity Research - Alef Education Holding PLC (ALEFEDT) 4Q24 - First Look Note
Alef Education is included in MSCI UAE Small Cap Index. The number of paid schools served increased from 82 in 2023 to 167 in 2024 in B2B segment. The Company holds a 25% to 30% market share in the UAE's B2B segment.
UAE Equity Research - Alef Education Holding PLC (ALEFEDT) 3Q24 - First Look Note
Paid an interim dividend of AED 204 Mn in 3Q24. Alef Education B2G segment has a robust pipeline of strategic clients, featuring two deals in the final stage, worth AED 100 Mn. In the B2B segment doubled the number of paying schools from 82 in 2Q24 to 164 in 3Q24 growing the paying students by 76%.
We initiate coverage on Alef Education Holding PLC (“Alef Education” or “the Company”) with a valuation of AED 1.70 per share. Alef Education is listed on the ADX and is a leading global EdTech company that utilizes artificial intelligence and machine learning technologies to create personalized learning experiences for both public and private schools in the UAE.
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