Salik and Parkin announced retrospective 5% VAT charges on revenues, but Goldman Sachs maintains Buy ratings as Dubai's RTA will compensate both companies for the historical costs.
Key Takeaways
- 1.Salik and Parkin have confirmed retrospective 5% VAT application to key revenue streams after regulatory review.
- 2.Dubai's Roads & Transport Authority (RTA) will provide compensation/reimbursement, protecting shareholders from material historical financial impacts.
- 3.Goldman Sachs sees limited near-term financial impact despite the VAT confirmation, maintaining 'Buy' ratings on both names.
Table of Contents
- Disclosure Appendix
- GS Factor Profile
- M&A Rank
- Quantum
- Disclosures
- Company-specific regulatory disclosures
- Price target and rating history chart(s)
- Target price history table(s)
- Parkin Co. (PARKIN.DU)
- Salik Co. (SALIK.DU)
- Regulatory disclosures
- Ratings, coverage universe and related definitions
- Global product; distributing entities
- General disclosures
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Authors
Faisal AlAzmehRoman ReshetnevSwarnilee Patra
Securities
SALIK.DUPARKIN.DU
Themes
Regulatory & Tax ImpactsShareholder Protection
Regions
Middle EastUnited Arab Emirates