HSBC keeps Buy rating for Saudi Arabian Fertilizer stock

Published on 10/27/2026 at 09:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Third-quarter profit fell to SAR 483.82 million from SAR 1.29 billion. For Saudi Arabian Fertilizer stock, urea capacity is set to rise 54.00 percent.

Earnings, expansion and valuation

HSBC retained a Buy rating on October 26, 2026.
The approved project would increase urea capacity by 54.00 percent.
Third-quarter net income was SAR 483.82 million versus SAR 1.29 billion a year earlier.

Saudi Arabian Fertilizer, SA0007879139, Illustration mit AI erstellt.

Saudi Arabian Fertilizer (ISIN SA0007879139), the listed SABIC Agri-Nutrients Company, received a retained Buy rating from HSBC on October 26, 2026, according to MarketScreener. The rating followed third-quarter net income of SAR 483.82 million, down from SAR 1,289.87 million a year earlier.

Expansion adds 54 percent capacity

The main operational development is a new ammonia and urea complex. SABIC said on October 25, 2026, that the project is designed for annual output of 1.20 million metric tons of ammonia and 2.60 million metric tons of urea. The planned urea capacity is 54.00 percent above current levels, making the investment a material long-term growth factor.

The project does not erase the weak quarterly comparison. MarketScreener reported third-quarter sales of SAR 3,219.51 million, versus SAR 3,521.53 million in the prior-year quarter, a decline of 8.58 percent. Net income fell 62.49 percent over the same comparison, while basic earnings per share from continuing operations declined to SAR 1.02 from SAR 2.71.

What does the rating imply?

MarketScreener lists 12 analyst ratings and an average target of SAR 135.84. Against the latest Saudi quote of SAR 113.30, that target is 19.89 percent above the price, although the rating evidence does not remove the earnings risk shown by the third-quarter comparison.

Three dated developments

On October 20, 2026, the company reported third-quarter sales of SAR 3,219.51 million and net income of SAR 483.82 million, according to MarketScreener. On October 25, 2026, SABIC disclosed the 54.00 percent planned increase in urea capacity through the new complex, according to SABIC. On October 26, 2026, HSBC retained its Buy rating, as reported by MarketScreener.

Next project date

Commercial operations at the new complex are planned for the fourth quarter of 2030, according to the Investing.com earnings-call transcript.

Saudi quote and valuation

The Saudi Arabian Stock Exchange quote was last at SAR 113.30 on October 27, 2026 at 11:05 a.m. AST. The company had a market capitalization of SAR 53.9 billion as of October 27, 2026. The combination of a 54.00 percent capacity plan and a 62.49 percent third-quarter profit decline leaves execution and earnings recovery as the central issues for the stock.