Tough quarters ahead
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Afarak reported its Q1’19 results on Friday. Afarak issued a profit warning for Q1 earlier last week and expected to post a clear loss for Q1. Therefore, the weak reported profitability for Q1 did not come as a surprise. We abstain from giving a target price or a recommendation for Afarak Group due to the dispute between major shareholders. However, in our view the current valuation in relation to the company’s earnings is clearly elevated.
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