BOURSA KUWAIT GROWTH COMPANIES

 

BOURSA KUWAIT GROWTH COMPANIES

Report of the best listed companies for growth in shareholders' equity and capital ratio

The securities investment sector is one of the most important sources of financial flows and maximizing the expected revenues due to the careful selection of companies with good and rewarding returns. In this report, EXCPR Consulting and Business Management - located in Kuwait - highlights the most prominent listed companies on the Boursa Kuwait in terms of revenue and future growth. The first part of the investment is based on cash and equity distributions, which is usually the focus of attention and attention of investment funds and older individual investors. While the second part of the investment is deal with the underlying profits and future growth that corporate management seeks to achieve. In the long term, investors are analyzing these companies, which promise to continue to grow, invest their financial returns internally and maximize their productive resources, so that they will be added to the sector in general. These indicators - shareholders' rights - are important milestones in assessing the ability of executive management to achieve and implement the objectives of shareholders and board members. Therefore, the dimensions of shareholders' equity must be analyzed separately in order to track these promising future companies.

MARKET GROWTH

The Boursa Kuwait has experienced a 9.1% year-on-year growth in shareholder value since 2014, as shown in the following figure. Shareholders' equity in relation to capital was 2.3 times higher, illustrating the strength of those listed companies. As shown in the figure below, the impact of the Coved-19 pandemic became evident by consuming 3.19% of the total shareholder stake in 2020.

BUSINESS SECTOR GROWTH

As for the market sector in Boursa Kuwait, the performance was clearly mixed between those different sectors. The Insurance sector topped the rest of the other market with 18.9% annual shareholder growth, compared to 3 times the shareholders' equity relative to the capital of Insurance companies. The Bank sector ranked second with a 6.2% annual growth of shareholders' equity, compared to 2.7 as a refined equity to capital. The following table shows the performance of the rest of the business sectors on the Boursa Kuwait in relation to the annual growth rate of shareholders' equity, as well as the repeated equity of shareholders to capital.

SHAREHOLDER GROWTH

The performance of listed companies in terms of growth in the total value of shareholders' equity varies according to the strategies on which the board of directors relies on opportunities to acquire them in the future. The higher the annual shareholders' equity rate, as evidenced by the potential growth of the company in the desired future. That is, the executive management of these companies has long-term strategic objectives that they seek to achieve in that realized financial value, so these companies are not looking for annual distributions to shareholders, but promise to amplify those financial returns in the future. Some investors are therefore looking for these companies, which promise to inflate portfolios quickly in the future. The following table shows the highest annual shareholder growth rate since 2013, which exceeds the average of 10% per annum.

SHAREHOLDERS' EQUITY TO CAPITAL

Shareholders' equity to capital is also one of the most important indicators of financial strength and potential forces in the face of external crises that may hinder companies in their careers. The high equity of shareholders in relation to the company's capital is a promising sign of the company's desired growth in the near future. The automated table shows the top 15 companies listed on the Boursa Kuwait, in which the share stake-to-capital has exceeded 4 times:

Finally, the shareholders' equity performance index in listed companies is important as it contributes to translating the strategic objectives adopted by the board members about the desired future of the company, which is implemented by the executive management during the company's day-to-day business. The size of these allocations- shareholders' equity - also has a role to play in repelling future risks to companies. We may cite the Coved-19 pandemic, which has swept the world widely, showing the extent of vulnerability that some companies are experiencing in the face of changes and external forces, as well as assessing the performance of executive management and its decisions taken in the face of these challenges, which also show the ability of these entities to preserve and even maximize shareholders' rights in most cases.

http://www.excpr.com/site/pages/topics/boursa-kuwait-growth-companies.php

#GrowthCompanies

Consultancy & Business Management

Sustainability and More

P.O. BOX 21407 – SAFAT 13075 KUWAIT

SHARQ  I  AHMED ALJABER STREET  I  ALMISBAH TOWER  I  2^ND FLOOR  I  OFFICE NO. 2

Tel: +965 600-excpr (600-39277)

Website: www.excpr.com

Email: info@excpr.com