Rapco Investment

1. Company Overview & H1 2026 Performance

RAPCO Investment PJSC reported a profitable first half of 2026, generating AED 9.9 million in net profit despite softer investment income compared to the previous year. The investment company continued to maintain a strong balance sheet, with total assets exceeding AED 517 million, while significantly strengthening its cash position during the period. The company invests across quoted and unquoted equities, bonds, investment properties and other financial assets.

2. Financial Performance Snapshot

• Total Income: AED 12.9M (-8.2% YoY)

• Profit from Operating Activities: AED 11.0M (-10.3% YoY)

• Profit Before Tax: AED 10.1M (-7.5% YoY)

• Net Profit: AED 9.9M (-11.4% YoY)

• Basic EPS: AED 0.104 (vs AED 0.117)

Compared with H1 2025:

• Total income declined from AED 14.1M to AED 12.9M.

• Profit before tax decreased from AED 11.0M to AED 10.1M.

• Net profit declined from AED 11.2M to AED 9.9M.

• Earnings per share decreased to AED 0.104 from AED 0.117.

3. Operational Highlights & Key Metrics

• Total Assets: AED 517.5M

• Total Shareholders' Equity: AED 432.1M

• Cash & Cash Equivalents: AED 7.8M

• Financial Investments at FVTOCI: AED 155.7M

• Financial Investments at FVTPL: AED 166.0M

• Investments at Amortised Cost: AED 186.4M

• Borrowings: AED 69.5M

• Total Liabilities: AED 85.3M

4. Key Performance Drivers

The company's earnings continued to be supported by dividend income of AED 7.4 million and income from investment securities of AED 7.3 million. During the period, RAPCO expanded its investments held at amortised cost to AED 186.4 million while maintaining a diversified investment portfolio across listed equities, bonds, investment properties and other financial assets. Operating cash generation also improved significantly year-on-year.

5. Strategic Highlights & Outlook

Key developments during H1 2026 included:

• Cash and cash equivalents increased from AED 0.6 million to AED 7.8 million.

• The Board approved the transfer of AED 80 million from the Special Reserve to Retained Earnings.

• Quoted investments held under FVTOCI increased to AED 107.2 million.

• The company continued to maintain investments in listed UAE companies including Commercial Bank International, National Bank of Ras Al Khaimah (RAKBANK) and RAK Ceramics.

Management also noted that, despite ongoing geopolitical developments in the Middle East, no material adverse impact on the company's assets, liabilities or operations had been identified as of the reporting date.

6. Investor Takeaway

RAPCO Investment delivered another profitable reporting period while preserving a strong financial position and diversified investment portfolio. Although profitability moderated from the exceptionally strong H1 2025 period, the company strengthened liquidity, continued expanding its investment portfolio and maintained shareholders' equity above AED 432 million, positioning it well for long-term investment growth.