United Electronics (eXtra): A high-quality retailer at a Tasheel discount; Remain OW

We maintain our Overweight rating on eXtra, a value play on a high-quality, leading retail franchise within the Saudi consumer electronics (CE) space and cheap optionality on a consumer finance business (Tasheel) that is going through some key challenges. Our revised Dec-27 PT of SAR 80/share (from SAR 108.5, on downward Tasheel revisions and a higher WACC) implies c. 25% upside from the last close. We derive the PT using a sum-of-the-parts methodology (SoTP) and value the retail business (eXtra) via a DCF-based approach, discounting cash-flows using a WACC of 11.0% and a terminal growth rate of 2.3%, and the consumer finance business via a residual income model, using a cost of equity of 13.5% and terminal growth rate of 3.0%. We are more constructive on the retail business, which has continued to outperform the CE market (retail revenues +8% YoY in FY 25;