Saudi Tadawul Group 1111Saudi Tadawul Group Holding CompanyTADAWUL:1111FaisalKSASaudi Tadawul Group reported decent Q2 results, but I believe the market focused too much on lower earnings and ignored the bigger picture. The decline in profit was mainly driven by lower trading activity across the Saudi market, not by a deterioration in the company’s business. What caught my attention is that management continues to execute its long-term strategy. The company is becoming much more than just a stock exchange. Technology, data services, post-trade services, and derivatives continue to grow and gradually reduce the company’s dependence on trading commissions. This is exactly what I want to see from a business like Tadawul. The balance sheet remains strong, cash generation is healthy, and the company continues investing in future growth instead of relying only on today’s trading volumes. In my opinion, the market is valuing the company based on current market activity rather than its long-term earnings potential. My Fair Value * Conservative: SAR 120 * Base Case: SAR 132 * Bull Case: SAR 145 If trading activity recovers and IPO momentum continues over the coming quarters, I believe earnings can improve faster than many investors currently expect. For me, Tadawul remains one of the highest-quality businesses in the Saudi market.