The stock screens as High Risk in our quant model due to its short trading history, but ultimately, we do not think a High Risk rating is warranted due to limited share price volatility post listing and over 95% contract retention in the last 10 years.     

We identify the following risks to the achievemnt of our target price:
• Given the ongoing geopolitical tension in the region, and the risk of a global slowdown, any deterioration in the economic environment could cause a local growth slowdown.
• Compared to international contract caterers, the concentration risk of contracts is significantly elevated, as evidenced by the 2023 loss, albeit voluntarily, of the company’s largest contract when terms of renewal were no longer commercially viable. The current largest client represents 14% of group revenues (across 3 contracts).
• If ADNHC is no longer able to demonstrate the value and differentiation of its offer (either due to a commoditization of the market, a move down-market by some clients, or acceleration of investment of a key competitor), ADNHC may lose market share. 
• Unanticipated dis-synergies of scale when operating as a standalone company, although no significant issues have been identified to date.
• ESG risks