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Cherry Trading Co. (CHRY) announced securing a SAR 61.41 million vehicle-leasing contract with Riyadh Municipality for 922 vehicles over three years. The financial impact of the deal is expected to materialize starting Q3 2026, with no related-party involvement. The contract, disclosed to Tadawul on April 19, represents a significant expansion opportunity for the company in the Saudi public sector.
This win strengthens Cherry’s position in the vehicle-leasing market and could boost its revenue stream in the medium term. For traders, the news may drive short-term optimism in CHRY shares, particularly if the company provides further details on operational execution or profitability projections. However, investors should note that the financial benefits are not immediate, as the impact is delayed until late 2026.
The contract aligns with Saudi Arabia’s Vision 2030 initiatives to modernize public infrastructure. For Gulf investors, this underscores Cherry’s ability to secure large-scale government contracts, which could enhance its reputation and open doors to future tenders. Key watchpoints include quarterly updates on contract progress and broader sector trends in public-sector procurement.
