Results Summary of Listed Companies in the Saudi Market - 3Q 2017

Transcription

1. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Top 15 Companies Please read Disclaimer on the back Top 15 Companies Lowest P /E Company Buruj Cooperative Insurance Co. Al-Babtain Co. Gulf Union Cooperative Insurance Co. Arabian Shield Insurance Co. Bank Aljazira Altayyar Travel Group Saudi Investment Bank Solidarity Saudi Takaful Co. Saudi Arabian Insurance Co. Trade Union Cooperative Insurance Co. Arab National Bank United Cooperative Assurance Co. Saudi United Insurance Co. Zamil Industrial Investment Co. Salama Cooperative Insurance Co. P/E TTM (x) P/BV (x) D/Y (%)* 5.88 7.11 7.32 7.46 7.48 7.69 7.99 8.19 8.22 8.22 8.35 8.52 8.63 9.07 9.26 1.92 1.38 1.48 2.24 0.70 0.80 0.77 1.73 1.30 1.41 1.02 1.35 2.18 0.86 2.41 1.70% 4.10 -4.83 3.28 2.18 3.22 ---4.05 --8.32 -- Highest D/Y Company Saudi Cement Co. Yanbu Cement Co. Al Yamamah Steel Industries Co. Al Sagr Cooperative Insurance Co. Aseer Trading Co. National Shipping Co. Arabian Cement Co. Zamil Industrial Investment Co. Saudi Chemical Co. Arriyadh Development Co. Qassim Cement Co. Southern Province Cement Co. Al Hassan Ghazi Ibrahim Shaker Co. Saudi Airlines Catering Co. Eastern Province Cement Co. Source: Bloomberg, AlJazira Capital. Prices as of 19 November . * Trailing 12 months (TTM), ** Non recurring profit Buruj Insurance Co., Al-Babtain Power and Telecommunication Co., and Gulf Union Cooperative Insurance Co., posted the lowest P/E (5.88x-7.32x) in the Saudi market for the trailing 12 months (TTM), followed by Arabian Shield Cooperative Insurance Co.(7.46x). The average P/E for the Saudi market on a TTM basis stood at 14.75x. Lowest 15 Companies Lowest P/BV Company Dar Alarkan Real Estate Development Co. Saudi Ceramic Co. Najran Cement Co. Saudi Real Estate Co. Aseer Trading Co. Al Hassan Ghazi Ibrahim Shaker Co. Al Jouf Cement Co. Abdullah A. M. Al-Khodari Sons Co. Arabian Pipes Co. Bank Aljazira Etihad Etisalat Co. Saudi Arabian Amiantit Co. Hail Cement Co. Saudi Investment Bank Saudi Re for Cooperative Reinsurance Co. P/E TTM (x) D/Y (%)* 0.45 0.63 0.64 0.65 0.65 0.66 0.67 0.67 0.67 0.70 0.70 0.75 0.76 0.77 0.77 30.84 283.09 18.68 25.75 60.93 7.48 22.33 7.99 10.06 -456.2% -5.38 8.99 7.43 ---3.28 --4.98 3.22 -- Source: Bloomberg, AlJazira Capital. Prices as of 19 November P/Bv (x) P/E TTM (x) 12.99 11.06 10.44 9.09 8.99 8.99 8.92 8.32 8.31 8.16 7.81 7.68 7.43 7.43 6.67 2.12 1.19 1.62 1.17 0.65 1.17 1.10 0.86 1.25 1.14 2.06 1.93 0.66 4.85 0.87 11.05 12.14 10.33 21.51 11.89 17.74 9.07 13.46 12.35 13.06 14.34 13.13 12.56 Source: Bloomberg, AlJazira Capital. Prices as of 19 November Saudi Cement Co. had the highest dividend yield (12.99%) in the Saudi market. The Materials sector dominated the market in terms of dividend yield, with 8 companies ranking among the top 15 companies. Overall, the dividend yield in the Saudi market stood at 3.48% Highest 15 Companies P/Bv (x) D/Y(%)* Accumulated Loss to Capital Company Saudi Industrial Export Co. Al Sorayai Trading and Industrial Etihad Atheeb Telecommunication Co. MetLife AIG ANB Cooperative Co. Mobile Telecommunications Co. Saudi Paper Manufacturing Co. Saudi Cable Co. Saudi Fisheries Co. Al-Ahlia Insurance Co. Allied Cooperative Insurance Group Middle East Specialized Cables Co. Anaam International Holding Group Nama Chemicals Co. Tihama Advertising Co. Saudi Enaya Cooperative insurance Co. L /C refers to accumulated losses to capital Bk Value P/Bv (x) L/C (%) 9.1 6.0 5.5 6.1 6.2 7.2 6.7 6.9 6.8 7.7 7.4 11.9 7.8 8.0 1.66 1.25 1.09 2.40 0.97 1.02 4.05 1.56 2.18 1.09 1.74 1.42 4.74 2.60 -90.9% -49.4% -45.1% -38.6% -38.0% -36.8% -33.8% -33.3% -32.5% -30.1% -28.5% -25.6% -22.7% -21.7% -19.7% Source: Bloomberg, AlJazira Capital. Prices as of 19 November Dar Alarkan Co. had the lowest P/BV (0.45x) in the Saudi market, followed by Saudi Ceramic Co. (0.63x). Saudi Industrial Export Co., Al Sorayai Trading Co., andEithad Atheeb Co. lost 90.9%,49.4%, and 45.1% of capital , respectively. The TTM P/BV for the Saudi market stood at 1.56x 1 © All rights reserved
2. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Best 15 Companies Please read Disclaimer on the back Worst 15 Companies Top price performers Company YTD % P/Bv (x) P/E TTM (x) United Electronics Co. Salama Cooperative Insurance Co. Jazan Development Co. Al-Rajhi Company for Cooperative AlJazira Mawten REIT  Arabia Insurance Cooperative Co. Saudi Research and Marketing Saudi Arabian Mining Co. National Agricultural Development Co. Saudi Enaya Cooperative Co. Dar Alarkan Real Estate Co. Saudi United Cooperative Co. Abdullah Al Othaim Markets Co. Jarir Marketing Co. National commercial Bank 111.2% 82.7% 57.0% 55.3% 54.2% 54.0% 50.9% 42.9% 32.6% 27.9% 25.4% 24.1% 23.9% 23.2% 23.0% 3.93 2.41 1.53 4.29 1.87 4.32 2.51 1.88 2.60 0.45 2.18 3.85 8.08 1.71 18.17 9.26 94.90 14.34 27.20 39.29 73.81 49.10 30.84 8.63 14.58 15.50 11.08 Worst price performers Company YTD % P/Bv (x) P/E TTM (x) Saudi Industrial Export Co. The Mediterranean and Gulf Co. Southern Province Cement Co. National Medical Care Co. Saudi Cement Co. Al Sagr Cooperative Co. Etihad Etisalat Co. United Wire Factories Co. Nama Chemicals Co. Saudi Ground Services Co. Al Hassan Ghazi Ibrahim Shaker Co. Qassim Cement Co. Arabian Pipes Co. Knowledge Economic City Altayyar Travel Group -57.6% -55.6% -48.6% -47.8% -46.2% -45.0% -44.9% -43.0% -42.2% -42.0% -41.4% -41.1% -41.1% -40.8% -40.5% 1.66 2.51 1.93 1.59 2.12 1.17 0.70 1.26 1.42 2.51 0.66 2.06 0.67 1.18 0.80 14.34 11.05 21.51 24.33 13.64 13.06 60.93 1817.32 7.69 Source: Bloomberg, AlJazira Capital. Prices as of 19 November Unites Electronics Co. has been the best performing stock since the Saudi Industrial Export Co. has been the worst performer (down 57.6% beginning of 2017 (up 111.2% YTD), followed by Salama Cooperative YTD), followed by The Mediterranean and Gulf Insurance and Reinsurance Insurance Co. (up 82.7% YTD). Co. (down 55.6% YTD). The list indicates that 15 companies appreciated in value of 23.0% or more, The list indicates that 15 companies lost 40.0% or more of their value since since the start of 2017. the start of the year. Top 15 Companies Weight to the market index Company Al Rajhi Bank Saudi Basic Industries Corp. Jabal Omar Development Co. National Commercial Bank Samba Financial Group Saudi Telecom Co. Almarai Co. Saudi Arabian Mining Co. Banque Saudi Fransi Alinma Bank Riyad Bank Savola Group Saudi Electricity Co. Jarir Marketing Co. Saudi British Bank % of TASI 12.7% 8.8% 5.2% 5.0% 3.3% 3.1% 3.0% 2.9% 2.7% 2.6% 2.5% 2.5% 2.3% 1.8% 1.8% No. of free float Shares (mn) 1,625.0 3,000.0 929.4 2,000.0 2,000.0 2,000.0 1,000.0 1,168.5 1,205.4 1,500.0 3,000.0 534.0 4,167.0 90.0 1,500.0 Least 15 Companies P/E TTM (x) 11.87 15.53 427.54 11.08 9.49 14.33 24.95 73.81 10.67 14.26 11.16 202.84 9.84 15.50 10.14 Source: Bloomberg, AlJazira Capital. Prices as of 19 November Al Rajhi Bank, at 12.7%, has the highest share of the Saudi market, followed by Saudi Basic Industries Corp (8.8%), and Jabal Omar Development Co (5.2%). These three companies account for more than 26.7% of the market index. The most influential stocks in the Saudi market are from the Banking. 2 Source: Bloomberg, AlJazira Capital. Prices as of 19 November © All rights reserved Ratio of free to issued shares Company Kingdom Holding Co. Saudi Telecom Co. Saudi Electricity Company National Petrochemical Co. Saudi Basic Industries Corp Rabigh Refining and Petrochemical Alawwal Bank Middle East Healthcare Co. Saudi Ground Services Co. Al Hammadi Co. L’Azurde For Jewelry Co. Aljazira Takaful Taawuni Co. Zahrat Al Waha Taleem RIET Al Alamiya Cooperative Co. Issued Shares (mn) Free float (mn) F/I (%) 3705.9 2000.0 4167.0 480.0 3000.0 876.0 1143.1 92.0 188.0 120.0 43.0 35.0 15.0 28.5 40.0 185.3 322.9 712.0 82.3 629.8 190.2 314.4 27.2 56.0 35.9 12.9 10.5 4.5 8.6 12.0 5.0% 16.1% 17.1% 17.1% 21.0% 21.7% 27.5% 29.5% 29.8% 29.9% 30.0% 30.0% 30.0% 30.0% 30.0% Source: Bloomberg, AlJazira Capital. Prices as of 19 November F/I refers to free to issued shares Kingdom Holding Co. has the lowest ratio of free-to-issued shares, with just 5.0% of the shares issued being traded in the market. According to the data, four companies have less than 20.0% of free floats.
3. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Best 15 Companies Please read Disclaimer on the back Best15 Companies Return on Equity (ROE) Company YTD % P/Bv (x) Jarir Marketing Co. Saudi Airlines Catering Co. Buruj Cooperative Insurance Co. Al-Rajhi Company for Insurance Arabian Shield Insurance Co. Abdullah Al Othaim Markets Co. Zahrat Al Waha for Trading Co. Herfy Food Services Co. Salama Insurance Co. Saudi Company for Hardware Advanced Petrochemical Co. The Company for Insurance Saudi United Insurance Co. Saudia Dairy and Foodstuff Co. Mouwasat Medical Services Co. 21.8% -24.7% 21.5% 54.8% 1.6% 22.9% -3.1% -20.2% 80.9% 20.0% -2.6% 4.5% 23.5% -1.2% 7.6% 8.08 4.85 1.92 4.29 2.24 3.85 3.79 3.50 2.41 4.41 2.86 3.85 2.18 3.09 5.78 ROE (%) 52.1% 37.0% 30.5% 28.1% 26.6% 26.5% 25.4% 25.3% 24.6% 24.2% 23.9% 23.6% 23.0% 22.9% 22.3% Return on Assets (ROA) Company YTD % P/Bv (x) Jarir Marketing Co. Saudi Airlines Catering Co. Saudia Dairy and Foodstuff Co. Advanced Petrochemical Co. Herfy Food Services Co. Qassim Cement Co. Mouwasat Medical Services Co. Saudi Cement Co. Saudi Ground Services Co. Saudi Arabia Fertilizers Co. Saudi Company for Hardware Dallah Healthcare Co. Middle East Healthcare Co. National Gas and Industrialization Co. Zahrat Al Waha for Trading Co. 21.8% -24.7% -1.2% -2.6% -20.2% -40.5% 7.6% -45.5% -41.5% -22.7% 20.0% 4.9% -27.7% -14.7% 3.1% 8.08 4.85 3.09 2.86 3.50 2.06 5.78 2.12 2.51 3.61 4.41 3.68 2.90 1.79 3.79 Source: Bloomberg, AlJazira Capital. Prices as of 19 November Jarir Marketing Co. has the highest return on equity (RoE) at 52.1% on a TTM basis, followed by Saudi Airlines Catering Co. at 37.0%. ROA (%) 29.8% 24.9% 17.2% 16.3% 14.8% 14.0% 13.8% 13.6% 13.3% 13.3% 12.5% 12.1% 12.1% 11.5% 11.2% Source: Bloomberg, AlJazira Capital. Prices as of 19 November Jarir Marketing Co. and Saudi Airlines Catering Co. registered the highest return on assets (RoA) in the Saudi market at 29.8% and24.9% on a TTM basis, followed by Saudia Dairy and Foodstuff Co. at 17.2%. The top 6 companies have RoE of over 26.0%. The top 4 companies have RoA of over 16.0% Total net profit for listed companies in the Saudi Market 40,000 18.8% -7.3% 50.0% 40.0% 30.0% 20.0% (SAR Mn) 30,000 38.9% 20,000 10.0% -10.8% 0.0% 10,000 -10.0% 0 4Q2015/2016 1Q2016/2017 Earnings (Prior Year TTM) 2Q2016/2017 3Q2016/2017 Earnings (Current Year TTM) -20.0% % YoY (RHS) Source: Bloomberg, AlJazira Capital The overall net earnings of the companies listed on the TASI increased 18.8% YoY to SAR 32.94bn in 3Q2017 from SAR 28.94bn in 3Q2016. Banks and Materials accounted for 61.0% of total earnings. SABIC, Saudi Electrcity, and Saudi Telecom Company were major growth drivers, accounting for 17.6%,16.0%, and 8.0% share of earnings, respectively, in 3Q2017. 3 © All rights reserved
4. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Sectors Performance Total Saudi Market 1 ,799.9 0.53 2,420.4 4,958.8 1.17 5,300.6 543.5 0.14 399.2 27,718.0 0.54 32,940.4 34.5% 6.9% -26.6% 18.8% 7.35% 16.09% 1.21% 100.0% 6700 6500 Nov-17 0.71 1.25 0.10 0.64 6900 Oct-17 2.38% 26.46% 0.00% 0.38% 0.87% -0.16% 0.71% 0.08% 0.80% 0.46% 4.83% 0.89% 0.02% 34.53% 0.79% 2.30% Sep-17 545.2% 15.0% -101.6% -1.5% -17.6% 447.9% -33.8% -126.9% -18.8% 164.0% 62.3% 5.6% 9.3% 14.3% -165.3% -15.4% Aug-17 0.59 0.73 0.00 0.89 0.59 -0.21 0.49 0.32 0.54 1.28 0.85 0.68 0.07 0.68 0.07 0.67 7100 Jul-17 784.8 8,714.9 1.4 125.8 286.7 -53.6 233.0 27.7 262.2 152.8 1,591.1 291.9 8.2 11,375.0 261.5 756.7 7300 Jun-17 0.09 0.64 -0.15 0.90 0.71 -0.04 0.73 -1.18 0.67 0.48 0.52 0.64 0.06 0.59 -0.10 0.79 (SAR) (SARmn) Sector profit to Total Apr-17 121.7 7,580.5 -89.8 127.7 347.9 -9.8 352.0 -103.3 322.7 57.9 980.5 276.5 7.5 9,950.1 -400.5 894.3 EPS May-17 Energy Materials Capital Goods Commercial & Professional Svc. Transportation Consumer Durables & Apparel Consumer Services Media Retailing Food & Staples Retailing Food & Beverages Health Care Equipment & Svc. Pharma, Biotech & Life Science Banks Diversified Financials Insurance Telecommunication Services Utilities Real Estate Mgmt & Dev't. (SAR) Net Profit Mar-17 (SARmn) EPS 7500 Feb-17 Net Profit -4.7% YTD YoY Change Jan-17 Sector 3Q2017 YTD TASI Index Performance YTD 2017 Sector Performance 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% Banks Capital Goods Comm & Prof Svc Consumer Svc Cons Dura & App Diversified Fin Energy Food & Beverages Food & Stapl Ret HC Equip & Svc Insurance Media Materials Phar, Bio & LS Retailing RE Mgmt & Dev Transportation Tel Svc Utilities 3Q2016 -30.0% -40.0% Source: Tadawul, Bloomberg, AlJazira Capital hh The Saudi market’s net profit increased 18.8% YoY to SAR 32.9bn in 3Q2017 from SAR27.7bn in 3Q2016. hh The market’s weighted-average earnings per share (EPS) in 3Q2017 stood at SAR 0.64. hh Index heavyweights Banks and Materials contributed the most to total earnings (34.5% and 26.5%, respectively), while Consumer Durables & Apparel contributed the least. hh Energy sector was the best performer in the Saudi market, with a 545.2% YoY increase in net profit at SAR 784.8 mn in 3Q2017, compared with a net profit of SAR121.7mn in 3Q2016. hh In 3Q2017, 9 sectors witnessed YoY decline, while 10 sectors registered YoY increase in profit. The combined profit after tax (PAT) of the 19 sectors increased 18.8%YoY, led by higher weightage of the Banks and Materials. 4 © All rights reserved
5. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Energy Sector -0 .09 -0.24 0.80 0.36 -0.3 706.5 60.5 18.2 -0.02 0.81 0.15 0.36 73.8% -80.8% 0.6% 12.23 11.89 18.80 1.14 1.28 1.17 1.93 --9.0 3.2 Total 0.09 784.8 0.59 545.2% 12.29 1.25 7.98% 121.7 4400 4100 3800 3500 Oct-17 Saudi Arabia Refineries -1.3 Rabigh Refining -210.6 National Shipping 315.4 Aldrees 18.1 4700 Nov-17 D/Y (%)* Sep-17 P/Bv (X) Aug-17 (SAR) 5000 P/E TTM (x) Jul-17 YoY Change Jun-17 (SARmn) EPS May-17 (SAR) Net Profit Apr-17 (SARmn) EPS Mar-17 Net Profit 5300 Jan-17 Company Name -24.8% YTD 3Q2017 Feb-17 3Q2016 Energy Sector Source: Tadawul, Bloomberg, AlJazira Capital * Trailing 12 months (TTM) YTD 2017 Energy Sector Net earnings of Saudi Arabia’s Energy sector increased to SAR784.8mn in 3Q2017 compared to SAR121.7mn in 3Q2016. The sector’s EPS stood at SAR 0.59 per share. hh National Shipping Company of Saudi Arabia was the worst performer during the quarter, dropping 80.8% in 3Q2017. 20% 10% 0% RABIGH REFINING -10% -20% -30% -40% 5 © All rights reserved NATIONAL SHIPPIN ALDREES SAUDI ARABIA PETROLEU REF
6. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Materials Sector Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 Jun-17 May-17 Apr-17 Mar-17 Materials Sector % YTD 2017 Materials Sector SABIC MAADEN YANSAB SAFCO Kayan APPC TASNEE SIIG Saudi Cement Sahara Petrochemical SPICHEM Yanbu Cement Yamama Cement Arabian Cement Southern Cement Qassim Cement Eastern Cement Northern Cement Alujain Corp PETROCHEM Zamil Industrial Najran Cement City Cement Al Jouf Cement Hail Cement Chemanol ASLAK Tabuk Cement Takween Arabian Pipes Zoujaj UMM AL-QURA Basic Chemical Industries Nama Chemicals Middle East Paper Maadaniyah FIPCO Al Yamamah Steel Saudi Paper Manufacturing National Gypsum Saudi Steel Pipe 50% 5.26 5.44 4.00 6.22 5.41 3.05 -2.65 2.97 ----7.68 12.99 4.98 2.51 8.92 ---7.81 11.06 1.55 6.67 ---3.79 5.30 -4.39 10.44 -4.55 2.47 1.59 -2.71 8.32 -#N/A 4.92% 40% 1.18 1.94 1.85 2.86 1.09 1.22 1.21 1.32 3.61 0.97 0.94 0.81 1.42 1.93 2.12 0.76 0.90 1.10 0.67 0.97 0.83 2.06 1.19 0.95 0.87 0.64 1.59 1.04 1.41 1.09 2.51 1.26 1.62 1.07 0.79 1.04 1.98 0.67 1.34 0.86 1.02 3.79 1.76 30% 12.28 14.08 15.53 12.01 11.30 21.28 19.01 13.57 22.32 16.53 13.40 14.34 11.05 22.33 16.44 17.74 25.75 253.80 31.04 13.06 12.14 24.15 12.56 283.09 26.16 36.77 12.58 155.89 24.33 10.33 10.52 48.76 60.93 9.07 14.94 17.26 20% 51.9% 13.4% 10.7% 10.0% -1.9% 2.8% 77.5% -260.3% 1.2% 140.9% 73.2% 93.5% -67.1% -56.9% -96.6% -41.5% -69.7% -60.8% -58.4% -26.2% -80.4% -48.2% -67.0% 865.2% 13.3% 126.1% -49.6% -45.5% 214.5% 264.3% 49.5% -46.7% 84.8% 3.4% 15.0% 10% 0.38 1.15 1.93 1.06 0.52 0.41 0.29 0.50 0.45 0.33 0.25 -0.08 -0.09 0.41 0.57 0.01 0.10 0.30 0.04 -0.14 0.07 0.57 0.11 0.14 0.16 -0.10 0.09 -0.52 0.44 0.30 0.21 0.16 0.21 -0.28 -0.13 0.45 0.04 0.17 -0.16 0.37 -0.07 1.14 0.73 D/Y (%)* 0% 0.25 165.1 1.01 644.6 1.74 5790.0 0.96 208.0 0.53 36.1 0.40 196.9 0.16 191.6 -0.31 226.5 0.45 188.4 -0.13 121.6 0.11 381.0 -0.31 -9.9 -1.31 -2.0 1.24 57.2 1.32 87.0 0.20 0.7 0.17 19.2 0.97 29.5 0.10 5.8 0.09 -12.2 0.17 12.5 0.77 51.2 0.58 18.0 0.28 29.2 0.49 13.9 0.09 -17.1 -0.08 5.1 0.05 -49.1 0.05 22.2 0.27 8.3 0.09 242.9 0.33 7.2 0.39 10.9 0.10 -14.5 0.17 -4.2 0.14 14.8 0.01 0.5 0.11 6.6 0.05 -4.5 0.69 21.9 -0.48 -3.3 1.11 17.2 0.6 8,714.9 P/Bv (X) -10% 108.7 568.3 5230.0 189.1 36.8 191.6 107.94 -141.3 186.2 -49.4 158.2 -36.9 -30.9 173.6 202.0 19.3 32.9 97.2 14.9 7.9 30.1 69.5 92.0 56.3 42.0 15.6 -4.3 4.4 2.3 7.3 107.5 14.3 20.0 5.2 5.3 4.7 0.1 4.4 1.5 41.2 -21.6 16.6 7,580.5 P/E TTM (x) -20% (SARmn) (SAR) -30% (SARmn) EPS -40% Total Net Profit -50% Sahara Petrochemical Yanbu National Petro Saudi Basic Industries Advanced Petrochemical Alujain Corporation National Petrochemical National Industrialization Saudi Industrial Investment Group Saudi Arabia Fertilizers Saudi International Petrochemical Saudi Kayan Methanol Chemicals Nama Chemicals Southern Province Saudi Cement Hail Cement City Cement Arabian Cement Al Jouf Cement Tabuk Cement Northern Region Qassim Cement Yanbu Cement Yamamah Cement Eastern Province Najran Cement Umm Al-Qura Cement Takween Advanced Middle East Paper Basic Chemical Saudi Arabian Mining United Wire Factories Al Yamamah Steel ** Saudi Steel Pipe National Gypsum The National Glass FIPCO Arabian Pipes MAADANIYAH Zamil Industrial Saudi Paper Zahrat Al Waha Net Profit EPS (SAR) 5100 5000 4900 4800 4700 4600 4500 Feb-17 Company Name -5.0% YTD 3Q2017 Jan-17 3Q2016 Source: Tadawul, Bloomberg, AlJazira Capital * Trailing 12 months (TTM), * * 4Q Ending in September 30th The net profit of Saudi Arabia’s Materials sector increased 15.0% YoY to SAR8.7bn in 3Q2017 from SAR7.6bn in 3Q2016. Index heavyweight Saudi Basic Industries Corp recorded an increase of 10.7%. Saudi Arabia Fertilizers Company reported an increase of 1.2% YoY. The sector’s EPS stood at SAR0.73 per share. hh All cement companies in this sector registered a YoY decline in profit expect for Umm AlQura which recorded net income of SAR 5.1mn. Najran Cement Company recorded a loss of SAR17.1mn, while Tabuk Cement loss was at SAR12.2mn. 6 © All rights reserved
7. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Capital Goods Sector Nov-17 Sep-17 Aug-17 Jul-17 Oct-17 ABDULLAH A .M. AL ELECTRICAL INDUS 0% -10% -20% -30% -40% -50% -60% -70% SAUDI INDUS EXPO 15.71 1.07 4.53% YTD 2017 Capital Goods Sector SAUDI CABLE CO - Source: Tadawul, Bloomberg, AlJazira Capital Capital Goods Sector SAUDI VITRIFIED 0.00 5.34 3.30 -4.56 0.00 --4.10 6.38 --4.59 Jun-17 1.4 1.22 0.99 0.67 0.63 1.08 0.75 1.38 2.15 1.09 1.66 1.44 BAWAN CO -0.15 14.87 37.12 7.11 22.45 56.69 16.45 May-17 -89.8 10.3% 58.0% 16.4% 56.7% -13.3% -89.3% -95.7% -14.0% 9.1% MIDDLE EAST SPEC -1.1 6.4 30.0 1.3 0.2 -10.6 11.4 0.39 0.03 -0.41 -0.78 0.00 -0.02 0.06 0.70 0.09 0.00 -0.98 0.25 P/Bv D/Y (X) (%)* Al-Ahsa Development Co 23.3 2.6 -22.9 -39.2 -2.5 -33.6 34.6 12.1 3.9 -9.3 10.5 0.35 -0.32 -0.98 -0.94 0.00 -0.05 -0.29 0.81 0.81 0.07 -0.86 0.23 P/E TTM (x) Apr-17 (SAR) ASTRA INDUSTRIAL Total (SARmn) EPS Mar-17 21.1 -25.3 -54.4 -46.9 Net Profit Saudi Arabian Amiantit Bawan Company Astra Industrial Group ALKHODARI Saudi Ceramic Co. Saudi Cable Company Al-Ahsa Development Saudi Arabian Amiantit Al-Babtain Saudi vitrified clay Pipes Middle East Specialized Cables Saudi Industrial Export Electric Industries (SAR) Feb-17 (SARmn) EPS SAUDI CERAMIC CO Net Profit 5500 5300 5100 4900 4700 4500 4300 4100 3900 3700 3500 Jan-17 Company Name -23.0% YTD 3Q2017 AL BABTAIN POWER 3Q2016 Net earnings of Saudi Arabia’s Capital Goods sector stood at SAR1.4mn during 3Q2017 compared to SAR89.8mn loss. Middle East Specialized Cables decreased the most 95.7%YoY decline and stood at SAR0.2mn compared to SAR3.9mn in 3Q2016. 7 © All rights reserved
8. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Commercial & Professional Svc Sector -0.19 -4.6 -0.08 60.2% - 1.11 -- Saudi Airlines Catering 139.2 1.70 130.4 1.59 -6.3% 13.13 4.85 7.43 Total 127.7 0.90 125.84 0.89 -1.5% 13.13 3.38 6.62% Source: Tadawul, Bloomberg, AlJazira Capital Nov-17 -11.5 Oct-17 Saudi Printing and Packaging Sep-17 D/Y (%)* Aug-17 (SARmn) P/Bv (X) Jul-17 (SAR) P/E TTM (x) Jun-17 YoY Change% May-17 (SAR) EPS Apr-17 (SARmn) Net Profit EPS Mar-17 Net Profit 5300 5000 4700 4400 4100 3800 3500 Feb-17 Company Name -21.4% YTD 3Q2017 Jan-17 3Q2016 Commercial & Professional Services Sector YTD 2017 Commercial & Professional Svc Sector 0% Saudi Arabia’s Commericial & Professional Services sector recorded a 1.5%YoY decline in net profit of SAR125.8mn in 3Q2017, as compared to net profit of SAR127.7mn in 3Q2016. -5% -10% -15% The sector’s EPS for the quarter stood at SAR 0.89 per share. -20% Saudi Printing and Packaging Co. -25% Saudi Airlines Catering -30% Transportation Sector 160.1 63.3 42.8 5.7 14.8 0.85 0.51 0.60 0.07 0.62 -17.4% -28.2% -0.3% -63.7% 102.2% Total 0.71 286.7 0.59 -17.6% 14.21 1.84 4.49% 347.9 13.64 15.05 10.69 11.17 58.36 2.51 1.02 1.66 0.77 3.90 6.66 3.70 4.37 -0.45 Nov-17 1.03 0.71 0.60 0.19 0.31 Oct-17 Saudi Ground Services 193.7 Saudi Public Transport 88.2 United International Transportation 42.9 Saudi Industrial Services 15.7 Batic Investments and Logistics 7.3 Sep-17 (SAR) Aug-17 EPS Jul-17 (SARmn) Jun-17 Net Profit May-17 (SAR) Apr-17 (SARmn) EPS -27.4% YTD 5300 5100 4900 4700 4500 4300 4100 3900 3700 3500 Mar-17 Net Profit YoY Change P/E D/Y % TTM P/Bv (X) (%)* (x) Feb-17 Company Name 3Q2017 Jan-17 3Q2016 Transport Sector Source: Tadawul, Bloomberg, AlJazira Capital YTD 2017 Transportation Sector 0% Logistics showed an increase of 102.2% YoY. -25% -30% -35% -40% 8 SISCO -20% -45% © All rights reserved Batic -15% BUDGET Saudi Industrial Services showed a decrease of 63.7% YoY, while Batic Investments and -10% SAPTCO SAR347.9mn in 3Q2016. The sector’s EPS stood at SAR 0.59 per share. SGS The Transportation sector’s net profit declined 17.6% YoY to SAR286.7mn in 3Q2017 from -5%
9. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Consumer Durables & Apparel Sector 1.25 1.01 0.82 1.79 0.89 1.04 --4.05 2.96 -3.66% 5000 4700 4400 4100 3800 3500 Nov-17 -39.4% 53.2% 136.0% 110.36 -98.3% 23.82 35.52 -447.9% 29.00 D/Y(%)* Oct-17 -1.32 -0.09 0.04 0.01 -0.08 -0.21 P/Bv (X) Sep-17 -49.5 -3.6 3.5 0.5 -4.6 -53.6 P/E TTM (x) Aug-17 -0.95 -0.19 0.02 0.67 0.06 -0.04 (SAR) Jul-17 Al Sorayai Trading Group -35.5 Saudi Industrial Dev. -7.7 AlAbdullatif Industrial Co 1.5 Lazurde Co. 28.7 Fitaihi Holding Group 3.1 -9.8 Total (SARmn) YoY Change% Jun-17 (SARmn) EPS May-17 (SAR) Net Profit Apr-17 EPS Mar-17 Net Profit -18.3% YTD 5300 Feb-17 Company Name 3Q2017 Jan-17 3Q2016 Consumer Durables & Apparel Sector Source: Tadawul, Bloomberg, AlJazira Capital YTD 2017 Consumer Durables & Apparel Sector 0% -40% L'AZURDE CO FOR -30% ALSORAYAI GROUP which registered a loss of SAR 49.5mn and SAR 4.6mn, respectively, during 3Q2017. -20% FITAIHI HOLDING The sector’s net loss was supported by Al Sorayai Trading Group and Fitaihi Holding Group -10% ALABDULLATIF compared to a net loss of SAR 9.8mn in 3Q2016. The sector’s EPS stood at SAR -0.21 per share. SIDC Saudi Arabia’s Consumer Durables & Apparel sector’s showed a loss of SAR 53.6mn in 3Q2017 Consumer Services Sector 18.28 7.69 13.82 13.00 24.75 11.04 1.00 0.80 2.85 3.50 1.37 1.79 1.18 4.80 2.18 -4.67 2.69 2.78 2.95% 4500 4000 3500 3000 Nov-17 -49.3% -29.5% -34.0% -5.5% 4.6% -83.9% -33.8% Oct-17 0.15 0.63 0.03 0.87 0.52 0.16 0.49 5000 Sep-17 15.0 131.8 0.3 56.0 20.9 9.0 233.0 D/Y(%)* Jul-17 0.30 0.89 0.05 0.92 0.50 1.01 0.73 P/Bv (X) Aug-17 Total 29.6 186.8 0.5 59.3 20.0 55.8 352.0 (SAR) P/E TTM (x) Jun-17 Dur Hospitality Co. Al-Tayyar Travel Group Tourism Enterprise Co. Herfy Food Services Alkhaleej Co. Abdulmohsen Alhokair (SARmn) EPS May-17 (SAR) (SARmn) Net Profit Apr-17 EPS 5500 Feb-17 Net Profit YoY Change% Mar-17 Company Name -31.8% YTD 3Q2017 Jan-17 3Q2016 Consumer Services Sector Source: Tadawul, Bloomberg, AlJazira Capital YTD 2017 Consumer Services Sector 9 © All rights reserved -50% SHAMS -40% DUR HOSPITALITY YoY to SAR9.0mn during 3Q2017. -30% ABDUL MOHSEN AL The sector’s earnings were impacted by Abdulmohsen Alhokair net profit, which fell 83.9% -20% HERFY FOOD SERVI 233.0mn in 3Q2017 from SAR 352.0mn in 3Q2016. The sector’s EPS was SAR 0.49 per share. AL TAYYAR TRAVEL The net earnings of Saudi Arabia’s Consumer Services sector declined 33.8% YoY to SAR AL KHALEEJ TRAIN 0% -10%
10. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Media Sector 0 .32 0.30 - -103.3 -1.18 27.7 0.32 - 39.3 - 4.32 4.74 --- 39.288 4.35 0.0% Source: Tadawul, Bloomberg, AlJazira Capital * 4Q Ending March 2017 Saudi Arabia’s Media sector recorded a net profit of SAR27.7mn in 3Q2017, as compared to a loss of SAR 103.3mn in 3Q2016. Media Sector Nov-17 25.5 2.2 Oct-17 -1.01 -3.03 D/Y (%)* Sep-17 -80.6 -22.7 P/Bv (X) Aug-17 (SAR) Jul-17 EPS (SARmn) 10500 9500 8500 7500 6500 5500 4500 3500 Jun-17 Total (SAR) P/E TTM (x) May-17 Saudi Research Tihama Adv. & PR* EPS YoY Change% Apr-17 (SARmn) Net Profit Mar-17 Net Profit Feb-17 Company Name 26.2% YTD 3Q2017 Jan-17 3Q2016 YTD 2017 Media Sector 60% 40% The sector’s EPS for the quarter stood at SAR 0.32 per share. 20% 0% -20% SAUDI RESEARCH -40% TIHAMA -60% Retailing Sector Shaker Co. 4.0 Extra 6.2 Saudi Co. for Hardware 21.1 Saudi Automotive 6.7 Jarir Marketing Co. 217.9 Fawaz AlHokair Co.* 66.8 0.06 0.15 0.88 0.12 2.42 0.32 -49.2 26.1 22.8 9.1 246.5 6.8 -0.78 0.62 0.95 0.17 2.74 0.03 321.0% 8.2% 36.6% 13.1% -89.8% 18.17 18.24 29.02 15.50 16.02 0.66 3.93 4.41 1.20 8.08 1.93 7.43 1.58 3.16 -5.55 -- Total 0.67 262.2 0.54 -18.8% 16.39 3.34 5.21% 322.7 Source: Tadawul, Bloomberg, AlJazira Capital * 2Q ending September 2017 Retailing Sector Nov-17 D/Y (%)* Oct-17 P/Bv (X) Sep-17 (SARmn) P/E TTM (x) Aug-17 (SAR) Jul-17 YoY Change% Jun-17 EPS May-17 (SAR) Net Profit Apr-17 (SARmn) EPS Mar-17 Net Profit 6500 6300 6100 5900 5700 5500 5300 5100 4900 4700 Jan-17 Company Name 9.9% YTD 3Q2017 Feb-17 3Q2016 YTD 2017 Retailing Sector 120% 90% 10 © All rights reserved SASCO Shaker Co. SAR26.1mn compared to SAR 6.2mn in 3Q2016. -60% United Electronics YoY to SAR 246.5mn in 3Q2017. In addition, United Electronics Co. registered net profit of 0% -30% Saudi Company for Hardware Jarir Marketing Company dominated the sector earnings, the net profit was up 13.1% 30% Hokair EPS stood at SAR 0.54 per share. 60% JARIR MARKETING Saudi Arabia’s Retailing sector recorded a net profit of SAR262.2mn in 3Q2017. The sector’s
11. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Food & Staples Retailing Sector 152.8 1.28 316.2% -68.9% -160.7% 73.2% 14.58 15.21 816.29 3.85 1.59 1.74 2.51 164.0% 15.31 3.04 3.28 4.42 --- 3.42% Source: Tadawul, Bloomberg, AlJazira Capital Nov-17 3.35 0.16 -0.37 0.22 Oct-17 150.6 7.2 -7.3 2.2 P/Bv D/Y(%)* (X) Sep-17 0.48 (SARmn) P/E TTM (x) Aug-17 57.9 (SAR) Jul-17 0.80 0.52 -0.14 0.13 YoY Change% Jun-17 Total 36.2 23.2 -2.8 1.3 EPS May-17 Abdullah Al Othaim Saudi Marketing Co. Anaam International National Agriculture (SAR) Net Profit Apr-17 (SARmn) EPS Mar-17 Net Profit 6100 5900 5700 5500 5300 5100 4900 4700 4500 Feb-17 Company Name 7.8% YTD 3Q2017 Jan-17 3Q2016 Food & Staples Retailing Sector % YTD 2017 Food & Staples Retailing Sector 30% 20% -20% -30% -40% Anaam SAR150.6mn in 3Q2017. Thimar Abdullah Al Othaim Co. was the best performer during the quarter, reporting a net profit of 0% -10% Saudi Marketing 152.8mn in 3Q2017 from SAR57.9mn in 3Q2016. The sector’s EPS stood at SAR1.28 per share. 10% Abdullah Al Othaim Net earnings of Saudi Arabia’s Food & Staples sector increased by 164.0% YoY to SAR Food & Beverages Sector The sector’s increase in earnings was due to an increase in the net profit of index heavyweights Savola Group (up 361.8%YoY) and Almarai Company (up 0.4% YoY). National Agricultural Development Co. declined 39.5%YoY to SAR 17.3mn compared to SAR28.7mn in 3Q2016. 11 © All rights reserved Nov-17 Oct-17 20% SAUDI FISHERIES Ash-Sharqiyah AL QASSIM AGRICU SAVOLA WAFRAH FOR INDUS 0% ALMARAI CO compared to SAR980.5mn in 3Q2016. The sector’s EPS stood at SAR 0.95 per share. Sep-17 60% 40% -40% Saudi Arabia’s Food & Beverages sector recorded a net profit of SAR1.59bn in 3Q2017 Aug-17 % YTD 2017 Food & Beverages Sector -20% Source: Tadawul, Bloomberg, AlJazira Capital, * 4Q Ending in March 2017 Jul-17 Food & Beverages Sector TABUK AGRICULTUR 2.09 3.27 -5.63 1.34 4.23 -2.74 0.67 ---1.31% Jun-17 1.13 3.09 2.26 2.48 4.39 0.95 1.88 1.53 2.17 1.35 1.01 4.05 3.12 AL JOUF 145.98 13.51 35.70 24.95 11.49 49.10 94.90 202.84 30.87 May-17 5.7% -7.8% 11.6% -16.1% 0.4% -65.1% -39.5% 2.6% 361.8% 18.1% -28.2% 19.2% 62.3% HALWANI BROS CO 0.05 2.30 -0.41 0.66 0.67 0.38 0.20 0.13 1.55 -0.62 -0.32 -0.40 0.85 JAZAN DEVELOPMEN 0.05 1.5 2.49 74.7 -0.47 -8.3 0.78 18.8 0.66 667.0 1.10 11.5 0.34 17.3 0.13 6.7 0.34 829.0 -0.76 -4.7 -0.25 -14.4 -0.49 -8.0 0.52 1,591.1 Apr-17 1.4 81.0 -9.3 22.4 664.3 32.9 28.7 6.5 179.5 -5.7 -11.3 -9.9 980.5 P/Bv D/Y(%)* (X) SADAFCO Qassim Agriculture Co. Saudia Dairy and Foodstuff Co.* Wafrah for Industry Halwani Bros Almarai Company Al-Jouf Agriculture NADEC Jazan Development Savola Group Sharqiya Dev Co. Tabuk Agriculture Saudi Fisheries Co. Total (SARmn) YoY Change P/E EPS % TTM (SAR) (x) Mar-17 (SARmn) Net Profit NATIONAL AGRICUL Net Profit EPS (SAR) 6500 6300 6100 5900 5700 5500 5300 5100 4900 4700 4500 Feb-17 Company Name -2.7% YTD 3Q2017 Jan-17 3Q2016
12. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Health Care Equipment & Svc Sector 1.30 0.60 1.53 0.65 0.20 0.44 26.3% -2.0% 55.3% -39.8% 13.7% 51.2% 21.12 25.91 15.33 47.05 13.46 3.68 1.59 5.78 2.90 2.86 1.25 1.97 -1.55 3.88 -8.31 Total 276.5 0.64 291.9 0.68 5.6% 21.91 3.08 3.33% Source: Tadawul website, AlJazira Capital 4400 4200 Health Care Equipment & Services Sector % YTD 2017 Health Care Equipment & Svc Sector 10% National Medical Care 0% Mouwasat Dallah -10% Medical Healthcare The Health Care Equipment & Services sector’s net profit increased 5.6% YoY to SAR 291.9mn in 3Q2017 compared to SAR 276.5mn in 3Q2016. The sector’s EPS stood at SAR 0.68 per share. -20% Middle East Healthcare Company’s profit (down 39.8% YoY) declined the most. While Saudi Chemical increased the most (up 51.2%YoY). -40% Middle East Healthcare Pharma, Biotech & Life Scie. Sector P/Bv (X) D/Y (%)* 4800 4500 1.30 3.49 3900 7.5 0.06 8.2 0.07 9.3% 100.00 1.30 3.49% 3600 Source: Tadawul, Bloomberg, AlJazira Capital Pharma, Biotech & Life Science Sector % YTD 2017Pharma, Biotech & Life Science Sector 0% Saudi Arabia’s Pharma, Biotech & Life Science sector increased 9.3% YoY to post a net profit of SAR8.2mn in 3Q2017 compared to SAR 7.5mn in 3Q2016. The sector’s EPS stood at SAR 0.07 per share. -10% -20% -30% -40% 12 © All rights reserved SAUDI PHARMACEUT Nov-17 9.21 Oct-17 9.3% Sep-17 0.07 Aug-17 8.2 Jul-17 0.06 Jun-17 4200 7.5 May-17 (SAR) Apr-17 Total (SARmn) EPS P/E TTM (x) Mar-17 Saudi Pharmaceutical (SAR) 5100 YoY Change% Feb-17 (SARmn) EPS Net Profit Jan-17 Company Name Net Profit -29.9% YTD 5400 3Q2017 AlHammadi Saudi Chemical Co -30% -50% 3Q2016 Nov-17 76.8 27.0 76.7 60.0 23.6 27.9 Oct-17 1.03 0.61 0.99 1.08 0.17 0.29 Sep-17 60.8 27.6 49.4 99.6 20.7 18.4 4600 Aug-17 Dallah Healthcare National Medical Care Mouwasat Medical Middle East Healthcare Al Hammadi Saudi Chemical 4800 Jul-17 D/Y (%)* Jun-17 (SAR) P/Bv (X) May-17 (SARmn) P/E TTM (x) Apr-17 (SAR) EPS Mar-17 (SARmn) Net Profit EPS 5000 YoY Change% Feb-17 Net Profit 3Q2017 Jan-17 3Q2016 Company Name --13.8% YTD 5200
13. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Banks Sector 3Q2016 Company Name Net Profit (SARmn) EPS (SAR) 3Q2017 Net Profit (SARmn) EPS 5.3% YTD 5800 YoY Change% (SAR) 5500 P/E P/Bv TTM (x) (X) D/Y(%)* 5200 4900 2009.0 1.24 2265.0 1.39 12.7% 11.87 1.93 4.71 4000 NCB 1077.0 0.36 47.7% 11.16 0.96 5.35 Saudi British Bank 994.8 0.66 1083.3 0.72 8.9% 10.14 1.19 4.07 Alawwal Bank 262.8 0.2 363.0 0.32 38.1% 17.37 0.99 -- Samba Financial 1341.0 0.7 1308.0 0.65 -2.5% 9.49 1.06 5.38 Arab National Bank 721.7 0.72 775.5 0.78 7.5% 8.35 1.02 4.05 AlBilad Bank 227.8 0.38 248.1 0.41 8.9% 11.90 1.46 4.30 Saudi Investment Bank 219.4 0.29 358.4 0.48 63.4% 7.99 0.77 3.22 Bank AlJazira Total 161.0 0.31 228.0 0.44 41.6% 7.48 0.70 3.28 9,950.1 0.59 11,375.0 0.68 14.3% 10.86 1.32 4.45% %-10.0% YTD 2017 Banks Sector 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% ALAWWAL BANK 0.24 BANK AL JAZIRA 729.0 BANK ALBILAD Riyad Bank Banks Sector SAUDI INVESTMENT 5.03 ARAB NATL BANK 3.98 1.17 SAUDI BRITISH BK 1.71 10.67 RIYAD BANK 11.08 -0.9% ALINMA BANK 8.4% 0.83 BANQUE SAUDI FR 1.06 1001.0 SAMBA 2126.0 0.84 NATIONAL COMM 0.98 AL RAJHI BANK 1962.0 Banque Saudi Fransi 1010.0 Nov-17 Al Rajhi Bank Oct-17 4300 Sep-17 2.86 Aug-17 1.30 Jul-17 14.26 Jun-17 73.9% May-17 0.36 Apr-17 541.8 Mar-17 0.21 Jan-17 311.6 Feb-17 4600 Alinma Bank Source: Tadawul website, AlJazira Capital The Banking sector’s net profit increased 14.3% YoY to SAR11.4bn in 3Q2017. The sector’s EPS stood at SAR0.68 per share. Alinma Bank registered the highest growth of 73.9%YoY while Samba Financial Group showed the worst performance with a decline of 2.5%YoY during 3Q2017. 13 © All rights reserved
14. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Diversified Financials Sector 0 .77 2.69 1.01 0.65 2.11 -5.92 8.99 48.63 1.00 6.04% 4400 4100 3800 3500 Nov-17 - 25.84 49.46 - 4700 Oct-17 0.07 291.2% - D/Y (%)* Sep-17 261.5 0.20 -0.01 0.07 0.03 P/Bv (X) Aug-17 -0.10 (SAR) 5000 P/E TTM (x) Jul-17 -400.5 9.8 -0.3 247.5 4.4 YoY Change% Jun-17 Total 0.05 0.00 -0.10 -0.38 (SARmn) EPS May-17 Saudi Adv. Ind. Co. 2.5 AlBaha 0.0 Kingdom Holding Co. -355.0 Aseer Trading Co. -48.1 (SAR) Net Profit Apr-17 (SARmn) EPS Mar-17 Net Profit -26.2% YTD 5300 Feb-17 Company Name 3Q2017 Jan-17 3Q2016 Diversified Financials Sector Source: Tadawul, Bloomberg, AlJazira Capital % YTD 2017 Diversified Financials Sector 14 © All rights reserved -45% Al-Baha Development in 3Q2017. -30% Aseer Trading Tourism compared to a loss of SAR400.5mn in 3Q2016. The sector’s EPS stood at SAR 0.07 per share -15% Kingdom Holding Saudi Arabia’s Diversified Financials sector recorded a net profit of SAR261.5mn in 3Q2017 Saudi Advanced Industries 0%
15. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Insurance Sector P /Bv (X) D/Y (%)* 5000 -0.29 - 17.56 1.90 -- Al Sagr Co-op Ins 26.7 1.07 7.5 0.30 -71.7% 21.51 1.17 9.09 Arabia Insurance Co. -1.7 -0.06 3.9 0.15 - 27.20 1.87 -- Arabian Shield Co-op 18.7 0.94 23.1 1.16 23.6% 7.46 2.24 4.83 Saudi Arabian Co-op 17.4 0.69 16.4 0.66 -5.7% 8.22 1.30 -- United Cooperative 26.1 0.53 -2.2 -0.04 - 8.52 1.35 -- Buruj Insurance Co. 8.6 0.34 24.0 0.96 180.6% 5.88 1.92 1.70 -- CHUBB Arabia Co. 9.5 0.47 7.8 0.39 -17.6% 11.29 1.84 -- Allied Insurance Co. 4.7 0.24 3.9 0.20 -16.6% 33.57 2.18 -- Al Alamiya 12.2 0.31 8.8 0.22 -27.8% 24.29 2.54 -- Solidarity Saudi 14.1 0.56 19.6 0.78 39.1% 8.19 1.73 -- Aljazira Takaful 6.4 0.18 6.8 0.20 6.9% 28.28 2.25 2.03 AXA Cooperative 11.2 0.25 12.6 0.28 12.5% 15.70 1.54 -- Tawuniya Insurance Co. 283.3 2.27 159.7 1.28 -43.6% 14.79 3.85 4.33 Allianz Saudi Fransi 6.3 0.32 8.0 0.40 26.5% 22.25 2.71 -- Alahli Takaful Co. 7.1 0.43 8.7 0.52 22.4% 13.33 2.20 1.63 260.4 3.25 217.0 2.71 -16.7% 13.23 3.49 1.53 SABB Takaful 2.8 0.08 2.1 0.06 -25.1% 91.17 2.12 -- Trade Union Co-op Ins 27.2 0.99 16.7 0.61 -38.6% 8.22 1.41 -- Amana Cooperative 7.9 0.57 14.7 1.05 -85.2% 13.26 2.48 -- Gulf General Co-op 7.0 0.35 4.6 0.23 -33.4% 11.80 1.44 -- Wataniya Insurance 8.1 0.40 8.2 0.41 1.9% 9.91 2.40 -- The Mediterranean Co. 60.1 1.50 60.1 1.50 0.1% - 2.51 -- Malath Co-op Ins 1.3 0.03 11.1 0.22 730.91% - 5.79 -- Saudi Re Co. 2.7 0.03 -0.3 0.00 - 10.06 0.77 -- Al-Ahlia Insurance Co. -8.6 -0.54 3.2 0.20 - 19.81 1.56 -- Saudi Enaya -6.3 -0.31 0.7 0.04 - - 2.60 -- Alinma Tokio Marine -1.1 -0.04 -3.2 -0.11 -194.5% - 1.93 -- Gulf Union Co-op Ins -0.2 -0.02 2.0 0.13 - 7.32 1.48 --- Walaa Insurance Co. 40.0 1.00 44.4 1.11 11.0% 8.63 2.18 MetLife AIG ANB Co. -4.2 -0.12 -10.4 -0.30 -146.3% - 2.40 -- Total 894.3 0.79 756.7 0.67 -15.4% 13.14 2.62 3.23% TAWUNIYA Bupa Arabia Walaa Al Rajhi Takaful Arabian Shield Saudi Re Buruj UCA MEDGULF Al Sagr AXA Trade Union Al Alamiya Salama Saudi Arabian Solidarity Takaful SABB Takaful Alinma Tokio Marine Alahli Takaful Co AlJazira Takaful Amana Arabia Insurance Cooperative Wataniya Saudi Enaya Chubb Arabia Allianz SF Malath WAFA Gulf General METLIFE Gulf Union Allied Cooperative 90% -- 2.41 70% 4.29 9.26 50% 14.34 152.1% 30% 98.5% 0.88 10% 1.47 22.0 % YTD 2017 Insurance Sector -10% 58.7 0.35 Insurance Sector -30% 0.74 8.7 4400 -50% 29.6 4600 -70% Al-Rajhi Company Salama Cooperative 4800 Nov-17 -3.6 Oct-17 0.71 Sep-17 8.7 Aug-17 Saudi Indian Co. Bupa Arabia 5200 Jul-17 (SAR) 5400 P/E TTM (x) Jun-17 YoY Change% May-17 EPS Apr-17 (SAR) Net Profit Before Zakat(SARmn) Mar-17 EPS 5600 Feb-17 Company Name Net Profit Before Zakat(SARmn) -6.8% YTD 3Q2017 Jan-17 3Q2016 Al-Ahlia Source: Tadawul, Bloomberg, AlJazira Capital The Insurance sector’s net profit decreased 15.4% YoY to SAR 756.7mn in 3Q2017 from SAR 894.3mn in 3Q2016. The sector’s EPS stood at SAR 0.67 per share during the quarter. Sector heavyweights, Bupa Arabia for Cooperative Insurance’s net profit (before zakat) decreased 16.7% YoY to SAR217.0mn in 3Q2017 from SAR 260.4mn in 3Q2016. The Company for Cooperative Insurance (TAWUNIYA) reported a net profit of SAR159.7mn in 3Q2017 compared to SAR 260.4mn in 3Q2016. In terms of YoY gain in net profit,Malath Co-op Insurance (up 730.9% YoY), Buruj Cooperative Insurance Co. (up 180.6% YoY), and Salama Cooperative (up 152.1% YoY), were the best performers. 15 © All rights reserved
16. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Telecommunication Sector 14 .33 14.33 2.24 0.97 1.09 0.70 1.91 5.77 ---5.29% 4400 4200 4000 3800 Nov-17 18.2% -4.9% 34.5% Oct-17 1.31 0.01 -0.47 -0.23 0.71 4600 Sep-17 2621.3 3.4 -29.8 -174.5 2,420.4 4800 Jul-17 1.11 -0.46 0.24 -0.22 0.53 5000 Aug-17 Total 2216.9 -266.1 15.4 -166.3 1,799.9 P/Bv D/Y(%)* (X) Jun-17 Saudi Telecom Mobile Telecomm Co. Etihad Atheeb Telecom* Etihad Etisalat Co (SAR) (SARmn) P/E TTM (x) May-17 (SAR) (SARmn) EPS 5200 YoY Change% Apr-17 EPS Net Profit Mar-17 Net Profit Feb-17 Company Name -17.3% YTD 3Q2017 Jan-17 3Q2016 Telecommunication Services Sector Source: Tadawul, Bloomberg, AlJazira Capital *4Q Ending March 2017 % YTD 2017 Telecommunication Sector -40% -50% Utilities Sector P/E TTM (x) P/Bv (X) D/Y (%)* 5400 5200 5000 27.5% 11.48 1.79 4.97 4928.4 4,958.8 1.18 1.17 5261.9 5,300.6 1.26 1.25 6.77% 6.89% 9.84 9.87 1.28 1.29 2.94 3.1% Source: Tadawul website, AlJazira Capital، 4800 4600 4400 4200 Nov-17 0.52 Oct-17 38.7 Sep-17 0.40 Aug-17 30.4 Jul-17 (SAR) YoY Change% Jun-17 Total (SARmn) EPS May-17 National Gas & Industrialization Co. Saudi Electricity Co. (SAR) Net Profit Apr-17 (SARmn) EPS Mar-17 Net Profit 5600 Feb-17 Company Name 4.2% YTD 3Q2017 Jan-17 3Q2016 Etihad Atheeb Telecommunication Co Saudi Telecom Co. recorded net income of SAR2.6bn during 3Q2017. -30% Mobile Telecommunications Co Saudi Arabi SAR2.4bn in 3Q2017 from SAR 1.8bn in 3Q2016. The sector’s EPS stood at SAR 0.71 per share. Etihad Etisalat Co -20% Net earnings of Saudi Arabia’s Telecommunication Services sector surged 34.5% YoY to Saudi Telecom Co -0% -10% Utilities Sector % YTD 2017 Utilities Sector Saudi Arabia’s Utilities sector recorded net income of SAR5.3bn in 3Q2017 compared to SAR4.9bn in 3Q2016. The sector’s EPS stood at SAR 1.25 per share. 10% 5% 0% -5% SAUDI ELECTRICIT -10% -15% -20% 16 © All rights reserved National Gas & Industrialization Co
17. Results Summary of Listed Companies November 2017 in the Saudi Market 3Q2017 Please read Disclaimer on the back Real Estate Mgmt & Dev’t Sector P/Bv (X) D/Y (%)* 4400 4200 -60.9% 60.15 1.31 -- Taiba Holding Co. 82.9 0.55 64.8 0.43 -21.8% 22.02 1.40 4.73 Alandalus Property Co. 26.4 0.38 26.4 0.38 0.2% 9.73 1.25 -- Dar Alarkan 112.5 0.10 209.6 0.19 86.4% 30.84 0.45 -- Saudi Real Estate Co. 36.2 0.30 20.6 0.17 -43.1% 18.68 0.65 5.38 Makkah Construction* 113.8 0.69 106.4 0.65 -6.5% 32.11 1.11 4.42 Jabal Omar* Red Sea Housing Knowledge Economic 63.4 10.5 -8.1 543.5 0.07 0.18 -0.02 0.14 -60.8 -0.07 -12.7 -0.21 -27.8 -0.08 399.2 0.10 -243.1% -26.6% 427.54 520.00 1817.32 66.45 5.65 1.23 1.18 1.72 -4.12 -5.15% Source: Tadawul, Bloomberg, AlJazira Capital, * Hijri Calender Nov-17 0.03 Real Estate Mgmt & Dev't Sector % YTD 2017 Real Estate Mgmt & Dev’t Sector 30% 20% 10% 0% -10% -20% -30% -40% -50% Red Sea Intl. 27.0 Oct-17 0.08 SRECO 69.0 Sep-17 Emaar 4000 Alandalus Property 8.16 Aug-17 1.14 Knowledge 12.35 Jul-17 23.0% Arriyadh Dev. 0.34 Jun-17 45.6 May-17 0.28 Taiba Holding 37.1 Apr-17 Arriyadh Development Total 4600 Emaar (SAR) 4800 P/E TTM (x) Mar-17 (SARmn) EPS Dar Al Arkan (SAR) Net Profit Makkah Construction (SARmn) EPS Feb-17 Net Profit 5000 YoY Change% Jan-17 Company Name 3Q2017 Jabal Omar 3Q2016 -18.9% YTD 5200 The net profit of Saudi Arabia’s Real Estate Mgmt & Dev’t sector decreased 26.6% YoY to SAR 399.2mn in 3Q2017 from SAR 543.5mn in 3Q2016. The sector’s EPS for the quarter was at SAR 0.10 per share. Knowledge Economic City (down 243.1% YoY), Emaar Company (down 60.9% YoY) and Saudi Real Estate Co. (down 43.1% YoY) led the decrease in the sector’s net profit during 3Q2017. 17 © All rights reserved
18. RESEARCH DIVISION Acting Head of Research RESEARCH DIVISION BROKERAGE AND INVESTMENT CENTERS DIVISION Talha Nazar Sultan Al Kadi , CAIA Analyst Jassim Al-Jubran +966 11 2256250 t.nazar@aljaziracapital.com.sa +966 11 2256374 s.alkadi@aljaziracapital.com.sa Analyst Analyst Waleed Al-jubayr Muhanad Al-Odan +966 11 2256146 W.aljubayr@aljaziracapital.com.sa +966 11 2256115 M.alodan@aljaziracapital.com.sa General Manager – Brokerage Services & AGM-Head of international and institutional AGM- Head of Western and Southern Region Investment sales brokerage Centers Alaa Al-Yousef Luay Jawad Al-Motawa Mansour Hamad Al-shuaibi +966 11 2256060 a.yousef@aljaziracapital.com.sa +966 11 2256277 lalmutawa@aljaziracapital.com.sa AGM-Head of Sales And Investment Centers AGM-Head of Qassim & Eastern Province +966 11 2256248 j.aljabran@aljaziracapital.com.sa +966 12 6618443 m.alshuaibi@aljaziracapital.com.sa Central Region Sultan Ibrahim AL-Mutawa Abdullah Al-Rahit +966 11 2256364 s.almutawa@aljaziracapital.com.sa +966 16 3617547 aalrahit@aljaziracapital.com.sa AlJazira Capital, the investment arm of Bank AlJazira, is a Shariaa Compliant Saudi Closed Joint Stock company and operating under the regulatory supervision of the Capital Market Authority. AlJazira Capital is licensed to conduct securities business in all securities business as authorized by CMA, including dealing, managing, arranging, advisory, and custody. AlJazira Capital is the continuation of a long success story in the Saudi Tadawul market, having occupied the market leadership position for several years. With an objective to maintain its market leadership position, AlJazira Capital is expanding its brokerage capabilities to offer further value-added services, brokerage across MENA and International markets, as well as offering a full suite of securities business. 1. RATING TERMINOLOGY Analyst 2. 3. 4. Overweight: This rating implies that the stock is currently trading at a discount to its 12 months price target. Stocks rated “Overweight” will typically provide an upside potential of over 10% from the current price levels over next twelve months. Underweight: This rating implies that the stock is currently trading at a premium to its 12 months price target. Stocks rated “Underweight” would typically decline by over 10% from the current price levels over next twelve months. Neutral: The rating implies that the stock is trading in the proximate range of its 12 months price target. Stocks rated “Neutral” is expected to stagnate within +/- 10% range from the current price levels over next twelve months. Suspension of rating or rating on hold (SR/RH): This basically implies suspension of a rating pending further analysis of a material change in the fundamentals of the company. Disclaimer The purpose of producing this report is to present a general view on the company/economic sector/economic subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, may not be suitable for all clients depending on their financial position and their ability and willingness to undertake risks. It is advised that every potential investor seek professional advice from several sources concerning investment decision and should study the impact of such decisions on his/her financial/legal/tax position and other concerns before getting into such investments or liquidate them partially or fully. The market of stocks, bonds, macroeconomic or microeconomic variables are of a volatile nature and could witness sudden changes without any prior warning, therefore, the investor in securities or other assets might face some unexpected risks and fluctuations. All the information, views and expectations and fair values or target prices contained in this report have been compiled or arrived at by Aljazira Capital from sources believed to be reliable, but Aljazira Capital has not independently verified the contents obtained from these sources and such information may be condensed or incomplete. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this report. Aljazira Capital shall not be liable for any loss as that may arise from the use of this report or its contents or otherwise arising in connection therewith. The past performance of any investment is not an indicator of future performance. Any financial projections, fair value estimates or price targets and statements regarding future prospects contained in this document may not be realized. 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