AJC Research Team

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Earnings Performance (Q2-22)

Quarterly Report | Saudi Stock Market

+966 11 2256248

[email protected]

AJC Research Team

August

2022

© All rights reserved

August 2019

Inflow projections – Saudi MSCI EM inclusion

Final tranche

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■ Earnings for Q2-22 jumped 73.3% Y/Y. The surge in Q2-22 is attributed to higher net profit in the energy sector, banks and materials sectors. This can be attributed to comparison with the previous year’s quarter which was a period of recovery after being struck by the COVID-19 pandemic. Increase crude oil prices, along with higher commodities prices and favorable domestic economic activity supported the corporate earnings in Q2-22. Excluding ARAMCO, Materials and Banks constitute 39.1% and 32.5% of the market’s net income for Q2-22.

■ Earnings in the energy sector increased 91.1% Y/Y in Q2-22. This can be mainly ascribed to Saudi Aramco recording a SAR 82.9bn Y/Y rise in earnings. Saudi Aramco’s net income rose to SAR 173.8bn due to high crude prices and sales volumes, along with stronger profit margins from refining and chemicals.

■ Earnings in the banks sector increased 34.1% Y/Y in Q2-22. the increase in the net income is mainly attributed from SNB which recorded earnings of SAR 4,589mn in Q2-22 as against a net income of SAR 2,315mn in Q2-21 (before merger). This was mainly due to a 23.5% Y/Y rise in total operating income, mainly due to higher net special commission income, fees from banking services, foreign exchange income, and lower other operating expenses..

■ Earnings in the materials sector increased 31.1% Y/Y in Q2-22. This can be mainly ascribed to Ma’aden recording a SAR 2.92bn Y/Y rise in earnings. The increase in net profit in Q2-22 can be attributed to higher average selling prices and volumes.

■ Net margins marginally shrunk on a Q/Q basis from 24.6% to 24.4% in Q2-22. On Y/Y basis, net margin increased by 80bps. Compared with Q1-22, GP margins contracted by 90bps (Q/Q) in Q2-22, with operating margins at an almost flat change. Revenue rose 63.4% Y/Y to SAR 903bn in Q2-22.

KSA – KEY HIGHLIGHTS: Q2-22

Quarterly Market Net Income (SAR bn)

Current Q Prior Q Y/Y

145.2 147.4

184.7

220.4 64.0 71.4

105.7 127.2

126.9% 106.4%

74.7%

73.3%

0.0 50.0 100.0 150.0 200.0 250.0

Q3-21/Q3-20 Q4-21/Q4-20 Q1-22/Q1-21 Q2-22/Q2-21

Source: Argaam, Aljazira Capital

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Earnings Bridge: Q2-22 (SAR bn) Net Income Contribution by Sector: Q2-22

126.9%

106.4%

74.7%

73.3%

697.7

368.3

81.2

76.0

79.0

93.3

- 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0

TTM Q2 21 Q3-21 Q4-21 Q1-22 Q2-22 TTM Q2-22 89.4%

Materials 8.3%Banks 6.9%Utilities 1.8%

Telecom Services 1.5%

Others 1.9%

Energy 79.6%

Energy Materials Banks Utilities Telecom Services Others

Source: Argaam, AlJazira Capital Source: Argaam, AlJazira Capital

TTM net earnings for Q2-22 increased by 89.4% Y/Y to SAR 697.7bn, with triple digit growths in Q3-21 and Q4-21 by129.9% and 106.4% respectively.

Energy was the biggest contributor to net earnings in Q2-22 at 79.6%, led by Saudi Aramco. Energy was followed by Materials and Banks to be the top three contributors for yet another quarter at 8.3% and 6.9% shares of net income respectively.

Excluding ARAMCO, Materials and Banks constitute 39.1%

and 32.5% of the market’s net income for Q2-22.

Top Earnings Movers: Q2-22 (SAR mn)

Saudi Aramco and Ma’aden were the highest contributors to net earnings’ growth, adding SAR 82.9bn and SAR 2.9bn in net earnings, respectively. On the other hand, Saudi Kayan and Jabal Omar were the key laggards, as their net earnings fell by by SAR 631mn and SAR 399mn, respectively. Saudi Aramco’s net income rose due to high crude prices, improved refining and chemicals margins. The decline in net profit of Saudi Kayan in Q2-22 can be attributed to an increase in the average cost of production’s inputs and lower average selling prices, despite an increase sales volume.

Source: Argaam, AlJazira Capital

82,893 2,924

2,273 2,189

668 Saudi Aramco MAADEN SNB SABIC AGRI-NUTRIENTS Petro Rabigh

SIIG YANSAB

SAUDI ELECTRICITY Jabal Omar

Saudi Kayan

-221 -308 -326 -399 -631

KSA – EARNINGS SUMMARY: Q2-22

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No. of Profit-making Companies (Q2-21 Vs. Q2-22) Market Net Income Vs P/E: TTM

Margin Trends Quarterly Revenue and Margin

# making proﬁt # making losses

143 140

46 49

0 50 100 150

Q2-21 Q2-22

Rev (SAR bn) Net Proﬁt (SAR bn) Net Margin (RHS)

615 668

750

903 145 147 185 220

23.6%

22.1%

24.6%

24.4%

20.5%

21.0%

21.5%

22.0%

22.5%

23.0%

23.5%

24.0%

24.5%

25.0%

0 200 400 600 800 1000

Q3-21 Q4-21 Q1-22 Q2-22

Net Income (LHS) (SAR bn) P/E (RHS)

145.2 147.4 184.7 220.4

23.8 25.0

21.4 20.4

10.0 15.0 20.0 25.0 30.0

0.0 50.0 100.0 150.0 200.0 250.0

Q3-21 Q4-21 Q1-22 Q2-22

GP Margin Operating Margins Net Margins

52.4% 51.6% 53.2% 52.3%

42.2%

40.3% 43.3% 43.6%

23.6%

22.1% 24.6% 24.40%

15.0%

25.0%

35.0%

45.0%

55.0%

Q3-21 Q4-21 Q1-22 Q2-22

Source: Argaam, AlJazira Capital

Source: Argaam, AlJazira Capital Source: Argaam, AlJazira Capital

Source: Bloomberg, Argaam, AlJazira capital

Q2-22 saw the list of profitable companies shrink by three companies to record 140 companies at a net profit, compared to the 49 firms that ended the quarter at a loss.

The revenue continued the uptrend in Q2-22, with an increase of approximately 63.4% Y/Y. Net margin shrunk marginally on a Q/Q basis from 24.6% to 24.4% in Q2- 22. On Y/Y basis, net margin increased by 80bps.

On a Q/Q basis, GP margins contracted by 90bps in Q2- 22, with net margins and operating margins at an almost flat change at 20bps down and 30bps up respectively.

Note: GP Margin excludes banks and insurance companies

The market’s P/E ratio continues to improve, ending Q2-22 at 20.4x. Down from 21.4x in the previous quarter, and from 25.0x in Q4-21.

KSA – REVENUE AND MARGIN TRENDS

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10 Lowest P/B ratio 10 Lowest P/E ratio

10 Highest ROE (TTM) 10 Highest ROA (TTM)

Dar Al-Arkan and Northern Cement had the lowest P/B ratios for yet another quarter at 0.78 and 0.99, respectively. The market P/B ratio stood at 2.58.

SABIC AGRI-NUTRIENTS and Jarir maintained their positions for the highest RoAs at 39.8% and 23.9%, respectively. The market RoA stood at 9.0%, up from 8.0% in the prior quarter.

Note: All data in the slide is based on market close price as of August 28, 2022.

SABIC AGRI-NUTRIENTS and Jarir had the highest RoEs of 54.0% and 53.0%, respectively. The market RoE stood higher at 26.9%, up from 24.4% in the previous quarter.

Chemanol and Sipchem had the lowest P/E ratios for another consecutive quarter, yet declining to 7.04 and 7.86, respectively. The market P/E ratio stood at 20.4, down from 21.4 in the prior quarter.

P/E (TTM) Market P/E 7.04 7.86 8.48 8.56 8.83

11.52 11.73 11.73 11.78 13.13

20.4

5.0 8.0 11.0 14.0 17.0 20.0 23.0

Chemanol Sipchem MEPCO TASNEE SABIC AGRI ZOUJAJ GIG Petro Rabigh SABIC Nayifat

ROA (TTM) Market ROA

39.8%

23.9% 22.6% 22.0%

20.4% 18.6% 18.1%16.4% 16.3%14.4%

9.0%

0.0%

10.0%

20.0%

30.0%

40.0%

SABIC AGRI JARIR Saudi Aramco Almunajem Chemanol MEPCO Sipchem NAHDI Alamar ELM

ROE (TTM) Market ROE 54.0% 53.0%

41.4% 41.0% 39.2% 38.6%

35.8% 35.2% 33.3%31.5%

26.9%

10.0%

30.0%

50.0%

70.0%

SABIC AGRI JARIR Saudi Aramco Extra SOLUTIONS NAHDI Alamar Almunajem ALARABIA MEPCO

P/B (TTM) Market P/B

0.78 0.99 1.01 1.05 1.05 1.14 1.14 1.18 1.18 1.19 2.58

- 0.5 1.0 1.5 2.0 2.5 3.0

DAR ALARKAN NORTH CEMENT Arabian Shield Kingdom SEERA Jazira Takaful ZAIN KSA TASNEE TCC ALETIHAD

KSA – KEY HIGHLIGHTS: Q2-22

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Dividend Yield Average market dividend yield 7.41%

6.98% 6.94%

6.45% 6.22%

5.89% 5.79% 5.77% 5.64% 5.42%

2.1%

0%

2%

4%

6%

8%

ALMRAKEZ Najran Cement ACC ARDCO Saudi Cement Maharah YCC YANSAB EPCCO Kingdom

108%

99%

76%

61% 58%

46% 49%

53% 63% 68%

0%

20%

40%

60%

80%

100%

120%

ACWA Power MAADEN TADAWUL Dallah Health Alinma SAUDI CABLE Sadr Arab Sea AICC UCA

Debt (SAR bn) Cash (SAR bn) 6M SAIBOR

1,042 1,031 990 958

869

351 393 419 488

0.83% 0.86% 0.99% 380

2.94% 3.34%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

0 300 600 900 1,200

Q2-21 Q3-21 Q4-21 Q1-22 Q2-22

91.5% 91.5%

70.5%

66.5% 63.6%

53.2% 52.1% 49.3% 49.1% 48.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

SAUDI CABLE Salama Enaya THIMAR TAPRCO RAYDAN ALHOKAIR GROUP ALSAGR INSURANCE ACIG UCA

While the average market dividend yield stood at 2.1%- AlMarakez and Najran Cement towered with the highest yields as of FY2021 at 7.41% and 6.98%, respectively.

Total market debt (excluding banks and insurance) continued its downtrend by decreasing to SAR 869bn Q2-22. SAIBOR 6M steeply increased to 3.34% in Q2-22 from 2.94% in Q1- 22 (and even steeper from 0.83% from Q2-21).

Note: Debt includes operating lease as per IFRS-16, all data excludes banks and insurance

ACWA Power and Ma’aden are leading the TASI equity universe with 108% and 99% YTD returns. At the other end of the performance scale, UCA ends the quarter as the least performing stock as of the start of the year (by declining 68%), followed by AICC (down 63% YTD).

Note: All data in the slide is based on market close price as of August 28, 2022.

Saudi Cable and Salam posted sizable accumulated losses (% of capital) at 91.5% each.

AlHokair Group, Raydan , TAPRCO, Thimar, and Enaya also had accumulated losses (% of capital) exceeding the cut-off range of 50%.

Top 10 Dividend Yield (FY2021) Debt, Cash, and SAIBOR

Top 10 Accumulated Losses (% of capital) Top 5 and Bottom 5 Stocks with YTD Returns

KSA – RETURN ANALYSIS AND DEBT POSITION: Q2-22

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All Companies

Q2-21 Q2-22 Change(%) Ratios (TTM)

Company Net Income

(SAR mn) EPS Net Income

(SAR mn) EPS PE ROE PB D/Y

NameAl Rajhi Bank 3,604.7 0.56 4,258.3 1.05 18.1% 22.6 23.98 4.8 -

Saudi National Bank/The 2,315.9 0.36 4,589.1 1.01 98.2% 20.3 10.61 2.1 3.12

Riyad Bank 1,511.6 0.50 1,611.2 0.54 6.6% 17.5 13.87 2.4 2.70

Alinma Bank 710.3 0.36 925.1 0.44 30.2% 25.5 11.83 2.9 2.37

Banque Saudi Fransi 769.7 0.59 837.0 0.65 8.7% 18.1 10.78 1.9 2.88

Saudi British Bank/The 918.5 0.45 1,082.7 0.53 17.9% 25.0 6.38 1.6 2.64

Bank AlBilad 416.1 0.42 511.0 0.51 22.8% 28.6 15.64 4.3 -

Arab National Bank 472.8 0.32 707.7 0.47 49.7% 19.5 8.12 1.5 2.97

Bank Al-Jazira 251.2 0.31 257.8 0.29 2.7% 20.3 8.57 1.6 3.34

Saudi Investment Bank/The 287.8 0.19 320.7 0.29 11.4% 18.7 7.91 1.5 2.99

Amlak International for Real Estate Fina 28.2 0.31 28.6 0.32 1.2% 14.9 9.49 1.4 4.68

Saudi Home Loans 29.3 0.29 31.3 0.32 6.9% 18.9 6.51 1.2 3.81

11,316.0 15,160.4 34.0%

Banks

Saudi Ceramic Co 63.3 0.79 38.0 0.48 -40.0% 18.1 11.31 2.0 2.34

Bawan Co 43.1 0.72 44.6 0.74 3.3% 13.1 22.90 2.8 4.33

Astra Industrial Group 54.6 0.68 243.1 3.04 345.2% 17.2 27.69 2.4 2.99

Electrical Industries Co 8.0 0.18 18.5 0.41 131.8% 18.3 9.22 2.0 3.75

Al Babtain Power & Telecommunication Co 15.5 0.36 10.5 0.25 -32.4% 27.0 5.58 1.3 2.01

Saudi Vitrified Clay Pipe Co Ltd -1.4 (0.10) -10.5 (0.70) - NEG -3.69 3.2 -

Saudi Industrial Export Co -1.9 (0.12) -7.9 (0.68) - NEG -24.22 5.3 -

Middle East Specialized Cables Co 2.7 0.07 -11.8 (0.30) - NEG -11.00 1.7 -

Saudi Cable Co -19.2 (2.86) -44.5 (26.10) - NEG -123.19 5.8 -

Al-Omran Industrial & Trading Co 4.4 0.73 3.6 0.60 -18.1% 63.7 8.13 4.6 0.83

Saudi Arabian Amiantit Co -59.1 (6.01) -4.0 (0.41) - NEG -29.60 1.4 -

110.1 279.5 153.9%

Capital Goods

Saudi Airlines Catering Co -17.4 (0.21) 43.5 0.53 - 44.9 15.91 6.6 -

Maharah Human Resources Co 38.7 1.03 27.2 0.72 -29.8% 18.8 23.15 4.4 6.29

Sadr Logistics Co 0.2 0.02 -1.0 (0.06) - NEG 1.08 5.1 -

Saudi Printing & Packaging Co -15.4 (0.26) 0.9 0.02 - NEG -4.99 2.0 -

6.2 70.6 1044.2%

Commercial & Professional Svc

Alaseel Co 34.5 0.86 25.0 0.63 -27.4% 26.3 9.34 2.4 4.13

L'Azurde Co for Jewelry 8.0 0.19 8.5 0.15 6.3% 33.6 5.93 2.1 1.61

Fitaihi Holding Group 17.0 0.62 13.3 0.48 -21.8% 40.6 4.35 1.9 -

AlAbdullatif Industrial Investment Co 5.0 0.06 -3.5 (0.04) - NEG -5.02 1.6 -

Saudi Industrial Development Co -4.3 (0.11) -6.6 (0.16) - NEG -14.27 3.1 -

Naseej International Trading Co -5.0 (0.57) 5.5 0.50 - NEG -76.17 4.5 -

55.2 42.3 -23.3%

Consumer Durables & Apparel

Seera Group Holding -98.3 (0.33) -68.0 (0.23) - NEG -5.57 1.0 -

Leejam Sports Co JSC 50.9 0.97 36.0 0.69 -29.2% 17.9 32.00 5.3 1.78

Dur Hospitality Co -3.7 (0.04) -4.6 (0.05) - NEG -0.26 1.4 -

Ataa Educational Co** 6.4 0.16 3.6 0.09 -43.5% 24.6 12.07 2.9 1.79

Herfy Food Services Co 26.7 0.41 20.2 0.31 -24.3% 17.8 15.39 2.5 -

National Co for Learning & Education** 9.2 0.21 18.6 0.43 102.8% 41.9 9.94 4.1 1.33

Shams -13.2 (2.51) 0.1 0.01 - High -20.95 19.0 -

Al Khaleej Training and Education Co 0.0 0.00 6.1 0.09 - 31.6 3.29 1.3 -

Development Works Food Co 2.6 0.85 3.0 1.01 19.2% High 0.88 21.4 -

Abdul Mohsen Al-Hokair Tourism and Devel -70.0 (1.49) -35.0 (0.54) - NEG -53.60 2.3 -

Raydan Food Co -4.1 (0.14) -17.2 (0.51) - NEG -20.02 2.2 -

AlAmar Foods 25.5 1.00 23.6 0.94 -7.4% - 4.06 - 1.41

-68.2 -13.5 -80.2%

Consumer Services

Saudi Tadawul Group Holding Co 181.1 1.51 137.7 1.15 -24.0% 52.8 17.12 8.8 1.35

Saudi Advanced Industries Co 16.8 0.34 27.3 0.55 62.7% 16.9 11.37 2.0 1.92

Kingdom Holding Co 412.2 0.11 427.1 0.12 3.6% 5.0 20.94 1.0 3.04

Nayifat Finance Co 58.1 0.58 43.7 0.44 -24.7% 13.1 17.08 2.2 11.26

Aseer Trading Tourism & Manufacturing Co -0.8 (0.01) -20.3 (0.16) - NEG -3.68 1.4 -

Al-Baha Development & Investment Co -0.7 (0.03) -0.2 (0.01) - NEG -6.86 2.3 -

666.8 615.4 -7.7%

Diversified Financials

Saudi Arabian Oil Co 90,902.0 0.41 173,795.0 0.79 91.2% 16.1 46.45 6.6 3.29

National Shipping Co of Saudi Arabia/The 38.9 0.08 128.0 0.26 229.0% 47.2 3.13 1.5 -

Rabigh Refining & Petrochemical Co 716.9 0.57 1,384.7 1.58 93.1% 6.6 30.69 1.5 -

Aldrees Petroleum and Transport Services 36.0 0.48 45.9 0.61 27.7% 25.2 22.10 5.3 2.13

Saudi Arabia Refineries Co 7.1 0.48 21.0 1.40 194.3% 83.9 0.95 2.7 0.46

91,700.9 175,374.7 91.2%

Energy

Almarai Co JSC 482.0 0.49 520.4 0.53 8.0% 31.7 10.46 3.3 1.89

Savola Group/The 200.0 0.37 213.8 0.40 0.1 49.5 4.23 2.1 0.61

National Agriculture Development Co/The -17.3 (0.17) 27.5 0.27 - NEG -17.10 2.5 -

Saudia Dairy & Foodstuff Co 70.3 1.19 54.1 1.70 -23.1% 28.2 13.49 4.2 3.05

Al Jouf Agricultural Development Co 3.4 0.11 6.8 0.23 98.2% 45.9 5.08 2.3 2.03

Halwani Brothers Co 26.2 0.74 -1.8 (0.05) - 49.4 9.87 5.2 2.82

Tabuk Agriculture -24.0 (0.83) -17.4 (0.45) - NEG -30.95 17.1 -

Saudi Fisheries Co -9.6 (0.24) -8.0 (0.20) - NEG -14.50 5.7 -

Wafrah for Industry and Development -2.6 (0.13) 5.0 0.65 - High 4.91 4.8 -

Jazan Energy and Development Co 7.8 0.16 24.6 0.49 214.3% 25.3 5.80 1.4 -

Ash-Sharqiyah Development Co -2.4 (0.32) -0.4 (0.05) - High -0.37 3.6 -

Al Gassim Investment Holding Co -0.3 (0.01) -0.3 (0.01) - High 0.22 2.2 -

Tanmiah Food Co 3.4 0.17 30.2 1.51 783.5% High 6.18 4.3 0.63

Naqi Water Co. 26.0 1.52 21.3 1.06 -18.0% - - - -

Source: Argaam, Bloomberg, AlJazira Capital

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8 © All rights reserved

All Companies

762.9 875.7 14.8%

Food & Beverages

Abdullah Al Othaim Markets Co 47.9 0.53 46.6 0.52 -2.7% 33.3 25.80 8.8 3.22

Nahdi Medical Co 233.2 1.79 268.5 2.07 18.4% 28.2 43.08 11.7 2.40

BinDawood Holding Co 95.0 0.83 42.3 0.37 -55.4% 50.7 13.12 6.7 2.13

Almunajem Foods Co 38.0 0.63 122.1 2.04 221.5% 13.3 39.49 4.7 3.56

Anaam International Holding Group Co -1.9 (0.18) NA NA - High 12.39 6.6 -

Saudi Marketing Co 4.5 0.10 5.4 0.12 19.1% 43.4 3.60 1.6 -

AlDawaa Medical Services Co. 52.9 0.62 80.7 0.95 52.4% - - 5.9 1.65

469.7 565.6 20.4%

Food & Staples Retailing

Dr Sulaiman Al Habib Medical Services Gr 325.4 0.93 398.1 1.14 22.4% 48.3 28.45 13.2 1.63

Mouwasat Medical Services Co 141.3 1.41 141.5 1.41 0.1% 41.1 23.54 9.1 1.15

Al Hammadi Co for Development and Invest 40.3 0.26 65.1 0.41 61.5% 39.6 6.95 4.2 2.71

Dallah Healthcare Co 47.5 0.53 69.5 0.77 46.2% 35.1 16.09 5.4 1.65

Saudi Chemical Co Holding 27.3 0.32 13.8 0.16 -49.4% 51.5 2.89 1.5 1.71

National Medical Care Co 30.7 0.69 42.0 0.94 36.7% 20.3 12.84 2.5 1.56

Ayyan Investment Co 0.6 0.01 -11.6 (0.16) - NEG 1.31 1.7 -

Middle East Healthcare Co 9.1 0.10 10.4 0.11 14.1% 114.4 1.86 2.4 -

Scientific & Medical Equipment House Co 23.9 1.2 17.3 0.9 -27.8% - - 2.9 1.41

646.3 746.1 15.4%

Health Care Equipment & Svc

Bupa Arabia for Cooperative Insurance Co 288.0 2.41 256.6 2.15 -10.9% 37.6 13.77 5.2 2.60

Co for Cooperative Insurance/The 143.7 1.15 186.7 1.49 30.0% 33.4 8.80 2.9 -

Al Rajhi Co for Co-operative Insurance 38.5 0.96 20.4 0.51 -47.0% 65.7 4.37 2.8 -

Saudi Re for Cooperative Reinsurance Co 13.2 0.14 -8.0 (0.09) -160.3% 102.0 1.41 1.4 -

Arabian Shield Cooperative Insurance Co 5.0 0.12 4.6 0.07 -8.6% 50.0 2.08 1.0 -

MEDGULF 6.6 0.08 -76.7 (0.73) - NEG -23.73 1.3 -

Malath Cooperative Insurance Co -11.8 (0.24) -7.2 (0.14) - NEG -26.45 2.2 -

AXA Cooperative Insurance Co 28.1 0.56 22.2 0.44 -21.0% NEG 12.54 1.5 -

Walaa Cooperative Insurance Co 6.9 0.11 2.7 0.04 -61.1% NEG -16.14 1.2 -

Arabia Insurance Cooperative Co 0.2 0.01 3.5 0.13 - NEG -4.02 1.8 -

United Co-operative Assurance Co -8.5 (0.21) -20.7 (0.52) - NEG -24.95 1.9 -

Al-Etihad Cooperative Insurance Co 17.5 0.35 -2.7 (0.06) - HIGH 0.15 1.2 -

AlJazira Takaful Ta'awuni Co 1.8 0.03 5.4 0.10 201.1% 56.4 2.09 1.1 -

Allianz Saudi Fransi Cooperative Insuran 1.3 0.02 3.4 0.06 167.0% HIGH 0.89 1.3 -

Chubb Arabia Cooperative Insurance Co 4.3 0.13 0.9 0.03 -80.1% 96.9 1.93 1.8 -

Al Sagr Cooperative Insurance Co -10.5 (0.26) NA NA - NEG -29.73 1.8 -

Allied Cooperative Insurance Group -7.3 (0.33) 1.3 0.04 - NEG -94.97 2.9 -

Buruj Cooperative Insurance Co 6.9 0.20 -15.8 (0.53) - NEG -5.32 1.4 -

Gulf General Cooperative Insurance Co -19.8 (0.99) -17.7 (0.35) - NEG -33.28 1.2 -

Saudi Arabian Cooperative Insurance Co -17.1 (0.57) -30.5 (1.02) - NEG -12.65 1.6 -

Wataniya Insurance Co -8.3 (0.27) -13.9 (0.36) - NEG -21.86 1.9 -

Al Alamiya for Cooperative Insurance Co -3.5 (0.08) -0.7 (0.02) - NEG -15.58 2.2 -

Salama Cooperative Insurance Co -1.4 (0.15) -31.6 (6.16) - NEG -82.49 2.7 -

Saudi Enaya Cooperative Insurance Co -9.3 (0.62) 3.0 0.20 - NEG -81.11 6.8 -

Gulf Union Cooperative Insurance Co -47.8 (1.77) 1.2 0.03 - NEG -64.62 2.5 -

Alinma Tokio Marine Co -3.2 (0.11) 0.6 0.02 - NEG -4.33 3.8 -

Amana Cooperative Insurance Co -39.4 (1.83) -1.9 (0.14) - NEG -68.09 2.4 -

SABB Takaful Co 1.3 0.04 4.7 0.14 252.9% NEG -3.14 1.9 -

375.1 289.8 -22.7%

Insurance

Saudi Basic Industries Corp 7,643.2 2.55 7,926.2 2.64 3.7% 12.4 14.26 1.7 4.36

Saudi Arabian Mining Co 1,104.5 0.23 4,028.1 1.64 265% 19.9 25.80 4.5 -

SABIC Agri-Nutrients Co 836.1 1.76 3,024.9 6.35 262% 8.9 64.76 4.8 4.50

Sahara International Petrochemical Co 829.9 1.14 1,263.1 1.74 52.2% 7.7 32.41 2.3 7.00

Saudi Kayan Petrochemical Co 781.0 0.52 150.1 0.10 -80.8% 15.9 9.13 1.4 -

Yanbu National Petrochemical Co 596.4 1.06 288.5 0.51 -51.6% 26.9 7.59 2.1 5.80

Advanced Petrochemical Co 264.6 0.85 109.6 0.42 -58.6% 21.1 17.97 3.8 4.15

Saudi Industrial Investment Group 505.3 1.12 284.2 0.38 -43.8% 16.6 9.18 1.8 5.58

National Industrialization Co 356.7 0.53 297.1 0.44 -16.7% 8.9 14.54 1.2 -

Saudi Cement Co 86.4 0.56 102.5 0.67 18.7% 29.7 13.23 4.2 5.34

Yamama Cement Co 77.7 0.38 90.7 0.45 16.8% 40.3 3.43 1.4 -

Southern Province Cement Co 87.5 0.62 60.5 0.43 -30.8% 24.6 10.32 2.6 4.33

Yanbu Cement Co 41.4 0.26 48.0 0.31 15.9% 45.7 4.50 2.2 3.87

Qassim Cement Co/The 100.2 1.11 29.0 0.32 -71.1% 48.4 8.49 4.2 2.51

Alujain Holding 92.0 1.33 63.0 1.28 -32% 2.7 70.89 1.2 4.62

Arabian Cement Co/Saudi Arabia 33.5 0.34 45.0 0.45 34.3% 26.8 5.33 1.5 5.53

Eastern Province Cement Co 61.9 0.72 43.0 0.50 -30.5% 25.2 6.21 1.6 4.51

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All Companies

City Cement Co 49.7 0.36 24.8 0.18 -50.0% 38.1 4.69 1.8 4.26

Najran Cement Co 32.7 0.19 13.3 0.08 -59.5% 22.2 5.46 1.2 3.50

Methanol Chemicals Co 60.2 0.89 92.2 1.37 53.2% 7.5 33.51 2.2 -

Middle East Paper Co 43.1 0.87 98.6 1.97 129% 8.5 36.26 2.7 1.67

Northern Region Cement Co 20.9 0.12 24.6 0.14 17.8% 21.7 4.59 1.0 4.08

Al Yamamah Steel Industries Co 60.0 1.28 35.2 0.01 -41.4% 15.5 14.99 2.3 4.48

Tabuk Cement Co -1.1 (0.01) 2.5 0.03 - 332.4 0.35 1.2 1.54

Umm Al-Qura Cement Co 18.4 0.33 8.3 0.15 -54.7% 24.7 6.74 1.6 2.19

Zamil Industrial Investment Co 7.1 0.12 -29.0 (0.48) - NEG -25.05 1.5 -

Hail Cement Co 15.3 0.16 -6.8 (0.07) - NEG 0.84 1.2 3.73

Al Jouf Cement Co 8.1 0.06 -1.7 (0.01) - NEG -12.79 1.3 -

National Co for Glass Industries/The 10.0 0.31 37.1 1.13 269.2% 11.9 16.13 1.8 2.65

National Gypsum 5.7 0.18 1.7 0.05 -71% HIGH 2.00 2.0 3.27

Basic Chemical Industries Ltd 8.1 0.30 13.0 0.47 60% 23.3 8.28 1.9 -

Nama Chemicals Co 9.6 0.41 26.7 1.13 178.6% 15.9 18.95 2.8 -

United Wire Factories Co 14.1 0.40 16.2 0.46 15.0% 19.5 12.63 2.4 6.21

Takween Advanced Industries Co 7.9 0.08 -15.0 (0.02) - NEG -2.55 2.1 -

Saudi Steel Pipe Co -8.1 (0.16) 11.7 0.23 - 45.7 8.77 2.2 -

Filing & Packing Materials Manufacturing -5.2 (0.45) 0.9 0.08 - NEG -5.79 4.4 -

Saudi Paper Manufacturing Co 15.1 0.79 21.1 1.10 39.1% 26.2 15.40 3.8 -

National Metal Manufacturing & Casting C -7.4 (0.23) -8.2 (0.23) - NEG -10.17 2.5 -

Zahrat Al Waha For Trading Co 16.3 0.73 4.0 0.18 -75.4% 24.2 13.44 3.2 2.45

Arabian Pipes Co -13.1 (1.32) -4.3 (0.43) - NEG -46.36 4.6 -

Al Kathiri Holding Co 3.1 0.27 -3.5 (0.31) - NEG -3.15 4.3 -

Al Masane Al Kobra Mining Co. 58.4 0.89 40.4 0.67 -30.8% NEG 19.85 4.4 4.46

13,927.1 18,257.4 31.1%

Materials

Saudi Research & Media Group 134.6 1.68 168.7 2.11 25.4% 28.9 29.07 7.4 -

Arabian Contracting Services Co 48.9 0.98 62.8 1.26 28.3% 21.5 35.72 6.9 1.70

Tihama Advertising & Public Relations Co -14.0 (2.31) -8.1 (1.43) - NEG -123.17 30.3 -

169.5 223.4 31.8%

Media and Entertainment

Saudi Pharmaceutical Industries & Medica 31.1 0.26 -51.8 (0.43) - NEG 1.76 1.8 2.10

31.1 -51.8 -

Pharma, Biotech & Life Sciences

Jabal Omar Development Co 270.6 0.29 -128.6 (0.14) - 30.9 14.70 2.6 -

Makkah Construction & Development Co -3.8 (0.02) 73.6 0.45 - - 0.83 2.8 -

Dar Al Arkan Real Estate Development Co 22.4 0.02 92.6 0.09 312.5% 39.3 1.69 0.8 -

Emaar Economic City -177.6 (0.21) -247.0 (0.22) - NEG -11.86 1.6 -

Taiba Investments Co -12.9 (0.08) 34.5 0.21 - NEG -1.25 1.3 -

Arriyadh Development Co 143.4 0.81 57.4 0.32 -60.0% 15.9 12.19 1.9 -

Arabian Centres Co Ltd 109.0 0.27 91.6 0.27 -16.0% 22.1 7.69 1.6 7.40

Saudi Real Estate Co -9.2 (0.03) 45.3 0.19 - 43.5 1.04 1.4 -

Alandalus Property Co 19.2 0.20 15.5 0.17 -19.6% 24.0 6.10 1.5 2.97

Knowledge Economic City Co 4.7 0.01 -8.6 (0.03) - NEG -0.78 1.6 -

Red Sea International Co -29.4 (0.97) -47.7 (1.59) - NEG -43.32 4.5 -

Retal Urban Development Co 45.4 1.19 30.0 0.75 -33.9% 24.6 4.08 7.5 3.23

381.9 8.5 -97.8%

Real Estate Mgmt & Dev’t

Jarir Marketing Co 189.2 1.58 177.2 1.48 -6.4% 22.4 57.47 12.7 3.22

United Electronics Co 100.5 1.75 127.1 2.16 26.5% 16.0 44.83 6.6 4.13

Saudi Automotive Services Co 12.1 0.20 29.7 0.49 145.7% 32.6 7.78 2.5 1.15

Saudi Co For Hardware CJSC 14.4 0.40 -20.5 (0.57) - NEG -13.56 2.4 -

Al Hassan Ghazi Ibrahim Shaker Co 8.8 0.18 11.7 0.24 33.1% 25.1 6.15 1.5 -

Fawaz Abdulaziz Al Hokair & Co* -98.8 0.40 21.7 0.50 - 48.3 7.69 4.3 -

Baazeem Trading Co 4.9 0.48 4.6 0.45 -7.2% 41.4 10.74 4.4 1.69

Abdullah Saad Mohammed Abo Moati Station 1.9 0.10 4.3 0.22 126.2% 48.7 6.42 3.1 1.35

233.0 355.7 52.6%

Retailing

Elm Co 110.1 2.20 194.9 2.51 76.9% 35.4 27.99 9.4 0.91

Arabian Internet & Communications Servic 256.1 2.13 273.1 2.30 6.6% 33.9 41.86 13.2 1.52

Al Moammar Information Systems Co 10.4 0.35 16.9 0.56 61.6% 60.2 14.64 9.9 2.33

Arab Sea Information Systems Co 4.4 0.44 -1.9 (0.19) - 131.6 4.92 6.5 -

381.1 482.9 26.7%

Software & Services

Saudi Telecom Co 2,821.2 1.41 2,837.3 1.42 0.6% 18.5 16.82 2.9 3.78

Etihad Etisalat Co 243.8 0.32 359.5 0.47 47.5% 23.3 8.58 2.0 2.19

Mobile Telecommunications Co Saudi Arabi 41.7 0.05 133.8 0.15 221.3% 31.0 3.79 1.1 -

Etihad Atheeb Telecommunication Co -12.0 (1.35) -9.7 (0.08) - NEG -101.21 5.0 -

3,094.6 3,321.0 7.3%

Telecommunication Services

United International Transportation Co 69.2 0.97 62.5 0.88 -9.7% 14.1 15.81 2.0 3.91

Saudi Ground Services Co -93.2 (0.50) -66.9 (0.36) - NEG -10.09 2.6 -

Saudi Industrial Services Co 22.5 0.28 3.1 0.04 -86.1% 265.8 0.54 1.3 3.36

Saudi Public Transport Co -40.0 (0.32) 2.0 0.02 - NEG -11.15 2.1 -

Theeb Rent A Car Co 25.0 0.58 43.1 1.00 72.5% 17.5 28.12 4.6 2.99

Batic Investments and Logistic Co 3.9 0.08 -12.7 (0.23) - NEG -1.15 3.0 -

-12.7 31.1 -

Transportation

Saudi Electricity Co 5,828.1 0.94 5,502.3 0.86 -5.6% 17.7 2.49 0.4 2.68

ACWA Power Co 307.8 0.48 389.9 0.53 26.6% 145.2 6.90 7.7 0.44

National Gas & Industrialization Co 36.5 0.49 31.8 0.42 -13.0% 23.5 10.86 2.5 2.94

AlKhorayef Water & Power Technologies Co 21.7 0.87 26.3 1.05 21.3% 29.6 31.46 8.5 2.39

6,194.1 5,950.2 -3.9%

Utilities

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Asset Management | Brokerage | Corporate Finance | ^Custody | ^Advisory

Head Office: King Fahad Road, P.O. Box: 20438, Riyadh 11455, Saudi Arabia، Tel: 011 2256000 - Fax: 011 2256068

Al-Jazira Capital is a Saudi Investment Company licensed by the Capital Market Authority (CMA), license No. 07076-37

RESEAR CH DIVISION RA TING TERMINOL OGY

Disclaimer

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. 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.

2. 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.

3. 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.

4. 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.

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RESEAR CH DIVISION

AGM - Head of Sell-Side Research Jassim Al-Jubran

+966 11 2256248

[email protected]