AJC Research Team

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Earnings Performance (Q3-22)

Quarterly Report | Saudi Stock Market

+966 11 2256248

[email protected]

AJC Research Team

November

2022

© All rights reserved

August 2019

Inflow projections – Saudi MSCI EM inclusion

Final tranche

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■ Earnings for Q3-22 rose 32.6% Y/Y to SAR 192.6bn from SAR 145.2bn in Q3-21. The growth was driven by higher net profits in energy sector and banks sectors. Excluding ARAMCO, Banks and Materials constitute 45.2% and 19.1% of the market’s net income for Q3-22.

■ Earnings in the energy sector surged 41.7% Y/Y in Q3-22 to SAR 155.0bn as compared to SAR 109.4bn in Q3-21.

This can be mainly ascribed to Saudi Aramco recording a SAR 47.0bn Y/Y rise in earnings. Saudi Aramco’s net income rose to SAR 156.1bn on account of higher crude prices and increase in volumes sold.

■ Earnings in the banks sector increased 22.6% Y/Y in Q3-22 to SAR 16.5bn from SAR 13.5bn in Q3-21. The increase in the net income is mainly attributed healthy growth in earnings of SNB and Al Rajhi Bank, driven by increase in operating income by 7.3% and 9.6%, respectively. Lower net income for SNB in Q3-21 due costs related to merger with SAMBA also supported the banking sector net income growth.

■ Earnings in the materials sector declined 39.6% Y/Y in Q3-22 to SAR 7.0bn in Q3-22 as against SAR 11.6bn in Q3-21. This can be mainly ascribed to a sharp drop in profits of petrochemical companies led by SABIC and Saudi Kayan recording SAR 3.8bn Y/Y and SAR 1.5bn Y/Y decline in earnings, respectively. The higher cost of sales and increase in selling and distribution expenses dragged the net income of SABIC.

■ Net margin contracted on a Q/Q basis from 24.5% to 22.6% in Q3-22. On Y/Y basis, net margin decreased by 94 bps. GP margins contracted sequentially by 210 bps in Q3-22, while operating margins also reduced by 280 bps.

Revenue increased 38.1% Y/Y in Q3-22 but it was down 5.5% compared to the previous quarter.

KSA – KEY HIGHLIGHTS: Q3-22

Quarterly Market Net Income (SAR bn)

Current Q Prior Q Y/Y

146.9

185.0

221.1

192.6

70.8 105.7 127.0

145.2 107.4%

74.9% 74.1%

32.6%

0%

20%

40%

60%

80%

100%

120%

0.0 50.0 100.0 150.0 200.0 250.0

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

Source: Argaam, Aljazira Capital

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Earnings Bridge: Q3-22 (SAR bn) Net Income Contribution by Sector: Q3-22

107.4%

74.9%

74.1%

32.6%

745.7

448.8

76.1

79.2

94.1

47.4

100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0

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

66.1%

Energy 79.6%

Banks 8.3%

Materials 6.9%Utilities1.8%

Telecom Services 1.5%

Others 1.9%

Energy Banks Materials Utilities Telecom Services Others

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

TTM net earnings for Q3-22 increased by 66.1% Y/Y to SAR 745.7bn, with strong growths in Q4-21, Q1-22 and Q2-22 by 107.4%, 74.9% and 74.1%, respectively.

Energy was the largest contributor to net earnings in Q3- 22 at 79.6%, led by Saudi Aramco. Energy was followed by Banks and Materials to be among the top three contributors for yet another quarter at 8.3% and 6.9%

shares of net income, respectively. Excluding ARAMCO, Banks and Materials constitute 45.2% and 19.1% of the market’s net income for Q3-22.

Top Earnings Movers: Q3-22 (SAR mn)

Saudi Aramco and SABIC Agri-Nutrients were the highest contributors to net earnings’ growth, adding SAR 47.0bn and SAR 1.1bn in net earnings, respectively. On the other hand, SABIC and Petro Rabigh were the key laggards, as their net earnings fell by SAR 3.8bn and SAR 1.6bn, respectively. Saudi Aramco’s net income rose due to higher crude prices and volumes sold.

The decline in net profit of SABIC in Q3-22 can be attributed to higher cost of sales and selling and distribution expenses.

Source: Argaam, AlJazira Capital

46,996 1,124

831 744 700

Saudi Aramco SABIC AGRI-NUTRIENTS MAADEN SNB A.Othaim Market

TASNEE

SAUDI ELECTRICITY Saudi Kayan

Petro Rabigh SABIC

-316 -1,005 -1,480 -1,635 -3,759

KSA – EARNINGS SUMMARY: Q3-22

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No. of Profit-making Companies (Q3-21 Vs. Q3-22) Market Net Income Vs P/E: TTM

Margin Trends Quarterly Revenue and Margins

# making proﬁt # making losses

141 147

49 43

0 50 100 150 200

Q3-21 Q3-22

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

671 753

902 852

147 185 221 193

21.9%

24.5%

22.6%

20.0%

21.0%

22.0%

23.0%

24.0%

25.0%

0 200 400 600 800 1000

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

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

146.9 185.0 221.1 192.6

25.0

21.4

20.4 18.2

10.0 15.0 20.0 25.0 30.0

0.0 50.0 100.0 150.0 200.0 250.0

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

GP Margin Operating Margins Net Margins

51.5% 53.0% 51.0% 48.9%

41.5% 44.0% 42.9% 40.1%

21.9% 24.5% 24.5% 22.6%

15.0%

25.0%

35.0%

45.0%

55.0%

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

Source: Argaam, AlJazira Capital

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

Source: Bloomberg, Argaam, AlJazira capital

In Q3-22, the number of profitable companies increased by six to 147 companies, while firms posting losses reduced to 43 from 49 in Q3-21.

The revenue increased 38.1% Y/Y in Q3-22 but it was down 5.5% Q/Q. Net margin shrunk on a Q/Q basis from 24.5% to 22.6% in Q3-22. On Y/Y basis, net margin decreased by 94 bps.

On a Q/Q basis, GP margins contracted by 210 bps in Q3-22, while operating and net margins also reduced by 280 bps and 190 bps, respectively.

Note: GP Margin excludes banks and insurance companies The market’s P/E ratio stood at 18.2x in Q3-22, down from 20.4x in the previous quarter, and from 21.4x in Q1-22.

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 TASNEE had the lowest P/B ratios at 0.72 and 0.85, respectively. The market P/B ratio stood at 2.26.

SABIC AGRI-NUTRIENTS and Aramco recorded the highest RoAs at 42.8% and 24.0%, respectively. The market RoA stood at 9.6%, up from 9.0% in the prior quarter.

Note: All data in the slide is based on market close price as of November 20, 2022.

2P and AlOthaim had the highest RoEs of 57.8% and 54.8%, respectively. The market RoE stood higher at 27.9%, up from 26.9% in the previous quarter.

Chemanol and MEPCO had the lowest P/E ratios, declining further from previous quarter to 5.98 and 6.04, respectively. The market P/E ratio stood at 18.2, down from 20.4 in the prior quarter.

P/E (TTM) Market P/E

Chemanol SipchemMEPCO TASNEE

SABIC AGRI ZOUJAJ SABIC Nayifat

5.98 6.04 6.21 6.30 8.16

11.07 11.10 11.61 11.66 11.89 18.2

5.0 8.0 11.0 14.0 17.0 20.0

Almunajem ALYAMAMAH STEEL

ROA (TTM) Market ROA

42.8%

24.0%22.9% 22.1% 21.8%

18.2% 17.5% 17.2% 16.9% 16.1%

9.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

SABIC AGRI Saudi Aramco JARIR Naqi Water Almunajem NAHDI Sipchem MEPCO AlOthaim 2P

ROE (TTM) Market ROE 57.8%

54.8%

53.6% 52.7%

43.5% 43.0% 42.4%

38.3% 36.2% 36.2%

27.9%

10.0%

30.0%

50.0%

70.0%

2P A.Othaim JARIR SABIC AGRI Extra NAHDI Saudi Aramco Retal SOLUTIONS Almunajem

P/B (TTM) Market P/B

0.72 0.85 0.91 0.98 1.00 1.01 1.02 1.04 1.07 1.09 2.26

- 0.5 1.0 1.5 2.0 2.5 3.0

DAR ALARKAN TASNEE NORTHERN CEMENT Arabian Shield SRECO Jazira Takaful Kingdom Najran Cement ZAIN KSA Saudi Kayan

KSA – KEY HIGHLIGHTS: Q3-22

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Dividend Yield Average market dividend yield 8.24% 7.81% 7.80% 7.62%

6.99% 6.68% 6.48% 6.47% 6.35%

2.4%

0%

2%

4%

6%

8%

10%

Najran Cement ARDCO ALMRAKEZ ACC YANSAB Saudi Cement Maharah ALYAMAMAH STEEL City Cement

117%

71% 68%

50% 48%

75% 70% 69% 64% 63%

20%

40%

60%

80%

100%

120%

140%

Dallah Health MAADEN ACWA Power ALBILAD Alinma UCA ALSAGR INSURANCE AICC Salama Arab Sea

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

1,032 1,012 978

892 860

393 420 489

384 409

0.86% 0.98%

2.41%

3.31%

4.57%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

0 300 600 900 1,200

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

119.0%

68.4% 67.6% 67.4%

49.0% 48.6%

44.6% 42.1%

37.0% 36.5%

30.0%

50.0%

70.0%

90.0%

110.0%

130.0%

SAUDI CABLE TAPRCO Salama ALSAGR INSURANCE ACIG United Cooperative SFICO Amiantit Gulf General TAKWEEN

The average market dividend yield stood at 2.4% with Najran Cement and ARDCO showcasing the highest yields (FY2021) at 8.24% and 7.81%, respectively.

Total market debt (excluding banks and insurance) continued its downtrend by decreasing to SAR 860bn in Q3- 22. 6M SAIBOR jumped to 4.57% in Q3-22 from 3.31% in Q2-22 (the rise was even steeper from 0.86% in Q3-21).

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

Dallah Healthcare and MAADEN delivered the highest YTD returns at 117% and 71%, respectively. At the other end of the performance scale, UCA ends the quarter as the least performing stock since the start of the year (declining by 75%), followed by Al Sagr Insurance (down 70%).

Note: All data in the slide is based on market close price as of November 20, 2022.

Saudi Cable and TAPRCO posted sizable accumulated losses (% of capital) at 119.0%

and 68.4%, respectively. Salama and Al Sagr Insurance had accumulated losses exceeding the cut-off range of 50% of capital.

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

Top 10 Accumulated Losses (% of capital) Top and Bottom YTD Price Performances

KSA – RETURN ANALYSIS AND DEBT POSITION: Q3-22

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All Companies

Q3-21 Q3-22 Ratios (TTM)

Company Net Income

(SAR mn) EPS Net Income

(SAR mn) EPS Change(%) PE ROE PB D/Y

(TTM)

NameAl Rajhi Bank 3,793.8 0.59 4,354.6 1.07 14.8% 20.1 23.40 4.2 -

Saudi National Bank/The 3,980.3 0.89 4,724.6 1.03 18.7% 13.9 11.30 1.6 4.14

Riyad Bank 1,542.8 0.51 1,827.7 0.59 18.5% 16.0 14.24 2.2 2.85

Alinma Bank 738.1 0.35 989.0 0.48 34.0% 21.6 12.85 2.6 2.58

Banque Saudi Fransi 907.2 0.71 960.9 0.75 5.9% 13.7 10.93 1.5 3.78

Saudi British Bank/The 885.3 0.43 1,395.9 0.68 57.7% 21.2 7.39 1.6 2.70

Bank AlBilad 449.7 0.45 540.6 0.54 20.2% 25.9 15.82 3.9 -

Arab National Bank 665.4 0.44 921.1 0.61 38.4% 18.3 8.76 1.6 2.87

Bank Al-Jazira 204.5 0.23 232.7 0.28 13.8% 18.4 8.94 1.6 3.54

Saudi Investment Bank/The 274.3 0.27 550.0 0.53 100.5% 13.6 9.60 1.4 3.31

Amlak International for Real Estate Fina 29.5 0.33 25.1 0.28 -15.1% 13.0 8.87 1.1 5.55

Saudi Home Loans 24.3 0.24 16.4 0.17 -32.7% 30.4 5.96 1.2 3.86

Banks 13,495.2 16,538.5 22.6%

Saudi Ceramic Co 52.4 0.66 42.8 0.53 -18.4% 14.9 10.76 1.6 3.00

Bawan Co 40.9 0.68 38.1 0.64 -6.9% 11.7 22.76 2.5 4.89

Astra Industrial Group 45.4 0.57 70.9 0.89 56.2% 14.9 28.31 2.2 3.08

Electrical Industries Co 10.1 0.23 23.6 0.53 132.8% 14.3 13.42 1.9 3.96

Al Babtain Power & Telecommunication Co 12.7 0.30 19.0 0.44 49.8% 20.9 5.06 1.2 2.19

Saudi Vitrified Clay Pipe Co Ltd -1.8 (0.12) -1.0 (0.07) -43.5% NEG - 2.4 -

Saudi Industrial Export Co -2.2 (0.14) -5.1 (0.63) 129.9% NEG - 4.3 -

Middle East Specialized Cables Co -9.1 (0.23) 0.3 0.01 -103.3% NEG - 1.4 -

Saudi Cable Co -46.6 (6.97) -34.9 (2.91) -25.0% NEG - - -

Al-Omran Industrial & Trading Co 1.6 0.27 0.5 0.08 -70.9% 63.2 7.31 3.9 0.97

Saudi Arabian Amiantit Co -87.3 (8.86) -8.1 (0.82) -90.7% NEG - 1.3 -

Capital Goods 16.2 146.0 801.5%

Saudi Airlines Catering Co 15.4 0.19 71.2 0.87 363.7% 33.0 21.20 6.3 -

Maharah Human Resources Co 35.6 0.95 61.9 1.65 73.8% 13.6 28.05 3.7 4.50

Sadr Logistics Co 2.7 0.17 -2.6 (0.15) - NEG -5.01 4.0 -

Saudi Printing & Packaging Co -17.8 (0.30) -3.9 (0.06) -78.2% NEG -2.93 1.8 -

Commercial & Professional Svc 35.9 126.7 252.8%

Alaseel Co 3.6 0.09 3.7 0.09 2.2% 29.6 9.73 2.9 3.67

L'Azurde Co for Jewelry 7.8 0.14 9.2 0.16 17.2% 29.1 6.18 1.9 1.79

Fitaihi Holding Group 6.9 0.17 -20.8 (0.76) - NEG 3.74 1.8 -

AlAbdullatif Industrial Investment Co -10.6 (0.13) -15.6 (0.19) 47.0% NEG - 1.3 -

Saudi Industrial Development Co -5.7 (0.14) -7.7 (0.19) 33.4% NEG - 2.4 -

Naseej International Trading Co -11.6 (1.30) -1.7 (0.13) -85.1% NEG - 42.8 -

Consumer Durables & Apparel -9.6 -32.9 243.6%

Seera Group Holding -72.3 (0.25) 53.4 0.18 - NEG - 1.1 -

Leejam Sports Co JSC 76.2 1.45 68.1 1.30 -10.7% 18.1 28.99 4.9 3.44

Dur Hospitality Co -6.3 (0.06) -6.0 (0.06) -3.6% High - 1.2 -

Ataa Educational Co** 6.3 0.16 3.6 0.09 -43.1% 29.5 8.81 2.6 -

Herfy Food Services Co 60.1 0.92 20.9 0.32 -65.1% 20.2 11.12 2.1 -

National Co for Learning & Education** 9.1 0.21 18.6 0.43 102.9% 39.8 9.94 4.4 1.83

Shams 0.1 0.00 -1.4 (0.04) - NEG 0.46 14.7 -

Al Khaleej Training and Education Co 7.9 0.15 9.2 0.14 16.4% 29.8 4.17 1.3 -

Development Works Food Co 0.8 0.26 0.5 0.17 -34.7% High 2.29 18.5 -

Abdul Mohsen Al-Hokair Tourism and Devel 6.2 0.21 12.1 0.38 96.1% NEG - 2.2 -

Raydan Food Co -17.5 (1.56) 0.9 0.12 - NEG - 2.3 -

AlAmar Foods 25.5 4.34 19.1 0.75 -25.2% 28.6 36.75 11.3 1.88

Consumer Services 96.2 199.0 106.8%

Saudi Tadawul Group Holding Co 115.2 0.96 89.1 0.74 -22.6% 40.2 15.69 6.2 1.88

Saudi Advanced Industries Co 31.7 0.63 22.1 0.44 -30.2% 15.8 11.58 1.8 2.24

Kingdom Holding Co 108.7 0.03 354.8 0.10 226.4% 4.0 23.20 1.0 3.58

Nayifat Finance Co 57.6 0.58 42.0 0.42 -27.1% 11.6 15.13 1.7 13.76

Sinad Holding Co. -26.6 (0.21) -54.6 (0.43) 105.7% NEG - 1.2 -

Al-Baha Development & Investment Co -0.8 (0.03) -0.6 (0.02) -26.6% NEG - 1.9 -

Diversified Financials 666.8 615.4 -7.7%

Saudi Arabian Oil Co 109,072.0 0.50 156,068.0 0.71 43.1% 12.8 47.90 5.3 3.81

National Shipping Co of Saudi Arabia/The 18.0 0.04 269.9 0.55 - 26.5 5.77 1.5 -

Rabigh Refining & Petrochemical Co 221.4 0.18 -1,413.4 (0.86) - 6.8 9.25 1.1 -

Aldrees Petroleum and Transport Services 47.4 0.63 61.7 0.82 30.2% 24.0 22.32 5.1 2.10

Saudi Arabia Refineries Co 0.8 0.05 - - - 63.2 3.38 2.3 0.61

Arabian Drilling Co. 35.4 0.44 213.4 2.40 - - - - -

Energy 109,359.7 154,986.1 41.7%

Almarai Co JSC 409.1 0.42 463.2 0.47 13.2% 32.0 10.52 3.4 1.81

Savola Group/The 122.4 0.23 163.6 0.30 0.3 38.8 4.68 1.8 0.70

National Agriculture Development Co/The 3.2 0.03 27.8 0.27 7.6 NEG - 1.9 -

Saudia Dairy & Foodstuff Co 63.8 1.69 53.7 2.67 -15.9% 28.5 16.37 4.7 2.65

Al Jouf Agricultural Development Co 3.3 0.11 19.8 0.66 - 28.2 5.08 2.1 2.18

Halwani Brothers Co 14.0 0.40 -23.0 (0.65) - High 2.67 4.1 3.76

Tabuk Agriculture -13.3 (0.41) 5.8 0.15 - NEG - 15.5 -

Saudi Fisheries Co -18.5 (0.46) -26.4 (0.66) 42.9% NEG - 4.8 -

Wafrah for Industry and Development -1.7 (0.09) 3.0 0.39 - 30.8 4.91 3.8 -

Jazan Energy and Development Co 2.3 0.05 -1.1 (0.02) - 22.3 5.18 1.1 -

Ash-Sharqiyah Development Co -0.8 (0.10) -0.7 (0.10) -2.9% NEG 1.06 3.1 -

Al Gassim Investment Holding Co -0.1 (0.00) 0.0 0.00 - - 0.22 2.2 -

Tanmiah Food Co 3.7 0.19 31.7 1.59 - 44.5 13.05 5.6 0.45

Naqi Water Co. 24.1 1.21 15.0 0.75 -38.0% 22.3 26.59 5.5 -

Food & Beverages 611.7 732.5 19.7%

Source: Argaam, Bloomberg, AlJazira Capital

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All Companies

(SAR mn) EPS Change (%) PE ROE PB D/Y

Abdullah Al Othaim Markets Co 44.9 0.50 744.6 8.27 - 10.2 66.32 5.6 3.40

Nahdi Medical Co 247.5 1.90 253.8 1.95 2.6% 30.0 50.70 12.0 2.38

BinDawood Holding Co 70.2 0.61 -48.3 (0.42) - 81.7 5.42 4.6 3.47

Almunajem Foods Co 52.7 0.88 53.6 0.89 1.8% 11.4 38.85 4.2 4.03

Anaam International Holding Group Co 21.7 0.87 7.2 0.23 -67.0% NEG 6.22 2.5 -

Saudi Marketing Co 3.5 0.08 4.5 0.10 29.3% 37.4 3.85 1.4 -

AlDawaa Medical Services Co. 38.3 0.45 48.2 0.57 25.7% 21.9 - 6.1 1.70

Food & Staples Retailing 478.7 1,063.6 122.2%

Dr Sulaiman Al Habib Medical Services Gr 348.6 1.00 420.6 1.20 20.7% 48.7 29.19 13.6 1.55

Mouwasat Medical Services Co 142.7 1.43 122.2 1.22 -14.3% 34.5 21.56 7.1 1.42

Al Hammadi Co for Development and Invest 3.6 0.02 57.1 0.36 - 33.8 11.40 3.9 2.90

Dallah Healthcare Co 49.9 0.55 43.9 0.49 -12.0% 53.1 14.00 7.2 1.26

Saudi Chemical Co Holding 7.8 0.09 10.3 0.12 33.2% 47.0 3.03 1.4 1.78

National Medical Care Co 33.2 0.74 42.6 0.95 28.5% 21.8 13.24 2.8 1.36

Ayyan Investment Co 3.7 0.05 -16.7 (0.21) - NEG - 1.5 -

Middle East Healthcare Co 14.4 0.16 42.0 0.46 192.8% 45.4 1.86 1.9 -

Scientific & Medical Equipment House Co 16.9 0.8 8.8 0.4 -48.0% 20.3 12.60 2.5 1.61

Health Care Equipment & Svc 620.6 730.8 17.8%

Bupa Arabia for Cooperative Insurance Co 177.7 1.49 320.6 2.68 80.4% 30.8 16.51 5.1 2.52

Co for Cooperative Insurance/The 64.4 0.51 115.6 0.92 79.5% 30.5 10.13 3.0 -

Al Rajhi Co for Co-operative Insurance 29.9 0.75 22.4 0.56 -25.2% 64.2 4.37 2.8 -

Saudi Re for Cooperative Reinsurance Co 8.1 0.09 32.1 0.36 296.6% 32.7 3.84 1.2 -

Arabian Shield Cooperative Insurance Co 10.1 0.21 13.6 0.19 35.2% 53.1 2.53 1.0 -

MEDGULF -25.6 (0.31) -29.4 (0.28) - NEG - 1.2 -

Malath Cooperative Insurance Co -36.7 (0.73) -1.2 (0.02) - NEG - 1.9 -

Walaa Cooperative Insurance Co -36.9 (0.57) -17.7 (0.27) - NEG - 1.2 -

Arabia Insurance Cooperative Co 0.8 0.01 2.7 0.09 262.6% NEG - 1.4 -

United Co-operative Assurance Co -20.4 (0.51) -2.0 (0.05) - NEG - 1.6 -

Al-Etihad Cooperative Insurance Co 6.6 0.14 25.8 0.56 287.9% 34.1 3.49 1.2 -

AlJazira Takaful Ta'awuni Co 4.6 0.08 9.9 0.18 112.6% 33.3 3.14 1.0 -

Allianz Saudi Fransi Cooperative Insuran -3.3 (0.06) 7.5 0.13 - 49.6 2.45 1.3 -

Chubb Arabia Cooperative Insurance Co 2.6 0.07 0.7 0.01 -74.1% High 0.58 1.4 -

Al Sagr Cooperative Insurance Co -17.2 (1.23) 0.0 0.00 - NEG - 1.5 -

Allied Cooperative Insurance Group -28.6 (0.92) 0.0 0.00 - NEG - 2.1 -

Buruj Cooperative Insurance Co -8.2 (0.27) 3.3 0.11 - NEG - 1.3 -

Gulf General Cooperative Insurance Co -14.4 (0.29) -16.4 (0.33) -14.0% NEG - 1.2 -

Saudi Arabian Cooperative Insurance Co -9.7 (0.32) -26.4 (0.88) 172.3% NEG - 1.5 -

Wataniya Insurance Co -27.2 (0.90) 8.0 0.23 - NEG - 1.7 -

Al Alamiya for Cooperative Insurance Co -19.6 (0.49) -27.5 (0.69) -39.8% NEG - 1.6 -

Salama Cooperative Insurance Co -38.1 (9.53) 6.1 0.61 -1.16 NEG - 4.6 -

Saudi Enaya Cooperative Insurance Co -13.6 (0.95) -10.0 (0.70) -26.4% NEG - 6.0 -

Gulf Union Cooperative Insurance Co -17.1 (0.63) 3.6 0.08 - NEG - 1.4 -

Alinma Tokio Marine Co -4.6 (0.15) 3.2 0.11 170.4% NEG - 2.7 -

Amana Cooperative Insurance Co -25.5 (1.19) -5.7 (0.13) -77.7% NEG - 1.9 -

Gulf Insurance Group 41.5 0.83 26.4 0.53 -36.3% 12.7 - 1.4 3.88

Insurance -41.9 438.7 -

Saudi Basic Industries Corp 5,594.6 1.86 1,835.9 0.61 -67.2% 11.7 11.88 1.4 5.43

Saudi Arabian Mining Co 1,271.9 0.52 2,102.5 0.85 65% 15.8 26.81 3.7 -

SABIC Agri-Nutrients Co 1,206.5 2.53 2,330.7 4.90 93% 6.2 64.60 3.3 5.80

Sahara International Petrochemical Co 1,029.5 1.42 774.4 1.07 -24.8% 6.1 28.87 1.7 9.47

Saudi Kayan Petrochemical Co 667.4 0.44 -812.3 (0.54) - - -0.02 1.1 -

Yanbu National Petrochemical Co 179.8 0.32 -61.0 (0.11) - 27.6 5.86 1.6 7.27

Advanced Petrochemical Co 217.8 0.70 27.0 0.10 -87.6% 23.0 12.79 3.3 5.37

Saudi Industrial Investment Group 203.9 0.45 54.8 0.07 -73.1% 16.5 7.42 1.3 7.35

National Industrialization Co 333.4 0.50 17.1 0.03 -94.9% 8.3 10.77 0.8 -

Saudi Cement Co 58.7 0.38 80.7 0.53 37.3% 25.9 13.80 3.8 5.68

Yamama Cement Co 40.0 0.20 101.3 0.50 153.5% 26.7 4.76 1.2 -

Southern Province Cement Co 74.1 0.53 88.6 0.63 19.6% 22.4 10.67 2.4 2.83

Yanbu Cement Co 35.5 0.23 69.3 0.43 95.2% 37.1 5.75 2.2 3.84

Qassim Cement Co/The 60.4 0.67 23.4 0.26 -61.2% 51.4 6.47 3.4 3.14

Alujain Holding 56.7 0.82 18.7 0.38 -67% 1.7 68.05 0.7 7.43

Arabian Cement Co/Saudi Arabia 37.7 0.38 59.0 0.59 56.3% 20.8 6.29 1.4 6.23

Eastern Province Cement Co 37.7 0.44 18.5 0.22 -50.8% 27.2 5.59 1.5 4.77

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All Companies

(SAR mn) EPS Change (%) PE ROE PB D/Y

City Cement Co 38.0 0.27 25.3 0.18 -33.6% 37.4 4.10 1.6 4.07

Najran Cement Co 36.1 0.21 27.9 0.16 -22.7% 21.0 5.13 1.1 4.03

Methanol Chemicals Co 74.1 1.10 27.6 0.41 -62.8% 6.5 27.68 1.6 -

Middle East Paper Co 65.0 1.31 53.9 1.08 -17% 6.0 32.91 1.7 2.44

Northern Region Cement Co 18.4 0.10 27.6 0.15 50.1% 18.3 5.00 0.9 4.44

Al Yamamah Steel Industries Co 65.1 1.28 0.6 0.01 -99.2% 12.2 14.99 1.8 5.68

Tabuk Cement Co 8.5 0.09 7.8 0.09 -8.1% High 0.29 1.1 1.60

Umm Al-Qura Cement Co 12.5 0.23 6.3 0.11 -49.8% 22.0 6.74 1.3 2.82

Zamil Industrial Investment Co 0.9 0.01 2.4 0.04 185.8% NEG - 1.2 -

Hail Cement Co 6.0 0.07 7.8 0.08 31.3% NEG - 1.1 4.19

Al Jouf Cement Co 4.1 0.05 5.9 0.05 43.5% NEG - 1.2 -

National Co for Glass Industries/The 19.1 0.58 20.3 0.62 6.5% 11.4 15.67 1.7 2.70

National Gypsum 6.0 0.19 0.5 0.02 -91% High 1.24 1.7 4.21

Basic Chemical Industries Ltd 5.3 0.17 25.6 0.93 384% 14.1 8.28 1.6 -

Nama Chemicals Co 4.9 0.21 -5.4 (0.23) - 16.6 16.23 2.5 -

United Wire Factories Co 8.1 0.23 3.0 0.09 -62.4% 17.4 12.20 2.1 7.56

Takween Advanced Industries Co 40.3 0.42 -21.9 (0.23) -1.54 NEG - 1.6 -

Saudi Steel Pipe Co 15.9 0.32 16.8 0.33 5.5% 22.9 8.66 1.9 -

Filing & Packing Materials Manufacturing -3.4 (0.30) 2.3 0.20 - 95.3 3.82 3.6 -

Saudi Paper Manufacturing Co 0.1 0.01 6.2 0.21 - 16.7 17.75 2.7 -

National Metal Manufacturing & Casting C -6.2 (0.21) -9.5 (0.27) 52.4% NEG - 1.9 -

Zahrat Al Waha For Trading Co 7.5 0.33 0.4 0.02 -94.4% 22.9 10.79 2.4 3.19

Arabian Pipes Co -16.8 (6.72) 9.9 0.99 - NEG - 4.1 -

Al Kathiri Holding Co 4.5 0.40 1.6 0.14 -64.7% NEG - 3.4 -

Al Masane Al Kobra Mining Co. 41.8 0.63 22.6 0.34 -46.0% NEG 19.85 3.8 3.15

Materials 11,561.3 6,994.3 -39.5%

Saudi Research & Media Group 204.9 2.56 246.5 3.08 20.3% 24.0 28.32 6.0 -

Arabian Contracting Services Co 57.1 1.14 65.9 1.32 15.4% 20.7 35.72 6.9 3.47

Tihama Advertising & Public Relations Co -14.6 (1.61) -9.5 (0.48) -34.7% NEG - 469.8 -

Media and Entertainment 247.3 302.9 22.5%

Saudi Pharmaceutical Industries & Medica 7.4 0.06 -45.9 (0.38) - NEG - 1.7 2.50

Pharma, Biotech & Life Sciences 7.4 -45.9 -

Jabal Omar Development Co -270.0 (0.29) 153.1 0.16 - 17.1 11.20 1.4 -

Makkah Construction & Development Co 11.8 (0.02) - 0.45 - High 0.83 2.4 -

Dar Al Arkan Real Estate Development Co 25.2 0.02 79.4 0.07 215.6% 32.7 2.05 0.8 -

Emaar Economic City -172.8 (0.20) -219.0 (0.19) 26.8% NEG - 1.3 -

Taiba Investments Co -38.4 (0.24) 42.8 0.27 -211.5% 87.5 - 1.2 -

Arriyadh Development Co 70.8 0.40 65.4 0.37 -7.6% 13.3 12.16 1.6 2.63

Arabian Centres Co Ltd 95.4 0.19 111.9 0.52 17.3% 16.0 7.44 1.6 7.49

Saudi Real Estate Co -23.9 (0.09) 12.1 0.03 - 28.9 3.28 1.0 -

Alandalus Property Co 19.4 0.21 18.0 0.19 -6.8% 22.1 5.94 1.3 3.32

Knowledge Economic City Co -2.5 (0.01) 4.6 0.01 - NEG - 1.3 -

Red Sea International Co -31.2 (1.03) -56.0 (1.85) 79.6% NEG - 4.7 -

Retal Urban Development Co 35.1 4.39 89.8 2.24 155.6% 19.3 41.61 7.4 3.21

Real Estate Mgmt & Dev’t -281.2 302.2 -

Jarir Marketing Co 272.5 2.27 273.7 2.28 0.4% 19.9 54.29 10.6 5.65

United Electronics Co 89.0 1.21 94.2 1.25 5.8% 12.4 47.18 5.4 5.29

Saudi Automotive Services Co 11.4 0.19 23.5 0.39 106.4% 24.0 9.31 2.2 3.29

Saudi Co For Hardware CJSC -13.9 (0.39) -45.9 (1.27) 2.31 NEG - 2.2 -

Al Hassan Ghazi Ibrahim Shaker Co 12.0 0.25 8.5 0.18 -29.2% 27.3 5.51 1.5 -

Fawaz Abdulaziz Al Hokair & Co* -128.6 0.18 16.9 0.19 -113.1% 41.2 7.69 3.1 -

Baazeem Trading Co 4.2 0.41 4.0 0.40 -3.3% 31.2 10.74 3.3 2.25

Abdullah Saad Mohammed Abo Moati Station 3.0 0.36 7.2 - 140.4% 39.5 6.42 2.5 1.67

Retailing 249.7 382.2 53.1%

Elm Co 177.6 2.22 273.4 3.52 53.9% 28.0 29.92 8.1 1.35

Arabian Internet & Communications Servic 257.2 2.14 299.9 2.52 16.6% 29.4 40.27 10.6 1.67

Al Moammar Information Systems Co 19.0 0.63 25.1 0.84 31.7% 48.1 15.98 8.3 2.61

Arab Sea Information Systems Co 1.2 0.12 -2.1 (0.21) - High 4.92 5.1 -

Perfect Presentation for Commercial Services 17.6 1.17 32.3 2.15 83.5% 20.5 - 11.8 -

Software & Services 455.0 596.3 31.0%

Saudi Telecom Co 2,924.4 0.58 3,541.0 0.71 21.1% 15.6 16.96 2.6 4.24

Etihad Etisalat Co 281.1 0.37 372.5 0.48 32.5% 20.0 8.99 1.7 2.39

Mobile Telecommunications Co Saudi Arabi 60.4 0.07 85.0 0.09 40.8% 27.8 3.79 1.1 -

Etihad Atheeb Telecommunication Co 126.8 (1.07) -7.4 0.74 - NEG - 7.2 -

Telecommunication Services 3,392.7 3,991.1 17.6%

United International Transportation Co 50.1 0.70 64.2 0.90 28.0% 13.9 16.08 2.0 3.86

Saudi Ground Services Co -43.5 (0.23) -50.9 (0.27) 16.9% NEG - 2.1 -

Saudi Industrial Services Co 4.0 0.05 14.4 0.18 261.5% High 0.54 1.3 3.57

Saudi Public Transport Co -56.0 (0.45) 4.0 0.03 - NEG - 2.1 -

Theeb Rent A Car Co 27.4 0.64 53.8 1.25 96.7% 15.7 31.71 4.6 3.13

Batic Investments and Logistic Co 0.5 0.01 -12.8 (0.22) - NEG - 3.0 -

Transportation -17.5 72.8 -

Saudi Electricity Co 7,379.6 1.31 6,375.2 1.07 -13.6% 20.7 2.03 0.4 2.71

ACWA Power Co -26.9 (0.04) 341.7 0.47 - 79.8 9.17 5.5 0.56

National Gas & Industrialization Co 36.7 0.49 57.0 0.76 55.2% 18.4 10.86 2.2 3.38

AlKhorayef Water & Power Technologies Co 22.3 0.89 28.1 1.13 25.9% 31.2 30.87 8.8 2.14

Utilities 7,411.7 6,802.1 -8.2%

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RESEAR CH DIVISION RA TING TERMINOL OGY

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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

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