Inflow projections – Saudi MSCI EM inclusion Final tranche

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August 2019

Inflow projections – Saudi MSCI EM inclusion Final tranche

+966 11 2256248

[email protected]

AJC Research Team

April 2023

Earnings Performance (Q4-22)

Quarterly Report | Saudi Stock Market

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Earnings for Q4-22 increased 4.3% Y/Y to SAR 153.1bn from SAR 146.7bn in Q4-21. The growth was driven by higher net profit in Energy, Banks and Utilities sectors. Banks and Materials sectors were the major contributors to the market’s net income for Q4-22 at 59.1% and 14.7%, respectively. Total earnings ex-Aramco declined 12.1% Y/Y to SAR 27.8bn from SAR 31.6bn in Q4-21.

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Earnings in the energy sector grew 5.9% Y/Y to SAR 124.2bn in Q4-22 as compared to SAR 117.2bn in Q4-21. This can be mainly ascribed to Saudi Aramco recording a SAR 8.7bn Y/Y rise in earnings. Saudi Aramco’s net income rose 7.5% Y/Y to SAR 125.3bn on account of higher crude prices and volumes further supported by improved refining margins.

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Earnings in the banks sector increased 35.0% Y/Y in Q4-22 to SAR 16.3bn from SAR 12.1bn in Q4-21. The increase in the net income is mainly attributed healthy growth in earnings of SNB and Saudi British Bank, driven by increase in operating income by 15.1% and 42.6%, respectively.

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Earnings in the materials sector plunged 72.1% Y/Y in Q4-22 to SAR 4.0bn as against SAR 14.5bn in Q4-21. The decline net income was led by a sharp drop in profits of petrochemical companies such as SABIC, Alujain and Saudi Kayan. A significant decrease in Maaden’s net income also dragged materials sector’s earnings. Petrochemical companies were impacted by lower product prices and higher cost of sales.

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Net margin contracted on a Q/Q basis from 22.3% in Q3-22 to 21.2% in Q4-22. On Y/Y basis, net margin decreased by 56 bps. GP margin expanded sequentially by 88 bps in Q4-22, while operating margin reduced by 177 bps. Revenue increased 7.0% Y/Y in Q4-22 but it was down 16.3% compared to the previous quarter.

Quarterly Market Net Income (SAR bn)

Current Q Prior Q Y/Y

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

185.0 221.1

192.6

153.1

105.7 127.0 145.5 146.7

75.0% 74.1%

32.43%

4.34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0.0 50.0 100.0 150.0 200.0 250.0

Source: Argaam, Aljazira Capital

KSA – KEY HIGHLIGHTS: Q4-22

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Earnings Bridge: Q4-22 (SAR bn) Net Income Contribution by Sector: Q4-22

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

43.2%

75.0%

74.1% 32.4% 4.3%

751.8

525.0

79.2

94.1

47.2 6.4

100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0

Energy Banks Materials Telecom Services Health Care Equipment & Svc Others Energy

81.3%

Banks 10.7%

Materials 2.6%

Telecom

Services 2.4% Health Care Equipment &

Svc 0.5%

Others 2.5%

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

TTM net earnings for Q4-22 increased by 43.2% Y/Y to SAR 751.8bn, with strong growths in

Q1-22 and Q2-22 by 75.0% and 74.1%, respectively. Energy was the largest contributor to net earnings in Q4-22 at 81.3%, led by Saudi Aramco.

Energy was followed by Banks and Materials to be among the top three contributors for yet another quarter at 10.7% and 2.6% shares of total net income, respectively. Excluding Aramco, Banks and Materials constitute 59.1% and 14.7% of the market’s net income for Q4-22.

Top Earnings Movers: Q4-22 (SAR mn)

Saudi Aramco and Saudi Electricity were the highest contributors to net earnings’ growth, adding SAR 8.7bn and SAR 2.2bn in net earnings, respectively. On the other hand, SABIC and Petro Rabigh were the key laggards, as their net earnings fell by SAR 4.7bn and SAR 2.3bn, respectively. Saudi Aramco’s net income rose due to higher crude prices and increase in volumes coupled with stronger refining margins. The decline in net profit of SABIC in Q4-22 can be attributed to the decline in revenue as well as gross margin.

Source: Argaam, AlJazira Capital

8,701 2,246

1,802 962

542

Saudi Aramco SAUDI ELECTRICITY SNB SABB LUBEREF

Saudi Kayan ALUJAIN Jabal Omar Petro Rabigh SABIC

-1,240 -1,432 -1,485 -2,260

-4,681

KSA – EARNINGS SUMMARY: Q4-22

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No. of Profit-making Companies (Q4-21 Vs. Q4-22) Market Net Income Vs P/E: TTM

Margin Trends Quarterly Revenue and Margins

# making proﬁt # making losses

142 156

70 56

0 50 100 150 200

Q4-21 Q4-22

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

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

758

907 862

722

185 221 193 153

24.4% 24.4%

22.3%

21.2%

19.0%

20.0%

21.0%

22.0%

23.0%

24.0%

25.0%

0 200 400 600 800 1000

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

185.0 221.1 192.6 153.1

21.4 20.4

18.2

18.8

10.0 15.0 20.0 25.0

0.0 50.0 100.0 150.0 200.0 250.0

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

GP Margin Operating Margins Net Margins

52.6%

50.6% 48.5% 49.4%

43.0% 42.1%

40.2% 38.4%

24.4% 24.4% 22.3% 21.2%

15.0%

25.0%

35.0%

45.0%

55.0%

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

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

Source: Bloomberg, Argaam, AlJazira capital

In Q4-22, the number of profitable companies increased by 14 to 156 companies, while firms posting losses reduced to 56 from 70 in Q4-21.

The revenue increased 7.0% Y/Y in Q4-22 but it was down 16.3% Q/Q. Net margin shrunk on a Q/Q basis from 22.3% to 21.2% in Q4-22. On a Y/Y basis, net margin decreased by 56 bps.

On a Q/Q basis, GP margin expanded by 88 bps in Q4-22, while operating margin reduced by 177 bps. Both GP and operating margins fell 185 bps and 169 bps Y/Y.

Note: GP Margin excludes banks and insurance companies

The market’s P/E ratio stood at 18.8x in Q4-22, up from 18.2x in the previous quarter, and lower than 25.0x in Q4-21.

KSA – REVENUE AND MARGIN TRENDS

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KSA – KEY HIGHLIGHTS: Q4-22

Lowest 10 P/B ratios Lowest 10 P/E ratios

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

Cenomi Centers and Dar Al-Arkan had the lowest P/B ratios at 0.62 and 0.86, respectively.

The market P/B ratio stood at 2.21.

SABIC Agri-Nutrients and Aramco recorded the highest RoAs at 37.1% and 24.0%, respectively. The market RoA stood at 9.3%, down from 9.6% in the prior quarter.

Note: All data in the slide is based on market close price as of April 11, 2023.

Jarir and 2P had the highest RoEs of 53.8% and 51.8%, respectively. The market RoE stood higher at 26.9%, down from 27.9% in the previous quarter.

SABIC Agri-Nutrients and MEPCO had the lowest P/E ratios at 6.01 and 7.76, respectively.

The market P/E ratio stood at 18.8, up from 18.2 in the prior quarter.

P/E (TTM) Market P/E

6.0 7.8 7.9 8.1 10.0 10.1 10.3 11.0 11.0 11.4 18.8

5.0 8.0 11.0 14.0 17.0 20.0

SABIC AGRI MEPCO Sipchem Chemanol LUBEREF ZOUJAJ Bawan SAIB Nayifat ARDCO

P/B (TTM) Market P/B

DAR ALARKAN NORTHERN CEMENT

0.62 0.86 0.89 0.93 0.95 0.98 1.01 1.02 1.08 1.08 2.21

0.5 - 1.0 1.5 2.0 2.5

CENOMI CENTERS TASNEE Arabian Shield Kingdom ALUJAIN MEDGULF TCC SRECO

ROA (TTM) Market ROA

37.1%

24.0% 22.9% 22.8% 20.1% 19.6% 19.0% 18.0% 16.7% 16.5%

9.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

SABIC AGRI Saudi Aramco LUBEREF JARIR ALSAIF GALLERY ALMUNAJEM A.Othaim Market NAHDI NAQI 2P

ROE (TTM) Market ROE

53.8% 51.8% 50.5%

41.2% 39.6% 38.9% 38.6% 37.7% 34.5% 33.5%

26.9%

10.0%

30.0%

50.0%

70.0%

JARIR 2P SABIC AGRI Saudi Aramco NAHDI LUBEREF Extra SOLUTIONS Alamar AlArabia

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Dividend Yield Average market dividend yield 9.5% 9.4% 8.4% 8.3%

6.4% 6.3% 6.0% 5.6% 5.4% 5.0% 2.7%

0%2%

3%5%

6%8%

11%9%

SABIC AGRI AlOthaim CENOMI CENTERS Sipchem YANSAB ACC SIIG Saudi Cement Bawan AMLAK

108.5%

96.1%

57.6%

48.9% 46.8%

13.4% 13.5% 15.4% 15.6% 16.2%

0.0%

30.0%

60.0%

90.0%

120.0%

Thimar Alkathiri NCLE EIC TAPRCO Medgulf Albilad SABIC Agri Tadawul ANB

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

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

1,012 992

904 889 869

424 0.98% 491 386 411 363

2.41%

3.31%

4.57% 5.60%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

0 300 600 900 1,200

233.7%

119.0%

88.0%

62.1% 49.3% 48.9% 48.4% 48.2% 45.4% 38.0%

30.0%

70.0%

110.0%

150.0%

190.0%

230.0%

THIMAR SAUDI CABLE TAPRCO Salama SFICO Amana Insur TAKWEEN UCA ACIG TADCO

The average market dividend yield stood at 2.7% with SABIC Agri-Nutrients and Al Othaim showcasing the highest yields (FY2022 ) at 9.46% and 9.39%, respectively.

Total market debt (excluding banks and insurance) continued its downtrend reducing to SAR 869bn in Q4-22. 6M SAIBOR jumped further to 5.60% in Q4-22 from 4.57% in Q3-22 (the rise was even steeper from 0.98% in Q4-21).

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

Thimar and Alkathiri delivered the highest YTD returns at 108.5% and 96.1%, respectively. At the other end of the performance scale, ANB ends the quarter as the least performing stock since the start of the year (declining by 16.2%), followed by Tadawul Group (down 15.6%).

Note: All data in the slide is based on market close price as of April 11, 2023.

Thimar and Saudi Cable posted sizable accumulated losses (% of capital) at 233.7% and 119.0%, respectively. TAPRCO and Salama had accumulated losses exceeding the cut- off range of 50% of capital.

Top 10 Dividend Yields (FY2022) Debt, Cash, and SAIBOR

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

KSA – RETURN ANALYSIS AND DEBT POSITION: Q4-22

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All Companies

Q4-21 Q4-22 Ratios (TTM)

Company Net Income (SAR mn) EPS Net Income (SAR mn) EPS Change(%) PE ROE PB D/Y (TTM)

Name

Al Rajhi Bank 4012.29 1.00 4404.33 1.10 9.8% 17.5 22.72 3.6 1.68

Saudi National Bank/The 2963.56 0.71 4765.43 1.04 60.8% 12.2 11.99 1.5 2.42

Riyad Bank 1617.36 0.54 2027.83 0.68 25.4% 13.1 14.49 1.8 4.26

Alinma Bank 619.13 0.31 860.28 0.43 38.9% 17.8 13.69 2.3 3.18

Banque Saudi Fransi 993.27 0.83 902.68 0.75 -9.1% 13.5 10.45 1.4 4.69

Saudi British Bank/The 426.92 0.21 1389.33 0.68 225.4% 15.1 9.06 1.4 4.09

Bank AlBilad 427.99 0.43 539.75 0.54 26.1% 18.9 16.40 2.9 1.27

Arab National Bank 456.35 0.30 790.88 0.53 73.3% 13.3 9.68 1.3 4.07

Bank Al-Jazira 228.80 0.23 243.75 0.25 6.5% 14.9 9.01 1.3 4.31

Saudi Investment Bank/The 286.05 0.11 350.22 0.27 22.4% 12.2 9.62 1.1 5.45

Amlak International for Real Estate Fina 24.84 0.27 15.99 0.18 -35.6% 15.0 7.97 1.2 4.96

Saudi Home Loans 20.09 0.20 15.85 0.16 -21.1% 20.7 5.64 1.2 3.86

Banks 12076.63 16306.31 35.0%

Saudi Ceramic Co 47.11 0.59 41.88 0.52 -11.1% 15.5 10.17 1.5 2.97

Bawan Co 44.61 0.74 29.83 0.50 -33.1% 10.3 20.32 1.9 4.66

Astra Industrial Group 51.79 0.65 85.66 1.07 65.4% 17.8 28.74 2.8 3.86

Electrical Industries Co 23.75 0.55 39.85 0.87 67.8% 17.0 15.46 2.5 2.82

Al Babtain Power & Telecommunication Co 7.38 0.17 22.33 0.51 202.7% 17.7 5.69 1.3 2.00

Saudi Vitrified Clay Pipe Co Ltd 0.91 0.06 1.44 0.10 58.2% NEG - 2.5 -

Saudi Industrial Export Co (8.17) (0.50) (2.95) (0.15) -63.9% NEG - 4.4 -

Middle East Specialized Cables Co (17.18) (0.43) (0.27) (0.01) -98.4% NEG - 1.5 -

Saudi Cable Co (92.68) (13.89) - - - NEG - - -

Al-Omran Industrial & Trading Co 0.96 0.16 (0.56) (0.09) - 81.9 5.01 4.1 0.95

Saudi Arabian Amiantit Co (23.52) (2.38) 9.33 0.95 - NEG - 1.2 -

Riyadh Cable Group Co 84.89 0.57 105.90 0.71 24.8% 22.1 16.60 3.7 2.87

Capital Goods 119.84 332.44 177.4%

Saudi Airlines Catering Co 46.15 0.56 107.08 1.31 132.0% 28.3 25.81 6.5 0.56

Maharah Human Resources Co 39.27 1.05 40.18 1.07 2.3% 15.1 26.31 3.9 3.24

Sadr Logistics Co 0.08 0.01 (1.77) (0.10) - NEG - 4.0 -

Saudi Printing & Packaging Co (12.64) (0.21) (2.97) (0.05) -76.5% NEG - 1.7 -

Commercial & Professional Svc 72.86 142.51 95.6%

Alaseel Co 7.69 0.19 5.75 0.14 -25.2% 30.0 9.28 2.8 3.75

L'Azurde Co for Jewelry (3.97) (0.07) 2.74 0.05 - 23.7 8.10 2.1 2.12

Fitaihi Holding Group (4.40) (0.10) (13.31) (0.48) - NEG - 1.8 1.31

Source: Argaam, Bloomberg, AlJazira Capital

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All Companies

Company Net Income (SAR mn) EPS Net Income (SAR mn) EPS Change(%) PE ROE PB D/Y (TTM)

AlAbdullatif Industrial Investment Co (37.81) (0.47) (26.74) (0.33) -29.3% NEG - 1.1 -

Saudi Industrial Development Co (12.69) (0.32) - - - NEG - 2.5 -

Naseej International Trading Co (63.64) (11.06) (11.62) (0.33) -81.7% 70.7 - 4.7 -

Consumer Durables & Apparel (114.82) (43.17) -62.4%

Seera Group Holding (70.72) (0.22) 31.19 0.10 - NEG - 1.3 -

Leejam Sports Co JSC 85.91 1.64 107.16 2.05 24.7% 21.2 29.52 5.8 4.27

Dur Hospitality Co 9.33 0.09 37.99 0.38 307.1% 66.3 2.55 1.7 -

Ataa Educational Co** 1.01 0.02 9.60 0.23 850.5% 80.4 4.13 3.2 1.55

Herfy Food Services Co 39.59 0.61 (65.99) (1.02) - High 0.34 2.2 1.41

National Co for Learning & Education** 18.21 0.42 27.37 0.64 50.3% 52.1 12.03 6.7 1.13

Shams 0.01 0.00 (6.00) (0.62) - NEG - 1.7 -

Al Khaleej Training and Education Co 20.36 0.35 - - - 33.1 4.17 1.3 -

Development Works Food Co (1.09) (0.36) (4.41) (1.47) - NEG - 16.4 -

Abdul Mohsen Al-Hokair Tourism and Devel (47.70) (1.58) (27.27) (0.87) -42.8% NEG - 2.5 -

Raydan Food Co (11.25) (0.91) (3.62) (0.12) -67.8% NEG - 2.4 -

AlAmar Foods 31.19 1.22 29.54 1.17 -5.3% 27.4 34.23 10.7 2.40

AMERICAN Restaurants 185.13 0.02 237.79 0.03 28.4% 33.0 87.00 31.3 2.34

Consumer Services 259.96 373.35 43.6%

Saudi Tadawul Group Holding Co 110.47 0.92 57.18 0.48 -48.2% 43.8 13.54 5.8 1.49

Saudi Advanced Industries Co 25.62 0.43 19.85 0.33 -22.5% 15.2 10.92 1.7 1.96

Kingdom Holding Co 405.43 0.11 250.30 0.07 -38.3% 4.3 22.58 1.0 3.46

Nayifat Finance Co 51.44 0.51 36.15 0.36 -29.7% 11.0 13.82 1.5 15.91

Sinad Holding Co. (34.75) (0.28) 74.79 0.59 - 147.3 0.77 1.2 -

Al-Baha Development & Investment Co (5.91) (0.24) (3.28) (0.11) -44.5% NEG - 2.1 -

Diversified Financials 552.30 434.99 -21.2%

Saudi Arabian Oil Co 116639.00 0.53 125340.00 0.57 7.5% 12.2 46.62 4.5 4.10

National Shipping Co of Saudi Arabia/The 91.98 0.19 578.12 1.17 528.5% 14.7 10.46 1.5 3.21

Rabigh Refining & Petrochemical Co 448.90 0.36 (1810.92) (1.08) - 48.8 - 1.2 -

Aldrees Petroleum and Transport Services 54.09 0.72 71.78 0.96 32.7% 30.6 22.98 6.7 2.03

Saudi Arabia Refineries Co (1.59) (0.11) 11.02 0.73 - 44.5 5.66 2.9 1.19

Arabian Drilling Co. 118.31 1.33 136.69 1.68 15.5% 26.4 11.40 2.3 -

Energy 117232.37 124190.00 5.9%

Almarai Co JSC 286.53 0.29 355.82 0.36 24.2% 28.8 11.77 3.4 1.72

Savola Group/The (254.36) (0.48) 94.47 0.18 - 21.6 9.09 1.9 2.20

National Agriculture Development Co/The (277.26) (2.73) 25.12 0.25 - 28.1 7.67 2.1 -

Saudia Dairy & Foodstuff Co 56.08 1.68 61.44 2.45 9.6% 30.3 17.24 5.2 2.27

Al Jouf Agricultural Development Co 6.77 0.23 9.17 0.31 35.3% 29.7 7.89 2.3 1.97

Halwani Brothers Co 18.58 0.53 8.04 0.23 -56.7% High 0.58 4.6 -

Tabuk Agriculture (31.33) (0.80) (29.29) (0.75) -6.5% NEG - 2.9 -

Saudi Fisheries Co 3.66 0.09 (18.87) (0.47) - NEG - 5.5 -

Wafrah for Industry and Development (6.41) (0.08) 4.80 0.19 - 23.8 13.83 3.6 -

Jazan Energy and Development Co 1.53 0.03 (10.61) (0.21) - 44.3 5.18 1.3 -

Ash-Sharqiyah Development Co 3.27 0.44 (1.46) (0.19) - NEG - 3.1 -

Al Gassim Investment Holding Co 1.46 0.05 7.99 0.27 447.8% High 2.47 2.6 -

Tanmiah Food Co (12.36) (0.62) 125.68 6.28 - 34.2 38.98 4.2 0.40

Naqi Water Co. 14.27 0.71 2.51 0.13 -82.4% 27.8 21.30 5.7 1.39

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All Companies

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

Food & Beverages (189.57) 634.81 -

Abdullah Al Othaim Markets Co 149.64 1.66 196.60 2.18 31.4% 10.9 77.77 8.3 8.44

Thimar Development Holding (158.72) (15.87) (5.61) (0.56) -96.5% NEG - - -

Nahdi Medical Co 143.23 1.10 127.98 0.98 -10.6% 25.5 46.16 10.1 3.45

BinDawood Holding Co 13.22 0.12 59.13 0.52 347.4% 63.6 8.60 5.6 2.73

Almunajem Foods Co 45.98 1.34 16.90 0.28 -63.2% 12.1 34.04 3.9 3.40

Anaam International Holding Group Co (11.92) (0.48) - - - NEG - 2.5 -

Saudi Marketing Co 8.50 0.19 6.75 0.15 -20.6% 50.0 3.53 1.7 1.96

AlDawaa Medical Services Co. 69.07 0.81 89.51 1.05 29.6% 21.0 29.31 5.9 3.32

Food & Staples Retailing 328.07 580.77 77.0%

Dr Sulaiman Al Habib Medical Services Gr 383.59 1.10 441.50 1.26 15.1% 56.6 29.43 15.9 1.39

Mouwasat Medical Services Co 146.97 1.47 185.40 1.85 26.1% 39.3 21.69 8.0 1.28

Al Hammadi Co for Development and Invest 10.67 0.07 73.17 0.46 586.0% 31.5 15.27 4.8 2.75

Dallah Healthcare Co 73.73 0.82 78.44 0.87 6.4% 50.3 14.23 6.9 1.30

Saudi Chemical Co Holding (6.28) (0.07) 23.40 0.28 - 32.0 4.90 1.5 1.65

National Medical Care Co 36.71 0.82 55.45 1.24 51.0% 22.5 14.24 3.0 1.17

Ayyan Investment Co (7.42) (0.10) (29.71) (0.37) - NEG - 1.8 -

Middle East Healthcare Co (18.39) (0.20) 33.16 0.36 - 45.1 5.73 2.5 -

Scientific & Medical Equipment House Co 17.45 0.87 (25.31) (1.27) - 86.7 3.70 2.7 1.47

Health Care Equipment & Svc 637.03 835.49 31.2%

Bupa Arabia for Cooperative Insurance Co 19.99 0.07 191.32 1.28 856.9% 30.7 20.29 6.2 2.03

Co for Cooperative Insurance/The (0.61) (0.00) 68.69 0.55 - 34.0 12.05 3.9 -

Al Rajhi Co for Co-operative Insurance (31.64) (0.79) 9.09 0.23 - 46.9 7.01 3.3 -

Saudi Re for Cooperative Reinsurance Co 0.75 0.01 2.18 0.02 190.3% 35.1 4.22 1.5 -

Arabian Shield Cooperative Insurance Co (1.98) 0.03 7.11 0.14 - 37.0 3.49 0.9 -

MEDGULF (128.84) (1.59) - - - NEG - 1.0 -

Malath Cooperative Insurance Co (34.61) (0.69) 4.29 0.09 - NEG - 2.0 -

Walaa Cooperative Insurance Co (64.47) (1.00) 24.48 0.17 - NEG - 1.1 -

Arabia Insurance Cooperative Co (6.79) (0.22) 6.00 0.20 - 28.8 3.78 1.3 -

United Co-operative Assurance Co (15.72) (0.39) 1.73 0.04 - NEG - 1.6 -

Al-Etihad Cooperative Insurance Co (0.30) 0.01 15.03 0.29 - 23.0 5.77 1.3 -

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All Companies

AlJazira Takaful Ta'awuni Co 1.49 0.02 3.99 0.07 168.3% 34.5 3.43 1.2 -

Allianz Saudi Fransi Cooperative Insuran 6.22 0.09 9.38 0.14 50.9% 45.1 2.82 1.3 -

Chubb Arabia Cooperative Insurance Co 0.20 (0.01) 3.00 0.08 1415.0% High 1.31 1.5 -

Al Sagr Cooperative Insurance Co (5.38) (0.38) (1.12) (0.08) -79.3% NEG - 1.5 -

Allied Cooperative Insurance Group (81.07) (4.29) 13.19 0.80 - NEG - 2.4 -

Buruj Cooperative Insurance Co 13.99 0.47 7.53 0.25 -46.2% NEG - 1.3 -

Gulf General Cooperative Insurance Co (28.22) (1.03) (50.85) (1.02) - NEG - 1.4 -

Saudi Arabian Cooperative Insurance Co (20.64) (0.69) 12.81 0.43 - NEG - 1.5 -

Wataniya Insurance Co 0.30 0.01 12.85 0.35 4140.6% NEG - 0.8 -

Al Alamiya for Cooperative Insurance Co (12.92) (0.32) 1.74 0.04 - NEG - 1.7 -

Salama Cooperative Insurance Co (71.46) (7.15) 5.51 0.55 - NEG - 10.3 -

Saudi Enaya Cooperative Insurance Co (17.20) (1.20) 14.92 1.09 - NEG - 1.4 -

Gulf Union Cooperative Insurance Co (18.54) (0.69) - - - NEG - 1.4 -

Alinma Tokio Marine Co (5.02) (0.17) 2.90 0.10 - 66.7 3.88 2.5 -

Amana Cooperative Insurance Co (33.68) (1.57) (9.58) (0.34) -71.6% NEG - 2.1 -

Gulf Insurance Group 32.36 0.65 6.91 0.14 -78.6% 17.5 7.87 1.4 3.76

Insurance (536.13) 356.17 -

Saudi Basic Industries Corp 4965.82 1.66 292.70 0.10 -94.1% 16.5 9.03 1.5 4.39

Saudi Arabian Mining Co 2090.18 0.42 1016.47 0.41 -51% 17.3 23.09 3.6 -

SABIC Agri-Nutrients Co 2762.84 5.80 2168.28 4.55 -22% 6.0 56.63 3.0 12.62

Sahara International Petrochemical Co 1321.00 1.82 478.96 0.66 -63.7% 7.9 23.66 1.8 7.70

Saudi Kayan Petrochemical Co 449.28 0.30 (791.13) (0.53) - NEG - 1.2 -

Yanbu National Petrochemical Co 334.86 0.60 (96.43) (0.17) - 59.2 2.85 1.7 5.79

Advanced Petrochemical Co 161.66 1.57 (6.41) (0.02) - 41.3 8.45 3.7 4.71

Saudi Industrial Investment Group 121.65 0.27 (296.44) (0.41) - 44.7 3.08 1.8 5.96

National Industrialization Co 338.69 0.51 43.14 0.06 -87.3% 12.9 7.28 0.9 -

Saudi Cement Co 67.40 0.44 154.52 1.01 129.3% 22.2 16.88 3.9 6.04

Yamama Cement Co (18.86) (0.09) 134.15 0.66 - 18.6 7.97 1.4 3.05

Southern Province Cement Co 97.91 0.70 62.30 0.45 -36.4% 25.2 9.34 2.3 1.87

Yanbu Cement Co 9.87 0.06 59.16 0.38 499.6% 25.7 7.74 2.0 4.28

Qassim Cement Co/The 30.44 0.34 53.04 0.59 74.3% 47.4 7.68 3.7 3.49

Alujain Holding 1413.31 20.42 (69.21) (0.26) - 15.3 68.05 0.7 7.74

Arabian Cement Co/Saudi Arabia 23.31 0.23 35.12 0.35 50.7% 19.4 6.72 1.3 5.70

Eastern Province Cement Co 33.39 0.39 52.78 0.61 58.1% 25.0 6.02 1.5 4.77

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11

All Companies

City Cement Co 6.50 0.05 47.75 0.34 634.1% 26.3 6.30 1.7 4.63

Najran Cement Co 36.03 0.21 49.33 0.29 36.9% 21.9 5.75 1.3 3.41

Methanol Chemicals Co 79.85 1.18 (15.95) (0.24) - 8.0 18.43 1.4 -

Middle East Paper Co 94.86 0.61 24.79 0.21 -74% 8.1 24.93 1.8 2.39

Northern Region Cement Co 35.13 0.20 32.59 0.18 -7.2% 19.5 4.87 0.9 4.27

Al Yamamah Steel Industries Co 40.08 0.67 (96.38) (0.82) - NEG - 1.9 -

Tabuk Cement Co 0.34 0.00 17.61 0.20 5050.2% 65.4 1.65 1.1 1.64

Umm Al-Qura Cement Co 19.51 0.35 (5.46) (0.10) - 41.4 3.04 1.2 -

Zamil Industrial Investment Co (172.54) (2.88) (99.59) (1.66) -42.3% NEG - 1.4 -

Hail Cement Co (4.77) (0.05) 22.32 0.23 - 70.1 1.52 1.1 4.25

Al Jouf Cement Co (122.47) (1.48) 23.14 0.21 - 41.5 2.94 1.2 -

National Co for Glass Industries/The 12.22 0.37 11.67 0.35 -4.5% 10.0 15.67 1.6 3.00

National Gypsum (2.71) (0.09) (9.75) (0.31) - NEG - 1.8 4.18

Basic Chemical Industries Ltd 13.01 0.47 (7.80) (0.28) - 23.7 6.83 1.6 2.87

Nama Chemicals Co 3.28 0.14 (17.70) (0.75) - 22.1 10.06 2.1 -

United Wire Factories Co 7.90 0.23 11.42 0.33 44.6% 16.8 12.70 2.1 7.37

Takween Advanced Industries Co (31.34) (0.33) (113.07) (1.19) - NEG - 2.2 -

Saudi Steel Pipe Co 1.57 0.03 11.14 0.22 609.9% 20.5 10.37 2.1 -

Filing & Packing Materials Manufacturing 1.12 0.10 6.29 0.55 460.3% 47.8 7.77 3.6 -

Saudi Paper Manufacturing Co 0.93 0.03 6.33 0.11 581.1% 19.0 15.28 2.4 -

National Metal Manufacturing & Casting C (8.43) (0.24) (14.16) (0.40) - NEG - 2.1 -

Zahrat Al Waha For Trading Co 20.50 0.30 5.40 0.24 -73.7% 52.1 5.27 2.8 1.64

East Pipes Integrated Co for Industry (18.84) (0.60) 47.52 1.51 - 20.9 14.30 2.8 -

Arabian Pipes Co (31.18) (12.47) 16.52 1.65 - 23.8 8.15 3.9 -

Al Kathiri Holding Co (3.07) (0.27) 5.65 0.50 - High 1.27 5.9 -

Al Masane Al Kobra Mining Co. 62.69 0.95 21.50 0.33 -65.7% 34.9 13.52 4.0 3.22

Saudi Aramco Base Oil Co 220.81 1.31 763.19 4.52 245.6% 10.3 42.40 3.9 4.28

Materials 14463.74 4035.33 -72.1%

Saudi Research & Media Group 106.06 1.33 121.03 1.51 14.1% 24.9 27.50 6.1 -

Arabian Contracting Services Co 70.59 1.41 81.13 1.62 14.9% 21.0 35.42 7.3 3.19

Tihama Advertising & Public Relations Co (40.51) (1.77) (6.33) (0.42) -84.4% NEG - - -

Media and Entertainment 136.14 195.82 43.8%

Saudi Pharmaceutical Industries & Medica (38.15) (0.32) (106.76) (0.89) 179.8% NEG - 19.2 -

Pharma, Biotech & Life Sciences (38.15) (106.76) -

Jabal Omar Development Co 1290.98 1.39 (194.45) (0.17) - NEG - 1.9 -

Makkah Construction & Development Co 6.81 0.04 45.80 0.28 572.5% High 3.48 3.2 1.41

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12

All Companies

Dar Al Arkan Real Estate Development Co 56.40 0.05 48.71 0.05 -13.6% 38.4 2.28 0.9 -

Emaar Economic City (291.69) (0.25) (530.65) (0.47) - NEG - 1.4 -

Taiba Investments Co (64.12) (0.40) 41.94 0.26 - 28.4 3.86 1.3 -

Arriyadh Development Co (6.92) (0.04) 38.63 0.22 - 11.4 14.24 1.6 2.60

Arabian Centres Co Ltd 355.67 0.75 459.10 0.97 29.1% 11.2 5.93 0.6 8.37

Saudi Real Estate Co 92.56 0.33 82.59 0.22 -10.8% 44.6 2.92 1.1 -

Alandalus Property Co 10.42 0.11 13.48 0.14 29.3% 25.1 6.22 1.5 2.79

Knowledge Economic City Co (19.51) (0.06) (8.65) (0.03) -55.7% NEG - 1.7 -

Red Sea International Co (37.17) (1.23) - - - NEG - 4.2 -

Retal Urban Development Co 73.82 1.85 62.55 1.56 -15.3% 19.0 37.72 6.4 5.08

Real Estate Mgmt & Dev't 1467.24 59.04 -

Jarir Marketing Co 262.48 2.19 267.57 2.23 1.9% 20.2 54.32 10.9 5.38

United Electronics Co 126.14 1.71 121.39 0.97 -3.8% 15.1 41.29 5.2 4.98

Saudi Automotive Services Co 15.35 0.26 28.47 0.47 85.5% 24.4 10.88 2.6 5.53

Saudi Co For Hardware CJSC (44.69) (1.24) (77.21) (2.14) - NEG - 2.6 -

Al Hassan Ghazi Ibrahim Shaker Co 0.32 0.01 (2.11) (0.04) - 38.9 5.14 1.5 -

Fawaz Abdulaziz Al Hokair & Co* 21.73 0.19 22.10 0.19 - NEG - 2.7 -

Baazeem Trading Co 2.68 0.26 4.29 0.42 60.1% 31.2 11.33 3.6 3.27

Abdullah Saad Mohammed Abo Moati Station 7.20 0.36 8.02 0.40 11.4% 40.7 6.42 2.6 1.62

AlSaif Stores for Development 51.90 1.48 28.05 0.80 -46.0% 25.6 32.80 7.0 2.41

Retailing 443.10 400.56 -9.6%

Elm Co 110.27 1.38 212.33 2.74 92.6% 35.2 31.77 10.7 1.19

Arabian Internet & Communications Servic 114.43 0.96 196.98 1.66 72.1% 31.4 41.58 11.8 1.80

Al Moammar Information Systems Co 10.96 0.37 49.33 1.64 350.1% 36.1 27.20 9.3 2.08

Arab Sea Information Systems Co 15.62 1.56 (2.91) (0.29) - NEG - 6.0 0.62

Perfect Presentation for Commercial Services 41.65 2.78 46.40 3.09 11.4% 25.6 63.61 13.3 0.31

Software & Services 251.27 455.73 81.4%

Saudi Telecom Co 2613.65 0.52 2757.09 0.55 5.5% 17.2 17.05 2.9 3.82

Etihad Etisalat Co 320.82 0.42 605.89 0.79 88.9% 20.4 10.50 2.1 2.62

Mobile Telecommunications Co Saudi Arabi 71.40 0.08 250.17 0.28 250.4% 24.0 5.84 1.3 3.40

Etihad Atheeb Telecommunication Co (140.81) (0.81) (8.24) 0.89 -94.1% 69.7 - 7.1 -

Telecommunication Services 2865.06 3604.92 25.8%

United International Transportation Co 51.71 0.73 65.09 0.91 25.9% 17.0 15.17 2.5 4.99

Saudi Ground Services Co (101.07) (0.54) (107.77) (0.57) - NEG - 2.1 -

Saudi Industrial Services Co (0.85) (0.01) 18.44 0.23 - 59.2 2.45 1.5 2.96

Saudi Public Transport Co (66.51) (0.53) (93.34) (0.75) - NEG - 2.4 -

Theeb Rent A Car Co 47.44 1.10 53.66 1.25 13.1% 17.5 31.34 5.1 2.81

Batic Investments and Logistic Co (10.25) (0.34) (6.16) (0.10) -39.9% NEG - 3.0 -

Transportation (79.53) (70.09) -11.9%

Saudi Electricity Co (505.91) (0.58) 1740.47 (0.05) - 12.9 2.94 0.4 3.00

ACWA Power Co 338.85 0.47 656.61 0.90 93.8% 80.7 9.58 5.7 0.57

National Gas & Industrialization Co 43.99 0.59 54.67 0.73 24.3% 20.2 12.47 2.5 3.44

AlKhorayef Water & Power Technologies Co 32.34 1.29 27.68 1.11 -14.4% 32.2 28.50 8.7 2.17

Marafiq 78.31 0.31 131.22 0.52 67.6% 20.3 10.71 1.8 1.86

Utilities (12.41) 2610.66 -

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Asset Management

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RESEAR CH DIVISION RESEAR CH DIVISION RA TING TERMINOL OGY

Disclaimer

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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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