Results Summary of Listed Companies in the Saudi Market

Transcription

1 Top 15 Companies Lowest Top 15 Companies Highest Company P/BV Company Trade Union Insurance Co Alujain Corp Walaa Cooperative Insurance Co Buruj Cooperative Insurance Co Arabian Shield Insurance Co National Industrialization Co Saudi Investment Bank Saudi Industrial Investment Group CHUBB Arabia Insurance Co Middle East Paper Co National Petrochemical Co Salama Cooperative Insurance Co Arab National Bank Basic Chemical Industries Co Al-Ahlia Insurance Co Source: Bloomberg, AlJazira Capital, Argaam, Prices as of 18 th of November Alandalus Property Co Arabian Cement Co Sahara Petrochemical Co MUSHARAKA REIT MULKIA REIT Saudi Ground Services Co Arriyadh Development Co JADWA REIT ALHARAMAIN Al-Babtain Power and Telecommunication Co Yanbu Cement Co Saudi Cement Co Fitaihi Holding Group NM Saudi Airlines Catering Co Kingdom Holding Co Middle East Healthcare Co Source: Bloomberg, AlJazira Capital, Argaam, Prices as of 18 th of November Trade Union Cooperative Insurance Co., Alujain Corp. and Walaa Cooperative Insurance, posted the lowest (6.50x x) in the Saudi market for the trailing 12 months (), followed by Buruj Cooperative Insurance Co. (7.44x). The average for the Saudi market on a basis stood at 16.88x Alandalus Property Co. had the highest dividend yield (13.64%) in the Saudi market. Followed by Arabian Cement with yield of 12. Overall, the dividend yield in the Saudi market stood at 3.26% Lowest 15 Companies Lowest P/BV Highest 15 Companies Accumulated Loss to Capital Company Dar Alarkan Real Estate Co Arabian Pipes Co NM -- Saudi Re for Reinsurance Co MASHAAR REIT Zamil Industrial Investment Co NM 5.52 Al Jouf Cement Co NM -- Najran Cement Co NM -- Aseer Trading Co NM -- Al Hassan Ghazi Ibrahim Shaker Co NM -- Saudi Advanced Industries Co AL MAATHER REIT Northern Region Cement Co Jadwa REIT Al Haramain Fund ALAHLI REIT SEDCO CAPITAL REIT 0.75 NM 4.14 Source: Bloomberg, AlJazira Capital, Argaam, Prices as of 18 th of November Company Bk Value L/C (%) Saudi Indian Company for Insurance % Saudi Fisheries Co Etihad Atheeb Telecommunication Co % Abdullah A. M. Al-Khodari Sons Co % Saudi Paper Manufacturing Co % Wafrah for Industry and Development Co % The Mediterranean and Gulf Insurance Co % Mobile Telecommunications Co % Anaam International Holding Group % Saudi Arabian Amiantit Co % Amana Cooperative Insurance Co % Saudi Enaya Cooperative insurance Co % Al-Ahlia Insurance Co % Tihama Advertising and Public Relations Co % Al-Baha Investment and Development Co Source: Bloomberg, AlJazira Capital, Argaam, Prices as of 18 th of November L /C refers to accumulated losses to capital Dar Alarkan had the lowest P/BV (0.48x) in the Saudi market, followed by Arabian Pipes Co. (0.64x). The P/BV for the Saudi market stood at 1.73x Saudi Indian Company for Coop Insurance., Saudi Fisheries Co. andetihad Atheeb Telecommunication Co. lost 58.9%, 49., and 47.8% of capital, respectively. 1 All rights reserved

2 Best 15 Companies Top price performers Worst 15 Companies Worst price performers Company YTD % Company YTD % Saudi Industrial Export Co % NM Nama Chemicals Co Saudi Research and Marketing Group 55.8% United Electronics Co. 47.7% Al Alamiya for Cooperative Insurance Co. 42.6% National Petrochemical Co Riyad Bank 34.2% Saudi Kayan Petrochemical Co. 31.9% Aldrees Petroleum and Transport Services Co Jarir Marketing Co Saudi Industrial Investment Group 28.4% Al Rajhi Bank Arab National Bank Saudi Arabia Refineries Co. 24.1% Trade Union Cooperative Insurance Co. 23.4% Source: Bloomberg, AlJazira Capital, Argaam, Prices as of 18 th of November Saudi Indian Company for Insurance -62.3% - - Etihad Atheeb Telecommunication Co The Company for Cooperative Insurance -44.9% 2.96 NM Dallah Healthcare Co % Middle East Healthcare Co % Emaar The Economic City NM Salama Cooperative Insurance Co % Al Hammadi Company for and Investment -38.6% Jabal Omar Development Co % 3.43 NM Al Yamamah Steel Industries Co % Arabian Shield Cooperative Insurance Co Aljazira Takaful Taawuni Co % Dar Alarkan Real Estate Development Co % Zamil Industrial Investment Co % 0.69 NM MetLife AIG ANB Insurance Co % 2.19 NM Source: Bloomberg, AlJazira Capital, Argaam, Prices as of 18 th of November Saudi Industrial Exports Co. has been the best performing stock since the beginning of 2018 (up 267.6% YTD), followed by Nama Chemicals Co. (up 68. YTD). The list indicates that 15 companies have provided returns of 23% or more, since the start of 2018 Saudi Indian Company has been the worst performer (down 62.3% YTD), followed by Etihad Atheeb (down 45. YTD). The list indicates that 15 companies lost 33% or more of their value since the start of the year. Top 15 Companies Weight to the market index Least 15 Companies Ratio of free to issued shares Company % of TASI No. of total shares (mn) Al Rajhi Bank 15.2% 1, Saudi Basic Industries Corp. 9.7% 3, National Commercial Bank 5.9% 3, Samba Financial Group 3.9% 2, Saudi Telecom Co. 3.4% 2, Jabal Omar Development Co. 3.2% 2,000.0 NM Riyad Bank 3.2% Alinma Bank 2.9% 1, Banque Saudi Fransi 2.6% 1, Saudi Arabian Mining Co. 2.6% 1, Saudi Kayan Petrochemical Co. 2. 1, Arab National Bank 2. 1, Saudi British Bank 1.9% Yanbu National Petrochemical Co. 1.8% Saudi Arabia Fertilizers Co. 1.7% 4, Source: Bloomberg, AlJazira Capital, Argaam, Prices as of 18 th of November Company Issued Shares (mn) Free float (mn) F/I (%) Kingdom Holding Co Saudi Telecom Co % Saudi Industrial Export Co % Saudi Electricity Company % National Petrochemical Co Saudi Basic Industries Corp % Rabigh Refining and Petrochemical Co % Almarai Co Alawwal Bank % Al Hammadi Company Investment Taleem REIT Al Alamiya for Cooperative Insurance Co L Azurde For Jewelry Co MetLife AIG ANB Insurance Co % Knowledge Economic City % Source: Bloomberg, AlJazira Capital, Argaam, Prices as of 18 th of November F/I refers to free to issued shares Al Rajhi Bank, at 14.4%, has the highest weight of the Saudi market, followed by Saudi Basic Industries Corp 9.4%), and National Commercial Bank (6.2%). These three companies account for more than 30. of the market index. The most influential stocks in the Saudi market are from the Banking sector. Kingdom Holding Co. has the lowest ratio of free-to-issued shares, with just 5. of the shares issued being traded in the market. According to the data, five companies have less than 20. of free floats. 2 All rights reserved

3 Best 15 Companies Return on Equity (ROE) Best15 Companies Return on Assets (ROA) Company YTD % ROE (%) Jarir Marketing Co. 30.2% % Saudi Airlines Catering Co % Al-Rajhi Company for Insurance 4.2% United Electronics Co. 48.7% % Abdullah Al Othaim Markets Co. 13.7% % Mouwasat Medical Services Co. -4.1% % Herfy Food Services Co % Advanced Petrochemical Co. 6.7% % Trade Union Cooperative Insurance Co. 23.1% % Al Rajhi Bank 28.3% % National Commercial Bank % Bupa Arabia for Insurance Co. 12.2% Leejam Sports Co. 49.7% % Walaa Cooperative Insurance Co % % National Petrochemical Co. 43.7% % Source: Bloomberg, AlJazira Capital, Argaam, Prices as of 26 th of August Company YTD % ROA (%) Jarir Marketing Co. 30.2% % Saudi Airlines Catering Co % Yanbu National Petrochemical Co. 9.8% % Alujain Corp. 1.1% % Herfy Food Services Co % Saudi Arabia Fertilizers Co % Advanced Petrochemical Co. 6.7% % Mouwasat Medical Services Co. -4.1% % Saudia Dairy and Foodstuff Co % % Sahara Petrochemical Co. -3.2% % Abdullah Al Othaim Markets Co. 13.7% % Saudi Cement Co. -5.8% % Saudi Company for Hardware % Saudi Telecom Co. 19.3% % Arriyadh Development Co. -6.6% % Source: Bloomberg, AlJazira Capital, Argaam, Prices as of 26 th of August Jarir Marketing Co. has the highest return on equity (RoE) at 54.6% on a basis, followed by Saudi Airlines Catering Co. at 35.9%. The top 5 companies have RoE of over 17.. Jarir Marketing Co. and Saudi Airlines Catering Co. registered the highest return on assets (RoA) in the Saudi market at 31.8% and 22.8% on a basis, followed by Yanbu National Petrochemical Co. at 15.6%. The list indicates only 8 companies have RoA above 8. Total net profit for listed companies in the Saudi Market 40, % 1. 30, (SAR Mn) 20, % , Q4-2016/2017 Q1-2017/2018 Q2-2017/ Q3-2017/2018 Earnings (Prior Year ) Earnings (Current Year ) % YoY (RHS) Source: Bloomberg, AlJazira Capital The overall net earnings of the companies listed on the TASI increased 1. to SAR 32.8bn in Q3-18 from SAR 32.4bn in Q3-17. Banks and Materials accounted for 68.14% of total earnings. SABIC, Saudi Electricity and STC were major contributors, accounting for 18.6%, 15., and 7.9% share of earnings, respectively, in Q All rights reserved

4 Sectors Performance Sector Change Sector profit to Total Energy % 1.07% Materials 8, , % 29.81% Capital Goods % Commercial & Professional Svc Transportation % 0.7 Consumer Durables & Apparel % -0.06% Consumer Services % Media % 0.11% Retailing % 0.96% Food & Staples Retailing % 0.17% Food & Beverages 1, % 2. Health Care Equipment & Svc % 0.5 Pharma, Biotech & Life Science % -0.01% Banks 11, , % 38.32% Diversified Financials % 0.78% Insurance % 1.07% Telecommunication Services 2, , % 8. Utilities 5, , % 15. Real Estate Mgmt & Dev't % Total Saudi Market 32, , Source: Tadawul, Bloomberg, AlJazira Capital 6. YTD Jan-18 Mar-18 May-18 Jul-18 Sep-1 8 Nov-18 YTD TASI Index Performance YTD Sector Performance 48% % 2 13% 16% 1 3% 6% 8% -2% % -14% -21% -19%-18% -3-28% -27% -4 Banks Capital Goods Commercial & Prof. Srv. Consumer Services Consumer Durables Diversified Financials Energy Food & Beverages Food & Staples Retailing Healthcare & Equipment Insurance Media Materials Pharma, Biotech & Life Retailing Real Estate Dev't Transportation Telecommunication Utilities The Saudi market s net profit increased 1. to SAR 32.6bn in Q3-18 from SAR32.8bn in Q3-17. The market s earnings per share () in Q3-18 stood at SAR 0.64 per share. Index heavyweights Banks and Materials contributed the most to total earnings (29.8% and 38.3%, respectively), while Pharma, Biotech & Life Science the least. Media sector was the best performer in the Saudi market, with a 35.3% increase in net profit at SAR 37.5mn in Q3-18, compared with a net profit of SAR37.7mn in Q3-17. In Q3-18, 9 sectors witnessed decline. 4 All rights reserved

5 Energy Sector Change Saudi Arabia Refineries Rabigh Refining % National Shipping % Aldrees % Total % Source: Tadawul, Bloomberg, AlJazira Capital * Trailing 12 months () Energy Sector YTD Energy Sector 13. YTD Net earnings of Saudi Arabia s Energy sector decreased by 55.4% to SAR 350.0mn in Q3-18 compared to SAR784.4mn in Q3-17. The sector s stood at SAR 0.26 per share. National Shipping Company was the best performer during the quarter, reporting a net profit of SAR81.3mn in Q3-18 compared to SAR60.5mn in Q % National Shipping Co of Saudi Arabia/The 22% Rabigh Refining & Petrochemical Co 33% Aldrees Petroleum and Transport Services 27% Saudi Arabia Refineries Co 5 All rights reserved

6 Materials Sector Change 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 NM City Cement Arabian Cement % Al Jouf Cement NM Tabuk Cement % NM Northern Region % Qassim Cement % Yanbu Cement % Yamamah Cement NM Eastern Province % Najran Cement % NM Umm Al-Qura Cement Takween Advanced NM Middle East Paper % Basic Chemical Saudi Arabian Mining United Wire Factories % Saudi Steel Pipe NM National Gypsum NM The National Glass % FIPCO Arabian Pipes NM MAADANIYAH % NM Zamil Industrial NM Saudi Paper NM Zahrat Al Waha % Total 8, % Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Materials Sector Saudi Steel Pipe National Gypsum Saudi Paper Manufacturing Al Yamamah Steel FIPCO Maadaniyah Middle East Paper Nama Chemicals Basic Chemical Industries Umm Al-Qura Zoujaj Arabian Pipes Takween Tabuk Cement ASL AK Chemanol Hail Cement Al Jouf Cement City Cement Najran Cement Zamil Industrial PETROCHEM Alujain Corp Northern Cement Eastern Cement Qassim Cement Southern Cement Arabian Cement Yamama Cement Yanbu Cement SPICHEM Sahara Petrochemical Saudi Cement SIIG TASNEE APPC Kayan SAFCO YANSAB MAADEN SABIC 7.9% YTD % YTD Materials Sector -2-38% -18% -2-18% -21% -34% -18% -23% -19% -22% -29% -19% -27% - -27% - -21% -14% -8% 9% 9% 18% 42% 6 18% -2% -4% 32% 6% 36% 23% 9% - 18% Source: Tadawul, Bloomberg, AlJazira Capital * Trailing 12 months (), **3Q Ending in June 2018 The net profit of Saudi Arabia s Materials sector increased 12.4% to SAR 9.8bn in Q3-18 from SAR8.7bn in Q3-17. Index heavyweight Saudi Basic Industries Corp recorded an increase of 5.4%. Saudi Arabia Fertilizers Company reported an increase of 177.2%. The sector s stood at SAR 0.82 per share. All cement companies in this sector registered a decline in profit. Southern Province Cement Company s profit (down 90.7% YoY) declined the most, followed by Qassim Cement (down 88.9% ). 6 All rights reserved

7 Capital Goods Sector Change Bawan Company Astra Industrial Group Saudi Ceramic Co % NM Saudi Cable Company NM Al-Ahsa Development NM % YTD Capital Goods Sector YTD Capital GoodsSector Saudi Arabian Amiantit % NM Al-Babtain % Saudi vitrified clay Pipes % Middle East Specialized Cables NM Saudi Industrial Export % NM Electric Industries % Total % -4% -9% -14% -19% -24% -29% -22% AL BABTAIN POWER SAUDI CERAMIC CO -18% -2 Saudi Arabian Amiantit ASTRA INDUSTRIAL Al-Ahsa Development Co 1% MIDDLE EAST SPEC -13% -9% -21. BAWAN CO SAUDI VITRIFIED SAUDI CABLE CO SAUDI INDUS EXPO -18% -22% ELECTRICAL INDUS ABDULLAH A.M. AL Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () Net earnings of Saudi Arabia s Capital Goods sector showed a loss of SAR76.5mn during Q3-18 compared to SAR14.5mn profit in Q3-17. Saudi Arabian Amiantit decreased the most 87.8% and recorded a profit of SAR0.7mn compared to SAR5.8mn in Q All rights reserved

8 Commercial & Professional Svc Sector Saudi Printing and Packaging % NM Saudi Airlines Catering % Total % YTD Commercial & Professional Services Sector Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () YTD Commercial & Professional Svc Sector Saudi Arabia s Commericial & Professional Services sector recorded a marginal increase 4. in net profit of SAR130.8mn in Q3-18, as compared to net profit of SAR125.8mn in Q % -14% The sector s for the quarter stood at SAR 0.92 per share. Saudi Airlines Catering Saudi Printing and Packaging Co. Transportation Sector -10.1% YTD Change % Saudi Ground Services % Saudi Public Transport United Transportation % Saudi Industrial Services % Batic and Logistics Total % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () Transport Sector YTD Transportation Sector The Transportation sector s net profit declined 14.2% to SAR245.9mn in 3Q18 from SAR286.6mn in 2Q17. The sector s stood at SAR 0.50 per share. - Batic Investments and Logistics showed a decrease of 75., followed by Saudi Ground Services 42.1% % -18% SGS SAPTCO BUDGET -13% Batic SISCO 8 All rights reserved

9 Consumer Durables & Apparel Sector Al Sorayai Trading % NM Saudi Industrial Dev % NM AlAbdullatif Industrial Co % Lazurde Co Fitaihi Holding Group % NM Total % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () -12. YTD Jan-18 Feb-18 Mar-18 Apr-18May-18Jun-18 Jul-18 Aug-18Sep-18 Oct-18 Nov-18 Consumer Durables & Apparel Sector YTD Consumer Durables & Apparel Sector Saudi Arabia s Consumer Durables & Apparel sector s Net loss stood at SAR 20.1mn in Q3-18 compared to a loss of SAR 53.8mn in Q3-17. The sector s stood at SAR (0.08) per share % -13% - -14% The decrease in net loss was attributed to lower loss from Al Sorayai Trading Group, which registered a loss of SAR 16.7mn compared to SAR 49.5mn loss during Q3-17. SIDC ALABDULLATIF FITAIHI HOLDING ALSORAYAI GROUP L'AZURDE CO Consumer Services Sector Net Profit Net Profit Dur Hospitality Co % Al-Tayyar Travel Group NM Tourism Enterprise Co NM Leejam Sports Co Herfy Food Services % Alkhaleej Trng % Abdulmohsen Alhokair % NM Total Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () -15. YTD Consumer Services Sector YTD Consumer ServicesSector Consumer Services sector recorded a net loss of SAR 207.9mn, compared to a profit of SAR 276.4mn. The sector s was SAR (0.55) per share. The sector s earnings were impacted by Al-Tayyar Travel Group net profit, recording a loss of SAR355.0mn during Q2-18 compared to a profit of SAR132.0mn in Q3-17. Abdulmohsen Alhokair company posted SAR1.9mn profit during 3Q18 compared to profit of SAR9.0mn in Q AL TAYYAR TRAVEL 1% HERFY FOOD SERVI -27% ABDUL MOHSEN AL 12% DUR HOSPITALITY -22% AL KHALEEJ TRAIN 1 SHAMS 9 All rights reserved

10 Media Sector 48.3% YTD Saudi Research % Tihama Advertising Co.** % Total % Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Media Sector Sep-18 Oct-18 Nov-18 Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () **Year ends March 2018 YTD Media Sector 7 67% Saudi Arabia s Media sector recorded a net profit of SAR37.5mn in Q3-18, as compared to a profit of SAR27.7mn in Q3-17. The sector s for the quarter stood at SAR 0.43 per share % SAUDI RESEARCH TIHAMA Retailing Sector Shaker Co % NM Extra % Saudi Co. for Hardware Saudi Automotive % Jarir Marketing Co % Fawaz AlHokair Co.** % Total % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () **Year ends March Retailing Sector YTD RetailingSector 15.7% YTD Saudi Arabia s Retailing sector recorded a net profit of SAR316.3mn in Q3-18. The sector s stood at SAR 0.65 per share. Jarir Marketing Company net profit was up 16.8% to SAR288.0mn in Q3-18. In the other hand, Saudi Automotive company s net profit decreased 11.8% to SAR7.9mn compared to SAR9.0mn in Q % JARIR MARKETING 23%- Hokair -21% Saudi Company for Hardware United Electronics 3% SASCO -22% Shaker Co. 10 All rights reserved

11 Food & Staples Retailing Sector Net Profit Abdullah Al Othaim % Saudi Marketing Co % Anaam International % NM Total % NM Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () 5.6% YTD Food & Staples Retailing Sector % YTD Food & Staples Retailing Sector 20. Net earnings of Saudi Arabia s Food & Staples sector decreased by 63.7% to SAR54.7mn in Q3-18 from SAR150.5mn in Q3-17. The sector s stood at SAR % -13% -23% per share. Abdullah Al Othaim Saudi Marketing Thimar Anaam Food & Beverages Sector Net Profit Net Profit Change % Qassim Agriculture Co % Saudia Dairy and Foodstuff Co.** % Wafrah for Industry NM Halwani Bros % Almarai Company % Al-Jouf Agriculture % NADEC % Jazan Development % NM Savola Group NM Sharqiya Dev Co % NM Tabuk Agriculture NM Saudi Fisheries Co NM Total 1, % Source: Tadawul, Bloomberg, AlJazira Capital, *Trailing 12 months ()**4Q Ending in March 2018 Saudi Arabia s Food & Beverages sector recorded a net profit of SAR700.6mn in Q3-18 compared to SAR1.6bn in Q3-17. The sector s stood at SAR 0.38 per share SADAFCO Food & Beverages Sector 2% % -2-14% -16% -2-24% -27% -26% -22% -3-29% Almarai Savola National Agriculture -21.3% YTD % YTD Food & Beverages Sector Jazan Development Halwani Brothers Co Al Jouf Tabuk Agriculture Wafrah for Industry Al Gassim Investment Ash-Sharqiyah Saudi Fisheries The sector s decrease in earnings was due to a decrease in the net profit of Savola Group recordinga net loss of SAR50.7mn during the quarter, compared to a profit of SAR829.0mn during the same quarter last year. Saudia Dairy and Foodstuff Co. recording 27.9% decline to SAR54.0mn from SAR74.9mn in Q3-17, while Almarai Company recorded 4.9% decline to SAR634.5mn in Q All rights reserved

12 Health Care Equipment & Svc Sector -18.9% YTD Dallah Healthcare % National Medical Care % Mouwasat Medical % Middle East Healthcare % Al Hammadi % Saudi Chemical Total % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () The Health Care Equipment & Services sector s net profit decreased 39.4% to SAR 179.8mn in 3Q18 compared to SAR 296.7mn in 3Q18. The sector s stood at SAR 0.42per share. National Medical Care (Down 57.8%) declined the most. While Mouwasat Medical increased 5.6% Health Care Equipment & Services Sector % YTD Health Care Equipment & Svc Sector % Mouwasat Medical Dallah Healthcare -43% Saudi Chemical Co Middle East Healthcare AlHammadi -4-37% 1% National Medical Care Pharma, Biotech & Life Scie. Sector Saudi Pharmaceutical Net Profit Net Profit % Total % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () -5.1% YTD Pharma, Biotech & Life Science Sector % YTD Pharma, Biotech & Life Science Sector Saudi Arabia s Pharma, Biotech & Life Science sector posted a net loss of SAR3.4mn in Q3-18 compared to a loss of SAR 16.7mn in Q3-17. The sector s stood at SAR (0.03) per share. -3% SAUDI PHARMACEUT 12 All rights reserved

13 Banks Sector Alinma Bank Al Rajhi Bank % NCB % Banque Saudi Fransi % Riyad Bank % Saudi British Bank % Alawwal Bank % Samba Financial % Arab National Bank % AlBilad Bank % Saudi Investment Bank % Bank AlJazira % Total 11, , % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () Banks Sector % YTD Banks Sector -10. Al Rajhi Bank National Commercial Bank Samba Financial Group 23. YTD 3 34% 31% 3 28% % 21% % 1 14% 11% 13% Banque Saudi Fransi Alinma Bank Riyad Bank Saudi British Bank Arab National Bank Saudi Investment Bank Bank AlBilad Bank Al-Jazira Alawwal Bank The Banking sector s net profit increased 10.7% to SAR12.6bn in Q3-18. The sector s stood at SAR0.75 per share. Alinma Bank registered the highest growth of 20., while Alawwal Bank showed the worst performance with a decline of 22.6% to SAR281.0mn during Q All rights reserved

14 Diversified Financials Sector Saudi Advanced Industries Co % AlBaha NM Kingdom Holding Co % Aseer Trading Co NM Total % NM Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () -14. YTD Jan-18 Feb -1 8 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep -1 8 Oct-18 Nov-18 Diversified Financials Sector % YTD Diversified Financials Sector Saudi Arabia s Diversified Financials Net profit decreased1.8% to SAR256.7mn compared to SAR261.5mn in Q3-17. Aseer Trading Co. reported a loss of SAR4.5mn during Q3-18, whereas Saudi Advanced Industries Company reported 24.7% increase to SAR12.3mn % Kingdom Holding Aseer Trading Tourism -27% -7% Saudi Advanced Industries -14% Al-Baha Development 14 All rights reserved

15 % 18% -12% -21% -2-21% -19% % -17% -1-19% -29% -11% 17% -7% -36% - -28% -12% -6-11% -3-18% -7% %3 %0 2% Insurance Sector Saudi Indian Co Al Sagr Co-op Ins Arabia Insurance Co Arabian Shield Co-op % Saudi Arabian Co-op United Cooperative % NM Buruj Insurance Co % Al-Rajhi Company % Salama Cooperative % CHUBB Arabia Co % Allied Insurance Co Al Alamiya % Solidarity Saudi NM Aljazira Takaful % AXA Cooperative % Tawuniya Co NM Allianz Saudi Fransi % Alahli Takaful Co Bupa Arabia % SABB Takaful NM Trade Union Co-op % Amana Cooperative NM Gulf General Co-op NM Wataniya Insurance % The Mediterranean and Gulf Co NM Malath Co-op Ins % Saudi Re for Co Al-Ahlia Insurance Co % Saudi Enaya % NM Alinma Tokio Marine % NM Gulf Union Co-op Ins Walaa Insurance Co % MetLife AIG ANB Co NM Total % NM Jan-18 Feb-1 8 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-1 8 Oct-18 Nov-18 Insurance Sector 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 Al-Ahlia -18.2% YTD % YTD Insurance Sector 26% 24% Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () The Insurance sector s net profit decreased 53.6% to SAR351.8mn in Q3-18 from SAR758.6mn in Q3-17. The sector s stood at SAR 0.31 per share during the quarter. Sector heavyweights, Bupa Arabia for Cooperative Insurance s net profit (before zakat) increased12.8% to SAR244.8mn in Q3-18 from SAR 217.0mn in Q3-17. The Company for Cooperative Insurance (TAWUNIYA) reported a net loss of SAR22.9mn in Q3-18 compared to SAR159.7mn in Q3-17 In terms of gain in net profit, Saudi Enaya Co. (up 428.6% ), Trade Union Co-op Ins (up 86.8% ), and AXA Cooperative (up 50.8% ), were the best performers. 15 All rights reserved

16 Telecommunication Sector Saudi Telecom , % Mobile Telecomm Co NM Etihad Etisalat Co % NM Total 2, , % NM Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () **Year ends March % YTD Telecommunication Services Sector % YTD Telecommunication Sector Net earnings of Saudi Arabia s Telecommunication Services sector increased 10.9% at SAR 2.7bn in Q3-18 The sector s stood at SAR 0.72 per share. Saudi Telecom Co. recorded net profit of SAR2.6bn during Q % Saudi Telecom Co 6% Etihad Etisalat Co -8% Mobile Telecommunications Co Saudi Arabi Etihad Atheeb Telecommunication Co Utilities Sector National Gas & Industrialization Co % Saudi Electricity Co % Total 5, , % Source: Tadawul website, AlJazira Capital *Trailing 12 months () () -26.6% YTD Utilities Sector % YTD Utilities Sector Saudi Arabia s Utilities sector recorded a net profit of SAR4.9bn in Q3-18 compared to SAR5.3bn in Q3-17 The sector s stood at SAR 1.17 per share Saudi Electricity Co -29% -7.1% National Gas & Industrialization Co 16 All rights reserved

17 Real Estate Mgmt & Dev t Sector Arriyadh Development Emaar NM Taiba Holding Co % YTD Real Estate Mgmt & Dev't Sector Alandalus Property Co % Dar Alarkan % YTD Real Estate Mgmt & Dev t Sector Saudi Real Estate Co % Makkah Construction* * % Jabal Omar NM % 9% -33% -39% % -2-28% 11% -23% Red Sea Housing % NM Knowledge Economic % NM Total % NM Jabal Omar Makkah Dar Al Arkan Emaar Taiba Arriyadh Knowledge Economic Alandalus Saudi Real Estate Red Sea International Source: Tadawul, Bloomberg, AlJazira Capital, *Trailing 12 months () ** Hijri Calender The net profit of Saudi Arabia s Real Estate Mgmt & Dev t stood at SAR 539.3mn in Q3-18 compared to a loss of SAR 147.7mn in Q3-17 The sector s for the quarter was at SAR 0.14 per share. Dark Alarkan recorded a net profit of SAR36.7mn compared to SAR209.6mn in Q3-17 decreasing the most by 82., whereas Jabal Omar recorded a net profit of SAR469.6mn during the quarter compared to a net loss of SAR594.0mn during the same quarter last year. 17 All rights reserved

18 RESEARCH DIVISION Head of Research Talha Nazar Analyst Muhanad Al-Odan Analyst Jassim Al-Jubran Analyst Waleed Al-jubayr BROKERAGE AND INVESTMENT CENTERS DIVISION RESEARCH DIVISION General Manager Brokerage Services & sales Alaa Al-Yousef AGM-Head of Sales And Investment Centers Central Region, & acting head Western and Southern Region Investment Centers Sultan Ibrahim AL-Mutawa AGM-Head of international and institutional brokerage Luay Jawad Al-Motawa AGM-Head of Qassim & Eastern Province Abdullah Al-Rahit 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. RATING TERMINOLOGY 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 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 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 +/- 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. 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 Al-Jazira Capital from sources believed to be reliable, but Al-Jazira 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. Al-Jazira 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. The value of the security or any other assets or the return from them might increase or decrease. Any change in currency rates may have a positive or negative impact on the value/return on the stock or securities mentioned in the report. The investor might get an amount less than the amount invested in some cases. Some stocks or securities maybe, by nature, of low volume/trades or may become like that unexpectedly in special circumstances and this might increase the risk on the investor. Some fees might be levied on some investments in securities. This report has been written by professional employees in Al-Jazira Capital, and they undertake that neither them, nor their wives or children hold positions directly in any listed shares or securities contained in this report during the time of publication of this report, however, The authors and/or their wives/children of this document may own securities in funds open to the public that invest in the securities mentioned in this document as part of a diversified portfolio over which they have no discretion. This report has been produced independently and separately by the Research Division at Al-Jazira Capital and no party (in-house or outside) who might have interest whether direct or indirect have seen the contents of this report before its publishing, except for those whom corporate positions allow them to do so, and/or third-party persons/institutions who signed a non-disclosure agreement with Al-Jazira Capital. Funds managed by Al-Jazira Capital and its subsidiaries for third parties may own the securities that are the subject of this document. Al-Jazira Capital or its subsidiaries may own securities in one or more of the aforementioned companies, and/or indirectly through funds managed by third parties. The Investment Banking division of Al-Jazira Capital maybe in the process of soliciting or executing fee earning mandates for companies that is either the subject of this document or is mentioned in this document. One or more of Al-Jazira Capital board members or executive managers could be also a board member or member of the executive management at the company or companies mentioned in this report, or their associated companies. No part of this report may be reproduced whether inside or outside the Kingdom of Saudi Arabia without the written permission of Al-Jazira Capital. Persons who receive this report should make themselves aware, of and adhere to, any such restrictions. By accepting this report, the recipient agrees to be bound by the foregoing limitations. Asset Management Brokerage Corporate Finance Custody Advisory Head Office: King Fahad Road, P.O. Box: 20438, Riyadh 11455, Saudi Arabia Tel: Fax: Al-Jazira Capital is a Saudi Investment Company licensed by the Capital Market Authority (CMA), license No