Results Summary of Listed Companies in the Saudi Market

Transcription

1 Top 15 Companies Lowest Top 15 Companies Highest D/Y Company P/BV D/Y (%)* Al Sagr Co-operative Insurance Co Arab National Bank Banque Saudi Fransi Saudi Hollandi Bank Zamil Industrial Investment Co The Saudi Investment Bank The Saudi British Bank Saudi Ceramic Co Arabian Cement Co Eastern Province Cement Co Alujain Corporation Samba Financial Group AL-BABTAIN POWER Bank Al-Jazira Al-Tayyar Travel Group Holding Co Source: Bloomberg, AlJazira Capital Company D/Y(%)* Yanbu Cement Co Yamamah Saudi Cement Co Qassim Cement Company Saudi Cement Co Saudi Arabia Fertilizers Co Arabian Cement Co City Cement Co Hail Cement Co Northern Region Cement Co AlAbdullatif Industrial Investment Co Eastern Province Cement Co Southern Province Cement Co Saudi Arabian Amiantit Co Najran Cement Company Saudi Airlines Catering Co Source: Bloomberg, AlJazira Capital Al Sagr Co-operative Insurance Co., and Arab National Bank posted the lowest ( x) in the Saudi market for the trailing 12 months (), followed by Banque Saudi Fransi. (7.2x). The average for the Saudi market on a basis stood at 15.4x. Yanbu Cement Co. had the highest dividend yield (11.2%) in the Saudi market. The Cement sector dominated the market in terms of dividend yield, with 11 companies ranking among the top 15 companies. Overall, the dividend yield in the Saudi market stood at 3.7%. Lowest 15 Companies Lowest P/BV Highest 15 Companies Accumulated Loss to Capital Company D/Y (%)* Dar Alarkan Real Estate Methanol Chemicals Co Saudi Real Estate Co Saudi Arabian Amiantit Co Arabian Pipes Company The Saudi Investment Bank Abdullah A. M. Al-Khodari Sons Astra Industrial Group Saudi Kayan Petrochemical AL JOUF CEMENT COMPANY Nama Chemicals Co Saudi Advanced Industries Co Arab National Bank Saudi Industrial Investment Group Sahara Petrochemical Co Source: Bloomberg, AlJazira Capital Company Bk Value L/C (%) Sanad Coop Insurance Co Etihad Atheeb Telecom Co Al-Ahlia for Coop Insurance Co Saudi Fisheries Co Amana Coop Insurance Co Solidarty Saudi Takaful Co Saudi Enaya Coop Insurance Co Saudi Indian Co. for Coop Insurance Saudi Cable Co Gulf Union Coop Insurance Co Allied Coop Insurance Group Arabia Insurance Coop Co Middle East Specialized Cables Co Wataniya Insurance Co United Coop Assurance Co L /C refers to accumulated losses to capital Source: Bloomberg, AlJazira Capital Dar Alarkan had the lowest P/BV (0.3x) in the Saudi market, followed by Methanol Chemicals Company (0.7x). The P/BV for the Saudi market stood at 1.6x. Sanad Coop Insurance Co, Etihad Atheeb Telecom Co, and Al-Ahlia for Coop Insurance Co. lost 85., 69.5%, and 65. of capital (since inception), respectively. 11 of the top 15 highest accumulated loss to capital are from Insurance Sector Companies. Note: All statistics in this report are based on market close prices on May 5,

2 Best 15 Companies Top price performers Worst 15 Companies Worst price performers Company YTD % BURUJ Coop Insurance Co Yanbu National Petrochemical Tihama Advertising & Public Relations Alandalus Property Co Saudi Indian Co. for Coop Insurance Middle East Healthcare Co Yanbu Cement Co Saudi Industrial Export Co Arriyadh Development Co Saudia Dairy and Foodstuff.Co Advanced Petrochemical Co Emaar The Economic City Dallah Healthcare Holding Amana Coop Insurance Co Allianz SF Source: Bloomberg, AlJazira Capital Company YTD % Al-Tayyar Travel Group Holding Co Al Alamiya Coop Insurance Co Alhokair AlAbdullatif Industrial Investment Co Takween Advanced Industries Herfy Food Services Co United Electronics Co Saudi Enaya Cooperative Trade Union Cooperative Insurance Abdulmohsen Alhokair Group National Agriculture Development Al Sorayai Trading And Industrial Group Malath Coop Insurance Saudi Industrial Development Co Saudi Research and Marketing Group Source: Bloomberg, AlJazira Capital BURUJ Coop Insurance Co. has been the best performing stock since the beginning of 2016 (up 22.2% YTD), followed by Yanbu National Petrochemical (up 20.3% YTD). The list indicates that just Two companies have provided returns of 2 or more, since the start of Al-Tayyar Travel Group Holding Co. has been the worst performer (down 51.5% YTD), followed by Al Alamiya Coop Insurance Co. (down 46. YTD). The list indicates that at least 15 companies lost more than 20. of their value since the start of the year. Top 15 Companies Weight to the market index Company % of TASI No. of Free Shares (000) Al Rajhi Bank ,185, Saudi Basic Industries Corp , Jabal Omar Development Co ,746 - National Commercial Bank , Saudi Telecom , Samba Financial Group 3.4 1,005, Riyad Bank 2.9 1,570, Savola Group , Banque Saudi Fransi , Alinma Bank 2.3 1,109, Almarai Co , Etihad Etisalat Co ,528 - Saudi Arabian Mining Co , Saudi Electricity Company , Saudi Arabia Fertilizers Co , Least 15 Companies Ratio of free to issued shares Company Issued Shares (mn) Free Shares (mn) F/I (%) Kingdom Holding Company 3, Saudi Telecom 2, Saudi Electricity Company 4, National Petrochemical Company Saudi Basic Industries Corp 3, Rabigh Refining and Petrochemical Saudi Hollandi Bank 1, Middle East Paper Co Saudi Ground Services Co Middle East Healthcare Co Al Hammadi Development Co Alabdullatif Industrial Electric Industries Co Aljazira Takaful Taawuni Company Alandalus Property Co F/I refers to free to issued shares Al Rajhi, at 10.1%, has the highest share of the Saudi market, followed by SABIC (7.7%) and Jabal Omar (5.1%). These three companies account for more than 2 of the market index. The most influential stocks in the Saudi market are from the Banking, Petrochemical, and Telecommunication sectors. 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, four companies have less than 20. of free floats. 2

3 Best 15 Companies Return on Equity (ROE) Best15 Companies Return on Assets (ROA) Company YTD % ROE (%) Saudi Airlines Catering Company Jarir Marketing Co Saudi vitrified clay pipes co Bupa Arabia for Cooperative Ins Southern Province Cement Co Alsagr Coop Insurance Co Advanced Petrochemical Co The Qassim Cement Co Saudi Cement Company Saudi Arabia Fertilizers Co Middle East Healthcare Co Al-Tayyar Travel Group Holding Co Herfy Food Services Co Saudi Ground Services Co Saudi Company for Hardware Source: Bloomberg, AlJazira Capital Company YTD % ROA (%) Saudi Airlines Catering Company Jarir Marketing Co The Qassim Cement Co Saudi vitrified clay pipes co Southern Province Cement Co Saudi Cement Company Saudi Ground Services Co Advanced Petrochemical Co Saudi Arabia Fertilizers Co Middle East Healthcare Co Saudia Dairy and Foodstuff.Co Yanbu Cement Co Herfy Food Services Co Arabian Cement Co Yamamah Cement Co Source: Bloomberg, AlJazira Capital Saudi Airlines Catering Co. has the highest return on equity (RoE) at 51.5% on a basis, followed by Jarir Marketing Co at 50.3%. The top 13 companies have RoE of over 24.. Saudi Airlines Catering Co. registered the highest return on assets (RoA) in the Saudi market at 33.7% on a basis, followed by Saudi Airlines Catering Company at 31.6%. The top 15 companies have RoA of over 15.. Total net profit for listed companies 40,000 30, % 0. (SAR Mn) 20, % -12.6% , % 0 Q22014/2015 Q32014/2015 Q42014/2015 Q12015/ Earnings (Prior Year ) Earnings (Current Year ) % (RHS) Source: Bloomberg, AlJazira Capital The overall net earnings of the companies listed on the TASI declined 2.1% to SAR 22.0bn in from SAR 22.5bn in. Banks and Petrochemicals accounted for 72.2% of total earnings. SABIC, National Commercial Bank, and Saudi Telecom were major growth drivers, accounting for 15.5%, 12., and 10.8% share of earnings, respectively, in. 3

4 Sectors Performance -1.5% YTD Sector 1Q105 Sector profit to Total Banks & Financial Services 11, , % Petrochemicals 4, , % 19.05% Cement 1, , % Retail % 2.44% Energy & Utilities -1, , % -6.07% Agri & Food 1, % Telecom & IT 2, , % 9.53% Insurance Multi-Investment % 0.38% Industrial Investment % 2.01% Real Estate Development % 0.8 Transport % 4.1 Media & Publishing % 0.07% Hotel & Tourism % 1.27% Building & Construction % 0.8 Total Saudi Market 22, , % 10 7,000 6,500 6,000 5,500 5,000 YTD TASI Index Performance YTD 2016 Sector Performance Hotel & Tourism Media & Retail Agri. & Food Multi- Building & Const. Telecom & IT Transport Banks Cement Energy & Utilities Industrial Insurance Petchem Real Estate The Saudi market s net profit declined 2.2% to SAR 21.8bn in from SAR 22.3bn in. The market s weighted-average earnings per share () in stood at SAR 0.7. Index heavyweights Banks & Financial Services and Petrochemicals contributed the most to total earnings (53.7% and 19.05%, respectively), while the Media & Publishing sector accounted for just 0.1% of the Saudi market s net profit. The Insurance sector was the best performer in the Saudi market increase in net profit to SAR361.8mn in, compared with a loss of SAR 28.5mn in. This improvement was primarily led by Al Sagr Co-operative Insurance Co, which posted a net profit of SAR 68.4mn in vs loss in. In, three sectors witnessed growth in net profit, while twelve sectors registered decline. The combined profit after zakat (PAZ) of the twelve sectors declined 14.8%, led by higher weightage of the Petrochemical sector; meanwhile, the combined PAZ of three sectors increased 9.2%, led by the Banks & Financial Services sector. Energy & Utilities sector showed a decline in its losses by 30.2% 4

5 Banking Sector -1.5 YTD 16,000 D/Y (%)* 15,000 14,000 Al Rajhi Bank 1, , ,000 NCB 2, , ,000 Alinma Bank Banque Saudi Fransi 1, , Banking Sector Samba Financial 1, , Saudi Hollandi Bank YTD 2016 Banking Sector The Saudi British Bank 1, , % Arab National Bank BANK ALBILAD Riyad Bank 1, , Bank AlJazira SAIB Total 11, , % 7% -7% -14% -21% SAIB Arab National NCB Bank AlJazira Riyad BSF Saudi Hollandi SABB Alinma Samba Bank AlBilad Al Rajhi The Banking sector s net profit rose 5. to SAR 11.7bn in. The sector s weighted-average stood at SAR 0.9 per share. Most banking stocks posted a increase in net profit, with Al Rajhi Bank registering the highest growth (up 32.8% ) excluding AlJazira registering 67.8% with non-recurring profit. Heavyweight National Commercial Bank s net profit rose 1., while The Saudi Investment Bank s (SAIB) net profit declined 42.7%. Samba Financial Group s net profit declined 1.4%. Riyad Bank registered the sector s highest dividend yield at 6.3%. Key factors that affected the net profit of some companies during in the sector were: Arab National Bank: The bank s net profit decreased 2.8% to SAR 749.2mn in, due to a 1.9% decrease in total operating income, which stood at SAR 1.5bn in. Loans and advances improved 6.6%, while customer deposits surged 0.6%. Furthermore, net commission income dropped 1.8% in. Bank AlJazira: Bank AlJazira s net income surged 67.8% to SAR 381mn in, driven by an increase in the operating income of 23.9%, due to the sale of land owned by the bank. Loans and advances grew 5.2%, while customer deposits declined 8.7% in. Furthermore, net commission income declined 6.6% in. National Commercial Bank (NCB): The bank s net profit increased 1. to SAR 2.6bn in, driven by a 5.5% gain in total operating income, which stood at SAR 4.6bn in. Loans and advances grew 16.8%, while customer deposits declined 4.9% in. Furthermore, net commission income soared 9.9% in. Rajhi Bank: The bank s net profit increased 32.8% to SAR 2.02bn in due to increase in total operating income by 8., this increase was mainly driven by higher fees income from banking services and an increase in net financing and investment income. Saudi British Bank (SABB): The bank s net profit increased 2.4% to SAR 1.1bn in, driven by an increase in operating income by 4.6%. Loans and advances grew 7.9%, while customer deposits rose 1.7% in. Furthermore, net commission income soared 8.3% in. Saudi Fransi: The increase in the bank s net profit was driven by 2.6% rise in operating income, which stood at SAR 1.6bn in. Loans and advances grew 3.5%, while customer deposits declined 5.6% in. Furthermore, net commission income soared 8.9% in. 5

6 Petrochemical Sector D/Y (%)* National Petrochemical Advanced Petrochemical Saudi Basic Industries 3, , SIIG Yanbu National Petro Saudi Arabia Fertilizers Alujain Corporation SIPCHEM Sahara Petrochemical National Industrialization Saudi Kayan Rabigh Refining Methanol Chemicals Nama Chemicals Co Total 4, , ,000 4,500 4,000 3,500 3, % YTD Petrochemicals Sector % YTD 2016 Petrochemical Sector SAFCO Nama SIIG Methanol Petro Rabigh SIPCHEM Sahara Saudi Kayan National Alujain SABIC TASNEE Advanced Yanbu The net profit of Saudi Arabia s Petrochemical sector declined 5. to SAR 4.2bn in from SAR 4.4bn in. Index heavyweight Saudi Basic Industries Corp and Saudi Arabia Fertilizers Co. reported a decline of 13.4% and 51.5%, respectively. The sector s weighted-average stood at SAR 0.7 per share. Saudi Arabia Fertilizers Co., Saudi International Petrochemical Co., and Saudi Industrial Investment Group were the worst performers in terms of decline in net profit; their net profit fell to SAR 285.9mn, SAR 50.7mn, and SAR 87.7mn, respectively, in. Saudi Arabia Fertilizers Co. and Saudi Basic Industries Co. had a high dividend yield in the sector at 9.1% and 7.06%, respectively. The following factors impacted the net profit of some companies in the sector during : Kayan: The company posted a net loss of SAR 216.3mn in, indicating a decline from SAR 591.6mn in. The reason for reduction in losses was due to increase in production and sale, decreases in price of raw material and feedstock cost, and decrease in zakat provision. Petro Rabigh: Petro Rabigh posted a net loss of SAR 32.7mn in, mainly due to reduced sale and reduced refinery margins as a result of slow start-up after the extended maintenance. SABIC: The company s net profit declined 13.4% to SAR 3.4bn in due to lower average sales prices and SAR 725.0mn losses in the metal segment. SAFCO: SAFCO s net profit declined 51.5% to SAR 285.9mn in due to lower selling prices of company products. SIIG: The company s net profit declined 30.3% to SAR 87.7mn in due to a decrease in profit from projects managed jointly (SCP, JCP), ascribed to lower sales prices, increase in finance charges, and increase in Zakat. YANSAB: YANSAB s net profit increased 40.9% to SAR 401.9mn in due to decrease in feedstock prices, decrease in slow movement spare parts provision and lower fixed cost. 6

7 Cement Sector 0.4% YTD D/Y (%)* 5,000 4,500 4,000 3,500 Northern Region Co Al Jouf Cement City Cement Co Southern Province Yamamah Saudi Eastern Province Yanbu Cement Co Arabian Cement Co The Qassim Cement Najran Cement Tabuk Cement Co Hail Cement Company Saudi Cement Co Umm Al-Qura Cement Total 1, , ,000 YTD 2016 Cement Sector Cement Sector Qassim Northern Hail Yamamah Al Jouf Umm Al City Saudi Eastern Najran Yanbu Southern Arabian Tabuk The Cement sector s net profit decreased 6.5% to SAR 1,585.7mn in from SAR 1,696.0mn in. The sector s weighted-average stood at SAR 1.3 per share. City Cement Co. (up 8.3% ) and Southern Province Cement Co. (up 6.5% ) registered robust growth in earnings, while Yanbu Cement Co. (down 11.2% ), Yamamah Saudi Cement Co.(down 14.2% ), and The Qassim Cement Co (down 16.8% ) led the decline in earnings. Currently, 9 cement companies feature among the top 15 companies by dividend yield in the Saudi market, led by Yanbu Cement Company (15.6%) and The Qassim Cement (9.5%); these companies offer an attractive proposition for investors. Key factors that affected the net profit of some companies in the sector during were: Arabian Cement: profit increased 15.5% to SAR 225.6mn in due to increase in net income as a result of SAR 17mn received from insurance claim and goodwill write-off of SAR 15mn during. City Cement: profit surged 8.3% to SAR 73.2mn in due to an increase in sales, slight rise in other income, and decrease in selling expenses. Hail Cement: profit declined 11.7% to SAR 33.1mn in due to increase in cost of sales caused by adverse market condition. The company also recognized unrealized investment losses. Qassim Cement : profit decreased 16.8% to SAR 135.4mn in due to an increase in cost of sales, despite increase in sales volumes. Saudi Cement: profit decreased 12.5% to SAR 265.4mn in due to a decline in sales and higher energy prices. Tabuk Cement: profit dropped 32. to SAR 22.2mn in due to a decrease in average sales price and increase in cost of goods sold. 7

8 Retail Sector -18.1% YTD National Medical Care D/Y (%)* 13,000 12,000 11,000 10,000 9,000 8,000 Saudi Co.for Hardware Abdullah Al Othaim United Electronics Co Retail Sector Dallah Healthcare Al Hammadi Mouwasat Medical Aldrees Co Jarir Marketing Co AlHokair Saudi Marketing Co Alkhaleej Co Middle East Healthcare National Agriculture Saudi Automotive YTD 2016 Retail Sector AlHokair Extra Jarir Alkhaleej SASCO Aldrees THIMAR Saudi Marketing Saudi Company For Al Hammadi Care Fitaihi Holding Al Othaim Mouwasat Dallah Saudi German Hosptl Fitaihi Holding Group Total Saudi Arabia s Retail sector recorded a 45.3% decline in net profit in. profit fell to SAR 532.4mn in from SAR 972.7mn in. The sector s weighted-average stood at SAR 1.1 per share. Heavyweight Jarir dominated the sector earnings although the net profit was down 29.5% to SAR 174.1mn in. However, another heavyweight Fawaz Abdulaziz AlHokair Company s net profit dropped 98.4% at just SAR 0.02mn in. Middle East Healthcare though reported stable earnings at SAR 105.2mn in. In terms of dividend yield, Jarir Marketing Co. topped the sector with a 5.7% yield. The following factors affected the net profit of some of the companies in the sector during : Aldrees: income decreased 32.7% to SAR 28.2mn in due to decrease in sales of transportation division, increase in cost of sales due to rise in energy prices, and increase in financial expenses. Al Othaim: income decreased 3.9% to SAR 47.0mn in due to a loss of SAR 8.6mn booked in 1Q2106 owing to a precautionary provision for a fire accident that occurred at a subsidiary. Dallah Healthcare: income increased 22% to SAR 58.3mn in due to an increase in sales volume, rise in the number of inpatients and outpatients, operating of the North Clinics Building, and increase in overall average operating capacity. Mouwasat Medical: income increased 27.1% to SAR 71.1mn in due to an increase in revenues resulting from continued efficient operation of available resources, continuous development in the medical systems, and expansion in sub specialty clinics operations. Jarir: income decreased 29.5% to SAR 174.1mn in due to decrease in sales of most sections, increase in selling and distribution and general and administrative expenses, and decrease in wholesale. 8

9 Agriculture & Food Industries Sector D/Y(%)* SHADCO Jazan Development SADAFCO NADEC Halwani Bros Savola Group Almarai Company Saudi Airlines Catering Herfy Food Services Al-Jouf Agriculture Tabuk Agriculture Anaam International Saudi Fisheries Co Qassim Agriculture Co Bishah Agriculture Wafrah Industry Total 1, ,500 9,000 8,500 8,000 7,500 7,000 6,500 6,000 5,500 25% -25% -5-13% YTD Agri & Food Sector YTD 2016 Agriculture & Food Industries Sector Herfy Food NADEC Ash-Sharqiyah Savola Jazan Dept. Saudi Fisheries Saudi Airlines Halwani Bros Al-Jouf Agri Qassim Agri Tabuk Agri Anaam Almarai Bishah Agri Wafrah for SADAFCO earnings of Saudi Arabia s Agriculture and Food sector decreased 31.7% to SAR 736.0mn in from SAR 1,077.6mn in. The sector s weighted-average stood at SAR 0.5 per share. The sector s weak performance was due to the decline in the net profit of index heavyweights Savola Group (down 80.3% ) and Saudi Airlines Catering Company (down 15.4% ). This decline in the sector s net earnings was partially offset by stable performance of another major player Almarai Co. (up 0.7% ). Saudi Airlines Catering Co. had the highest dividend yield (6.8%) in the sector. The following factors affected the net profit of some companies in the sector during : Almarai: profit rose marginally to SAR 308.5mn in, driven by a 13.6% growth in sales due to a 28., 6.8%, and 12.2% increase in sales of the Bakery, Poultry, and Dairy & Juice segments, respectively; a 10.2% growth in gross profit due to lower growth in cost of sales; and the favourable impact of the net evolution of share of results of associates and joint ventures, others expenses, finance cost, zakat, foreign income tax, and non-controlling interest. Saudi Airlines Catering: income decreased 15.4% to SAR 141.7mn in due to high amount of provision releases in 2015, decrease in number of flights by 3.5%, decrease in meals prepared by 9.2%, and increase in depreciation by SAR 2.2mn and rent and maintenance cost by SAR 3.9mn. SADAFCO: profit surged 173.7% to SAR 79.9mn in due to a to a fall in raw material costs, which led to a 20. increase in total profit while better cost management led to a 17. decrease in selling and distribution expenses. Savola: profit decreased 80.3% to SAR 92.9mn in, mainly attributed to Increase in operating expenses due to the opening of new stores and marketing activity, share of loss from one associate, increased financial charges, reduced share of minority interest, and higher losses in United Sugar Company of Egypt. 9

10 Telecom.& I T Sector -1.8% YTD D/Y (%)* Saudi Telecom 2, , Mobile Telecom Etihad Atheeb Etihad Etisalat Co Total 2, , earnings of Saudi Arabia s Telecom sector decreased 4.1% to SAR 2,079.5mn in from SAR 2,168.6mn in. The sector s weighted-average stood at SAR 0.7 per share. Mobile Telecomm Co. was the worst performer during the quarter, reporting a net loss of SAR 249.7mn in. Key factors that affected the net profit of major companies in the sector during were: Etihad Etisalat: The company posted a net profit of SAR 16.6mn in, compared with a loss of SAR 44.5mn in, mainly due to the increase in EBITDA because of company s efforts to optimize its cost, decrease in zakat provision, and better management of the general and administrative expenses. 1,800 1,700 1,600 1,500 1,400 1,300 1,200 Telecom & IT Sector YTD 2016 Telecom.& I T Sector 1 5% -5% -1-15% -2 Atheeb Telecom STC Mobily Mobile Telecom Mobile Telecommunications: losses declined due to a 24.3% growth in gross profits, 7% growth in revenue due to increasing demand for products and services. Saudi Telecom: profit decreased 5.1% to SAR 2.4bn in due to a 12.3% increase in the cost of services and rise of SAR 53mn in operating expenses. 10

11 Insurance Sector D/Y(%)* Al Sagr Co-op Ins Saudi Arabian Co-op Arabian Shield Co-op Al Alamiya Bupa Arabia Buruj Co-op Ins Amana Cooperative Allianz Saudi Fransi Alahli Takaful Co TAWUNIYA Ace Aarabia Arabia Insurance Coo Allied Cooperative Ins Trade Union Co-op Ins Gulf General Co- op i Wataniya Insurance SABB Takaful MEDGULF Malath Co-op Ins Saudi Indian Company Al-Rajhi Company Saudi Rei Sanad Insurance Salama Cooperative Solidarity Saudi United Cooperative Al-Ahlia Insurance Co Saudi Enaya Alinma Tokio Marine AXA Cooperative I Gulf Union Co-op Ins Saudi United Weqaya Takaful Aljazira Takaful MetLife AIG ANB Total ,400 1,300 1,200 1,100 1, Insurance Sector % YTD 2016 Insurance Sector -5% -1-15% -2-25% -3-35% -4-45% % 4 35% 3 25% 2 15% 1 5% Weqaya Al Alamiya Enaya Insurance Trade Union Malath ACE Insurance MetLife Wataniya Insurance Gulf General SABB Takaful Alinma Tokio Medgulf ALAHLI TAKAFUL SAICO ACIG Arabian Shield Allianz Sanad Insurance Al-Rajhi Insurance Aljazira Takaful United Assur. Reinsurance 2.5% YTD % YTD 2016 Insurance Sector Gulf Union Cooperative Insurance AXA Insurance Al-Ahlia Al Sagr Insurance Bupa Insurance BURUJ Insurance WALAA Solidarity Takaful SALAMA Arabia Amana WAFA Insurance Insurance sector s net profit increased to SAR 282.7mn in from a loss of SAR 28.5mn in. The sector posted a weighted-average of SAR 0.2 per share during the quarter. Sector heavyweights, Bupa Arabia for Cooperative Insurance posted a net profit of SAR 55.3mn in compared with SAR 20.2mn in, while The Company for Cooperative Insurance (TAWUNIYA) reported a net profit of SAR 47.2mn in. With 28 of the 35 companies in the sector reporting gains, the sector s overall performance was very strong. Al Sagr Co-operative Insurance Co., Saudi Indian Company for Co- operative Insurance (up 678.9% ), Al Alamiya for Cooperative Insurance Company(up 799.5% ), United Cooperative Assurance Co. (up 226.4% ), and Buruj Cooperative Insurance Company (up 101.6% ) were the best performers in terms of gain in net profit. The following factors led to fluctuations in the net profit of some of the companies in the sector during : MEDGULF: The company posted a net profit of SAR 9.5mn in as compared to loss of SAR 54.4mn in due to a 17.4% decrease in net claims. Bupa Arabia: profit surged 173.8% in due to strong business growth and improved ratio of net claims incurred to net earned premium in (85.2%) versus Q12015 (86.), resulting in a significantly higher net underwriting result. 11

12 Energy & Utilities Sector D/Y (%)* National Gas & Indus Saudi Electricity Co. -1, , Total -1, , Source: Tadawul website, AlJazira Capital 6,500 6,000 5,500 5,000 4, % YTD Energy & Utility Sector % YTD 2016 Energy & Utilities Sector Saudi Arabia s Energy & Utilities sector reported a net loss of SAR 1.3bn in vis-à-vis a loss of SAR 1.9bn in. The sector s weighted-average was SAR 0.1 per share. Dividend yield for SEC and National Gas was 4.4% and 5.3% respectively. National Gas and Industrialization Co. net profit rose 19.3% to SAR 49.7mn in, primarily due to increase in revenue and other income,. 5% -5% -1 Saudi Electricity -15% GASCO Hotel & Tourism Sector 20, YTD D/Y (%)* 15,000 10,000 Al-Tayyar Travel Group Alhokair Tourism Enterprise Co Dur Hospitality Co Total ,000 Hotel & Tourism Sector The net earnings of Saudi Arabia s Hotel and Tourism sector declined 29. to SAR 276.3mn in from SAR 389.2mn in. The sector s weighted-average was SAR 0.9per share. The sector s earnings were impacted by Al-Tayyar Travel Group s net profit, which fell 32.2% to SAR 194.0mn. % YTD 2016 Hotel & Tourism Sector SHAMS -2 Al-Hokair Dur Hospitality Dur Hospitality Co had a dividend yield of 5.6%. Tourism Enterprise Co. registered the sector s highest P/B ratio at 4.0x, followed by Alhokair at 3.4x Al-Tayyar 12

13 Industrial Investment Sector 7,000 6, % YTD D/Y(%)* 6,000 5,500 5,000 Basic Chemical Saudi Chemical Co Alabdullatif The National Glass Middle East Paper Co FIPCO Saudi Arabian Mining Saudi Pharmaceutical Astra Industrial Group Saudi Industrial Export Saudi Paper Shaker Takween Advanced MAADANIYAH Al Sorayai Total Source: Tadawul website, AlJazira Capital 4,500 Industrial Investment Sector % YTD 2016 Industrial Investment Sector AlAbdullatif Takween Saudi Paper AlSorayai Middle East Paper Co. Astra Industrial Saudi Chemical Zoujaj FIPCO Shaker Maadaniyah SIECO Maaden SPIMACO Basic Chemical The net earnings of Saudi Arabia s Industrial Investment sector declined 27.5% to SAR 439.1mn in from SAR 606.1mn in. The sector s weighted-average for the quarter was SAR 0.3 per share. The sector was impacted by index heavyweight Saudi Arabian Mining Company s net profit, which declined 35.3% to SAR in from SAR 260.9mn in 1Q2105. Saudi Chemical Company had the sector s highest dividend yield at 8.1%. Key factors that affected the net profit of some companies in the sector during were: Al Abdullatif Industrial Investment Co.: profit fell 68.5% to SAR 14.2mn in, which was attributed to a decline in sales, provision for extraordinary losses, and loss on investments in associates. MAADEN: profit dropped 35.3% to SAR 168.9mn in due to lower average selling prices of products, decline in aluminium sales volume, decrease in commodity prices, and increase in financial charges, and loss in a jointly controlled entity. Saudi Chemical: profit fell 39.1% to SAR 52.5mn in due to a decrease in sales and increase in expenses resulting from one subsidiary whose plant is in pre-operating stage and zakat provision. Saudi Paper: The company incurred a net loss of SAR 6.2mn in, mainly due to a decrease in sales. 13

14 Building & Construction Sector D/Y (%)* Al-Babtain Saudi Arabian Amiantit Saudi Vitrified Clay Co Saudi Ceramic Co Red Sea Housing Zamil Industrial United Wire Factories National Gypsum Co Bawan Company Electric Industries Co Al-Khodari Saudi Steel Pipe Co Saudi Cable Co Arabian Pipes Co MESC SIDC Mohammad Al Mojil Total ,500 2,300 2,100 1,900 1,700 1,500 B&C Sector % YTD 2016 Building & Construction Sector % YTD SIDC EIC Pipes Al-Khodari Saudi Steel Saudi Ceramic MESC Saudi Cable Vitrified clay Zamil Amiantit Gypsum Bawan Al Mojil AL-BABTAIN ASLAK Red Sea Saudi Arabia s Building & Construction sector net profit declined 27.3% to SAR 174.3mn in from SAR 239.8mn in. The sector s weighted-average for the quarter stood at SAR 0.6 per share. Of the 17 companies in the sector, just 5 reported a gain in net profit in, with index heavyweights Saudi Arabian Amiantit Co. reporting loss and Zamil Industrial Investment Co. reporting 30.3% decline in profit. Saudi Arabian Amiantit Co. had the sector s highest dividend yield at 7.5%. The following factors affected the net profit of some companies in the sector: National Gypsum: profit decreased 30.7% to SAR 3.6mn in. profit, gross profit, and operating profit fell due to higher cost of sales. Saudi Ceramic: profit fell 43. to SAR 48.0mn mainly due to a decrease in other revenues, decrease in other revenues, higher financing cost, and zakat expenses. United Wire Factories Co.: profit increased 23.6% to SAR 17.3mn in as compared to SAR 14.0mn in similar quarter previous year due to decrease in cost of goods sold. Zamil: profit decreased 30.3% to SAR 51.4mn in due to lower sales, currency depreciation in emerging market, increase in financial charges, and reduction in other income. 14

15 Multi-Investment Sector D/Y (%)* 3,500 3, % YTD SISCO Aseer Trading Kingdom Holding Co SAIC SARCO ABDICO Al-Ahsa Development Total The net earnings of Saudi Arabia s Multi-investment sector declined 73.1% to SAR 72.11mn in from SAR 268.4mn in. The sector s weighted-average stood at SAR 0.1 per share in. Saudi Industrial Services Co. reported the highest earnings growth of 32.6%, whereas Saudi Advanced Industries Co. reported a loss of SAR 2.5mn. 2,500 2,000 Multi-investment Sector % YTD 2016 Multi-Investment Sector 15% 1 5% -5% -1-15% -2-25% Kingdom Holding SARCO SAIC Aseer Al-Baha SISCO Al-Ahsa Aseer Trading, Tourism & Manufacturing Co. had the sector s highest dividend yield at 4.5%. Transport Sector The Transport sector s net profit rose 29.3% to SAR 895.4mn in from SAR 692.3mn in. The sector s weighted-average stood at SAR 1.2 per share. Of the 5 companies, 4 registered growth in net earnings, with Saudi Transport and Investment Company (up 3,567.3% ) gaining the most. It was followed by Saudi Ground Services Co. (up 75.5% ) and The National Shipping Co. of Saudi Arabia (up 53.6%). Saudi Ground Services Co. had the sector s highest dividend yield at 5.2%. D/Y (%)* National Shipping Co Budget Saudi Saudi Ground Services Saudi Public Transport MUBARRAD Total Source: Tadawul website, AlJazira Capital National Shipping Co.: profit surged 53.6% to SAR 612.0mn in, led by an increase in operating revenue ascribed to buying and receiving of several oil tankers, increase in average Time Charter Equivalent rate for crude oil transportation, and decrease in average ship running expenses and bunker expenses. 8,000 7,500 7,000 6,500 6,000 5,500 Transport Sector % YTD 2016 Transport Sector 15% -15% % YTD Mubarrad SAPTCO Budget Saudi Bahri Saudi Ground Services Co. 15

16 Real Estate Development Sector 7.9% YTD D/Y(%)* Emaar Arriyadh Development Makkah Construction DAAR Taiba Holding Co Saudi Real Estate Co Jabal Omar Alandalus Property Co Knowledge Economic Total ,000 6,500 6,000 5,500 5,000 4,500 4,000 15% -15% -3 % YTD 2016 Real Estate Development Sector 3 SRECO Dar Al Arkan Makkah Construction KEC Real Estate Taiba Emaar EC Jabal Omar Arriyadh Alandalus Property Co. The net profit of Saudi Arabia s Real Estate Development sector decreased 69.4% to SAR 174.1mn in from SAR 568.4mn in. The sector s weighted-average for the quarter was SAR 0.04 per share. Of the 9 companies in the sector, just 1 reported a gain in net profit in. Dar Alarkan Real Estate Development Company (down 60.7% ), Taiba Holding Co. (down 75.5% ), Saudi Real Estate Co. (down 38.2% ), and Arriyadh Development Co. (down 23.9% ) led the decline in the sector s net profit. Arriyadh had the sector s highest dividend yield at 6.1%. The following factors affected the net profit of some companies in the sector during : Emaar: The company reported net loss of SAR 31.1mn in due to lower sales, increase in impairment provision, and increase in general and administrative expenses. Knowledge Economic City: loss increased from SAR 4.8mn in to SAR 7.6mn in due to share of losses from associated companies. Saudi Real Estate: profit declined 38.2% to SAR 26.6mn in compared to SAR 43.1 in same period previous year, due to increase in financial expenses. 16

17 Media and Publishing Sector D/Y (%)* 4,000 3,500 3,000 2, % YTD Saudi Research Saudi Printing Tihama Advertising Total Saudi Arabia s Media & Publishing sector net profit decreased 56.2% to SAR 14.3mn in from SAR 32.6mn in. The sector s weighted-average for the quarter stood at SAR 0.2 per share. Tihama Advertising had the highest P/B ratio of 5.0x, followed by Saudi Research at 3.3x and Saudi Printing at 1.3x. 2,000 Media Sector % YTD 2016 Media and Publishing Sector TAPRCO SPPC SRMG -4 Key factors that affected the net profit of some companies in the sector during were: Saudi Printing and Packaging Co.: profit declined 66.4% to SAR 3.9mn in, led by a decrease in gross profit due to adverse economic conditions in some overseas markets, lower selling prices due to fall in international oil prices, and increase in some allowances. Tihama Advertising: The company reported net loss of SAR 11.4mn in 1Q2106 due to impact of reduction in rental cost of advertising sites of SAR 15mn recognized during the same quarter previous year, and fall in the share of profits from associate by SAR 5.5mn. 17

18 Monthly TASI movement in 5 years ( ) 38.2%( ) 23.6%( )

19 RESEARCH DIVISION Acting Head of Research Talha Nazar Analyst Waleed Al-jubayr Analyst Sultan Al Kadi Analyst Jassim Al-Jubran BROKERAGE AND INVESTMENT CENTERS DIVISION General Manager Brokerage Services & sales Alaa Al-Yousef AGM-Head of Sales And Investment Centers Central Region Sultan Ibrahim AL-Mutawa AGM-Head of international and institutional brokerage Luay Jawad Al-Motawa AGM-Head of Qassim & Eastern Province Abdullah Al-Rahit AGM- Head of Western and Southern Region Investment Centers & ADC Brokerage Abdullah Q. Al-Misbani RESEARCH DIVISION 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. 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