SACC Stronger growth expected

Size: px
Start display at page:

Download "SACC Stronger growth expected"

Transcription

1 9-Jul 9-Aug 9-Sep 9-Oct 9-Nov 9-Dec 9-Jan 9-Feb 9-Mar ` Saudi Airlines Catering Company SACC Stronger growth expected We re-iterate our BUY rating and raise our target price to SAR per share on Saudi Airlines Catering Company (SACC, 6004, CATERING AB), implying an upside potential of 11%. We revised our growth forecasts mainly on further fleet expansion by Saudi Airlines, the impact of which was partially off-set by our reduced margin expectations. SACC reached the target price assigned in our initiation coverage last year (previous recommendation: BUY, TP: SAR 84.8, SFC report July 2012). The stock generated total returns of 35% since our initiation in July BUY with TP of SAR per share: Our TP implies a P/E 13 of 14.9x a discount of 22% to global peers but broadly at par to the local peers (based on exchange categorization). EV/EBITDA 13 implies a multiple of 12.7x for SACC a premium of 28% to global comparatives and 13% to the local ones. Tax adjusting the global EV/EBITDA multiple (25-35% tax rate vs 8% for SACC), the like-for-like premium would be much lower. With a superior expected ROE of 46% and dividend yield of 5.5% this year, totally unleveraged balance sheet, current net cash per share of SAR12.5 and an average free cash flow yield of 9% - we continue to view SACC as a solid investment. Saudi Airlines fleet expansion increased by 71 planes: We see higher growth outlook on the back of the growing Saudi Airlines order book of planes, now implying a fleet size of 199 by 2017 compared to 128 in our old forecasts (2016). Saudi fleet forecast is now 55% higher in year five which inevitably is a strong positive for SACC, the exclusive supplier of Saudi Airlines. Apple to apple, 2016 fleet size is now 37% higher, up to 175 planes from 128. The largest fleet additions are due in Fleet expansion impact on forecasts partially off-set by margin cut: Compared to our old forecasts we raise revenue CAGR to 13.5% (Old: 8.1%), EBITDA to 13.2% (Old: 10.7%), EPS to 14.1% (Old: 11.1%). Based on 2012 results, where EBITDA margins were higher YoY but nevertheless 105bps lower than we anticipated, we cut our EBITDA margin expectations going forward thus partially off-setting the fleet expansion impact. While SACC is keen to stress their cost plus pricing agreements, the growing proportion of revenues from the lower margin (~7%) airline equipment business is a key factor behind the overall retreat. We note that this business is focused on Saudia and comes as a relationship based add-on rather than a strategic focus by SACC, consequently it is viewed in absolute terms and as an EPS bonus. The relationship is the strategy here, not the airline equipment business. EPS (as reported) seen at SAR 6.82/share in 2013, 15% YoY growth: We expect SACC to achieve an EPS (as reported) of SAR 6.82/share this year, slightly lower than we had anticipated in our old forecasts. However, with the bulk of new fleet expansion due in , our long-term EPS expectations are higher. Expecting dividend yield of 5.5%: SACC s 2012 dividend yield was 4.8%. Which compares favorably on the Tadawul (Average 3.5%) and to the few close listed peers available globally (Average 3%). Recommendation BUY Ticker Tadawul 6004 Closing price (20 March 13) SAR 91.3 Average volumes (6 months) Market capitalization SAR mn 7,483 High SAR 93.5 Low SAR 59.3 Price chg. (3 months) % 14.8 EPS (as reported) (2012) SAR 5.9 Beta NA Shareholding (%) Saudia 35.7 SCCL 34.3 Public 30.0 Key Ratios (2013E) P/E 14.5 EV/EBITDA 11.3 RoE 46.0 Source: Company, analysis Stock price movement vs. TASI TASI SACC SAR mn E 2014E 2015E 2016E 2017E Revenues 1,465 1,687 1,884 2,125 2,433 2,861 3,180 EBITDA Margin (%) Net income (as reported) Margin (%) Net income (after tax) Margin (%) FCF yield Assets 1,424 1,557 1,708 1,879 2,080 2,327 2,558 Equity 981 1,062 1,164 1,279 1,411 1,566 1,737 RoE (%)* RoA (%)* EPS (as reported) (SAR) EPS (after tax) (SAR) BVPS (SAR) Source: Company, analysis; *Returns are calculated on net income after Zakat. Source: Tadawul Equity Coverage Roy Cherry rcherry@fransicapital.com.sa Refer to important terms of use, disclaimers and disclosures on back page

2 E 2014E 2015E 2016E 2017E E 2014E 2015E 2016E 2017E E 2014E 2015E 2016E 2017E SAR bn Growth (%) Passengers (mn) Growth (%) SAR Payout(%) E 2014E 2015E 2016E 2017E E 2014E 2015E 2016E 2017E E 2014E 2015E 2016E 2017E SAR bn EBITDA Margin (%) SAR Net Margin (%) SAR ` Saudi Airlines Catering Company SACC - Key Forecast Revenue and EBITDA margin ( E) EPS* vs. Net Income Margin ( E) Price per meal ( E) % 14 29% % 31.0% 30.5% 30.0% 29.5% % 27% 26% % 0 25% 30 Revenues EBITDA Margin EPS Net income margin % Saudia Others Total Sources: Company reports, analysis Note: EPS as reported (before Zakat) SACC - Key Forecast Total Assets and YoY Growth ( E) Passenger Traffic and Growth ( E) DPS and Payout ratio* ( E) % 12% 10% 8% 6% 4% 2% 0% % 10% 8% 6% 4% 2% 0% % 74% 73% 72% Total assets Growth % Passenger traffic Growth YoY DPS Payout ratio Sources: Company reports, analysis Note: Payout ratio on as reported EPS (before Zakat) Page 2

3 ` Saudi Airlines Catering Company Financial Statements Income Statement Details (SAR mn) E 2014E 2015E 2016E 2017E Revenues 1,465 1,687 1,884 2,125 2,433 2,861 3,180 Cost of sales (907) (1,059) (1,190) (1,342) (1,543) (1,816) (2,032) Gross profit ,045 1,147 Gross margin (%) General and administrative (140) (121) (137) (153) (171) (196) (207) EBITDA EBITDA margin (%) Operating profit Operating margin (%) Net income (as reported) Net margin (%) EPS (as reported) Net income (after tax) Net margin (%) EPS (after tax) Sources: Company reports, analysis Balance Sheet Details (SAR mn) E 2014E 2015E 2016E 2017E ASSETS Cash & equivalents 655 1,022 1,101 1,237 1,389 1,551 1,725 Trade receivables Due from related parties Inventories Total current assets 1,315 1,467 1,559 1,719 1,908 2,140 2,364 PPE Total assets 1,424 1,557 1,708 1,879 2,080 2,327 2,568 LIABILITIES AND SHAREHOLDERS EQUITY Accounts payable - trade Accrued expenses and other liabilities Total current liabilities Total liabilities Total shareholders equity 981 1,062 1,164 1,279 1,411 1,566 1,737 Total liabilities and shareholders equity 1,424 1,557 1,708 1,879 2,080 2,327 2,568 Sources: Company reports, analysis Cash flow Statement Details (SAR mn) E 2014E 2015E 2016E 2017E Cash flows from operating activities Cash flows used in investing activities (59) (20) (75) (32) (36) (43) (48) Cash flows from financing activities (261) (399) (457) (517) (590) (696) (771) Net change in cash (106) Cash at year end 655 1,022 1,101 1,237 1,389 1,551 1,725 Sources: Company reports, analysis Page 3

4 Valuation boosted by more Saudia expansion We see higher growth outlook on the back of the growing Saudi Airlines order book of planes, which is now 55% higher in year five compared to our old forecasts a strong positive for SACC, the exclusive supplier of Saudi Airlines. Although our revised forecasts are now higher, they have been significantly moderated by a cut in margin expectations on the back of 2012 s 105bps lower than expected EBITDA margin. Consequently, we see CAGRs during next five years for EBITDA at 13.2% (old: 10.7%) and EPS (as reported) at 14.1% (old: 11.1%). We do not expect a major spike in capex/sales, especially keeping in mind the existing spare capacity at SACC s existing facilities. As a result, we see the free cash flow yield averaging 9% over the next five years a very high yield by any standards. ROE is also expected to stay above the 45%-level, one of the highest rates on Tadawul and 2.2x peer market cap weighted average (2.8x based on median, see tables under P/E valuation). As a result, we reiterate our BUY recommendation on SACC with a higher TP of SAR 101.4, implying an upside to the last close of 11.1%. The stock is currently trading at a P/E 13 of 14.5x and EV/EBITDA 13 of 11.3x broadly in line with local peers. Valuation - Scenario Analysis Fair Value estimate for different scenarios Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 SAR SAR SAR 82.5 Fair Value Bull Case Base Case Bear Case We assume additional increase of: 1) 10% in Saudia meals; 2) SAR 1 price per meal; 3) 5% in non-airline revenues; and 4) GPM to expand by 2 percentage points. We assume: 1) 11.7% CAGR in total Saudia meals; 2) an average price per meal of SAR 39; 3) 20.4% CAGR in revenues from the non-airlines division; and 4) an average GPM of 36.6%. We assume decrease of: 1) 10% in Saudia meals; 2) SAR 1 in price per meal; 3) 20% in non-airline revenue; and 4) GPM to contract by 3 percentage points. Bull Case Base Case Bear Case Maintain BUY rating Overall, we find SACC shares attractive at current levels; upside potential of 11.1% Sources: Bloomberg; analysis We derived our target price by using the weighted Average approach and three valuation methods including; 1) Discounted Cash Flow (DCF); 2) P/E 13 based peer valuation; and 3) EV/EBITDA 13 based valuation. We assigned higher weight to the DCF approach, as we believe it is the method that best accounts for the primary leg of expansion ( ). Valuation summary of SACC Fair Value Weights DCF Valuation SAR % EV/EBITDA SAR % P/E Multiple SAR % Weighted Average Fair Value SAR Upside/(Downside) from current market price % 11.1% Sources: analysis Page 4

5 Discounted Cash Flow (DCF) Our DCF model is based on a five-year explicit forecast period until 2017E. We arrived at a WACC of 11.8% for SACC. In terms of terminal growth, we applied a 2.0% rate to estimate the terminal value. Our terminal growth rate assumption is on the conservative side, especially given Saudia s massive capacity expansion plans which extend into 2020 (230 planes vs 199 in 2017). Our DCF approach yields a fair value of SAR 104.3/share. SACC: Discounted cash flow valuation summary (SAR 000s) Details 2013E 2014E 2015E 2016E 2017E NOPAT 512, , , , ,552 Depreciation & Amortization Exp. 16,256 21,066 24,142 27,716 31,794 Changes in Working Capital 20,180 12,803 11,708 (3,962) (1,686) Capex (75,000) (31,875) (36,495) (42,919) (47,698) Free Cash flow to Equity 474, , , , ,962 Discount Factor PV of Free Cash Flow 434, , , , ,395 Total PV of FCF 2,391,162 Continuing value (CV) 8,785,920 PV of CV 5,143,254 Enterprise Value 7,534,416 Add: Cash 1,022,122 Less :- Debt 0 Equity Value 8,556,539 No. of shares 82,000 Fair value per share SAR Upside/(Downside) % 14.4% Sources: analysis Price-Earnings (P/E) multiple approach We arrive at a P/E multiple of 18x for SACC. We used the market cap weighted P/E for Saudi Arabia and global peer universe. Our fair value estimate using P/E approach is SAR per share, derived using 2013E post tax earnings forecast of SAR 515mn. Company MCap (USD mn) Price/Earnings (x) RoE (%) E 2014E E 2014E Herfy Food Services x 16.7x 14.7x 37.7% 36.5% 35.2% Savola 5, x 12.8x 10.8x 16.9% 17.3% 18.1% Halwani Bros Co x 15.5x 13.0x 15.8% 16.0% 17.9% National Agricultural Development Company x 13.9x 11.8x 8.9% 9.7% 11.0% Almarai Co Ltd 6, x 16.1x 13.4x 20.2% 19.9% 21.1% Al Jouf x 9.8x 9.5x 16.3% 15.8% 14.9% Gate Group x 10.4x 8.0x 12.2% 10.2% 14.6% SATS 2, x 17.4x 16.0x 11.9% 13.1% 14.4% Auto Grill 3, x 20.5x 17.1x 13.5% 13.3% 14.1% DO & CO AG x 15.3x 14.6x 14.1% 13.8% 13.4% Compass group 23, x 18.0x 16.3x 24.8% 25.5% 25.6% SODEXO 14, x 21.1x 18.4x 18.8% 16.3% 17.3% Catering International x 17.7x 15.3x 19.4% 21.3% 21.0% Median Multiple for KSA (Ex- SACC) 15.8x 14.7x 12.4x 16.6% 16.7% 18.0% Median Multiple for all peers (Ex- SACC) 18.8x 16.1x 14.6x 16.3% 16.0% 17.3% Mcap weighted average Multiple for KSA (Ex - SACC) 16.5x 14.7x 12.4x 19.6% 19.5% 20.4% Mcap weighted average Multiple for all peers (Ex - SACC) 19.6x 18.0x 15.8x 20.7% 20.3% 20.9% Sources: Bloomberg, analysis, as on 19 March 2013 Page 5

6 EV-to-EBITDA (EV/EBITDA) multiple approach We used EV/EBITDA multiples for SACC s market approach-based relative valuation. We selected a peer group of global companies in addition to the Saudi sector peers. Our comparative valuation is summarized in the following table. This valuation was based on market cap adjusted EV/EBITDA valuation. Company MCap (USD mn) EV/ EBITDA (x) RoE (%) E 2014E E 2014E Herfy Food Services x 13.1x 11.6x 37.7% 36.5% 35.2% Savola 5, x 10.4x 9.3x 16.9% 17.3% 18.1% Halwani Bros Co x 8.2x 7.0x 15.8% 16.0% 17.9% National Agricultural Development Company x 7.4x 6.7x 8.9% 9.7% 11.0% Almarai Co Ltd 6, x 12.3x 10.6x 20.2% 19.9% 21.1% Al Jouf x 6.0x 6.0x 16.3% 15.8% 14.9% Gate Group x 4.4x 3.9x 12.2% 10.2% 14.6% SATS 2, x 11.5x 10.8x 11.9% 13.1% 14.4% Auto Grill 3, x 6.5x 6.3x 13.5% 13.3% 14.1% DO & CO AG x 5.4x 4.9x 14.1% 13.8% 13.4% Compass group 23, x 10.6x 9.9x 24.8% 25.5% 25.6% SODEXO 14, x 9.7x 8.8x 18.8% 16.3% 17.3% Catering International x 6.2x 5.5x 19.4% 21.3% 21.0% Median Multiple for KSA (Ex- SACC) 10.3x 9.3x 8.1x 16.6% 16.7% 18.0% Median Multiple for all peers (Ex- SACC) 9.3x 8.2x 7.0x 16.3% 16.0% 17.3% Mcap weighted average Multiple for KSA (Ex - SACC) 12.7x 11.3x 9.9x 19.6% 19.5% 20.4% Mcap weighted average Multiple for all peers (Ex - SACC) 11.0x 10.2x 9.4x 20.7% 20.3% 20.9% Sources: Bloomberg, analysis, as on 19 March 2013 Key risks Upside Margin expansion: We have lowered our EBITDA going forward on account of lower than expected performance in 2012 and ongoing concerns over rising cost. However, if SACC manages to contain cost in coming years through improved operational efficiency, margins are set to expand. This could positively affect SACC s earnings estimates and therefore our valuation. Totally unleveraged: SACC is debt free. This provides significant potential for RoE expansion in the coming years. Moreover, unleveraged balance sheet and comfortable cash position also leave sufficient room for undertaking inorganic expansion. Both cases provide additional room for shareholders value creation. Downside Adverse changes in SACC s agreements with Saudia might hurt earnings: SACC generates majority of its revenues from Saudia under airline catering services and sky sales services agreements which are due for renewal on 29 January Any unfavorable changes in the terms and conditions (such as additional discounts to Saudia) would result in weaker than expected margins for SACC. However, we do not forsee any major changes in the forseeable future Weaker-than-expected growth in passengers: Any geopolitical event and weaker-than-expected growth in the global economy could have an adverse impact on the airlines industry, thus denting SACC s revenues and margins. Page 6

7 Revision in forecasts The rise in the number of religious visitors to Umrah and Hajj is being boosted by the government s continuous investment in visitor capacity at the religious sites and remains a key driver for air passenger growth in the Kingdom. Note that Saudi Arabia maintains annual visitor/visa number caps for each country, due to the overwhelming demand and comparatively limited capacity. The rapidly expanding economy, increasing domestic spending and rising per capita income are also important factors behind the positive outlook for passenger growth. As per IATA s recently published data, air traffic in Saudi Arabia is expected to increase at a CAGR of 7% until 2016E. Saudia estimates the total number of air passengers to double by the end of To meet this demand Saudia is planning to increase its fleet size from 103 in 2012 to 199 in 2017, and 230 in Apple to apple, 2016 (year five in old forecasts) fleet size is now 37% higher, up to 175 planes from 128. The largest fleet additions are due in , where the new Saudia planning suggests an average of 42% increase annually compared to figures provided in July Comparison of Saudia s fleet expansion plan (old versus new) E 2014 E 2015 E 2016 E 2017 E Fleet expansion (new) Fleet expansion (old) Source: Company, analysis Supported by Saudia s fleet expansion, our new expectations are significantly higher than our old forecasts. We raised our CAGRs on: revenues to 13.5% (old: 8.1%), EBITDA to 13.2% (old: 10.7%) and EPS (as reported) to 14.1% (old: 11.1%). Page 7

8 SAR mn % Saudi Airlines Catering Company Old Vs New forecasts SAR mn, unless specified 2013E 2014E 2015E Details Old Forecast New Forecast Old Forecast New Forecast Old Forecast New Forecast Revenues 1,873 1,884 2,037 2,125 2,174 2,433 EBITDA EBITDA margin (%) Net income (as reported) Net margin (%) EPS (as reported) (SAR) Net income (after tax) Net margin (%) EPS (after tax) (SAR) RoE (%)* RoA (%)* BVPS (SAR) Sources: Company reports, analysis, * Returns are calculated on net income after Zakat. Top-line take off on growing fleet size With the top-line meeting our expectations last year coupled with the planned expansion at the Saudi flag carrier, we have made a significant upward revision to our expectations. Comparison of old versus new estimates for SACC s revenues and gross margins 5, % 39.8% 39.9% 40.0% 40% 4, % 36.9% 36.6% 36.5% 35% 3,000 2,000 1,884 1,873 2,125 2,037 2,433 2,174 2,861 2,307 30% 1,000 25% E 2014 E 2015 E 2016 E 20% New Revenue Old Revenue New GPM Old GPM Source: Company, analysis EBITDA CAGR raised; margins cut While cost of material increased from 39.5% in 2011 to 40.8% in 2012, G&A expenses to sales fell from 9.5% to 7.2%. All in all EBITDA margins increased by some 130bps YoY but were 105bps lower than we had anticipated. Consequently, we have moderated our margin expectations going forward especially amidst growing impact of the low margin airline equipment business (GPM of ~7%). Page 8

9 SAR mn % SAR mn % Saudi Airlines Catering Company Comparison of old versus new estimates for SACC s EBITDA & EBITDA margin 2,000 1,800 1,600 1,400 1, % 33.6% 33.9% 34.0% 30.4% 30.7% 30.5% 30.6% 40% 35% 30% 25% 1, % 15% 10% 5% E 2014 E 2015 E 2016 E New EBITDA Old EBITDA New Margin Old Margin 0% Source: Company, analysis Net income CAGR of 14% Reported net income increased 15.8% YoY to SAR 487mn (EPS: SAR 5.94) (SACC s reported net income is before Zakat), but missed our estimate by 4.3%. However, if we adjust for one-time expenses, SACC s profits grew 21.2% YoY and were therefore in line with our estimate of SAR 510mn for Reported net profit was knocked down by a SAR 22.8mn write-off in 4Q 2012 on a building, the ownership of which was transferred to the General Authority of Civil Aviation. GACA recently changed the terms for SACC on its leased land plot, which was on a 20 year contract that expired in late The new contract includes a clause giving GACA the right to terminate the lease contract at any point in time without compensation 1. As a result, management believes that as the future benefit is doubtful, it has decided to write-off the carrying value of SAR 22.8mn. Our raised top-line and EBITDA expectation produce an EPS CAGR of 14.1% compared to our old forecasts. The major EPS impact is towards the end of the projection period, when most of the plane additions are expected to materialize. Comparison of old versus new estimates for SACC s net profit and net margin 2,000 1,800 1,600 1,400 1, % 31.4% 31.8% 32.1% 32.2% 29.8% 29.7% 29.7% 40% 35% 30% 25% 1, % 15% 10% 5% E 2014 E 2015 E 2016 E New Net Income Old Net Income New NPM Old NPM 0% Source: Company, analysis; Net income as reported (before Zakat) 1 From 2012 financials Page 9

10 Capex no spike in sight There are no major new capex plans ahead and, according to the management, most of the growth can be met with minimal tweaks and additions to existing capacity. This is more or less confirmed by our high-level analysis, system spare capacity is around 42%, meaning it can absorb up to 73% growth from current levels. In comparison, our total meal growth projection is 69% in 2017 compared to estimated 2012 meals. Note that SACC has also developed a freeze & store capacity, which means it can pre-cook and store meals during off-peak season. Capacity details of SACC s catering units at key airports Details Jeddah Riyadh Dammam Madinah Cairo Total Design capacity (meal per day) 45,000 40,000 18,000 12,000 9, ,000 Average flights handled per day Average number of daily flight meals produced* 32,538 26,398 6,609 3,443 2,552 71,540 Spare capacity (%) Implied capacity for growth (capacity/used) (%) 73.3 Projected growth in meals (2017/12) (%) 69.0 Source: Company prospectus; * The total no. of daily flight meals produced exceeds 70,000 meals; As on 31 December 2011 Attractive dividends ahead Implied yield of 5.5% in 2013 The management aims to maintain a payout ratio of 60-80%, implying potential payout of SAR per share during based on our EPS expectations which converts into a yield range of 5.5%-9.3%. We expect them to pay around 74%, in line with Page 10

11 Financial Statements Income Statement Details (SAR 000s) E 2014E 2015E 2016E 2017E Total revenue 1,465,271 1,687,393 1,883,660 2,124,977 2,432,968 2,861,291 3,179,847 Growth (%) 22.8% 15.2% 11.6% 12.8% 14.5% 17.6% 11.1% Cost of revenue (906,809) (1,059,393) (1,189,804) (1,341,645) (1,542,889) (1,816,254) (2,032,409) Gross profit 558, , , , ,079 1,045,037 1,147,438 GPM (%) 38.1% 37.2% 36.8% 36.9% 36.6% 36.5% 36.1% S,G&A (139,824) (121,217) (136,968) (152,875) (171,148) (196,331) (207,372) As a % of revenues 9.5% 7.2% 7.3% 7.2% 7.0% 6.9% 6.5% Operating profit 418, , , , , , ,066 OPM (%) 28.6% 30.0% 29.6% 29.7% 29.5% 29.7% 29.6% EBITDA 434, , , , , , ,859 EBITDA margin (%) 29.7% 31.0% 30.4% 30.7% 30.5% 30.6% 30.6% Other (expenses)/income 1,924 (19,731) 2,000 2,000 2,500 2,500 2,500 Net Income (as reported) 420, , , , , , ,566 Source: Company reports, analysis Page 11

12 Balance Sheet Details (SAR 000s) E 2014E 2015E 2016E 2017E ASSETS Cash & equivalents 655,053 1,022,122 1,101,011 1,237,017 1,389,060 1,550,648 1,724,711 Trade receivables 52,119 53,792 61,268 68,550 77,704 90,307 98,990 Due from related parties 511, , , , , , ,419 Inventories 65,540 73,280 79,041 87,290 98, , ,881 Total current assets 1,314,693 1,466,726 1,559,306 1,719,011 1,908,283 2,139,687 2,364,499 PPE 109,770 90, , , , , ,058 Total assets 1,424,463 1,556,772 1,708,096 1,878,610 2,080,234 2,326,841 2,567,557 LIABILITIES AND SHAREHOLDERS EQUITY Accounts payable - trade 115, , , , , , ,058 Accrued expenses and other liabilities 233, , , , , , ,608 Total current liabilities 348, , , , , , ,666 Total liabilities 443, , , , , , ,305 Total shareholders equity 981,002 1,062,388 1,164,146 1,279,300 1,410,653 1,565,636 1,737,252 Total liabilities and shareholders equity 1,424,463 1,556,772 1,708,096 1,878,610 2,080,234 2,326,841 2,567,557 Source: Company reports, analysis Cash Flow Statement Details (SAR 000s) E 2014E 2015E 2016E 2017E Cash flows from operating activities 214, , , , , , ,710 Cash flows used in investing activities (58,728) (20,197) (75,000) (31,875) (36,495) (42,919) (47,698) Cash flows from financing activities (261,298) (398,917) (457,129) (517,303) (590,078) (696,224) (770,949) Net change in cash (105,771) 367,070 78, , , , ,063 Cash at year end 655,053 1,022,123 1,101,011 1,237,017 1,389,060 1,550,648 1,724,711 Source: Company reports, analysis Page 12

13 Recommendation Framework BUY: The analyst recommends a BUY when our fair value estimate is at least 10% higher than the current share price. HOLD: The analyst recommends a HOLD when our fair value estimate ranges within ±10% of the current share price. SELL: The analyst recommends a SELL when our fair value estimate is lower by more than 10% from the current share price. Page 13

14 Contacts RESEARCH & ADVISORY DEPARTMENT Roy Cherry Head of Research & Advisory SAUDI FRANSI CAPITAL Call centre Website SAUDI FRANSI CAPITAL LLC C.R , P.O Box 23454, Riyadh 11426, Saudi Arabia, Head Office Riyadh Authorized and regulated by the Capital Market Authority (CMA) License No. ( ) Page 14

15 Disclaimer This report is prepared by ( SFC ), a fully fledged investment firm providing investment banking, asset management, securities brokerage, research, and custody services. SFC, and its affiliate, might conduct business relationships with the company that is subject of this report and/ or own its security. This report is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. 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. This report is intended for general information purposes only, and may not be reproduced or redistributed to any other person. This report is not intended as an offer or solicitation with respect to the purchase or sale of any security. This report is not intended to take into account any investment suitability needs of the recipient. In particular, this report is not customized to the specific investment objectives, financial situation, risk appetite or other needs of any person who may receive this report. SFC strongly advises every potential investor to seek professional legal, accounting and financial guidance when determining whether an investment in a security is appropriate to his or her needs. Any investment recommendations contained in this report take into account both risk and expected return. To the maximum extent permitted by applicable law and regulation, SFC shall not be liable for any loss that may arise from the use of this report or its contents or otherwise arising in connection therewith. Any financial projections, fair value estimates and statements regarding future prospects contained in this report may not be realized. All opinions and estimates included in this report constitute SFC s judgment as of the date of production of this report, and are subject to change without notice. Past performance of any investment is not indicative of future results. The value of securities, the income from them, the prices and currencies of securities, can go down as well as up. An investor may get back less than what he or she originally invested. Additionally, fees may apply on investments in securities. Changes in currency rates may have an adverse effect on the value, price or income of a security. No part of this report may be reproduced without the written permission of SFC. Neither this report nor any copy hereof may be distributed in any jurisdiction outside the Kingdom of Saudi Arabia where its distribution may be restricted by law. 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. LLC; C.R , P.O Box 23454, Riyadh 11426, Saudi Arabia, Head Office Riyadh. Authorized and regulated by the Capital Market Authority (CMA) License No. ( ) Page 15

Saudi Airlines Catering Co. (Catering) Maintain Buy after Meeting with Management. December 2, 2015

Saudi Airlines Catering Co. (Catering) Maintain Buy after Meeting with Management. December 2, 2015 December 2, 2015 Maintain Buy after Meeting with Management Rating Summary Recommendation Buy 12-Month Target price (SAR) 160 Management meeting provides us with comfort on Catering s equity story Last

More information

The Company for Cooperative Insurance Insurance TAWUNIYA AB 8010.SE

The Company for Cooperative Insurance Insurance TAWUNIYA AB 8010.SE Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 Recommendation Overweight Current Price (SAR) 82.60 Target Price (SAR) 101.13 Upside/Downside (%) 22.4% As of

More information

Bupa Arabia for Cooperative Insurance Co. Insurance BUPA ARABIA 8210.SE

Bupa Arabia for Cooperative Insurance Co. Insurance BUPA ARABIA 8210.SE Jan-17 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Bupa Arabia for Cooperative Insurance Co. Recommendation Overweight Current Price (SAR) 91.95 Target Price (SAR)

More information

Saudi Ground Services 3Q preview and Rating upgrade

Saudi Ground Services 3Q preview and Rating upgrade SICO Research Company Update Jan-16 Feb-16 Mar-16 Mar-16 Apr-16 Apr-16 May-16 May-16 Jun-16 Jun-16 Jul-16 Jul-16 Aug-16 Aug-16 GCC Equities Transportation Price Data (SAR) Current Price 42.65 Target Price

More information

Saudi Arabia Cement Sector

Saudi Arabia Cement Sector Arabia Sector Demand strong in Makkah and Madinah Provinces EQUITY RESEARCH April 9 The 3.38mt of cement/clinker sales achieved in KSA, for Mar-9, is the highest ever monthly sales reported in the country.

More information

KSA Cement Sector. Domestic clinker sales aiding numbers. Cement Monthly. Oct-08. Aug-08. Sep-08. Dec-08. Jan-09. Nov-08. Feb-09

KSA Cement Sector. Domestic clinker sales aiding numbers. Cement Monthly. Oct-08. Aug-08. Sep-08. Dec-08. Jan-09. Nov-08. Feb-09 JUNE 21 KSA Sector Domestic clinker sales aiding numbers Sales of cement in KSA remained weak, up only 11.8% YoY, the second lowest growth figure in 16 months. However, due to increased sales of clinker

More information

Yamama Cement Company

Yamama Cement Company Update Report- Transfer of Coverage Buy Year End Target Price SAR 62 120 110 100 90 80 70 May er 19, 27, 2014 2015 Expected Total Return Price as on May-26, 2015 49.07 Upside to Target Price 26.8% Expected

More information

Qassim Cement Company. Results Update 4 th Quarter 2011 MARCH Research Division Company Reports

Qassim Cement Company. Results Update 4 th Quarter 2011 MARCH Research Division Company Reports Qassim Cement Company Results Update 4 th Quarter 2011 Research Division Company Reports Please read Disclaimer on the back All rights reserved, AlJAZIRA CAPITAL RESEARCH DIVISION Head of Research Abdullah

More information

Yamama Saudi Cement Company. Results Update 4 th Quarter 2011 MARCH Research Division Company Reports

Yamama Saudi Cement Company. Results Update 4 th Quarter 2011 MARCH Research Division Company Reports Yamama Saudi Cement Company Results Update 4 th Quarter 2011 Research Division Company Reports Please read Disclaimer on the back All rights reserved, AlJAZIRA CAPITAL RESEARCH DIVISION Head of Research

More information

Saudi Company for Hardware (SACO) CMP: SAR 72, Target Price: SAR 62

Saudi Company for Hardware (SACO) CMP: SAR 72, Target Price: SAR 62 Saudi Company for Hardware (SACO) CMP: SAR 72, Target Price: SAR 62 Raneem Seroor +973-17515000 (extn - 5096) rseroor@sicobank.com GCC Equities Consumer Goods Company Update 20 December 2018 Time to book

More information

Qatar National Bank (QNB)

Qatar National Bank (QNB) Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Global Research Investment Update Equity Qatar Banking Sector 15 February, 2016 (QNB) Market Data Bloomberg Code:

More information

Samba Financial Group (SAMBA)

Samba Financial Group (SAMBA) Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Global Research Investment Update Equity Saudi Arabia Banking Sector 24 August, 2016 Samba Financial Group (SAMBA)

More information

Fawaz Abdulaziz al Hokair & Co. Results Update 1st Quarter 2012/13 SEPTEMBER Research Division Company Reports

Fawaz Abdulaziz al Hokair & Co. Results Update 1st Quarter 2012/13 SEPTEMBER Research Division Company Reports Fawaz Abdulaziz al Hokair & Co. Results Update 1st Quarter /13 Research Division Company Reports Please read Disclaimer on the back All rights reserved, AlJAZIRA CAPITAL RESEARCH DIVISION AGM - Head of

More information

ZAIN KSA. Promising turnaround story OVERWEIGHT UPSIDE +16.3%

ZAIN KSA. Promising turnaround story OVERWEIGHT UPSIDE +16.3% TELECOM OVERWEIGHT UPSIDE +16.3 CURRENT PRICE SAR9.8 TARGET PRICE SAR11.4 RATING CHANGE Promising turnaround story We upgrade Zain to overweight with a TP of SAR11.4. We believe Zain s turnaround story

More information

KWG. Seeking balance between scale and profitability. March 27, 2018 Equity Research. Stock code: 1813.HK Rating: HOLD Price target (HK$) 12.

KWG. Seeking balance between scale and profitability. March 27, 2018 Equity Research. Stock code: 1813.HK Rating: HOLD Price target (HK$) 12. Equity Research Seeking balance between scale and profitability Downgrade to HOLD and revise down TP to HK$12.50: 2017 result missed our estimation; core net profit dropped by 19% YoY, expansion execution

More information

NATIONAL ALUMINIUM COMPANY LTD RESEARCH

NATIONAL ALUMINIUM COMPANY LTD RESEARCH RESULTS REVIEW Share Data Market Cap Rs. 234.4 bn Price Rs. 363.80 BSE Sensex 16,886.43 Reuters Bloomberg Avg. Volume (52 Week) NALU.BO NACL IN 0.1 mn 52-Week High/Low Rs. 425/108.35 Shares Outstanding

More information

Almarai Steady performance

Almarai Steady performance RSI10 ALMARAI AB: Saudi Arabia Rating Target price Current price NEUTRAL SAR55.05 (-4.59% upside) SAR57.66 Key themes & implications Almarai reported a positive top-line in Q1 2016, showing resilience

More information

Zain KSA bogged down by high debt

Zain KSA bogged down by high debt Vol th RSI10 Zain KSA ZAINKSA AB: Saudi Arabia US$2.464bn 48.3% US$16.50mn Market cap Free float Avg. daily volume Target price 7.30 12.31% over current Consensus price 7.62 17.2% over current Current

More information

Mezzan Holding Company KSCC (Mezzan)

Mezzan Holding Company KSCC (Mezzan) Jun-15 Jul-15 Aug-15 Sep-15 Global Research Investment Update Equity Kuwait Food Sector 20 September, 2015 Mezzan Holding Company KSCC (Mezzan) Market Data Bloomberg Code: MEZZAN KK Reuters Code: MEZZ.KW

More information

Yanbu Cement Company. Limited Growth due to Pricing Pressure. Buy 12-Month Target Price SAR 65. Transfer of Coverage

Yanbu Cement Company. Limited Growth due to Pricing Pressure. Buy 12-Month Target Price SAR 65. Transfer of Coverage Buy 12-Month Target Price SAR 65 130 120 110 100 December 14, 2015 90 80 70 60 Expected Total Return Price as on Dec-13, 2015 SAR 43.40 Upside to Target Price 49.8% Expected Dividend Yield 10,% Expected

More information

Southern Province Cement Company

Southern Province Cement Company Southern Province Cement Company Update Report- Transfer of Coverage Buy Year End Target Price SAR 115 120 110 100 June er 19, 03, 2014 2015 Expected Total Return Price as on Jun-02, 2015 100.14 90 80

More information

Al Rajhi Banking & Investment Corp. (RJHI)

Al Rajhi Banking & Investment Corp. (RJHI) Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 Global Research Result Update Equity - Saudi Arabia Banking Sector 30 March, 2011 Market Data Bloomberg Code: RJHI AB Reuters Code: 1120.SE CMP (29 March

More information

Saudi Real Estate Co (Akaria)

Saudi Real Estate Co (Akaria) Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Global Research Investment Update Equity Saudi Arabia Real Estate Sector 29 October 2015 Saudi Real Estate Co (Akaria) Market Data Bloomberg Code: SRECO

More information

NATIONAL INDUSTRIALIZATION CO. (TASNEE)

NATIONAL INDUSTRIALIZATION CO. (TASNEE) ENTITY OF AUDI SARADAR GROUP CURRENT PRICE SAR 24.8 FAIR VALUE SAR 33.2 RATING BUY HIGHLIGHTS Stock Data Ticker NIC AB Bloomberg Median TP (SAR) 41.3 Market Cap (SAR mn) 16,589 Market Cap (USD mn) 4,424

More information

KSA Banks and Macro Chartbook

KSA Banks and Macro Chartbook KSA Banks and Macro Chartbook August 2016 Aqib Elahi Mehboob amehboob@fransicapital.com.sa +966 (11) 2826840 Issued: 30th August 2016 Dashboard Macro data over last few months indicates an uptick in caution

More information

GCC EQUITY REPORT NEUTRAL RESEARCH. Almarai Company (2280.SE) Quarterly Update. CMP SAR Target SAR Potential Upside 8.

GCC EQUITY REPORT NEUTRAL RESEARCH. Almarai Company (2280.SE) Quarterly Update. CMP SAR Target SAR Potential Upside 8. l RESEARCH GCC EQUITY REPORT Almarai Company (2280.SE) NEUTRAL CMP SAR 106.50 Target SAR 115.00 Potential Upside 8.0% MSCI GCC Index 425.24 Tadawul All Share Index 6,697.80 Key Stock Data Sector Dairy

More information

Saudi Ceramic Expansion plan key growth driver

Saudi Ceramic Expansion plan key growth driver RSI10 Construction and Materials Industrial SCERCO AB: Saudi Arabia Rating NEUTRAL Target price SAR116. 0 (4.5% upside) Current SAR111.3 price Key themes & implications Company is one of the leading ceramic

More information

ABB LTD (INDIA) RESEARCH

ABB LTD (INDIA) RESEARCH RESULTS REVIEW Share Data Market Cap Rs. 168.6 bn Price Rs. 795.80 BSE Sensex 16,741.30 Reuters Bloomberg Avg. Volume (52 Week) ABB.BO ABB IN 0.11 mn 52-Week High/Low Rs. 856.95 / 344 Shares Outstanding

More information

Mobily high growth phase continues

Mobily high growth phase continues Vol mn RSI10 Etihad Etisalat Company EEC AB: Saudi Arabia US$11.15bn 55.3% US$10.10mn Market cap Free float Avg. daily volume Target price 70.03 17.2% over current Consensus price 71.21 19.2% over current

More information

AMBUJA CEMENTS LIMITED RESEARCH

AMBUJA CEMENTS LIMITED RESEARCH EQUITY February 27, 2009 RESULTS REVIEW Share Data Market Cap Rs. 96.6 bn Price Rs. 63.45 BSE Sensex 8,891.61 Reuters ABUJ.BO Bloomberg ACEM IN Avg. Volume (52 Week) 0.4 mn 52-Week High/Low Rs. 128.5/

More information

National Industrialization Co. Diversified Operations Industrial NIC AB: Saudi Arabia 25 May 2014

National Industrialization Co. Diversified Operations Industrial NIC AB: Saudi Arabia 25 May 2014 RSI10 National Industrialization Co. NIC AB: Saudi Arabia 25 May 2014 Rating Target price Current price OVERWEIGHT SAR37.30 (18.7% upside) SAR31.40 Key themes & implications Sluggish petrochemical prices

More information

TOFAS. Company Update. Still offers potential value BUY. Rating. 19 February 2019

TOFAS. Company Update. Still offers potential value BUY. Rating. 19 February 2019 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Company Update TOFAS Still offers potential value Tofas has been a laggard in the last one-year period, due to weaker

More information

Silicon Works (108320)

Silicon Works (108320) Company Note June 8, 2018 12M rating BUY (Maintain) OLED growth starts with Silicon Works 12M TP W56,000 Up/downside +38% from W56,000 2Q18 OP to surge 165% YoY to W8.4bn Despite disappointing 1Q18 results,

More information

CR Lands. Winner of next 5 years, BUY. March 21, 2018 Equity Research. Stock code: 1109.HK Rating: BUY Price target (HK$) 34.74

CR Lands. Winner of next 5 years, BUY. March 21, 2018 Equity Research. Stock code: 1109.HK Rating: BUY Price target (HK$) 34.74 Equity Research Winner of next 5 years, BUY 2017 result: slow growth, but high profitability Revenue slightly improved by 8.5% YoY to HKD 118.5 bn. Thanks to GPM growing by 6.5 pts to 40%, gross profit

More information

BHARAT FORGE LIMITED RESEARCH

BHARAT FORGE LIMITED RESEARCH EQUITY September 05, 2008 RESULTS REVIEW Share Data Market Cap Rs. 56 bn Price Rs. 250.45 BSE Sensex 14,483.83 Reuters Bloomberg Avg. Volume (52 Week) BFRG.BO BHFC IN 0.1 mn 52-Week High/Low Rs. 389.75/215.05

More information

Luk Fook (590 HK) Hold (downgraded) Target price: HK$ HFY18 results beat, but downgrade from Accumulate to Hold on rich valuation

Luk Fook (590 HK) Hold (downgraded) Target price: HK$ HFY18 results beat, but downgrade from Accumulate to Hold on rich valuation Equity Research Consumer Discretionary Luk Fook (590 HK) Hold (downgraded) Target price: HK$34.80 Albert Yip, CFA SFC CE No. ADT599 albertyip@gfgroup.com.hk +852 3719 1010 GF Securities (Hong Kong) Brokerage

More information

Petro Rabigh Shutdown marred Q2 results

Petro Rabigh Shutdown marred Q2 results PETROR AB: Saudi Arabia US$5.07bn 17.4% US$11.19mn Market cap Free float Avg. daily volume RSI10 Vol th Target price n/a n/a Consensus price 32.18 48.3% over current Current price 21.70 as at 17/8/2011

More information

SABIC Overall strong performance

SABIC Overall strong performance SABIC AB: Saudi Arabia US$80.80bn 22.6% US$124.7mn Market cap Free float Avg. daily volume RSI10 Vol th Target price 126.0 24.75% over current Consensus price 125.6 24.4% over current Current price 101.0

More information

Anta Sports (2020 HK)

Anta Sports (2020 HK) Equity Research Consumer Discretionary Anta Sports (2020 HK) Buy (maintained) Target price: HK$18.50 Strong FY14 results; order book momentum maintained FY14 results above expectation Net profit jumped

More information

Saudi Steel Pipes Co

Saudi Steel Pipes Co CONSTURCTION 02 March 2010 INITIATION OF COVERAGE Saudi Steel Pipes Co Overweight Unrecognized Growth Story Price (SR) 33.2 12M target price (SR) 40.5 Potential upside (%) 22 Stock details 52-week range

More information

Yansab Better than expected results

Yansab Better than expected results YANSAB AB: Saudi Arabia US$6.91bn 39.8% US$23.37mn Market cap Free float Avg. daily volume RSI10 Vol th Target price n/a n/a Consensus price 56.00 21.5% over current Current price 46.10 as at 9/2/2011

More information

Ahluwalia Contracts (India)

Ahluwalia Contracts (India) May-14 Jul-14 Aug-14 Sep-14 Oct-14 Dec-14 Jan-15 Feb-15 Apr-15 May-15 India Research Infrastructure May 22, 215 QUARTERLY REVIEW Bloomberg: AHLU IN Reuters: AHLU.BO BUY Better performance ahead ACIL posted

More information

Sipchem Petrochemicals Industrial SIPCHEM AB: Saudi Arabia 07 August 2014

Sipchem Petrochemicals Industrial SIPCHEM AB: Saudi Arabia 07 August 2014 RSI10 Sipchem SIPCHEM AB: Saudi Arabia Rating Target price Current price NEUTRAL SAR40.98 (7.6% upside) SAR38.10 Sector rating Company risk rating Key themes & implications Outperform Low Sipchem recently

More information

SAFARICOM LTD EARNINGS UPDATE MAY 2016

SAFARICOM LTD EARNINGS UPDATE MAY 2016 SAFARICOM LTD EARNINGS UPDATE MAY 2016 A I B C A P I T A L L T D We maintain our target estimates and only adjust for time value of money and debt on the valuation. We also factor in current numbers and

More information

Our thesis considers the following:

Our thesis considers the following: Quarterly Report OMA Market Underperformer 2016 Price Target P$108.8 Price 114.23 12M Price Range 77.19 / 115.63 Shares Outstanding (Mill) 392.2 Market Cap (Mill) 44,796 Float 46% Net Debt (Mill) 2,782

More information

MRF BUY. Performance Highlights. CMP `9,407 Target Price `11,343. Company Update Automobile. Key financials

MRF BUY. Performance Highlights. CMP `9,407 Target Price `11,343. Company Update Automobile. Key financials Company Update Automobile February 22, 212 MRF Performance Highlights Y/E Sept. (` cr) 1QSY12 1QSY11 % chg (yoy) 4QSY11 % chg (qoq) Net sales 2,875 2,167 32.7 2,62 9.8 EBITDA 258 243 5.9 181 42.6 EBITDA

More information

2Q16 Highlights: 12M FWD EV/EBITDA 12M PRICE PERFORMANCE VS. IPC P/E

2Q16 Highlights: 12M FWD EV/EBITDA 12M PRICE PERFORMANCE VS. IPC P/E GISSA Market Outperformer 12M FWD Price Target P$45.0 Price 31.4 12M Price Range 29.5/ 33.09 Shares Outstanding 356 Market Cap (Mill) 11,169 Float 19.5% Net Debt (Mill) 46 EV (Mill) 11,164 Dividend Yield

More information

Figure 1 SAFCO Q1 results Q Q Q (SAR mn) Operating profit % 375.6% 347. Operating margin 47% 8% 30% 40%

Figure 1 SAFCO Q1 results Q Q Q (SAR mn) Operating profit % 375.6% 347. Operating margin 47% 8% 30% 40% Vol mn RSI10 SAFCO Petrochemicals Industrial SAFCO AB: Saudi Arabia US$7.22bn 40% US$5.60mn Market cap Free float Avg. daily volume Target price 62.00-2.6% over current Current price 63.70 as at 8/5/2018

More information

GFAMSA Retail. Quarterly Report July 29, GFAMSA Market Performer 12M FWD Price Target P$8.6

GFAMSA Retail. Quarterly Report July 29, GFAMSA Market Performer 12M FWD Price Target P$8.6 Quarterly Report GFAMSA Market Performer 12M FWD Price Target P$8.6 Price 7.8 12M Price Range 6.77 / 15.34 Shares Outstanding (Mill) 562 Market Cap (Mill) 4,383 Float 36% Net Debt (Mill) 27,728 EV (Mill)

More information

Saudi Arabia BUY. Result Update. Saudi International Petrochemical Company (SIPCHEM) CMP: SR18.2 (as on May 03, 2009) Highlights

Saudi Arabia BUY. Result Update. Saudi International Petrochemical Company (SIPCHEM) CMP: SR18.2 (as on May 03, 2009) Highlights Result Update Saudi Arabia (SIPCHEM) Tickers: SIPCHEM AB (Bloomberg) 2310.SE (Reuters) Listing: Saudi Stock Exchange (Tadawul) CMP: SR18.2 (as on May 03, 2009) May, 2009 BUY Key Data CMP# (SR) 18.2 EPS*

More information

SIEMENS INDIA LIMITED RESEARCH

SIEMENS INDIA LIMITED RESEARCH RESULTS REVIEW Siemens India Limited Hold Share Data Market Cap Rs. 196.1 bn Price Rs. 581.6 BSE Sensex 14,961.07 Reuters Bloomberg Avg. Volume (52 Week) SIEM.BO SIEM IN 0.2 mn 52-Week High/Low Rs. 1,142.5

More information

Telkom (TLKM IJ) HOLD (from Buy) Recovery mostly priced-in. Equity Indonesia Telecommunication. Company Update. 28 November 2018

Telkom (TLKM IJ) HOLD (from Buy) Recovery mostly priced-in. Equity Indonesia Telecommunication. Company Update. 28 November 2018 Equity Indonesia Telecommunication Telkom (TLKM IJ) HOLD (from Buy) Stock Data Target price (Rp) Prior TP (Rp) Shareprice (Rp) Rp4, Rp4,1 Rp3,72 Upside/downside (%) +7.5 Sharesoutstanding (m) 99,62 Marketcap.

More information

Zain KSA still risky to invest

Zain KSA still risky to invest Vol mn RSI10 Zain KSA ZAINKSA AB: Saudi Arabia US$2.76bn 48.3% US$27.07mn Market cap Free float Avg. daily volume Target price 6.00-18.9% over current Consensus price 5.81-21.5% over current Current price

More information

MARUTI SUZUKI INDIA LTD RESEARCH

MARUTI SUZUKI INDIA LTD RESEARCH EQUITY November 17, 2008 RESULTS REVIEW Maruti Suzuki India Limited Hold Share Data Market Cap Rs. 158.8 bn Price Rs. 549.80 BSE Sensex 9,291.01 Reuters Bloomberg Avg. Volume (52 Week) MRTI.BO MSIL IN

More information

Recommendation HOLD Results in line with our expectations CMP (15/10/2010) Rs Target Rs Sector

Recommendation HOLD Results in line with our expectations CMP (15/10/2010) Rs Target Rs Sector Recommendation HOLD Results in line with our expectations CMP (15/10/2010) Rs. 3212 Target Rs. 3208 Sector IT & Software BSE Code NSE Code Bloomberg Code Market Cap (Rs. cr) Free Float (%) 52- wk HI/Lo

More information

Titas Gas Transmission and Distribution Company Limited Fair Value Estimate (Dec 14) : BDT 111 per share Sector : Fuel and Power; Rating: OUTPERFORM

Titas Gas Transmission and Distribution Company Limited Fair Value Estimate (Dec 14) : BDT 111 per share Sector : Fuel and Power; Rating: OUTPERFORM Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Sep-12 Sep-12 Nov-12 Dec-12 Jan-13 Jan-13 Feb-13 Apr-13 Apr-13 May-13 Jun-13 Jul-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Price, BDT Turnover,

More information

CIDMEGA Services. Outperformer 2 P$51.0. Quarterly Report October 25, CIDMEGA Market Outperformer 12m FWD Price Target P$51

CIDMEGA Services. Outperformer 2 P$51.0. Quarterly Report October 25, CIDMEGA Market Outperformer 12m FWD Price Target P$51 Quarterly Report October 25, 2016 CIDMEGA Market Outperformer 12m FWD Price Target P$51 Price 44.0 12M Price Range 37.5 / 50 Shares Outstanding 68 Market Cap (Mill) 2,976 Float 27% Net Debt (Mill) 1,823

More information

Margins(%) EBITDA 30.0% 26.3% 25.4% NPM 26.5% 12.5% 18.1%

Margins(%) EBITDA 30.0% 26.3% 25.4% NPM 26.5% 12.5% 18.1% RESULTS REVIEW Share Data Market Cap Rs. 1,460.7 bn Price Rs. 177.2 BSE Sensex 15,049.86 Reuters NTPC.BO Bloomberg NATP IN Avg. Volume (52 Week) 2.6 mn 52-Week High/Low Rs. 291 / 148.75 Shares Outstanding

More information

GCC EQUITY REPORT OVERWEIGHT RESEARCH. Dar Al-Arkan Real Estate Development Co. (4300.SE) Quarterly Result Update

GCC EQUITY REPORT OVERWEIGHT RESEARCH. Dar Al-Arkan Real Estate Development Co. (4300.SE) Quarterly Result Update RESEARCH GCC EQUITY REPORT Dar Al-Arkan Real Estate Development Co. (4300.SE) OVERWEIGHT CMP SAR 11.45 Target SAR 14.21 Upside 24.1% MSCI GCC Index 409.98 Tadawul All Share Index 6,175.03 Key Stock Data

More information

Ramayana Lestari (RALS IJ)

Ramayana Lestari (RALS IJ) Ramayana Lestari (RALS IJ) HOLD (Unchanged) 29 March 2018 Results Note Equity Indonesia Retail Stock Data Target price (Rp) Prior TP (Rp) Shareprice (Rp) Rp1,185 Rp1,030 Rp1,280 Upside/downside (%) (7.4)

More information

N/A. FY17 net income up 146% to Php1.1Bil on strength of core businesses. MacroAsia Corporation TUE 03 APR 2018

N/A. FY17 net income up 146% to Php1.1Bil on strength of core businesses. MacroAsia Corporation TUE 03 APR 2018 MacroAsia Corporation FY17 net income up 146% to Php1.1Bil on strength of core businesses Benefiting from strength of core businesses. MAC s FY17 net income grew by 146% to Php1.1Bil. This was driven by

More information

UNCERTAINTY SURROUNDS THE SECTOR

UNCERTAINTY SURROUNDS THE SECTOR KSA TELECOM SECTOR UNCERTAINTY SURROUNDS THE SECTOR We remain Overweight on STC and Neutral on Zain, while downgrading Mobily to Neutral. We are cautious on the sector due to 1) uncertainty on Mobily s

More information

Impact Analysis EXPAT FEES AND CONSUMPTION

Impact Analysis EXPAT FEES AND CONSUMPTION Impact Analysis EXPAT FEES AND CONSUMPTION 26 February 2017 Bird s Eye View Vol. VII Asim Bukhtiar, CFA abukhtiar@fransicapital.com.sa +966 11 282 6844 Abdullah AlRayes aalrayes@fransicapital.com.sa +966

More information

HOLD. Deleveraging story playing out RAMCO CEMENTS. Target Price: Rs 503. Q4 performance

HOLD. Deleveraging story playing out RAMCO CEMENTS. Target Price: Rs 503. Q4 performance RAMCO S HOLD Target Price: Rs 503 Deleveraging story playing out Ramco Cements total debt reduced by a massive Rs 5 bn to Rs 22 bn in FY16. The company generated total EBITDA of Rs 11.5 bn in FY16 and

More information

Key estimate revision. Financial summary. Year

Key estimate revision. Financial summary. Year : price: EPS: How does our one year outlook change? We retain our positive outlook on WIL and believe that revival in MHCV industry, increasing content per vehicle and opportunity in exports would drive

More information

Adani Ports & SEZ Rating: Target price: EPS:

Adani Ports & SEZ Rating: Target price: EPS: Adani Ports & SEZ : price: EPS: Volume traction continues in a seasonally good quarter; maintain Adani Ports & SEZ reported a good quarter with total operating revenues (standalone) of Rs. 8.02bn and PAT

More information

Samba Financial Group

Samba Financial Group Buy 12-Month Target Price SAR 31.00 November 10, 2015 Expected Total Return Price as on Nov-09, 2015 SAR 22.17 Upside to Target Price 39.8% Expected Dividend Yield 5.4% Expected Total Return 45.2% Market

More information

Buy Dec 2017 TP (IDR) 57,600 Consensus Price (IDR) 45,545 TP to Consensus Price +26.5% vs. Last Price +20.7%

Buy Dec 2017 TP (IDR) 57,600 Consensus Price (IDR) 45,545 TP to Consensus Price +26.5% vs. Last Price +20.7% Unilever Indonesia, Tbk (UNVR) Will Ads Cost Dip? Better Sales Growth UNVR booked higher sales growth since the end of 2015. The sales growth increased from 5.7% in 2015 into 9.8% in 2016, and is estimated

More information

Luk Fook (590 HK) Hold Target price: HK$ Downgrade to Hold on more challenging HK & Macau market outlook. Equity Research Consumer Discretionary

Luk Fook (590 HK) Hold Target price: HK$ Downgrade to Hold on more challenging HK & Macau market outlook. Equity Research Consumer Discretionary Equity Research Consumer Discretionary Luk Fook (590 HK) Hold Target price: HK$24.60 Albert Yip, CFA SFC CE No. ADT599 albertyip@gfgroup.com.hk +852 3719 1010 GF Securities (Hong Kong) Brokerage Limited

More information

Dar Al-Arkan Company 1Q 2011 Results Update. Research Division Company Reports May Please read Disclaimer on the back

Dar Al-Arkan Company 1Q 2011 Results Update. Research Division Company Reports May Please read Disclaimer on the back Dar Al-Arkan Company 1Q 2011 Results Update Research Division Company Reports May 2011 Please read Disclaimer on the back Page 1 of 34 All rights reserved, AlJAZIRA March CAPITAL 2010 Research Division

More information

HDFC Bank. BUY CMP (Rs.) 1,807 Target (Rs.) 2,000 Potential Upside 11%

HDFC Bank. BUY CMP (Rs.) 1,807 Target (Rs.) 2,000 Potential Upside 11% Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17. Volume No.. I Issue No. 147 HDFC Bank Oct. 31, 2017 BSE Code: 500180 NSE Code: HDFCBANK Reuters Code: HDBK.NS

More information

YG Entertainment (122870)

YG Entertainment (122870) Company Note February 23, 2017 YG Entertainment (122870) 12M rating Value Stock Data Hold (Downgrade) Growth Turn around Issue KOSPI (Feb 22, pt) 2,107 Stock price (Feb 22, KRW) 27,850 Market cap (USD

More information

NTPC LIMITED RESEARCH

NTPC LIMITED RESEARCH RESULTS REVIEW Share Data Market Cap Rs. 1,457.0 bn Price Rs. 176.70 BSE Sensex 9,201.85 Reuters NTPC.BO Bloomberg NATP IN Avg. Volume (52 Week) 2.06 mn 52-Week High/Low Rs. 227 / 113 Shares Outstanding

More information

GAIL India NEUTRAL. Performance Highlights CMP. `363 Target Price - 2QFY2013 Result Update Oil & Gas. Investment Period -

GAIL India NEUTRAL. Performance Highlights CMP. `363 Target Price - 2QFY2013 Result Update Oil & Gas. Investment Period - 2QFY2013 Result Update Oil & Gas October 26, 2012 GAIL India Performance Highlights Quarterly highlights (Standalone) Y/E March (` cr) 2QFY2013 2QFY2012 % chg (yoy) 1QFY2013 % chg (qoq) Net sales 11,361

More information

Medco Energy (MEDC IJ)

Medco Energy (MEDC IJ) Medco Energy (MEDC IJ) BUY (Unchanged) 04 May 2018 Results Note Equity Indonesia Mining 280 260 240 220 180 160 140 120 80 Stock Data Target price Prior TP Shareprice Rp1,370 Rp1,370 Rp1,170 Upside/downside

More information

National Bank of Oman

National Bank of Oman Global Research Oman Investment Update Market Data Bloomberg Code: NBOB OM Reuters Code: NBO.OM CMP (6 November 2010): RO0.361 O/S (mn): 1,081 Mkt Cap (ROmn): 390.241 Mkt Cap (US$mn): 1,014.667 P/E 2011e

More information

BIMBO Food. Quarterly Report October 27, BIMBO Market Underperformer 2016 Price Target P$41.9

BIMBO Food. Quarterly Report October 27, BIMBO Market Underperformer 2016 Price Target P$41.9 Quarterly Report BIMBO Market Underperformer 2016 Price Target P$41.9 Price 51.51 12M Price Range 45.02 / 59.86 Shares Outstanding (Mill) 4,703.2 Market Cap (Mill) 242,262 Float 24.0% Net Debt (Mill) 72,562

More information

Zain KSA restructuring ensures fresh start

Zain KSA restructuring ensures fresh start Vol mn RSI10 Zain KSA ZAINKSA AB: Saudi Arabia US$5.41bn 48.3% US$142.1mn Market cap Free float Avg. daily volume Target price 15.90 9.68% over current Consensus price 16.10 11.0% over current Current

More information

National Industrialization Company (Tasnee) Flash Note. Quarterly results. Research Division Company Reports OCTOBER 2012

National Industrialization Company (Tasnee) Flash Note. Quarterly results. Research Division Company Reports OCTOBER 2012 OCTOBER 2012 National Industrialization Company (Tasnee) Flash Note. Quarterly results Research Division Company Reports Please read Disclaimer on the back All rights reserved, AlJAZIRA CAPITAL RESEARCH

More information

Goodyear India ACCUMULATE. Performance Highlights. CMP Target Price `326 `374. 1QCY2012 Result Update Tyres. Key financials

Goodyear India ACCUMULATE. Performance Highlights. CMP Target Price `326 `374. 1QCY2012 Result Update Tyres. Key financials 1QCY212 Result Update Tyres June 6, 212 Goodyear India Performance Highlights Y/E December (` cr) 1QCY212 1QCY211 % chg (yoy) 4QCY211 % chg (qoq) Net sales 331 336 (1.6) 395 (16.2) EBITDA 2 24 (18.6) 34

More information

Polish Banks. Upgrading ratings for CHF exposed banks. Sector update. Banks Poland

Polish Banks. Upgrading ratings for CHF exposed banks. Sector update. Banks Poland Banks Poland Polish Banks Sector update We change our assumption of CHF related sector loss to PLN 2bn from PLN 4bn previously. We upgrade all of the CHF exposed banks: PKO BP to Accumulate from Neutral,

More information

Anta Sports (2020 HK)

Anta Sports (2020 HK) Equity Research Consumer Discretionary Anta Sports (2020 HK) Hold (downgraded) Target price: HK$22.80 Albert Yip, CFA SFC CE No. ADT599 albertyip@gfgroup.com.hk +852 3719 1010 GF Securities (Hong Kong)

More information

RASSINI Automotive Industry

RASSINI Automotive Industry RASSINI Market Outperformer 12M FWD Price Target P$49.0 Price 43.31 12M Price Range 28.8 / 39.4 Shares Outstanding 320 Market Cap (Mill) 13,865 Float 30.0% Net Debt (Mill) 1,867 EV (Mill) 16,345 Dividend

More information

Quarterly results (YE Mar) 4QFY13 4QFY14 YoY(%) FY13 FY14 YoY(%)

Quarterly results (YE Mar) 4QFY13 4QFY14 YoY(%) FY13 FY14 YoY(%) India I Equities Metals & Mining Result Update Change in Estimates Target Reco 14 May 2014 Graphite India Cash generation accelerates; Buy Key takeaways Revenues driven by greater volumes. Graphite India

More information

VITRO Conglomerates. Quarterly Report July 29, VITRO Market Outperformer 12M FWD Price Target P$73.0

VITRO Conglomerates. Quarterly Report July 29, VITRO Market Outperformer 12M FWD Price Target P$73.0 Quarterly Report VITRO Market Outperformer 12M FWD Price Target P$73.0 Price 61.1 12M Price Range 36.3/ 66.7 Shares Outstanding (Mill) 483.6 Market Cap (Mill) 1,564 Float 20% Net Debt ( Mill) -424 EV Adj.

More information

Simplex Infrastructures

Simplex Infrastructures May-14 Jul-14 Aug-14 Sep-14 Nov-14 Dec-14 Jan-15 Mar-15 Apr-15 May-15 India Research Infrastructure May 27, 2015 QUARTERLY REVIEW Bloomberg: SINF IN Reuters: SINF.BO HOLD Working capital ease to improve

More information

VITRO Conglomerates. Company Note March 1, VITRO completes acquisition of the OEM Business from PGW

VITRO Conglomerates. Company Note March 1, VITRO completes acquisition of the OEM Business from PGW Company Note VITRO Market Outperformer 2017 Price Target P$88.5 Price 70.1 12M Price Range 36.3/ 66.7 Shares Outstanding (Mill) 483.1 Market Cap (Mill) 1,703 Float 20% Net Debt ( Mill) 273 EV Adj. (Mill)

More information

PHU NHUAN JEWELRY JSC

PHU NHUAN JEWELRY JSC PHU NHUAN JEWELRY JSC Ample Room For Market Share Expansion Equity Research I March 30, 2017 We reiterate BUY rating to PNJ with a revised 12M TP of VND 91,000 (previously VND 85,000) after adjusting earning

More information

Jul-1 5 Aug -15 Sep -15 Oct-1 5 Nov-15 Dec-15 Jan-16 Feb-16 Ma r-16 Apr-1 6 Ma y-16 Jun-16 Jarir Marketing Company Rating/PT Change Equities Consumer Discretionary Saudi Arabia Cutting estimates on lower-than-expected

More information

HSBC Bank Oman SAOG. TP : OMR / share Upside/ (Downside): 19.7% HSBC Bank Oman SAOG. Page 1 of 7

HSBC Bank Oman SAOG. TP : OMR / share Upside/ (Downside): 19.7% HSBC Bank Oman SAOG. Page 1 of 7 Recommendation Accumulate Bloomberg Ticker HBMO OM Current Market Price (OMR).117 52wk High / Low (OMR).13/. 12m Average Vol. () 386.2 Mkt. Cap. (USD/OMR Mn) 68/234 Shares Outstanding (mn) 2,.3 Free Float

More information

2014 E 2015 E 2016 E 2017 E

2014 E 2015 E 2016 E 2017 E Equity Research 4 December 2014 Interpump Group Hydraulics M&A may power growth Rating BUY Target price EUR13 Interpump is up 25% since the beginning of the year, bolstered by strong interim results and

More information

Strategy Payback Time. Increasing asset yields to boost NIMs. Investments sustainable at current levels

Strategy Payback Time. Increasing asset yields to boost NIMs. Investments sustainable at current levels Buy 12-Month Target Price SAR 38.00 November 26, 2015 Expected Total Return Price as on Nov-25, 2015 SAR 28.07 Upside to Target Price 35.3% Expected Dividend Yield 3.6% Expected Total Return 38.9% Market

More information

Anta Sports (2020 HK)

Anta Sports (2020 HK) Equity Research Consumer Discretionary Anta Sports (2020 HK) Buy (maintained) Target price: HK$18.50 Product mix improvement in 4Q15 order book 4Q15 order book kept at low-teen, better product mix Order

More information

KEI Industries BUY. Performance Update. Target Price. 3QFY2018 Result Update Cable. Historical share price chart. Key Financials

KEI Industries BUY. Performance Update. Target Price. 3QFY2018 Result Update Cable. Historical share price chart. Key Financials 3QFY2018 Result Update Cable January 25, 2018 KEI Industries Performance Update Y/E March (` cr) 3QFY18 3QFY17 % yoy 2QFY18 % qoq Net sales 889 715 24 749 19 EBITDA 84 77 10 76 11 EBITDA margin (%) 9.5

More information

Juhayna Food Industries

Juhayna Food Industries Flashnote MENA research Another disappointing quarter 1Q12 results disappoint despite sturdy top line growth, mainly on base effects Easing commodity prices and product price increases to help alleviate

More information

CEMEX Cement. Quarterly Report February 9, CEMEX remains on track to regain its investment grade.

CEMEX Cement. Quarterly Report February 9, CEMEX remains on track to regain its investment grade. Quarterly Report CEMEX Market Outperformer 2017 Price Target US$11.0 Price 8.9 12M Price Range 4.1/9.5 Shares Outstanding (Mill)* 1,545 Market Cap USD (Mill) 13,797 Float 78.6% Net Debt USD (Mill)** 12,516

More information

SAFCO Q3: Margin beat as Urea price increases

SAFCO Q3: Margin beat as Urea price increases Vol mn RSI10 Petrochemicals Industrial AB: Saudi Arabia US$9.01bn 40% US$8.28mn Market cap Free float Avg. daily volume Target price 85.00 +4.8% over current Current price 81.10 as at 30/10/2018 Underweight

More information

BUY. China Suntien Green Energy [0956.HK] January 25, 2016

BUY. China Suntien Green Energy [0956.HK] January 25, 2016 China Suntien Green Energy [0956.HK] Profit decline largely due to provision; Current valuation of 0.4x PBR already reflected significant impairment Suntien preannounced that its net profit in 2015 would

More information

BUY. Efforts on cost cutting paying off RAMCO CEMENTS. Target Price: Rs 435. Key highlights. Key drivers FY15 FY16E FY17E

BUY. Efforts on cost cutting paying off RAMCO CEMENTS. Target Price: Rs 435. Key highlights. Key drivers FY15 FY16E FY17E RAMCO S BUY Target Price: Rs 435 Efforts on cost cutting paying off Q2 EBITDA at Rs 2.8 bn (up 30% YoY) was ahead of our estimates due to lower-than-expected costs. Average costs (excluding freight) declined

More information

Maruti Suzuki (RHS) BUY. Operationally In Line; Reiterate Buy. Automobiles October 31, 2014 RESULT REVIEW. Outlook & Valuation.

Maruti Suzuki (RHS) BUY. Operationally In Line; Reiterate Buy. Automobiles October 31, 2014 RESULT REVIEW. Outlook & Valuation. Oct13 Dec13 Jan14 Feb14 Apr14 May14 Jun14 Aug14 Sep14 Oct14 India Research Automobiles RESULT REVIEW Bloomberg: MSIL IN Reuters: MRTI.BO BUY Operationally In Line; Reiterate Buy India s (MSIL) Revenue/EBIDTA/PAT

More information