Results Summary of Listed Companies in the Saudi Market

Transcription

1 Top 15 Companies Lowest Company P/BV D/Y (%)* Arabian Shield Insurance Co Al-Babtain Co Buruj Cooperative Insurance Co Saudi Arabian Insurance Co Gulf Union Insurance Co Saudi United Insurance Co Saudi Investment Bank Trade Union Cooperative Insurance Co Salama Cooperative Insurance Co Trade Union Cooperative Insurance Co Arab National Bank Alawwal Bank Riyad Bank Banque Saudi Fransi Altayyar Travel Group Top 15 Companies Highest D/Y Company D/Y(%)* Arabian Cement Co Aseer Trading Co N/M Zamil Industrial Investment Co Saudi Cement Co Yanbu Cement Co Al Yamamah Steel Industries Co Al Sagr Cooperative Insurance Co Arriyadh Development Co Qassim Cement Co Al-Babtain Co Riyad REIT Fund Saudi Airlines Catering Co Saudi Vitrified Clay Pipes Co Saudia Dairy and Foodstuff Co Saudi Chemical Co Arabian Shield Cooperative Insurance, Al-Babtain Power and Telecommunication Co., and Buruj Cooperative Insurance, posted the lowest (7.26x x) in the Saudi market for the trailing 12 months (), followed by Saudi Arabian Cooperative Insurance (8.62x). The average for the Saudi market on a basis stood at 19.21x. Arabian Cement Co. had the highest dividend yield (13.93%) in the Saudi market, as the company paid SAR 2.0 per share as an execptional dividend. The Materials sector dominated the market in terms of dividend yield, with 6 companies ranking among the top 15 companies.overall, the dividend yield in the Saudi market stood at 3.26% Lowest 15 Companies Lowest P/BV Company D/Y (%)* Dar Alarkan Real Estate Development Co Abdullah A. M. Al-Khodari Sons Co N/M -- Najran Cement Co N/M -- Saudi Ceramic Co N/M 4.07 Al Hassan Ghazi Ibrahim Shaker Co N/M -- AL MAATHER REIT MULKIA REIT Arabian Pipes Co Saudi Re for Reinsurance Co Saudi Arabian Amiantit Co N/M -- Aseer Trading Co N/M 8.54 Etihad Atheeb Telecommunication Co N/M -- Hail Cement Co Al Jouf Cement Co Saudi Advanced Industries Co Highest 15 Companies Accumulated Loss to Capital Company Bk Value L/C (%) Saudi Enaya Cooperative insurance Co % Saudi Indian Company % MetLife AIG ANB Insurance Co % Saudi Cable Co % Etihad Atheeb Telecommunication Co % Saudi Paper Manufacturing Co % Saudi Fisheries Co % Wafrah for Industry and Development Co % Mobile Telecommunications Co % Anaam International Holding Group % Middle East Specialized Cables Co % Allied Cooperative Insurance Group % Al-Ahlia Insurance Co % Saudi Arabian Amiantit Co % United Cooperative Assurance Co % L /C refers to accumulated losses to capital Dar Alarkan had the lowest P/BV (0.68x) in the Saudi market, followed by Abdullah Al-Khodari Sons Co. (0.71x). The P/BV for the Saudi market stood at 1.88x Saudi Enaya Cooperative Insurance Co., Saudi Indian Co., and Metlife lost 74.5%,57.5%, and 53.8% of capital, respectively. 1

2 Best 15 Companies Top price performers Company YTD % Saudi Industrial Export Co N/M Saudi Research and Marketing Group 63.3% Al Sorayai Trading and Industrial 58.5% 2.12 N/M United Electronics Co. 56.7% National Petrochemical Co. 51.9% Rabigh Refining and Petrochemical Co. 47.5% Alujain Corp. 46.2% Saudi Industrial Investment Group 41.9% AXA Cooperative Insurance Co. 34.1% Saudi Kayan Petrochemical Co. 33.6% Saudi Arabia Refineries Co United International Transportation Co. 32.2% Nama Chemicals Co. 31.6% 1.93 N/M National Medical Care Co. 31.6% Al-Rajhi Company 28.7% Worst 15 Companies Worst price performers Company YTD % Saudi Indian Company -45.7% 1.63 N/M Etihad Atheeb Co N/M Saudi Enaya insurance Co % 1.41 N/M The Company for Cooperative Insurance -25.2% 3.94 N/M Wafrah for Industry Co % 2.35 N/M Jabal Omar Development Co N/M Saudia Dairy and Foodstuff Co % United Wire Factories Co % Amana Cooperative Insurance Co % ALJAZIRA REIT -19.7% Yanbu Cement Co % SABB Takaful Co % 1.87 N/M MASHAAR REIT Southern Province Cement Co % Aljazira Takaful Taawuni Co Saudi Industrial Export has been the best performing stock since the beginning of 2018 (up 66. YTD), followed by Saudi Reseach and Marketing Group (up 63.3% YTD). The list indicates that just 15 companies have provided returns of 28. or more, since the start of 2018 Saudi Indian Company has been the worst performer (down 45.7% YTD), followed by Etihad Atheeb (down 42. YTD). The list indicates that 15 companies lost 17. or more of their price values since the start of the year. Top 15 Companies Weight to the market index Company % of TASI No. of total shares (mn) Al Rajhi Bank 13. 1, Saudi Basic Industries Corp. 9.2% 3, National Commercial Bank 5.8% 2, Jabal Omar Development Co. 3.6% N/M Samba Financial Group 3. 2, Saudi Telecom Co. 3. 2, Alinma Bank 2.9% 1, Saudi Arabian Mining Co. 2.8% 1, Riyad Bank 2.7% 3, Banque Saudi Fransi 2. 1, Savola Group 2.2% Jarir Marketing Co. 2.5% Saudi British Bank 1.9% 1, Saudi Electricity Co. 1.9% 4, Yanbu National Petrochemical Co. 1.8% Least 15 Companies Ratio of free to issued shares Company Issued Shares (mn) Free float (mn) F/I (%) Kingdom Holding Co Saudi Telecom Co % Saudi Electricity Company % National Petrochemical Co % Saudi Basic Industries Corp Rabigh Refining and Petrochemical % Almarai Co % Alawwal Bank % Saudi Ground Services Co % Al Hammadi Company % Taleem RIET Al Alamiya Cooperative Insurance Co MetLife AIG ANB Co % L Azurde For Jewelry Co Knowledge Economic City F/I refers to free to issued shares Al Rajhi Bank, at 13., has the highest weight of the Saudi market, followed by Saudi Basic Industries Corp (9.2%), and National Commercial Bank (5.8%). These three companies account for more than 28.5% of the market index. The most influential stocks in the Saudi market are from the Banking sector. Kingdom Holding Co. has the lowest ratio of free-to-issued shares, with just 5. of the shares issued being traded in the market. According to the data, 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 (%) Jarir Marketing Co % Saudi Airlines Catering Co. 6.1% % Abdullah Al Othaim Markets Co. 26.6% % United Electronics Co. 56.7% % Al-Rajhi Company for Cooperative Insurance 28.7% % Saudi United Cooperative Insurance Co. 1.1% % Mouwasat Medical Services Co % Zahrat Al Waha for Trading Co % % Salama Cooperative Insurance Co. 0.7% % Herfy Food Services Co % Arabian Shield Cooperative Insurance Co % Saudi Company for Hardware 2.3% % Buruj Cooperative Insurance Co % Saudia Dairy and Foodstuff Co % % Advanced Petrochemical Co. 11.7% % Company YTD % ROA (%) Jarir Marketing Co % Saudia Dairy and Foodstuff Co % % Herfy Food Services Co % Yanbu National Petrochemical Co. 21.9% % Qassim Cement Co % % Saudi Cement Co. 6.7% % Dallah Healthcare Co. 1.1% % United International Transportation Co. 32.2% % Zahrat Al Waha for Trading Co % % United Electronics Co. 56.5% % Saudi Telecom Co. 21.5% % Arriyadh Development Co % Al-Babtain Power and Telecommunication Co. -0.5% The National Company for Glass Industries -2.6% % Saudi Arabia Fertilizers Co. -2.5% % Jarir Marketing Co. has the highest return on equity (RoE) at 53.6% on a basis, followed by Saudi Airlines Catering Co. at 39.1%. The top 5 companies have RoE of over 25.. Jarir Marketing Co. and Saudi Dairy and Foodstuff registered the highest return on assets (RoA) in the Saudi market at 29.3% and 14.8% on a basis, followed by Herfy Food Services at 13.5%. The list indicates only 8 companies have RoA above 1 Total net profit for listed companies 40, % , % -16.5% 20. (SAR Mn) 20, % , Q2-2016/2017 Q3-2016/2017 Q4-2016/2017 Q1-2017/2018 Earnings (Prior Year ) Earnings (Current Year ) % (RHS) Source: Bloomberg, AlJazira Capital The overall net earnings of the companies listed on the TASI declined 16.5% to SAR 25.5bn in from SAR 30.6bn in. Banks and Materials accounted for 85.6% of total earnings. SABIC, NCB, and Saudi Telecom Company recorded the highest shares in earnings, accounting for 21.5%,11.7% in. 3

4 Sectors Performance Sector Change Sector profit to Total Energy % 1.7 Materials 8, , % 36.55% Capital Goods % -0.19% Commercial & Professional Svc % 0.4 Transportation % Consumer Durables & Apparel % Consumer Services % 0.58% Media % Retailing % 0.95% Food & Staples Retailing % 0.3 Food & Beverages % 0.9 Health Care Equipment & Svc % 1.43% Pharma, Biotech & Life Science % 0.22% Banks 11, , % Diversified Financials % 0.63% Insurance % 0.53% Telecommunication Services 2, , % Utilities 5, , % -4.61% Real Estate Mgmt & Dev't % 1.33% Total Saudi Market 30, , % 100. Source: Tadawul, Bloomberg, AlJazira Capital YTD Sector Performance YTD TASI Index Performance 6 53% % % 1 12% 1 17% 1 5% 6% 1% 3% 3% -1 1%- 3%- 5% %- Banks Capital Goods Comm & Prof Svc Consumer Svc Cons Dura & App 11.5% YTD Diversified Fin Energy Food & Beverages Food & Stapl Ret HC Equip & Svc Insurance Media Materials Phar, Bio & LS Retailing RE Mgmt & Dev Transportation Tel Svc Utilities hh The Saudi market s net profit decreased 16.5% to SAR 25.5bn in from SAR30.5bn in. hh The market s earnings per share () in stood at SAR hh Index heavyweights Banks and Materials contributed the most to total earnings (49.1% and 36.6%, respectively), while Utilities contributed the least. hh Energy sector was the best performer in the Saudi market, with a 182.8% increase in net profit at SAR mn in, compared with a net profit of SAR156.5mn in. hh In, 13 sectors witnessed decline, while 6 sectors registered increase in profit. 4

5 Energy Sector Change D/Y (%)* Saudi Arabia Refineries Rabigh Refining National Shipping % Aldrees % Total % Source: Tadawul, Bloomberg, AlJazira Capital * Trailing 12 months () % YTD Energy Sector YTD Energy Sector earnings of Saudi Arabia s Energy sector increased to SAR442.5mn in compared to SAR156.5mn in. The sector s stood at SAR 0.33 per share. hh Rabigh Refining was the best performer during the quarter, reporting a net profit of SAR296.0mn in compared to a loss of SAR240.0mn in %- National Shipping Co of Saudi Arabia/The 48% Rabigh Refining & Petrochemical Co Aldrees Petroleum and Transport Services 3 Saudi Arabia Refineries Co 5

6 Materials Sector Change D/Y (%)* Sahara Petrochemical % Yanbu National Petro % Saudi Basic Industries % Advanced Petrochemical % Alujain Corporation % National Petrochemical % National Industrialization % Saudi Industrial Investment Group % Saudi Arabia Fertilizers Saudi International Petrochemical % Saudi Kayan % Methanol Chemicals % N/M Nama Chemicals N/M Southern Province % Saudi Cement % Hail Cement % City Cement % Arabian Cement *** Al Jouf Cement % Tabuk Cement N/M Northern Region % Qassim Cement % Yanbu Cement % Yamamah Cement % Eastern Province Najran Cement N/M Umm Al-Qura Cement % Takween Advanced % N/M Middle East Paper % Basic Chemical Saudi Arabian Mining % United Wire Factories % Al Yamamah Steel ** % Saudi Steel Pipe National Gypsum N/M The National Glass FIPCO % Arabian Pipes MAADANIYAH N/M Zamil Industrial % Saudi Paper N/M Zahrat Al Waha % Total 8, , % % Source: Tadawul, Bloomberg, AlJazira Capital * Trailing 12 months (), **2Q Ending in March 2018 *** The company paid SAR 2.0 per share as an exceptional dividend % YTD Materials Sector Saudi Steel Pipe National Gypsum Saudi Paper Manufacturing Al Yamamah Steel Maadaniyah Middle East Paper Nama Chemicals Basic Chemical Industries Umm Al-Qura Zoujaj Arabian Pipes Takween Tabuk Cement ASLAK Chemanol Hail Cement Al Jouf Cement City Cement Najran Cement Zamil Industrial PETROCHEM Alujain Corp Northern Cement Eastern Cement Qassim Cement Southern Cement Arabian Cement Yamama Cement Yanbu Cement Materials Sector 8%- 2%- 18%- FIPCO 6%- SPICHEM Sahara Petrochemical Saudi Cement SIIG TASNEE APPC Kayan SAFCO YANSAB MAADEN SABIC 12.1% YTD 3%- - 7%- 7%- 3%- 1%- 13%- 1-6%- 3%- 13%- 16%- 1-6%- 18%- 1%- 5% 8% 6% 9% 7% 9% 11% 19% 21% 18% 18% 21% 26% 22% 8% 15% 3 42% 56% 45% 49% hh hh The net profit of Saudi Arabia s Materials sector increased 7.9% to SAR9.3bn in from SAR8.6bn in. Index heavyweight Saudi Basic Industries Corp recorded an increase of 5.2%. Saudi Arabia Fertilizers Company reported a decrease of 44.. The sector s stood at SAR0.78 per share. All cement companies in this sector registered a decline in profit. Northern Region Company s profit (down 89.8% ) declined the most, followed by Al Jouf Cement (down 74.8% ). 6

7 Capital Goods Sector Change D/Y (%)* Bawan Company % Astra Industrial Group % ALKHODARI % N/M Saudi Ceramic Co N/M Saudi Cable Company N/M Al-Ahsa Development N/M Saudi Arabian Amiantit % N/M Al-Babtain Saudi vitrified clay Pipes % Middle East Specialized Cables Saudi Industrial Export N/M Electric Industries Total % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () AL BABTAIN POWER SAUDI CERAMIC CO Saudi Arabian Amiantit ASTRA INDUSTRIAL -1.5% YTD Capital Goods Sector YTD Capital Goods Sector % % -2-6% -6% -1% % -3-2 Al-Ahsa Development Co MIDDLE EAST SPEC BAWAN CO SAUDI VITRIFIED SAUDI CABLE CO 65% SAUDI INDUS EXPO 8% ELECTRICAL INDUS -13% ABDULLAH A.M. AL earnings of Saudi Arabia s Capital Goods sector showed a loss of SAR49.6mn during compared to SAR32.3mn profit in. Saudi Vitrified Clay Pipes, showed the highest decline of 84.9% in earnings to SAR 1.8mn. 7

8 Commercial & Professional Svc Sector D/Y (%)* Saudi Printing and Packaging N/M Saudi Airlines Catering % Total % % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () % YTD Commercial & Professional Services Sector YTD Commercial & Professional Svc Sector Saudi Arabia s Commericial & Professional Services sector posted SAR 101.6mn for the, a decline of 3.8%. The sector s for the quarter stood at SAR 0.72 per share. 7% 6% 5% 3% 2% 1% -1% -2% 6% -1% Saudi Airlines Catering Saudi Printing and Packaging Co. Transportation Sector Change % D/Y (%)* Saudi Ground Services % Saudi Public Transport United International Transportation % Saudi Industrial Services % Batic Investments and Logistics % Total % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () 3.9% YTD January-18 February-18 March-18 April-18 Transport Sector YTD Transportation Sector The Transportation sector s net profit declined 37. to SAR146.5mn in from SAR232.5mn in. The sector s stood at SAR 0.30 per share. 2 19% Saudi Industrial Services showed a decrease of 97.3%, followed by Batic Investments and Logistics (57.5%) % SGS -11% SAPTCO BUDGET -12% Batic SISCO 8

9 Consumer Durables & Apparel Sector D/Y(%)* Al Sorayai Trading Group % N/M Saudi Industrial Dev N/M AlAbdullatif Industrial Co Lazurde Co % Fitaihi Holding Group % N/M Total % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () 5.6% YTD January-18 February-18 March-18 April-18 Consumer Durables & Apparel Sector YTD Consumer Durables & Apparel Sector Saudi Arabia s Consumer Durables & Apparel sector s net profit decreased by 60. to SAR 19.4mn in compared to a net profit of SAR 48.4mn in. The sector s stood at SAR 0.08 per share % -1% 53% -9% the decline in the sector s earnings was mainly impacted by Fitaihi Holding Group which registered a profit of SAR 1.5mn compared to SAR 11.9mn during. SIDC ALABDULLATIF FITAIHI HOLDING ALSORAYAI GROUP L'AZURDE CO FOR Consumer Services Sector D/Y(%)* Dur Hospitality Co % Al-Tayyar Travel Group % Tourism Enterprise Co % N/M Herfy Food Services Alkhaleej Co % Abdulmohsen Alhokair Total % % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () % YTD Consumer Services Sector YTD Consumer Services Sector The net earnings of Saudi Arabia s Consumer Services sector declined 35.7% to 2 18% SAR146.6mn in from SAR 228.0mn in. The sector s was SAR 0.31 per share. The sector s earnings were impacted by Al-Tayyar Travel Group s net profit, which fell 37.2% to SAR86.0mn during compared to SAR137mn in. Abulmohsen Alhokair posted a loss of SAR7.5mn during compared to profit of SAR8.0mn in % AL TAYYAR TRAVEL HERFY FOOD SERVI ABDUL MOHSEN AL DUR HOSPITALITY 1%- 8%- AL KHALEEJ TRAIN SHAMS 9

10 Media Sector D/Y (%)* Saudi Research Total Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () % YTD Media Sector Saudi Arabia s Media sector recorded a net profit of SAR11.7mn in, as compared to a profit of SAR18.0mn in. The sector s for the quarter stood at SAR 0.15 per share. YTD Media Sector 8 61% % SAUDI RESEARCH TIHAMA Retailing Sector D/Y (%)* Shaker Co N/M Extra % Saudi Co. for Hardware % Saudi Automotive Jarir Marketing Co Total % % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () % YTD Retailing Sector YTD Retailing Sector Saudi Arabia s Retailing sector recorded a net profit of SAR242.6mn in. The sector s stood at SAR 0.50 per share. Jarir Marketing Company net profit was down 1. to SAR 219.1mn in. In addition, United Electronic Co. (Extra) net profit increased 66.2% to SAR21.6mn compared to SAR13.0mn in JARIR MARKETING - Hokair 3% Saudi Company for Hardware 51% United Electronics - 7%- SASCO Shaker Co. 10

11 Food & Staples Retailing Sector D/Y(%)* Abdullah Al Othaim % Saudi Marketing Co % Anaam International N/M National Agriculture % Total % % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () % YTD Food & Staples Retailing Sector % YTD Food & Staples Retailing Sector 20. earnings of Saudi Arabia s Food & Staples sector decreased by 5.5% to SAR 75.2mn in from SAR79.6mn in. The sector s stood at SAR0.46 per share. Abdullah Al Othaim Co. was the best performer during the quarter, reporting 11.8% increase in net profit to SAR67.3mn 3 25% 2 15% 1-5% 5% -1-15% % Abdullah Al Othaim Saudi Marketing Thimar -17% Anaam Food & Beverages Sector Change % D/Y(%)* Qassim Agriculture Co % Wafrah for Industry N/M Halwani Bros % Almarai Company % Al-Jouf Agriculture NADEC Jazan Development Savola Group Sharqiya Dev Co % N/M Tabuk Agriculture % N/M Saudi Fisheries Co % N/M Total % Source: Tadawul, Bloomberg, AlJazira Capital, *Trailing 12 months () Saudi Arabia s Food & Beverages sector recorded a net profit of SAR229.2mn in compared to SAR342.6mn in. The sector s stood at SAR 0.12 per share % 1% -2-4 Almarai Savola 9% National Agriculture SADAFCO 3. YTD Food & Beverages Sector % YTD Food & Beverages Sector Jazan Development Halwani Brothers Co Al Jouf Tabuk Agriculture Wafrah for Industry Al Gassim Investment 22% Ash-Sharqiyah 11%- 23%- 3%- 7% %- Saudi Fisheries The sector s decline in earnings was due to a decrease in net profit of index heavyweights, Savola Group which recorded a net loss of SAR84.3mn. National Agricultural Development Co. recorded a loss of SAR5.0mn compared to a profit of SAR4.3mn in. 11

12 Health Care Equipment & Svc Sector The Health Care Equipment & Services sector s net profit decreased 3.9% to SAR 364.1mn in compared to SAR 378.8mn in. The sector s stood at SAR 0.85per share. Dallah Healthcare Company s profit (down 31.6% ) declined the most. While National Medical Care increased the most (up 64.7%). D/Y (%)* Dallah Healthcare % National Medical Care % Mouwasat Medical % Middle East Healthcare % Al Hammadi Saudi Chemical % Total % % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () % 3 25% 2 15% 1 5% -5% 23% Mouwasat Medical 10. YTD Health Care Equipment & Services Sector % YTD Health Care Equipment & Svc Sector Dallah Healthcare 1% 7% Saudi Chemical Co Middle East Healthcare 1% AlHammadi 2%- 3 National Medical Care Pharma, Biotech & Life Scie. Sector D/Y (%)* Saudi Pharmaceutical % Total % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () YTD Pharma, Biotech & Life Science Sector % YTD Pharma, Biotech & Life Science Sector 1 Saudi Arabia s Pharma, Biotech & Life Science sector decreased 44.1% to post a net profit of SAR55.8mn in compared to SAR in. The sector s stood at SAR 0.47 per share. SAUDI PHARMACEUT 12

13 Banks Sector D/Y(%)* Alinma Bank % Al Rajhi Bank % NCB % Banque Saudi Fransi % Riyad Bank % Saudi British Bank % Alawwal Bank % Samba Financial Arab National Bank % AlBilad Bank % Saudi Investment Bank % Bank AlJazira % Total 11, , % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () % YTD Banks Sector -10. Banks Sector 35% % 25% 25% 23% 23% 2 19% 16% 15% 15% 12% 1 1 8% 7% 5% Al Rajhi Bank National Commercial Bank Samba Financial Group Banque Saudi Fransi 20.1% YTD Alinma Bank Riyad Bank Saudi British Bank Arab National Bank Saudi Investment Bank Bank AlBilad Bank Al-Jazira Alawwal Bank The Banking sector s net profit increased 7. to SAR12.5bn in. The sector s stood at SAR0.74 per share. Alinma Bank registered the highest growth of 38.2% while Alawwal Bank showed the worst performance with a decline of 11.7% during. 13

14 Diversified Financials Sector D/Y (%)* Saudi Adv. Ind. Co % AlBaha Kingdom Holding Co % Aseer Trading Co % N/M Total % % Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () % YTD Diversified Financials Sector Saudi Arabia s Diversified Financials net profit increased 4.8% to SAR160.6mn compared to SAR153.2mn in. AlBaha increased the most 740 to SAR0.75mn during, followed by Saudi Advanced Industries Co. 50.3% % YTD Diversified Financials Sector 15% 2% -15% -15% -7% Kingdom Holding Aseer Trading Tourism Saudi Advanced Industries -13% Al-Baha Development 14

15 - Results Summary of Listed Companies Insurance Sector Before Zakat Before Zakat D/Y (%)* Saudi Indian Co N/M Al Sagr Co-op Ins % Arabia Insurance Co % Arabian Shield Co-op % Saudi Arabian Co-op United Cooperative Buruj Insurance Co % Al-Rajhi Company % Salama Cooperative % CHUBB Arabia Co Allied Insurance Co % Al Alamiya % Solidarity Saudi Aljazira Takaful % AXA Cooperative % Tawuniya Insurance Co % N/M Allianz Saudi Fransi % Alahli Takaful Co Bupa Arabia % SABB Takaful % N/M Trade Union Co-op Ins % Amana Cooperative % Gulf General Co-op Wataniya Insurance The Mediterranean Co N/M Malath Co-op Ins % N/M Saudi Re Co Al-Ahlia Insurance Co % Saudi Enaya % N/M Alinma Tokio Marine N/M Gulf Union Co-op Ins % Walaa Insurance Co % MetLife AIG ANB Co N/M Total % % YTD Insurance Sector TAWUNIYA Bupa Arabia Walaa Al Rajhi Takaful Arabian Shield Saudi Re Buruj UCA MEDGULF Al Sagr AXA Trade Union Al Alamiya Salama Saudi Arabian Solidarity Takaful SABB Takaful Alinma Tokio Marine Alahli Takaful Co AlJazira Takaful Amana Arabia Insurance Cooperative Wataniya Saudi Enaya Chubb Arabia Allianz SF Malath WAFA Gulf General METLIFE Gulf Union Allied Cooperative Al-Ahlia -5. YTD Insurance Sector % %- 5%- 9%- 5%- 1-17%- 1%- 19%- 11%- 18%- 2-2%- 7%- 1-45%- 3% % 2% 0.5% 1% 8% 5% % % 19% Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () The Insurance sector s net profit decreased 66.5% to SAR136mn in from SAR 406.3mn in. The sector s stood at SAR 0.12 per share during the quarter. Sector heavyweights, Bupa Arabia for Cooperative Insurance s net profit (before zakat) decreased 74.5% to SAR9.3mn in from SAR 36.7mn in. The Company for Cooperative Insurance (TAWUNIYA) reported a net profit of SAR41.9mn in compared to SAR 160.3mn in. In terms of gain in net profit, Al-Ahlia Insurance Company (up 924.7% ), Trade Union Co-op Insurance (up 211.7% ), and Al Sagr Co-op Insurance (up 82.3% ), were the top three performers. 15

16 Telecommunication Sector D/Y(%)* Saudi Telecom % Mobile Telecomm Co Etihad Etisalat Co % N/M Total 2, , Source: Tadawul, Bloomberg, AlJazira Capital *Trailing 12 months () % YTD Telecommunication Services Sector % YTD Telecommunication Sector earnings of Saudi Arabia s Telecommunication Services sector remained flat at SAR 2.4bn in. The sector s stood at SAR 0.72 per share. Saudi Telecom Co. recorded net income of SAR2.6bn during % Saudi Telecom Co 12% Etihad Etisalat Co Mobile Telecommunications Co Saudi Arabi -9% Etihad Atheeb Telecommunication Co -4 Utilities Sector D/Y (%)* National Gas & Industrialization Co % Saudi Electricity Co ** Total 5, (1,175.2) Source: Tadawul website, AlJazira Capital *Trailing 12 months () () ** Non-recurring income of SAR 6.12bn % YTD Utilities Sector Saudi Arabia s Utilities sector recorded a net loss of SAR1.2bn in compared to SAR5.0bn in. The sector s stood at SAR per share. % YTD Utilities Sector 5% 3% 2% 1% SAUDI ELECTRICIT 0. National Gas & Industrialization Co 16

17 Real Estate Mgmt & Dev t Sector D/Y (%)* Arriyadh Development % Emaar Taiba Holding Co % Alandalus Property Co % Dar Alarkan % Saudi Real Estate Co % Makkah Construction* * % Jabal Omar N/M Red Sea Housing N/M Knowledge Economic N/M Total % % Source: Tadawul, Bloomberg, AlJazira Capital, *Trailing 12 months () ** Hijri Calender Jabal Omar 9% Makkah -5% Dar Al Arkan -12.3% YTD Real Estate Mgmt & Dev't Sector % YTD Real Estate Mgmt & Dev t Sector -1% Emaar -11% Taiba 0.5% Arriyadh -3% Knowledge Economic 19% 25% Alandalus Saudi Real Estate -3% Red Sea International The net profit of Saudi Arabia s Real Estate Mgmt & Dev t sector increased 10.5% to SAR 337.9mn in from SAR 305.7mn in. The sector s for the quarter was at SAR 0.09 per share. Dark Alarkan recorded a net profit of SAR331.1mn compared to SAR12.1mn in, depicting an increase of %, which led to the increase in the sector s net profit during. 17

18 RESEARCH DIVISION Head of Research Talha Nazar Analyst Waleed Al-jubayr Analyst Sultan Al Kadi, CAIA Analyst Muhanad Al-Odan 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 Mansour Hamad Al-shuaibi 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. AlJazira Capital is the continuation of a long success story in the Saudi Tadawul market, having occupied the market leadership position for several years. With an objective to maintain its market leadership position, AlJazira Capital is expanding its brokerage capabilities to offer further value-added services, brokerage across MENA and International markets, as well as offering a full suite of securities business. RATING TERMINOLOGY 1. Overweight: This rating implies that the stock is currently trading at a discount to its 12 months price target. Stocks rated Overweight will typically provide an upside potential of over 1 from the current price levels over next twelve months. 2. Underweight: This rating implies that the stock is currently trading at a premium to its 12 months price target. Stocks rated Underweight would typically decline by over 1 from the current price levels over next twelve months. 3. Neutral: The rating implies that the stock is trading in the proximate range of its 12 months price target. Stocks rated Neutral is expected to stagnate within +/- 1 range from the current price levels over next twelve months. 4. Suspension of rating or rating on hold (SR/RH): This basically implies suspension of a rating pending further analysis of a material change in the fundamentals of the company. Disclaimer The purpose of producing this report is to present a general view on the company/economic sector/economic subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, may not be suitable for all clients depending on their financial position and their ability and willingness to undertake risks. 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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. Aljazira Capital shall not be liable for any loss as that may arise from the use of this report or its contents or otherwise arising in connection therewith. The past performance of any investment is not an indicator of future performance. Any financial projections, fair value estimates or price targets and statements regarding future prospects contained in this document may not be realized. The value of the security or any other assets or the return from them might increase or decrease. Any change in currency rates may have a positive or negative impact on the value/return on the stock or securities mentioned in the report. The investor might get an amount less than the amount invested in some cases. Some stocks or securities maybe, by nature, of low volume/trades or may become like that unexpectedly in special circumstances and this might increase the risk on the investor. Some fees might be levied on some investments in securities. This report has been written by professional employees in Aljazira Capital, and they undertake that neither them, nor their wives or children hold positions directly in any listed shares or securities contained in this report during the time of publication of this report, however, The authors and/or their wives/children of this document may own securities in funds open to the public that invest in the securities mentioned in this document as part of a diversified portfolio over which they have no discretion. This report has been produced independently and separately by the Research Division at Aljazira Capital and no party (in-house or outside) who might have interest whether direct or indirect have seen the contents of this report before its publishing, except for those whom corporate positions allow them to do so, and/or third-party persons/institutions who signed a non-disclosure agreement with Aljazira Capital. Funds managed by Aljazira Capital and its subsidiaries for third parties may own the securities that are the subject of this document. Aljazira Capital or its subsidiaries may own securities in one or more of the aforementioned companies, and/or indirectly through funds managed by third parties. The Investment Banking division of Aljazira Capital maybe in the process of soliciting or executing fee earning mandates for companies that is either the subject of this document or is mentioned in this document. One or more of Aljazira Capital board members or executive managers could be also a board member or member of the executive management at the company or companies mentioned in this report, or their associated companies. No part of this report may be reproduced whether inside or outside the Kingdom of Saudi Arabia without the written permission of Aljazira Capital. Persons who receive this report should make themselves aware, of and adhere to, any such restrictions. By accepting this report, the recipient agrees to be bound by the foregoing limitations. Asset Management Brokerage Corporate Finance Custody Advisory Head Office: King Fahad Road, P.O. Box: 20438, Riyadh 11455, Saudi Arabia Tel: Fax: Aljazira Capital is a Saudi Investment Company licensed by the Capital Market Authority (CMA), license No