Integrated Securities Morning Report 06 March 2019

Transcription

1 Integrated Securities Morning Report 06 March 2019 # Upcoming Corporate Actions & Events Date Company Event 06-Mar Tabreed General Assembly 06-Mar DIB General Assembly 07-Mar Ajman Bank BOD Meeting 07-Mar Salama BOD Meeting 11-Mar Rak Ceramics General Assembly 13-Mar ADIB General Assembly 17-Mar RAK Properties General Assembly 17-Mar Air Arabia General Assembly 17-Mar DFM General Assembly 19-Mar ADNIC General Assembly 20-Mar Etisalat General Assembly 20-Mar Aldar General Assembly 21-Mar ADCB AGM/Merger 21-Mar UNB AGM/Merger

2 # KEY STORIES ADCB and UNB set May 1 as the effective date of a merger into an entity that will acquire privately held Al Hilal Bank. ADCB will issue convertible bonds to Al Hilal shareholders on the same day, according to a circular. UNB shareholders will be issued with new ADCB shares on the effective date or the next business day and UNB shares will be delisted from the Abu Dhabi stock exchange. ADCB is seeking approval to issue $1 billion in bonds to strengthen its capital adequacy ratio. The bank will seek shareholders permission on March 21 to issue tier capital instruments (including additional tier 1 capital or subordinated tier 2 capital) notes/bonds or trust certificates with an aggregate face amount of up to $1 billion, according to a statement. ADCB calls shareholders meeting to approve proposed merger of ADCB and UNB UNB calls shareholders meeting on March 21 to approve proposed merger of UNB and ADCB DP World considers investments in Kazakhstan ports Fitch Ratings has assigned Emirates Development Bank's (EDB) USD3 billion Euro Medium- Term Note (EMTN) Programme a long-term rating of 'AA-' and short-term rating of 'F1+' Arab Insurance Group calls shareholders meeting on March 28 to discuss and approve delisting of ARIG shares from Dubai Financial Market Al Wathba National Insurance board reviewed proposal on bond issuance and determined that bond issue size will be upto USD 150mln Emirates Investment Bank seeks shareholders approval on non-distribution of dividend for year 2018 Sheikh Mohammed announces USD272m Fujairah infrastructure projects NMC health firm inks deal to speed up Saudi expansion plan Saudi's SIDC receives financial claims from GAZT For 21mln riyals Saudi s Al Yamamah Steel Industries says commercial operation of Al Yamamah Solar Power Systems Factory will commence as planned during Q2 of 2019 Saudi s Advanced Petrochemical announces commencement of start-up activities of its propylene plant from March 04, 2019, after completion of assessment Saudi's Spimaco Addwaeih board proposes 1 riyal/share H2 dividend Saudi Pharmaceutical Industries and Medical Appliances posted FY net profit after zakat and tax 100.8mln riyals vs 148.5mln riyals year ago Kuwait's Kamco, Global to merge into USD 13bn investment giant Kuwait Mabanee Company unit Shomoul Holding signs agreement with Hilton Company to develop and operate four hotels in avenues Riyadh

3 Moody's cuts Oman to junk amid lack of meaningful fiscal reforms Egypt s El Saeed Contracting and Real Estate Investment posted FY consolidated net profit EGP 57 million versus EGP 46 million year ago. Board proposes to distribute one bonus share for every 10 original shares Egypt s CI Capital Holding Company gets regulatory approval for company's expansion plan in non-banking financial activities Egyptian Tourah Portland Cement posted FY net profit EGP 36.1mln vs loss of EGP 545.8mln year ago Egypt s Suez Cement Company posted FY consolidated net profit EGP 121.4mln vs loss of EGP 1.14bln year ago. Board approves not to distribute dividend for year 2018 Egypt s Electro Cable Egypt posted FY consolidated net profit EGP 134.8mln vs EGP 15.8mln year ago. FY consolidated sales EGP 2.17bln vs EGP 1.13bln year ago # Key Global Trends/ Market Clues Asian stocks clung to narrow ranges on Wednesday as investors awaited fresh clues on the progress of U.S.- China trade negotiations, with a weaker Wall Street finish capping broader gains. Robust U.S. economic data supported the dollar, but its Australian counterpart slid after data showed the economy slowed more than expected in the fourth quarter. MSCI s broadest index of Asia-Pacific shares outside Japan nudged up 0.05 percent, while Japan s Nikkei declined 0.6 percent. Oil prices fell nearly 1 percent on Wednesday as bullish output forecasts by two big U.S. producers and a build in U.S. crude stockpiles outweighed ongoing OPEC-led efforts to rein in crude production. International Brent futures were down 55 cents, or 0.8 percent, at $65.31 a barrel at 0209 GMT. # UAE Stories ADCB and UNB set May 1 as the effective date of a merger into an entity that will acquire privately held Al Hilal Bank. ADCB will issue convertible bonds to Al Hilal shareholders on the same day, according to a circular. UNB shareholders will be issued with new ADCB shares on the effective date or the next business day and UNB shares will be delisted from the Abu Dhabi stock exchange. ADCB is seeking approval to issue $1 billion in bonds to strengthen its capital adequacy ratio. The bank will seek shareholders permission on March 21 to issue tier capital instruments (including additional tier 1 capital or subordinated tier 2 capital) notes/bonds or trust certificates with an aggregate face amount of up to $1 billion, according to a statement. Abu Dhabi Commercial Bank calls shareholders meeting on March 21 to approve proposed merger of ADCB and UNB. ADCB s shareholders to approve issuance by ADCB of mandatory convertible bond to shareholders of Al Hilal Bank. ADCB says as acquisition price to be paid by ADCB to acquire the entire issued share capital of Al Hilal Bank and the mandatory convertible bond shall be converted into up to 117.6mln new shares in ADCB increasing ADCB s share capital up to AED 6.96bln on conversion of such mandatory convertible bond. ADCB s shareholders to approve issued capital increase of ADCB to AED 6.84bln from AED 5.20bln, subject to terms and conditions of merger. UNB calls shareholders meeting on March 21 to approve proposed merger of UNB and ADCB.

4 DP World are in discussions to invest in new infrastructure in Kazakhstan s ports and logistics sectors. DP World s chairman and chief executive Sultan Ahmed Bin Sulayem on Tuesday met Kazakhstan s Prime Minister Askar Mamin in Astana and discussed the potential of new investments, DP World said in a statement. Fitch Ratings has assigned UAE-based Emirates Development Bank's (EDB) USD3 billion Euro Medium-Term Note (EMTN) Programme a long-term rating of 'AA-' and short-term rating of 'F1+'. The ratings are in line with EDB's Long- and Short-Term Issuer Default Ratings (IDR) of 'AA-' and 'F1+', respectively, and apply only to senior unsecured certificates issued under the programme. Arab Insurance Group calls shareholders meeting on March 28 to discuss and approve delisting of ARIG shares from Dubai Financial Market. Al Wathba National Insurance board reviewed proposal on bond issuance and determined that bond issue size will be upto USD 150mln. Emirates Investment Bank seeks shareholders approval on non-distribution of dividend for year Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, on Tuesday announced the allocation of AED1 billion ($272 million) for infrastructure projects in Fujairah. The announcement - made during his visit to Fujairah and Khor Fakkan - is part of the five-year plan being implemented by the Ministry of Infrastructure Development on the eastern coast. NMC Health, has announced the signing of definitive documents to form a joint venture in Saudi Arabia to "significantly" increase its pace of expansion in the kingdom. The joint venture has been with Hassana Investment Company, the investment arm of the General Organisation for Social Insurance in Saudi Arabia, one of the largest pension funds in the world by assets under management. The JV is formed by NMC's contribution of its five assets in Saudi Arabia and an additional cash injection at closing, and GOSI's contribution of percent stake in Tadawul-listed National Medical Care Company at a price of SR54 per share. At the closing of the transaction, NMC will own a 52 percent stake and GOSI will own a 48 percent while NMC will have operational control, the statement added. # GCC/ MENA Saudi Industrial Development received financial claims from GAZT for total amount of 21mln riyals. Financil claim represents zakat difference due to GAZT's reassessment on company's zakat from 2007 to Company will coordinate with authority to get detailed zakat assessment for consideration and objection. Saudi s Al Yamamah Steel Industries says commercial operation of Al Yamamah Solar Power Systems Factory will commence as planned during Q2 of Al Yamamah Steel says factory will produce, deliver steel structure system that will be used in tracking system of CSP in Dubai Solar Park Project - Phase IV. Saudi s Advanced Petrochemical announces commencement of start-up activities of its propylene plant from March 04, 2019, after completion of assessment. Financial impact of shutdown, depending on expected prices of polypropylene and feedstock, will be reflected in Q1 results. Saudi's Spimaco Addwaeih board proposes 1 riyal/share H2 dividend. Saudi Pharmaceutical Industries and Medical Appliances posted FY net profit after zakat and tax 100.8mln riyals vs 148.5mln riyals year ago. FY sales 1.27bln riyals vs 1.39bln riyals year ago Kamco Investment Company and Global Investment House, two firms operating in the Kuwaiti asset management and investment banking industry, have announced the signing of an agreement to cement merger talks and start the regulatory process. Kamco will be the merging entity and Global will be the merged entity to create a "leading pan-mena non-banking financial services firm", according to a statement. The merger is the largest of its kind in Kuwait s investment landscape and will create the largest asset management and investment banking firm in Kuwait, with assets under management totaling USD 13 billion.

5 Kuwait Mabanee Company unit Shomoul Holding signs agreement with Hilton Company to develop and operate four hotels in avenues Riyadh. Mabanee says estimated cost of project is SAR 13bln. Moody s Investors Service cut Oman s rating to junk amid skepticism on the nation s weakening fiscal metrics won t improve anytime soon. The rating company lowered the country by one notch to Ba1, one level below investment grade, with a negative outlook. Egypt s El Saeed Contracting and Real Estate Investment posted FY consolidated net profit EGP 57 million versus EGP 46 million year ago. FY consolidated revenue EGP million versus EGP million year ago. Board proposes to distribute one bonus share for every 10 original shares. Egypt s CI Capital Holding Company gets regulatory approval for company's expansion plan in non-banking financial activities. Egyptian Tourah Portland Cement posted FY net profit EGP 36.1mln vs loss of EGP 545.8mln year ago. FY sales EGP 1.10bln vs EGP 988.3mln year ago. Egypt s Suez Cement Company posted FY consolidated net profit EGP 121.4mln vs loss of EGP 1.14bln year ago. FY consolidated sales EGP 7.43bln vs EGP 6.47bln year ago. Board approves not to distribute dividend for year Egypt s Electro Cable Egypt posted FY consolidated net profit EGP 134.8mln vs EGP 15.8mln year ago. FY consolidated sales EGP 2.17bln vs EGP 1.13bln year ago. (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)

6 # UAE FOCUS LIST - COMPANY DATA (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration

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