Integrated Securities Morning Report 21 February 2019

Transcription

1 Integrated Securities Morning Report 21 February 2019 # Market Stats # UAE Trading Summary 1M 3M Indices Close Change Change Change Change AEDm Buy Sale Net ADX 5, % 2.1% 1.8% 10.4% ADX DFM 2, % 5.3% -4.5% -19.9% Local 42% 56% -14% TASI 8, % 2.0% 14.0% 14.1% Foreign 58% 44% 14% BHSEASI 1, % 4.1% 6.9% 4.0% Institution 73% 59% 14% EGX 15, % 12.1% 10.8% -0.2% Retail 27% 41% -14% Dow Jones 25, % 5.1% 6.1% 4.7% DFM S&P 500 2, % 4.3% 5.1% 3.1% Local 38% 59% -20% Nasdaq 7, % 4.6% 7.4% 3.8% Foreign 62% 41% 20% FTSE 100 7, % 3.7% 2.5% -0.7% Institution 50% 35% 15% DAX 11, % 2.4% 1.4% -8.6% Retail 50% 65% -15% CAC40 5, % 6.7% 4.4% -2.0% Total Nikkei225 21, % 3.8% 0.0% -2.1% Local 40% 57% -18% HIS 28, % 5.4% 10.4% -8.8% Foreign 60% 43% 18% 1Y # Upcoming Corporate Actions & Events Date Company Event 21-Feb SHUAA B. Meeting 25-Feb FAB General Assembly 26-Feb Mashreq General Assembly 04-Mar AJMAN BANK General Assembly 06-Mar Tabreed General Assembly 06-Mar DIB General Assembly 13-Mar ADIB General Assembly 31-Mar KHCB General Assembly # KEY STORIES Emirates NBD Bank shareholders approve establishment of any debt funding programme, up to $10 bln in addition to existing programmes. Right issue approved to increase share capital upto AED 7.35bln. The bank discloses that participation of UAE nationals during the existence of the company should not be less than 80% of share capital of the company. DU declares 22 fils/share (total dividend at 35 fils/share) as final dividend for 2018 Emaar denies it plans to accept digital currency payments

2 Unit of UAE's ADNOC plans to acquire crude oil tankers Gulf Medical Projects board proposes FY cash dividend of 10pct International Holding Company signs implementation agreement for acquisition of PAL Cooling Holding Commercial Bank Of Dubai shareholders approve renewal of USD3 bn EMTN program Gulf cement posted FY net loss 33mln dirhams vs profit of 40.6mln dirhams year ago. Board proposes FY cash dividend of 5pct of capital Enoc signs R&D agreement with Indian Oil Corporation Flydubai posted FY loss 159.8mln dirhams vs profit of 37.3mln dirhams year ago UAE eases Qatar shipping ban - circular, source UAE bank assets rise 1.2% in January: Central Bank Saudi Aramco to decide in H1 on financing SABIC buy - CEO Saudi Aramco discussing investments in India s Reliance Industries CEO Saudi Arabia to meet banks on export-credit finance plans, sources say Saudi Electricity Company to sign $4bln syndicated loan Saudi's Ma'aden approves a 253mln riyals expenditure for exploration activities in 2019 Saudi Energy Minister says Sabic looking to invest in petchem, mining fertiliser and manufacturing industries in India Saudi's CMA approves Shuaa Capital Saudi Arabia's request to offer, register Shuaa Reit units on Tadawul as Real Estate Investment Traded Fund Saudi's Trade Union Cooperative Insurance s board proposes capital increase to 400mln riyals from 275mln riyals Saudi Arabian Amiantit board recommends decreasing company s capital to 640.6mln riyals from 1.16bln riyals Saudi's CMA suspends Investor Company For Securities securities business license Saudi Abdullah Saad Mohammed Abo Moati Stationeries board proposes capital increase to 200mln riyals from 160mln riyals Kuwait's Burgan Bank posted Q4 net profit attributable to shareholders 11.6mln dinars vs 11.3mln dinars year ago. Board proposes FY cash dividend of 12 fils per share, bonus shares at 5pct of issued and paid up capital. Egypt issues $4b in foreign currency bonds Egypt s Madinet Nasr for Housing and Development board approves issued and paid-up capital increase to EGP 1.44bln from EGP 1.20bln via issuing 0.20 share for every share

3 Egypt s Al Tawfeek Company for Financial Leasing board approves FY cash dividend of qirsh per share, stock dividend of share for every share Egypt's Amer Group Holding posted FY consolidated net profit after tax EGP 74.7mln vs EGP 93mln year ago Egypt s Mohandes Insurance posted H1 consolidated net profit after minority interest EGP 63.1mln vs EGP 56.2mln year ago # Key Global Trends/ Market Clues Asian shares pulled ahead to fresh 4-1/2-month highs on Thursday after the U.S. Federal Reserve affirmed it would be patient on further interest rate rises and as Sino-U.S. trade talks hinted of progress towards a deal in their tariff war. MSCI s broadest index of Asia-Pacific shares outside Japan edged up 0.4 percent to peak last seen in early October. Oil prices hovered close to 2019 highs on Thursday, bolstered by OPEC-led supply cuts and U.S. sanctions on Venezuela and Iran, but were prevented from rising further by slowing growth in the global economy. International Brent crude futures were at $67.14 per barrel, 6 cents above their last close and not far off their 2019 peak, hit the day before, of $67.38 per barrel. US oil output from seven major shale formations is expected to rise 84,000 barrels per day (bpd) in March to a record of about 8.4 million bpd, the US Energy Information Administration said in a monthly report on Tuesday. The largest change is forecast in the Permian Basin of Texas and New Mexico, where output is expected to climb by 43,000 bpd to a record million bpd in March. Saudi Energy Minister Khalid al-falih said on Wednesday he hoped the oil market would be balanced by April and that there would be no gap in supplies due to U.S. sanctions on OPEC members Iran and Venezuela. New York Fed president John Williams on Tuesday said he was comfortable with the level US interest rates are at now and that he sees no need to raise them again unless economic growth or inflation shifts to an unexpectedly higher gear. # UAE Stories Emirates NBD Bank shareholders approve establishment of any debt funding programme, up to USD10bln in addition to existing programmes. Shareholders approve to issue debt instruments up to USD5 billion under any of programmes from time to time. Shareholders approve to issue debt on standalone basis upto USD10bln including capital instrument to strengthen regulatory capital ratios. Shareholders renew approval for increase of share capital by an amount of up to 7.35bln dirhams through issuance of new shares with nominal value of AED 1.0 for subscription price at no less than 10pct discount to prevailing market price. The bank discloses that participation of UAE nationals during the existence of the company should not be less than 80% of share capital of the company. DU announced total dividend payment of 35 fils per share for Total dividend includes 22 fils per share as final dividend payment for the year, 13 fils per share was awarded as an interim dividend in October CEO succession plan has reached now the active phase of looking for a successor. Emaar Properties on Wednesday denied reports of plans to accept payments in digital currencies. Emaar does not accept payment in digital currency, a spokesperson for the company said in response to questions. Emaar only accepts payment in government-issued currency, primarily in UAE dirham and US dollar.

4 Adnoc says its unit Adnoc L&S plans to acquire its first crude oil tankers, while expanding its gas and dry bulkfleet, by adding more than 25 vessels within the next five years. Adnoc L&S and China s Wanhua petrochemical to explore the creation of a joint venture to pave the way for the transport of gas. Gulf Medical Projects board proposes FY cash dividend of 10pct. International Holding Company signs implementation agreement for acquisition of PAL Cooling Holding. Commercial Bank Of Dubai shareholders approve renewal of USD3 bn EMTN program. Gulf cement posted FY net loss 33mln dirhams vs profit of 40.6mln dirhams year ago. FY revenue 475.7mln dirhams vs 583.2mln dirhams year ago. Board proposes FY cash dividend of 5pct of capital. Emirates National Oil Company has signed a partnership agreement with state-owned Indian Oil Corporation to expand its presence in South Asia's largest market while building synergies on research and development infrastructure. Flydubai posted FY loss 159.8mln dirhams vs profit of 37.3mln dirhams year ago. FY revenue 5.75bln dirhams vs 5.06bln dirhams year ago. 11 million passengers travelled across the Flydubai network; a moderate year on year increase. The United Arab Emirates has eased a ban on the shipping of goods between it and Qatar enforced under an ongoing political and economic boycott of Doha, according to port circulars and an industry source. An Abu Dhabi Ports circular dated Feb. 12 cancelled previous directives that banned cargoes of Qatar origin from UAE waters and ports and those of UAE origin from Qatar. It maintained a ban on vessels flying the Qatar flag, owned by Qatari shipping firms or nationals. Assets of banks operating in the UAE increased 1.2% month-on-month by the end of January, the Central Bank of the UAE said on Tuesday. Lenders assets grew to AED trillion in January, including bank acceptances, from AED in the previous month. The UAE s bank lending hiked 0.3% to AED trillion in January, against AED trillion in December, the data showed. # GCC/ MENA Saudi Aramco said on Wednesday it expects to decide by mid-2019 how to finance the acquisition of Saudi Arabian Basic Industries Corp (SABIC). "The decision on financing the SABIC acquisition is expected to be taken in the first half," said Amin Nasser, chief executive of Aramco. "We have internal resources, then of course there are banks and the bond market, which we are evaluating at the moment," he added. Saudi Aramco s Chief Executive Officer Amin Nassar said on Wednesday that the company is in talks with India s Reliance Industries Ltd for possible investments and is seeking other opportunities in the country. Saudi Aramco signed an agreement in April with a consortium of state-owned Indian refiners to participate in a $44 billion (Dh162 billion) refinery project on the country s west coast. Saudi Arabia will soon discuss with international banks its plans to use export-credit agencies in other countries to help it finance infrastructure projects. Saudi Arabia has embarked on an ambitious economic transformation plan involving infrastructure projects worth billions of dollars, in areas ranging from housing to transport. Saudi Electricity Company said it will sign on Wednesday a 15.2-billion-riyal ($4.05 billion) Islamic syndicated loan provided by a group of local banks. The loan has a murabaha structure, a cost-plus-profit arrangement which complies with Islamic finance standards, and will be used for general corporate purposes, including capital expenditure, the company said in a statement. Saudi's Ma'aden approves a 253mln riyals expenditure for exploration activities in Saudi Energy Minister says Sabic looking to invest in petchem, mining fertiliser and manufacturing industries in India.

5 Saudi's CMA approves Shuaa Capital Saudi Arabia's request to offer, register Shuaa Reit units on Tadawul as Real Estate Investment Traded Fund. Saudi's Trade Union Cooperative Insurance board proposes capital increase to 400mln riyals from 275mln riyals. Saudi Arabian Amiantit board recommends decreasing company s capital to 640.6mln riyals from 1.16bln riyals. Capital reduction will be done through reduction of 1 share for each 2.25 shares and reasons for capital decrease is restructuring parts of Amiantit group of companies. Saudi's CMA suspends Investor Company For Securities securities business license. Saudi Abdullah Saad Mohammed Abo Moati Stationeries board proposes capital increase to 200mln riyals from 160mln riyals. Kuwait's Burgan Bank posted Q4 net profit attributable to shareholders 11.6mln dinars vs 11.3mln dinars year ago. Q4 total operating revenue 58.7mln dinars vs 60.1mln dinars year ago. Board proposes FY cash dividend of 12 fils per share, bonus shares at 5pct of issued and paid up capital. Egypt has issued $4 billion in dollar denominated bonds with maturities of five, 10 and 30 years in a sale that was five times oversubscribed, the Finance Ministry said on Wednesday. The issue included $750 million in five-year bonds with a return of 6.2 per cent, $1.75 billion in 10-year bonds with a return of 7.6 per cent and 1.5 billion in 30-year bonds, with a return of 8.7 per cent, the ministry said. Egypt s Madinet Nasr for Housing and Development board approves issued and paid-up capital increase to EGP 1.44bln from EGP 1.20bln via issuing 0.20 share for every share. Egypt s Al Tawfeek Company for Financial Leasing board approves FY cash dividend of qirsh per share, stock dividend of share for every share. Egypt's Amer Group Holding posted FY consolidated net profit after tax EGP 74.7mln vs EGP 93mln year ago. Egypt s Mohandes Insurance posted H1 consolidated net profit after minority interest EGP 63.1mln vs EGP 56.2mln year ago (Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian Business)

6 # UAE FOCUS LIST - COMPANY DATA MCAP PRICE HIGH - LOW VALUATION DIV HISTORICAL RETURN Company (AEDm) (AED) 52WH 52WL TTM P/E TTM P/B YLD (%)^ 1M% 3M% 6M% 12M% ADCB 50, % 15.8% 20.2% 38.6% 31.1% ADIB 15, % 5.3% 6.5% 19.4% 14.2% ADNIC 1, % 4.2% -2.8% -2.6% -2.6% Agthia 2, % -1.0% -0.3% -16.2% -10.0% Air Arabia 4, NA % -6.5% -11.8% -7.4% -28.1% Ajman Bank 1, % 5.4% -6.5% -4.5% -16.9% Al Waha Capital 2, % -24.6% -28.5% -25.4% -35.2% Aldar Properties 13, % 17.2% 4.1% -8.8% -19.2% Amanat Holdings 2, % -8.4% -11.7% -5.8% -32.6% Amlak Finance NA % 1.6% -29.2% -42.7% -58.8% Arabtec 3, % 0.0% -7.5% 7.7% -14.6% Aramex 6, % 5.7% -0.7% -1.6% -8.8% Bank of Sharjah 2, % -3.4% -10.6% -9.8% -19.6% DAMAC Properties 7, % 13.8% -35.9% -37.4% -59.0% Dana Gas 5, NA % -12.1% -20.7% -26.3% 12.6% Dar AL Takaful % 5.9% -15.8% -22.5% -29.4% Deyaar Development 2, % 0.0% -12.1% -11.9% -31.1% Dubai Financial Market 6, % 0.7% -5.6% -12.8% -23.5% Dubai Investment 5, % -4.7% -16.3% -37.6% -45.1% Dubai Islamic Bank 34, % 1.8% -3.4% 3.0% -5.0% DXB Entertainments 1, NA % 0.0% -26.7% -30.3% -56.1% Emaar Dev 15, % 2.3% -18.6% -19.3% -20.5% Emaar Malls 22, % 4.8% -8.9% -14.8% -24.8% Emaar Properties 32, % 15.0% -3.8% -8.9% -26.0% Emirates Integrated Tele 23, % -0.2% 1.2% 0.0% 1.2% Emirates NBD 57, % 13.4% 14.3% 14.3% 16.9% Eshraq Properties 1, NA -6.6% -25.6% -25.8% -40.0% Etisalat 147, % 0.0% -0.1% 0.7% -1.9% First Abu Dhabi Bank 161, % 2.2% 3.2% 4.6% 29.8% GFH 3, % 7.7% -22.8% -32.7% -27.6% Gulf Navigation Holding NA % -3.6% -27.5% -13.6% -25.5% Gulf Pharmaceutical 1, NA % -18.3% -19.0% -20.9% -19.7% Marka NA NA NA 0.0% 0.0% 0.0% -49.0% Mashreqbank 12, % -7.7% -2.7% -4.0% -10.0% National Bank of Fujairah 7, % 0.0% 41.2% 71.4% 56.4% National Central Cooling Co 4, % 1.2% 3.7% -2.3% 0.0% RAK Bank 7, % 0.5% 0.5% -0.2% -12.0% RAK Properties % -2.6% -16.0% -23.7% -41.3% Ras Al Khaimah 1, % 5.0% -6.9% -16.0% -37.6% SALAMA % -2.7% -25.9% 11.2% -4.7% Sharjah Islamic Bank 3, % -4.0% 0.8% -4.0% -2.5% SHUAA Capital % -15.9% -33.7% -32.4% -39.5% Takaful Emarat Insurance % 1.9% -7.4% -16.0% -17.3% TAQA 5, % -3.0% -5.8% -20.5% 24.4% Union National Bank 14, % 11.3% 11.8% 42.1% 41.4% Union Properties 1, % -6.6% -39.6% -47.7% -57.8% United Arab Bank 2, % 0.0% -4.0% 13.2% -24.1% (Source: Bloomberg) ^ current dividend yield based on last year dividend declaration

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