10:00 10:15 10:30 10:45 11:00 11:15 11:30 11:45 12:00 12:15 12:30 12:45 13:00 13:15 13:30 13:45 14:00 14:15 14:30 14:45 15:00 01 Nov 2017 TASI Index 6,934.4-0.16% Turnover (SAR mn) 3,320.6-8% TASI Intra Day Movement 6,950 6,940 6,930 6,920 6,910 6,900 6,890 6,880 6,870 Intraday Previous Close Global commentary Research Department research@alrajhi-capital.com Tel:+966 11 211 9449 US stock markets advanced on Tuesday owing to healthy corporate earnings. Further, the rise in technology stocks also supported the indices. The Nasdaq Composite Index gained 0.4% logging a record high, while the Dow Jones and the S&P 500 rose 0.1% each. Meanwhile, the Chicago PMI data recorded better-than-expected reading. Investors await the Fed s interest rate decision and also the US President s pick for the next Fed chairperson. TASI Activity Trend (Last 10 Days) Turnover (LHS, SAR bn) TASI Index (RHS) 6 8,000 7,500 4 7,000 2 6,500-6,000 European markets gained on Tuesday, backed by strong Eurozone Q3 2017 GDP (preliminary) and unemployment data. However, the Eurozone consumer inflation figures witnessed a lower-thanexpected rise. The CAC 40 added 0.2%, driven by the industrial and technology sectors, while the FTSE 100 edged up 0.1%, where gains were capped by the stronger pound. Meanwhile, the DAX was closed on account of a holiday. The stock markets in the GCC region ended on a mixed note yesterday. Oman and Abu Dhabi climbed 0.6% and %, respectively while Dubai rose 0.2%, led by Dubai Investments. However, Kuwait slipped 0.7%, while Qatar fell 0.4%, dragged down by banking stocks. Meanwhile, Bahrain ended the session broadly unchanged. Regional Indices Close 1D% WTD% YTD% KSA (TASI) 6,934-0.2 0.3-3.8 Qatar (DSM) 8,165-0.4-21.8 Kuw ait (KSE) 6,514-0.7-1.7 13.3 Abu Dhabi (ADSM) 4,480 0.3-1.5 Dubai (DFM) 3,636 0.2-0.4 3.0 Oman (MSM30) 5,011 0.6 1.1-13.4 Bahrain (BSE) 1,277-0.1 4.6 MSCI GCC 470-0.2 0.2-1.5 Major Commodities / Currencies Close 1D % WTD % YTD % Gold Spot $/Oz 1,270-0.1-0.3 10.2 Silver Spot $/Oz 16.73-0.8 5.1 Crude Oil (Brent) 61.12 0.3 1.6 4.2 OPEC Basket 58.27 1.3 1.3 9.3 Euro 1.16-0.1 0.2 10.6 USD Index 94.69 0.1-0.2-7.4 JPY 113.860-0.2-0.2 2.7 Major Global Indices Close 1D % WTD % YTD % DJ Industrial 23,377 0.1-0.2 18.3 S&P 500 2,575 0.1-0.2 1 Nikkei 225 22,402 1.8 1.8 17.2 Hang seng 28,396-0.2 29.1 FTSE 100 7,493 0.1-0.2 4.9 CAC 40 5,503 0.2 0.2 13.2 MSCI World 2,037 0.1 0.1 16.3 MSCI EM 1,119 0.3 0.8 29.8 Interest Rates 1M 3M 12M 3M Chg 1Y LIBOR (USD) 1.24 1.38 1.84 0.49 SAIBOR 1.46 1.79 2.24-5 EIBOR 1.32 1.57 2.21 0.28 Data Sources: Bloomberg Updated as of 01/Nov/2017 8:10 AM Asian markets are trading in the green this morning, tracking positive cues from the western countries. The Nikkei 225 is up 1.4%, backed by the weaker yen, while the KOSPI is up 1.1%. Meanwhile, the Hang Seng Index and the Shanghai Composite Index are up 0.6% and 0.2%, respectively. The Caixin China manufacturing PMI data was in line with expectations. Brent crude rose 0.6% on Tuesday notching a two-year high; on expectations of extension of the OPEC output cut agreement. Key crude contracts Brent and WTI ended at US$ 60.94 (+0.6%) and US$ 54.38 (+0.4%), respectively. Saudi commentary Tadawul All Share Index (TASI) lost 10.91 points or 0.16% to close at 6,934.37. Ten of the twenty sector indices closed lower. The advance decline ratio was 67/103. Trading turnover was around SAR 3.3bn. Saudi reforms headed in the right direction, said IMF official: Saudi Arabia s wide-scale economic reforms, including its plan to build a $500 billion megacity are a step towards the right direction, Jihad Azour, the IMF s MENA director said. He added that countries like Saudi Arabia have a lot of buffer, compared to countries like Oman and Bahrain, and therefore they can in fact manage this at a different pace. (CNBC) Expatriate remittances from the Kingdom fall to 6-year low in September: Remittance outflows by expats in Saudi Arabia declined by 21% y-o-y to SAR 8.55 billion in September, hitting a sixyear low. On a monthly basis, expat remittance outflows fell by 32%, or SAR 4 billion. (SAMA) SVCP to partly shutdown some plants on high inventory: Saudi Vitrified Clay Pipes Co. (SVCP) said it will start a partial shutdown of some furnaces on Wednesday due to an inventory overhang as a result of the slowdown in sanitation projects within the Kingdom during 2017. (Tadawul) Please see penultimate page for additional important disclosures. Al Rajhi Capital (Al Rajhi) is a foreign broker-dealer unregistered in the USA. Al Rajhi research is prepared by research analysts who are not registered in the USA. Al Rajhi research is distributed in the USA pursuant to Rule 15a-6 of the Securities Exchange Act of 1934 solely by Rosenblatt Securities, an SEC registered and FINRA-member broker-dealer. 1
Energy Health Care Equipment & Svc Consumer Transport Food & Staples Retailing Diversified Financials Commercial & Professional Svc Pharma Consumer Durables & Apparel Media TASI Large Cap (>10% Index weight) Sectors Performance TASI Top Gainers / Losers 1.2 0.8 0.6 0.4 0.2-0.2-0.4-0.6-0.8 TASI Materials Banks Real Estate Telecom - -1-1 -2 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Amana Coop Ins 26.74 9.3 2.899 75.37 Dur 19.98 5.8 0.278 5.46 Petro Rabigh 14.33 4.7 9.830 142.05 Mobily 13.73 3.7 3.002 40.78 Arabia 17.90 3.6 69 18.98 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Buruj Coop Ins 31.9-4.7 1.598 52.44 Arabian Shield 42.1-4.5 0.400 17.36 Med & Gulf Ins 32.7-3.2 07 16.80 Ace Arabia Coop Ins 24.3-3.2 55 13.66 Saudi Vitrified 45.2-2.5 31 1.39 TASI Mid Cap (5-10% index weight) Sectors Performance TASI Top Index Movers / Losers (Heavy weight stocks) 2.0 1.5 - - 2 Food & Beverages Capital Goods Utilities Retailing 1 1 - -1-1 -2 Company Last Price Chg % Index Imp Value Trd (SAR mn) Maaden 51.53 2.5 0.88 Dar Al Arkan 8.20 2.5 2.1 44.74 Mobily 13.73 3.7 2.1 3.00 Saudi Elec 24.19 1.8 3.88 Saudi Kayan 9.01 1.9 1.6 8.57 Company Last Price Chg % Index Imp Value Trd (SAR mn) Banq Saudi Fr 28.42-1.8-3.3 8.24 Savola 39.20-1.8-2.9 15.97 Jabal Omar 60.41-0.8-2.8 7.58 Sabic 99.33-0.4-2.7 493.37 Almarai 55.18 - -2.2 24.75 TASI Small Cap (<5% index weight) Sectors Performance 2 7 6 2 5 4 1 3 2 1 1 0-1 -1-2 -3-1 -4 TASI Volume Leaders Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Dar Al Arkan 8.20 2.5 44.743 367.46 Alinma Bk 17.47-0.1 369 533.31 Petro Rabigh 14.33 4.7 9.830 142.05 Al Maather REIT 9.46 0.1 9.560 96.36 Saudi Kayan 9.01 1.9 8.571 76.46 Sabic 99.33-0.4 4.956 493.37 Salama Coop Ins 25.36 0.4 4.139 109.64 Al Rajhi Bk 64.34-0.2 4.018 257.67 Saudi Elec 24.19 3.880 93.92 Methanol Chemicals 7.18 1.7 3.550 25.28 TASI Stocks Closer to 52 Week High TASI - Stocks Closer to 52 Week Low Company Last Price 52Wk High % Diff Value Trd (SAR mn) Arabia 17.90 18.00 0.6% 18.982 Riyad Bank 11.92 12.06 1.2% 6.427 Dar Al Arkan 8.20 8.35 1.8% 367.456 Trade Union Coop 22.91 23.56 2.8% 5.520 Sasco 20.83 21.60 3.7% 13.619 Company Last Price 52Wk Low % Diff Value Trd (SAR mn) Safco 57.75 57.00 1.3% 7.138 Know Econ City 13.01 12.84 1.3% 3.054 Yanbu Cem 25.94 25.60 1.3% 2.917 Saudi Vitrified 45.24 44.50 1.7% 1.388 Makkah Const 72.20 70 1.7% 5.117 Disclosures Please refer to the important disclosures at the back of this report. 2
DFM Bank Reality Investment Transport Telcom Performance of Regional markets Country Last Index Change (%) MCap Volume Turnover P/E (x) P/B (x) Div Yld Close 1D 1M YTD US$ bn mn shr US$ mn 12M Current 12M (%) Saudi Arabia 6,934-0.2-3.8 439 154 885 16.5 1.6 3.5 Qatar 8,165-0.4-21.8 90 3.0 25 13.1 1.2 4.8 Dubai 3,636 0.2 3.0 85 170 94-1.3 3.9 Abu Dhabi 4,480-1.5 117 39 33 16.4 1.3 4.5 Kuw ait 6,514-0.7 13.3 95 90 71 17.0 1.1 5.3 Oman 5,011 0.6-13.4 14 12 4 11.4 5.3 Bahrain 1,277 4.6 20 3.5 2 7.1 0.8 6.1 ; Note: P/E & Div Yield LTM basis Performance of FTSE Emerging Index Country Last Index Change (%) MCap Volume Turnover P/E (x) P/B (x) Div Yld Close 1D 1M YTD US$ bn mn shr US$ mn 12M Current 12M (%) Brazil 74,308-0.7 23.4 693 366 2,273 22.0 1.8 2.5 Czech Republic 1,066 0.2 15.6 55 3 37 13.5 1.4 5.2 Greece 759 2.1 18.0 55 44 65 25.3 0.6 2.0 Hungary 39,612-0.7 23.8 30 15 66 11.2 1.6 2.2 Malaysia 1,744-0.2-0.2 6.2 250 174 333 16.4 1.8 3.2 Mexico 48,626-6.5 301 169 391 18.3 2.6 2.3 South Africa 58,980 0.2 16.4 885 253 1,447 19.4 2.2 2.8 Taiw an 10,802 0.1 0.1 16.7 1,059 2,212 3,671 16.4 1.8 3.7 Thailand 1,721 11.6 511 5,013 1,514 18.0 2.1 2.8 Turkey 110,143 1.5 4 183 1,249 1,904 10.4 1.4 2.6 Chile 5,588-0.4 34.6 213 682 192 25.2 1.8 2.2 China 4,006 2 4,379 10,918 21,557 16.5 2.0 1.8 Colombia 1,425-0.9 5.4 85 369 89 1 1.3 2.4 Egypt 1,352 0.7 24.2 22 408 62 13.7 1.8 2.8 India 10,432 0.9 0.9 27.4 1,161 240 1,984 23.6 3.0 1.3 Indonesia 6,015 0.2 0.2 13.6 492 5,594 414 22.6 2.5 2.0 Kuw ait 6,514-0.7 13.3 95 90 71 17.0 1.1 5.3 Pakistan 39,985 0.9 0.9-16.4 67 94 79 8.2 1.5 5.8 Peru 1,642 0.1 31.6 54 1 32 25.4 2.5 1.5 Philippines 8,365 0.8 22.3 196 68 60 23.3 2.5 1.5 Qatar 8,165-0.4-21.8 90 3 25 13.1 1.2 4.8 Russia 1,113-0.9-3.4 527 9,255 494 7.9 0.8 UAE 4,480-1.5 117 39 33 16.4 1.3 4.5 FTSE Emerging Index 546 0.3 0.3 24.1 9,311 20,436 20,673 16.1 1.8 2.7 Dubai Activity Trend (Last 10 Days) Dubai Sector Performances Dubai Top Gainers / Losers 1.2 0.8 0.4 Turnover (LHS, AED bn) DFMGI Index (RHS) 3,680 3,670 3,660 3,650 3,640 3,630 3,620 3,610 3,600-3,590 2 Dubai Invest 2.63 2.3 36.02 1 ENBD 8.35 1.8 1.18 1 Aramex 5.12 1.4 0.36 Damac Properties 3.95 0.8 6.13 Gulf Navigation 1.49 0.7 2.27 - -1-1 Takaful Emarat Ins 1.86-3.6 0 Amlak Finance 8-2.7 3.80 Gulf General Inv 0.41-2.4 8 Drake & Scull Intl 0.45 32.69 Shuaa Capital 5-1.9 1.94 Disclosures Please refer to the important disclosures at the back of this report. 3
KSE Technology Investment Industrial Real estate Bank Fin. Parallel Telecom Consumer Basic material Oil&Gas Healthcare DSM Bank Telecom Consumer Transport Real Estate ADSM Real Estate Energy Telecome Banks Fin. Industrial Consumer Abu Dhabi Activity Trend (Last 10 Days) Abu Dhabi Sector Performances Abu Dhabi Top Gainers / Losers Turnover (LHS, AED bn) ADSMI Index (RHS) 6.0 5,000 4.0 3.0 4,500 2.0 4,000-4 Abu Dhabi Nat Hotels 2.95 9.3 00 3 Al Khazna Ins 0.31 3.3 2.310 2 International holding 1.49 2.8 1.903 Methaq Takaful 0.85 2.4 00 1 ADCB 7.39 1.9 0.854-1 -2-3 Al Ain Ahlia Ins 40.85-01 Sharjah Cement 7-1.8 68 Arkan Building Mat 0.69-1.4 1.749 Rak Properties 0.71-1.4 3.360 Dana Gas 0.75-1.3 12.263 Qatar Activity Trend (Last 10 Days) Qatar Sector Performances Qatar Top Gainers / Losers 0.6 0.3 Turnover (LHS, QAR bn) DSM Index (RHS) 8,400 8,000 - - -1.5-2.5 Qatary investors 29.35 2.7 40 - Medicare Group 68.49 1.5 08-1 Qatar Intl Is Bk 48.40 1.1 74 Barw a Real Est 31 0.8 0.170-1 CBQ 26.40 0.8 0.236-2 -2-3 Ooredoo 85.90-2.4 83 Mas Al Rayan 35.74-1.8 0.276-3 Qatar Electric 183.00-1.6 43-4 qatar first bank 28.20-1.6 0.217 Mazaya Qatar 8.16-1.6 40 Kuwait Activity Trend (Last 10 Days) Kuwait Sector Performances Kuwait Top Gainers / Losers 25 20 15 10 5 0 Turnover (LHS, KWD mn) KWSEIDX Index (RHS) 6,700 6,650 6,600 6,550 6,500 6,450 6,400 - - -1.5-2.5-3.0-3.5-4.0 Credit Rating & Coll 31.5 12.5 00 Alrai Media Grp 120 6.2 3.600 Gulf Invest House 24.4 3.8 1.380 Natl Industries Gp 155 3.3 6.497 Noor Financial Inv 62.9 3.3 2.279 3 3 2 2 1 1 - -1-1 -2 Real Estate Asset Mg 250-16.7 02 Independent Petro Gp 390-9.9 01 Sharjah Cement 84-9.7 0.330 Wethaq Takaful 40-9.1 47 Kuw ait Co For Proc 138-8.0 00 Oman Activity Trend (Last 10 Days) Oman Sector Performances Oman Top Gainers / Losers 8 4 0 Turnover (LHS, OMR mn) MSM30 Index (RHS) 5,150 5,100 5,050 5,000 4,950 4,900 4,850 0.7 0.6 0.4 0.3 0.2 0.1 MSM 30 Bank Industry -4.0-6.0-8.0-1 -12.0-14.0-16.0-18.0 Al Anw ar Holding 0.134 3.1 0.981 Oman Telecom 1.180 3.1 0.158 Sembcorp 0.229 2.2 39 Oman Fisheries 0.118 1.7 1.643 NBO 0.185 1.7 28 Gulf Invest Svcs 73-2.7 0.117 Almadina Invt 56-1.8 0.707 Oman & Emir (O) 50 77-1.3 0.313 Bank Nizw a 90-1.1 0.175 Al Sharqiya Inv 0.103-73 Disclosures Please refer to the important disclosures at the back of this report. 4
BSE Banks Hotel & Tourism Industries Bahrain Activity Trend (Last 10 Days) Bahrain Sector Performances Bahrain Top Gainers / Losers 4.0 3.0 2.0 - Turnover (LHS, BHD mn) BHSEASI Index (RHS) 1,290 1,288 1,286 1,284 1,282 1,280 1,278 1,276 1,274 1,272 1,270 0.3 0.2 0.1-0.1-0.2-0.3-0.4 8 7 6 5 4 3 2 1-1 -2 BBK 0.416 3.0 90 Bahrain Duty Fre 0.765 2.0 56 Seef Properties 0.200 0.776 Albaraka Banking 0.375-1.3 54 Bahrain Telecom 0.202-0.305 NBB 0.630-0.8 21 Disclosures Please refer to the important disclosures at the back of this report. 5
IMPORTANT DISCLOSURES FOR U.S. PERSONS This research report was prepared by Al Rajhi Capital (Al Rajhi), a company authorized to engage in securities activities in Saudi Arabia. Al Rajhi is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. This research report is provided for distribution to major U.S. institutional investors in reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the Exchange Act ). Any U.S. recipient of this research report wishing to effect any transaction to buy or sell securities or related financial instruments based on the information provided in this research report should do so only through Rosenblatt Securities Inc, 40 Wall Street 59th Floor, New York, NY 10005, a registered broker dealer in the United States. Under no circumstances should any recipient of this research report effect any transaction to buy or sell securities or related financial instruments through Al Rajhi. Rosenblatt Securities Inc. accepts responsibility for the contents of this research report, subject to the terms set out below, to the extent that it is delivered to a U.S. person other than a major U.S. institutional investor. The analyst whose name appears in this research report is not registered or qualified as a research analyst with the Financial Industry Regulatory Authority ( FINRA ) and may not be an associated person of Rosenblatt Securities Inc. and, therefore, may not be subject to applicable restrictions under FINRA Rules on communications with a subject company, public appearances and trading securities held by a research analyst account. Ownership and Material Conflicts of Interest Rosenblatt Securities Inc. or its affiliates does not beneficially own, as determined in accordance with Section 13(d) of the Exchange Act, 1% or more of any of the equity securities mentioned in the report. Rosenblatt Securities Inc, its affiliates and/or their respective officers, directors or employees may have interests, or long or short positions, and may at any time make purchases or sales as a principal or agent of the securities referred to herein. Rosenblatt Securities Inc. is not aware of any material conflict of interest as of the date of this publication. Compensation and Investment Banking Activities Rosenblatt Securities Inc. or any affiliate has not managed or co-managed a public offering of securities for the subject company in the past 12 months, nor received compensation for investment banking services from the subject company in the past 12 months, neither does it or any affiliate expect to receive, or intends to seek compensation for investment banking services from the subject company in the next 3 months. Additional Disclosures This research report is for distribution only under such circumstances as may be permitted by applicable law. This research report has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient, even if sent only to a single recipient. This research report is not guaranteed to be a complete statement or summary of any securities, markets, reports or developments referred to in this research report. Neither Al Rajhi nor any of its directors, officers, employees or agents shall have any liability, however arising, for any error, inaccuracy or incompleteness of fact or opinion in this research report or lack of care in this research report s preparation or publication, or any losses or damages which may arise from the use of this research report. Al Rajhi may rely on information barriers, such as Chinese Walls to control the flow of information within the areas, units, divisions, groups, or affiliates of Al Rajhi. Investing in any non-u.s. securities or related financial instruments (including ADRs) discussed in this research report may present certain risks. The securities of non-u.s. issuers may not be registered with, or be subject to the regulations of, the U.S. Securities and Exchange Commission. Information on such non-u.s. securities or related financial instruments may be limited. Foreign companies may not be subject to audit and reporting standards and regulatory requirements comparable to those in effect within the United States. The value of any investment or income from any securities or related financial instruments discussed in this research report denominated in a currency other than U.S. dollars is subject to exchange rate fluctuations that may have a positive or adverse effect on the value of or income from such securities or related financial instruments. Past performance is not necessarily a guide to future performance and no representation or warranty, express or implied, is made by Al Rajhi with respect to future performance. Income from investments may fluctuate. The price or value of the investments to which this research report relates, either directly or indirectly, may fall or rise against the interest of investors. Any recommendation or opinion contained in this research report may become outdated as a consequence of changes in the environment in which the issuer of the securities under analysis operates, in addition to changes in the estimates and forecasts, assumptions and valuation methodology used herein. No part of the content of this research report may be copied, forwarded or duplicated in any form or by any means without the prior consent of Al Rajhi and Al Rajhi accepts no liability whatsoever for the actions of third parties in this respectthis research document has been prepared by Al Rajhi Capital Company ( Al Rajhi Capital ) of Riyadh, Saudi Arabia. It has been prepared for the general use of Al Rajhi Capital s clients and may not be redistributed, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of Al Rajhi Capital. Receipt and review of this research document constitute your agreement not to redistribute, retransmit, or disclose to others the contents, opinions, conclusion, or information contained in this document prior to public disclosure of such information by Al Rajhi Capital. The information contained was obtained from various public sources believed to be reliable but we do not guarantee its accuracy. Al Rajhi Capital makes no representations or warranties (express or implied) regarding the data and information provided and Al Rajhi Capital does not represent that the information content of this document is complete, or free from any error, not misleading, or fit for any particular purpose. This research document provides general information only. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other investment products related to such securities or investments. It is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek financial, legal or tax advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this document and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that the price or value of such securities and investments may rise or fall. Fluctuations in exchange rates could have adverse effects on the value of or price of, or income derived from, certain investments. Accordingly, investors may receive back less than originally invested. Al Rajhi Capital or its officers or one or more of its affiliates (including research analysts) may have a financial interest in securities of the issuer(s) or related investments, including long or short positions in securities, warrants, futures, options, derivatives, or other financial instruments. Al Rajhi Capital or its affiliates may from time to time perform investment banking or other services for, solicit investment banking or other business from, any company mentioned in this research document. Al Rajhi Capital, together with its affiliates and employees, shall not be liable for any direct, indirect or consequential loss or damages that may arise, directly or indirectly, from any use of the information contained in this research document. This research document and any recommendations contained are subject to change without prior notice. Al Rajhi Capital assumes no responsibility to update the information in this research document. Neither the whole nor any part of this research document may be altered, duplicated, transmitted or distributed in any form or by any means. This research document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or which would subject Al Rajhi Capital or any of its affiliates to any registration or licensing requirement within such jurisdiction. 6
Disclaimer and additional disclosures for Equity Research Disclaimer This research document has been prepared by Al Rajhi Capital Company ( Al Rajhi Capital ) of Riyadh, Saudi Arabia. It has been prepared for the general use of Al Rajhi Capital s clients and may not be redistributed, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of Al Rajhi Capital. Receipt and review of this research document constitute your agreement not to redistribute, retransmit, or disclose to others the contents, opinions, conclusion, or information contained in this document prior to public disclosure of such information by Al Rajhi Capital. The information contained was obtained from various public sources believed to be reliable but we do not guarantee its accuracy. Al Rajhi Capital makes no representations or warranties (express or implied) regarding the data and information provided and Al Rajhi Capital does not represent that the information content of this document is complete, or free from any error, not misleading, or fit for any particular purpose. This research document provides general information only. Neither the information nor any opinion expressed constitutes an offer or an invitation to make an offer, to buy or sell any securities or other investment products related to such securities or investments. It is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek financial, legal or tax advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this document and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities or other investments, if any, may fluctuate and that the price or value of such securities and investments may rise or fall. Fluctuations in exchange rates could have adverse effects on the value of or price of, or income derived from, certain investments. Accordingly, investors may receive back less than originally invested. Al Rajhi Capital or its officers or one or more of its affiliates (including research analysts) may have a financial interest in securities of the issuer(s) or related investments, including long or short positions in securities, warrants, futures, options, derivatives, or other financial instruments. Al Rajhi Capital or its affiliates may from time to time perform investment banking or other services for, solicit investment banking or other business from, any company mentioned in this research document. Al Rajhi Capital, together with its affiliates and employees, shall not be liable for any direct, indirect or consequential loss or damages that may arise, directly or indirectly, from any use of the information contained in this research document. This research document and any recommendations contained are subject to change without prior notice. Al Rajhi Capital assumes no responsibility to update the information in this research document. Neither the whole nor any part of this research document may be altered, duplicated, transmitted or distributed in any form or by any means. This research document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or which would subject Al Rajhi Capital or any of its affiliates to any registration or licensing requirement within such jurisdiction. Explanation of Al Rajhi Capital s rating system Al Rajhi Capital uses a three-tier rating system based on absolute upside or downside potential for all stocks under its coverage except financial stocks and those few other companies not compliant with Islamic Shariah law: "Overweight": Our target price is more than 10% above the current share price, and we expect the share price to reach the target on a 12 month time horizon. "Neutral": We expect the share price to settle at a level between 10% below the current share price and 10% above the current share price on a 12 month time horizon. "Underweight": Our target price is more than 10% below the current share price, and we expect the share price to reach the target on a 12 month time horizon. "Target price": We estimate target value per share for every stock we cover. This is normally based on widely accepted methods appropriate to the stock or sector under consideration, e.g. DCF (discounted cash flow) or SoTP (sum of the parts) analysis. Please note that the achievement of any price target may be impeded by general market and economic trends and other external factors, or if a company s profits or operating performance exceed or fall short of our expectations. Contact us Al Rajhi Capital Research Department Head Office, King Fahad Road P.O. Box 5561, Riyadh 11432 Kingdom of Saudi Arabia Email: research@alrajhi-capital.com Al Rajhi Capital is licensed by the Saudi Arabian Capital Market Authority, License No. 07068/37. 7