22-Mar 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 05 April 2018 TASI Index 7,871.7 0.92% Turnover (SAR mn) 5,382.4 15% TASI Intra Day Movement 7,880 7,860 7,840 7,820 7,800 7,780 7,760 Intraday TASI Activity Trend (Last 10 Days) - 6 4 2 Turnover (LHS, SAR bn) Previous Close TASI Index (RHS) 8,000 7,500 7,000 6,500 6,000 Regional Indices Close 1D% WTD% YTD% KSA (TASI) 7,872 0.9 8.9 Qatar (DSM) 8,708-0.2 1.6 2.2 Kuw ait (KSE) 4,825-0.8 NA NA Abu Dhabi (ADSM) 4,609 0.5 0.5 4.8 Dubai (DFM) 3,091-0.3-0.6-8.3 Oman (MSM30) 4,795 0.4 0.4-6.0 Bahrain (BSE) 1,283-0.6-2.7-3.7 MSCI GCC 511 0.5-0.5 6.6 Major Commodities / Currencies Close 1D % WTD % YTD % Gold Spot $/Oz 1,331-0.2 0.5 2.2 Silver Spot $/Oz 16.31-0.4-3.7 Crude Oil (Brent) 68.35 0.5-1.4 3.9 OPEC Basket 64.98-1.7-1.4 0.8 Euro 1.23-0.4 2.3 USD Index 90.16-2.1 JPY 106.970-0.2-0.6 5.3 Major Global Indices Close 1D % WTD % YTD % DJ Industrial 24,264 0.7-1.8 S&P 500 2,645 1.2 0.1-1.1 Nikkei 225 21,668 1.6-4.8 Hang seng 29,519-2.2-1.9-1.3 FTSE 100 7,034 0.1-0.3-8.5 CAC 40 5,142-0.2-0.5-3.2 MSCI World 2,061 0.6-0.3 - MSCI EM 1,156-1.2-1.3-0.2 Interest Rates 1M 3M 12M 3M Chg 1Y LIBOR (USD) 1.88 2.32 2.67 1.17 SAIBOR 3 2.28 2.67 0.54 EIBOR 1.91 2.39 2.92 0.93 Data Sources: Bloomberg Updated as of 05/Apr/2018 8:42 AM Global commentary Research Department research@alrajhi-capital.com Tel:+966 11 211 9449 US stock markets advanced on Wednesday, as investors brushed aside concerns over a trade war between the US and China. The Nasdaq Composite Index and the S&P 500 gained 1.5% and 1.2%, respectively while the Dow Jones rose 1%. Meanwhile, the ADP employment change data was better-than expected (241K in Mar Vs 205K consensus), whereas the factory orders data was weaker-thanexpected (+1.2% m-o-m in Feb Vs +1.7% m-o-m consensus). European markets declined on Wednesday. The DAX dropped 0.4%, dragged down by automobile and technology stocks; while the CAC 40 lost 0.2%, pushed down by the industrials and materials sectors. However, the FTSE 100 edged up 0.1%. On the economic data front, the Eurozone s consumer inflation (preliminary) (+1.4% y-o-y in Mar) and the unemployment rate (8.5% in Feb) were in line with expectations. Most stock markets in the GCC region dropped yesterday. Kuwait (Premier Market) and Bahrain slipped 0.8% and 0.6%, respectively while Dubai lost 0.3%, dragged down by Emaar Properties. Qatar fell 0.2%, pulled down by financial stocks. However, Abu Dhabi and Oman gained 0.5% and 0.4%, respectively. Asian markets are trading in the green this morning, tracking cues from the US. The Nikkei 225 is up 1.7%, driven by telecom and pharma shares, while the KOSPI is up 1.4%. Meanwhile, the Shanghai Composite Index and the Hang Seng Index are closed on account of a holiday. Brent crude dropped 0.2% on Wednesday, owing to concerns over trade war. However, the drop was trimmed as the EIA reported a weekly fall in the US crude oil inventories. Key crude contracts Brent and WTI ended at US$ 68.02 (-0.2%) and US$ 63.37 (-0.2%), respectively. Saudi commentary Tadawul All Share Index (TASI) rose 71.90 points or 0.92% to close at 7,871.67. Eighteen of the twenty sector indices closed higher. The advance decline ratio was 123/53. Trading turnover was around SAR 5.4bn. Dur to pay dividend for H2 2017 on April 12: Dur Hospitality Co. will pay a 3% cash dividend for the second half of 2017 on April 12. Earlier this week, the company s general assembly approved the dividend, to be issued at SAR 0.3 per share, amounting to SAR 30 million. (Source: Tadawul) Prince Mohammed, Walt Disney CEO discuss investments: Saudi Crown Prince Mohammed bin Salman met Walt Disney s chief executive, Robert Bob Allen Iger, in Los Angeles and explored opportunities for potential cooperation in entertainment, culture and film-making industry. (Source: SPA) Jabal Omar plans to boost revenue by sale-on-deposit deals: Jabal Omar Development Co. is expected to generate SAR 4 to 4.5 billion revenue from selling out Phase III of the Address Hotel project by sale-on-deposit arrangements, said CEO Yaser Al Sharif. (Source: Al Arabiya TV) 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 Services 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 1.5 0.5-0.5-1.5 - TASI Materials Banks Real Estate Telecom 2 1 1-1 -1 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Bupa Arabia 102.70 7.6 0.721 72.85 Alsorayai Group 14.37 6.6 2.845 40.89 Co For Coop Ins 79.45 5.4 1.214 93 Abd A.M. Al Khodari 8.88 4.5 6.933 60.71 Jarir Mktg 177.89 4.2 0.111 19.25 Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Saudi Cable Co 10.1-2.3 92 21.25 Makkah Const 73.5-1.4 0.186 13.72 SACO 126.2-1.3 50 6.31 Aldrees Petroleum 26.1-1.2 0.639 16.70 Al Othaim 155.4-1.1 82 12.92 TASI Mid Cap (5-10% index weight) Sectors Performance TASI Top Index Movers / Losers (Heavy weight stocks) 3.0 Food & Beverages Capital Goods Utilities Retailing 18.0 16.0 1 1 1 8.0 6.0 - Company Last Price Chg % Index Imp Value Trd (SAR mn) Al Rajhi Bk 76.03 1 3.69 STC 83.41 2.6 6.7 0.26 Jarir Mktg 177.89 4.2 6.2 0.11 Samba 26.98 2.2 5.9 1.14 Dar Al Arkan 13.47 3.9 5.5 74.65 Company Last Price Chg % Index Imp Value Trd (SAR mn) Jabal Omar 47.70-0.8-38.31 Makkah Const 73.50-1.4-1.3 13.72 National Shipp 31.56-0.9-0.6 27.38 Al Othaim 155.44-1.1-0.5 12.92 Bank Al-Jazira 11.84-0.6-0.5 108.58 TASI Small Cap (<5% index weight) Sectors Performance 8 6 4 2 0-2 -4-6 3 3 2 2 1 1 TASI Volume Leaders Company Last Price Chg % Vol (mn) Value Trd (SAR mn) Dar Al Arkan 13.47 3.9 74.648 1003.15 Alinma Bk 20.84 0.8 36.434 769 Saudi Kayan 13.87 0.4 13.103 182.28 Bank Al-Jazira 11.84-0.6 9.068 108.58 Abd A.M. Al Khodari 8.88 4.5 6.933 60.71 Sabic 114.77 5.916 680.72 Saudi Paper Mfg 8.83 1.2 3.941 35.37 NIC 20.21 2.1 3.918 79.16 Sahara Petro 17.60 0.3 3.720 65.65 Al Rajhi Bk 76.03 3.687 280.20 TASI Stocks Closer to 52 Week High TASI - Stocks Closer to 52 Week Low Company Last Price 52Wk High % Diff Value Trd (SAR mn) Astra Industrial Gp 17.38 17.42 0.2% 10.338 Petro Rabigh 25.42 25.50 0.3% 81.153 NIC 20.21 20.36 0.7% 79.156 Alinma Bk 20.84 20 0.8% 7691 Saudi Kayan 13.87 10 0.9% 182.280 Company Last Price 52Wk Low % Diff Value Trd (SAR mn) Al Rajhi REIT 8.93 8.93 % 2.745 Etihad Atheeb 6.05 6.05 % 4.696 Jabal Omar 47.70 47.50 0.4% 38.308 Wafa 15.95 15.80 0.9% 7.553 Yamamah Cem 15.97 15.80 1.1% 5.163 Disclosures Please refer to the important disclosures at the back of this report. 2
Summary of our Coverage Mcap Last ADTV P/E (x) EV/EBITDA (x) TP Upside (%) (SAR) (SARmn) Price (SARmn) 2016A 2017A 2018E 2016A 2017A 2018E 2017A Div. Yield (%) SABIC 344,310 114.77 10 (8.51) 507.2 14.9x 18.7x 17.7x 7.3x 8.0x 8.9x 3.7% Sipchem 7,964 21.72 18.5 (14.83) 2 15.9x 18.3x 16.1x 8.8x 8.1x 8.2x 2.3% SAFCO 28,837 69.21 6 (10.42) 19.6 35.4x 33.0x 19.8x 23.6x 20.6x 16.1x 2.5% NIC 13,519 20.21 1 (25.78) 40.1 16.3x 18.9x 20.8x 25.6x 24.3x NA % Yansab 40,376 71.78 68.0 (5.27) 23.6 12.8x 17.1x 16.3x 8.4x 8.9x 11.1x 4.6% APCC 9,613 48.85 47.0 (3.79) 18.0 14.3x 15.3x 14.2x 11.7x 11.4x 11.3x 5.7% Arabian Cement 3,499 34.99 36.0 2.89 5.9 17.0x 13.3x 22.3x 10.2x 8.8x 9.1x 11.4% Yamama Cement 3,234 15.97 17.0 6.45 3.5 42.3x 29.6x 24.2x 13.4x 13.3x 11.2x % Saudi Cement 7,552 49.36 4 (14.91) 6.8 24.1x 16.7x 1x 16.3x 11.3x 12.3x 8.1% Qassim Cement 3,783 43 4 (7) 2.6 2x 1x 18.1x 16.8x 10.5x 9.4x 6.9% Yanbu Cement 5,049 36 3 (3.31) 8.7 2x 15.9x 17.4x 1x 10.2x 10.6x 6.2% Southern Cement 6,168 46 4 (0.14) 3.1 31.2x 16.7x 15.2x 20.7x 12.7x 11.3x 3.4% Ma'aden 62,514 53.5 43.5 (18.69) 29.1 NM 87.7x 42.4x 18.9x 2x 18.3x % Telecom STC 166,820 83.41 78.5 (5.89) 23.9 14.3x 16.5x 16.3x 7.1x 6.7x 8.2x 4.8% Mobily 11,750 15.26 13.4 (12.19) 37.0 NM NM NM 9.0x 6.7x 6.1x % Zain 4,250 7.28 7.3 0.27 20.4 NM NM 29.8x 6.3x 5.6x 5.2x % Food & Agriculture Almarai 54,970 54.97 48.2 (12.32) 29.6 25.7x 25.2x 24.5x 14.7x 14.4x 1x 1.4% Savola 23,490 43.99 40.2 (8.62) 15.2 NM 22.9x 24.5x NM 33.6x 14.3x 2.3% Herfy 3,149 48.69 NA UR 11.2 18.1x 15.8x 14.9x 13.7x 11.6x 11.4x 4.3% Catering 6,853 83.57 89.0 6.50 13.3 18.0x 14.2x 13.0x 14.3x NM 11.2x 6.6% Retail Jarir 16,010 177.89 165.3 (7.08) 11.6 1x 18.5x 17.4x 11.6x 14.8x 17.2x 3.5% Alhokair 5,689 27.09 4 47.66 14.2 19.8x 14.6x 1x 11.4x 9.7x 8.2x % Alothaim 6,995 155.44 149.6 (3.76) 10.8 9.9x 15.6x 19.0x 9.9x 11.4x 13.3x 3.2% Extra 2,890 68.81 60.3 (12.37) 20.9 NM 20.6x 21.4x 4.4x 1x 15.3x 2.9% Shaker 686 10.89 11.3 3.76 4.1-6.2x NM NM 29.0x NM NM % Healthcare Dallah 6,118 103.7 11 10.90 6.5 19.0x 20.7x 21.2x 16.0x 17.4x 16.8x 2.4% Mouwasat 8,980 179.59 149.0 (17.03) 7.8 2x 26.7x 25.6x 16.8x 17.2x 19.4x 1.7% NMCC 2,691 59.99 5 (16.65) 17.9 31.8x 31.6x 23.4x 17.8x 11.8x 16.3x 1.7% Al Hammadi 4,415 36.79 4 8.73 14.3 46.1x 40.9x 28.0x 28.6x 24.5x 19.5x % Other Bahri 12,427 31.56 NA UR 15.9 21.4x 15.5x 1x 12.7x 10.9x 9.2x 4.8% Source: Bloomberg, AlRajhi capital * Fawaz Al Hokair fiscal ending is March, hence 2017e corresponds to Year ending March 2018 Disclosures Please refer to the important disclosures at the back of this report. 3
22-Mar DFM Bank Reality Investment Transport Telcom Services 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 7,872 0.9 8.9 494 226 1,427 17.2 1.7 3.3 Qatar 8,708-0.2 1.6 2.2 101 9.1 43 13.0 1.3 Dubai 3,091-0.3-0.6-8.3 82 73 36-1.1 5.4 Abu Dhabi 4,609 0.5 0.5 4.8 128 51 28 11.8 1.3 5.2 Kuw ait (Premier Market) 4,825-0.8 NA NA 58 19 27 14.8 1.4 Oman 4,795 0.4 0.4-6.0 13 23 10 12.3 Bahrain 1,283-0.6-2.7-3.7 19 0.8 0 8.7 0.8 6.4 ; 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 84,360-0.3-1.2 10.4 791 304 2,160 21.2 1.9 2.9 Czech Republic 1,112-0.4-1.1 3.1 61 2 27 13.1 1.4 5.2 Greece 781 0.2 0.1-2.6 60 31 46 23.2 0.7 2.2 Hungary 37,275-1.6-5.3 30 3 32 10.9 1.5 2.3 Malaysia 1,836 1.1-1.5 2.2 284 136 277 17.3 1.8 3.4 Mexico 47,457 1.7 2.9-3.8 320 211 462 18.3 2.4 2.3 South Africa 54,603-0.5-1.6-8.2 950 273 2,323 16.5 1.9 3.3 Taiw an 10,822-0.6-0.9 1.7 1,107 2,161 3,682 15.3 1.7 3.7 Thailand 1,725-2.3-2.9-1.6 553 5,594 2,673 17.3 3.0 Turkey 113,976-0.5-0.8-1.2 178 1,070 1,490 9.1 1.3 3.4 Chile 5,543 0.2-0.4 215 1,030 140 2 1.8 2.2 China 3,855-0.2-1.1-4.4 4,509 8,873 20,838 15.3 1.9 Colombia 1,498 0.3 2.9-1.1 118 33 50 16.6 1.3 2.4 Egypt 1,669-0.1 0.6 16.1 28 636 116 13.7 2.1 2.1 India 10,128-1.1 0.1-3.8 1,128 233 1,792 2 3.1 1.3 Indonesia 6,189 0.5-2.6 499 7,273 387 21.4 2.5 2.1 Kuw ait 4,825-0.8 NA NA 58 19 27 14.8 1.4 Pakistan 46,104 0.2 1.2 13.9 70 148 94 9.7 1.7 Peru 1,894 0.8 3.1 13.7 66 1 36 18.4 2.8 2.8 Philippines 7,996 0.2-6.6 188 86 82 21.7 2.4 1.6 Qatar 8,708-0.2 1.6 2.2 101 9 43 13.0 1.3 Russia 1,240 0.3-0.7 7.4 583 21,734 602 8.2 0.9 4.8 UAE 4,609 0.5 0.5 4.8 128 51 28 11.8 1.3 5.2 FTSE Emerging Index 567 0.2 0.1 9,736 32,891 21,064 15.8 1.8 2.7 Dubai Activity Trend (Last 10 Days) Dubai Sector Performances Dubai Top Gainers / Losers 0.4 Turnover (LHS, AED bn) DFMGI Index (RHS) 3,160 3,140 3,120 3,100 3,080 3,060 Amlak Finance 0.83 1.6 5.90 - Drake & Scull Intl 1.72 1.2 5.58 Dubai Islamic Ins 0.71 1.1 2 Gulf Navigation 3 0.78-6.0 DFM 4 8.54-8.0-1 -1-1 DXB Entertainments 0.45-3.2 11 Gulf General Inv 0.32-2.4 2.53 Dubai Invest 2.10-1.9 1.66 Tabreed 1.60-1.8 0.75 Aramex 4.20-1.4 0.24 Disclosures Please refer to the important disclosures at the back of this report. 4
22-Mar KSE Technology Investment Industrial Real estate Bank Fin. Services Parallel Services Telecom Consumer Basic material Oil&Gas Healthcare 22-Mar DSM Bank Telecom Consumer Transport Real Estate 22-Mar ADSM Real Estate Energy Telecome Banks Fin.Services Industrial Services Consumer Abu Dhabi Activity Trend (Last 10 Days) Abu Dhabi Sector Performances Abu Dhabi Top Gainers / Losers 0.5 Turnover (LHS, AED bn) ADSMI Index (RHS) 5,000 4,500 3.0 - -3.0-6.0-7.0-8.0-9.0-1 -1 2 Comm Bk Intl 0.87 14.5 10 UNB 3.70 4.8 0.180 1 Abu Dhabi Nation 2.64 2.7 0.590 1 Sharjah Islamic Bk 1.27 2.4 0.201 FAB 11.95 1.7 1.242-1 Waha Capital 1.94-3.0 0.107 Aldar Prop 6-2.4 13.735 Dana Gas 0.96-11.888 Agthia Group 4.41-0.9 0.290 Etisalat 17.35-0.6 0.294 Qatar Activity Trend (Last 10 Days) Qatar Sector Performances Qatar Top Gainers / Losers 0.6 0.3 Turnover (LHS, QAR bn) DSM Index (RHS) 9,200 8,800 8,400 3.0 - -3.0 1 Vodafone Qatar 9.15 4.803 Qatar Intl Is Bk 50.89 1.2 0.284 1 CBQ 31.34 1.1 77 Ind Qatar 108.99 0.9 49 QNB 134.50 0.5 0.163-1 -1 INVESTMENT HOLDI 5.80-3.2 0.447 Nakilat 15.10-2.6 0.616 Qatar First Bank 6.25-1.131 Barw a Real Est 33.56-1.9 0.211 Doha Bank 26.05-1.7 0.737 Kuwait Activity Trend (Last 10 Days) Kuwait Sector Performances Kuwait Top Gainers / Losers 12 10 8 6 4 2 0 Turnover (LHS, KWD mn) KWSEIDX Index (RHS) 5,000 4,950 4,900 4,850 4,800 4,750 1 1-1 2 Boubyan Bank 470 0.2 0.243 2 1 1-1 -1 Kuw ait Intl Bk 224-2.2 1.330 Ahli United Bank 183-2.1 4.713 Mabanee Co 700-1.8 0.375 Boubyan Petrochem 737-1.6 0.681 Gulf Bank 247-1.6 1.195 Oman Activity Trend (Last 10 Days) Oman Sector Performances Oman Top Gainers / Losers 24 20 16 12 8 4 0 Turnover (LHS, OMR mn) MSM30 Index (RHS) 4,820 4,800 4,780 4,760 4,740 4,720 4,700 2.5 1.5 0.5-0.5 MSM 30 Bank Industry Services - -3.0-6.0-7.0 Oman & Emir (O) 50 0.128 4.1 0.891 HSBC Bank Oman 0.104 0.839 Galfar Engineering 0.109 1.9 2.747 Bank Sohar 0.143 1.4 3.541 Al Madina 93 1.1 1.112 Al Sharqiya Inv 0.126-2.3 0.838 Al Jazeira Ser 0.187-1.1 0.906 Oman Fisheries 0.127-0.8 0.346 Al Anw ar Holding 0.160-0.6 0.725 Raysut Cement 0.728-0.6 14 Disclosures Please refer to the important disclosures at the back of this report. 5
22-Mar BSE Banks Hotel & Tourism Industries Services Bahrain Activity Trend (Last 10 Days) Bahrain Sector Performances Bahrain Top Gainers / Losers 3.0 - Turnover (LHS, BHD mn) BHSEASI Index (RHS) 1,340 1,330 1,320 1,310 1,300 1,290 1,280 1,270 1,260 1,250 - -3.0 - -6.0-8.0-1 Gulf Hotel Group 0.500-5.7 54 Ithmaar Bank 0.105-4.6 0.182 Arab Banking Corp 0.300-1.6 0.100 Ahli United Bk 0.625-1.6 0.215 Disclosures Please refer to the important disclosures at the back of this report. 6
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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. 8