Amman Stock Exchange 11 and Financials Review January 2nd, 12 Feras Musmar Senior Research Analyst Awraq Investments Firas.Musmar@awraq.com Hazem Mraish Research Analyst Awraq Investments Hmraish@awraq.com
Financial Results for Companies Listed Introduction This report takes a look at year 11 stock performance of the ASE sectors in general, main financial and profitability indicators of the reported companies with in sectors and briefly highlights fundamental factors that have substantially changed during the period to. In the beginning of the year, there were 278 company listed on the Amman Stock Exchange (ASE), 7 of those companies have reported their financial results for, those companies where the main focus of the report. Also it should be noted that most of the companies that did not report their results for are listed in the secondary market and are not required by law to publish their results, a table of companies that did not report their results can be found at the end of the report. During the year 11, nineteen companies got delisted from the ASE. Free Float Index During year 11, the ASE Free Float General Index dropped from 2373.58 points to 1995.13 points. A decrease of 16.7%. Figure 1: Amman Stock Exchange Free Float Index 4500 00 3500 3000 2500 00 1500 00 500 0 General Index Services Financials Industries Banks Source: Amman Stock Exchange Most of the sectors in Amman Stock Exchange witnessed a sharp drop in stock prices. The Electrical Industries sector saw the highest drop, losing 50%, which is mostly due to the huge drop in Middle East Complex (MECE) stock price which dropped 70%. Other notable drops include the Transportation Sector which dropped 41% due to the deteriorating performance and profitability of Royal Jordanian Airlines (RJAL), which reported a net loss of JD (42.4) million by, the highest loss of all the companies that reported results in, the stock of RJAL witnessed a drop of 57%. Other notable drops include the Diversified Financial Services sector which lost 45%, and the Media Sector (which consists of only two companies) dropped by 38%. Page 2 of 53
50% 38% 32% 38% 31% 26% 28% 17% 22% 13% 21% 18% 21% 8% 13% 13% 17% 9% 6% 4% 7% 3% 8% 9% 7% 3% 5% 2% 1% 3% 4% 2% 11% 18% 26% 26% 45% 42% 38% 35% 24% 24% 22% 27% 19% 21% 13% 12% 18% % 17% 12% 9% 11% 12% 15% 9% 5% 8% 8% 7% 7% 2% 1% 2% 2% 2% 7% 5% 5% 15% 19% Financial Results for Companies Listed Figure 2: Index Growth Rates by Sector 30% 09 11 % % 0% % % 30% % 50% Source: Amman Stock Exchange Only four sectors have witnessed a rise in their stock prices, these include: the Tobacco Sector, Printing and Packaging Sector, Technology and Communications, and Textiles Sectors which gained 15%, 2%, 2% and 3% respectively. The Tobacco Sector consists of two companies, and the growth in the sector is attributed to The Eqbal Investment Company (EICO) which witnessed an increase in profitability that reflected positively on the stock performance, where its stock price grew by 24%. Figure 3: Index Growth Rates by Sector % 30% 09 11 % % 0% % % 30% % 50% 60% Source: Amman Stock Exchange Page 3 of 53
4,0 4,475 5,425 6,019 4,071 2,850 6,989 6,690 14,5 12,345 9,665 Value Traded () Volume of Traded Shaers (million ),297 JD Financial Results for Companies Listed Trading Value and Volume In addition to the drop in most sectors performances during 11, the Amman Stock Exchange also witnessed a major drop in the number of shares traded from 6.99 million in to 4.07 million shares in 11. While the value of traded shares during 11 was JD 2.85 Million, much lower than the value of traded share in year of JD 6.69 million. Figure 4: Trading Value and Volume Number of Traded Shares Value of Traded Shares Average Price of Traded Shares 25,000 3.46 3.74 4.0 3.5,000 2.76 3.0 15,000 2.5,000 5,000 1.61 0.96 0.70 2.0 1.5 1.0 0.5 0.0 Source: Amman Stock Exchange The highest company traded in terms of volume was MECE, where trading volume reached 570 million shares, while value traded was reached JD 196 million. The Arab Bank (ARBK) was the highest traded company in terms of value where total value traded reached JD 1 million, while AlTajamouat For Catering And Housing (JNTH) came in third place in terms of trading volume at 195 million shares traded. Figure 5: Monthly Value Traded for 11 & 1,0 1,000 Value of Traded Shares in 11 Value of Traded Shares in 929 1,131 800 600 0 0 0 592 5 493 217 290 265 586 314 560 493 433 446 389 354 284 249 236 176 198 182 139 181 Source: Amman Stock Exchange Page 4 of 53
1.45 1.25 1.26 1.12 0.98 0.72 0.98 1.09 0.91 0.86 0.60 0.69 3.60 3.19 JD billion.22 11.70 Million Shares Financial Results for Companies Listed Figure 6: Top Ten Companies by Value Traded Value Traded Trading Volume 250 570 600 0 1 500 150 0 50 23 196 153 195 9 3 99 63 52 7 91 87 87 5 68 17 0 300 0 0 Source: Amman Stock Exchange Nationality During year 11 the value held by different nationalities has increased except for Americans where value dropped to JD 0.98 billion from JD 1.09 billion. Total value owned by Jordanians has increased to reach JD 11.7 billion from JD.22 billion in. Figure 7: Top Nationalities by Total Value Total Value Nov. 11 Total Value Nov. 14 12 8 6 4 2 Source: Securities Depository Center Page 5 of 53
0.33 0.33 0.33 0.39 0.26 0.28 0.18 0.18 0.14 0.14 0.11 0.14 0.72 0.77 Billion Shares 4.99 5.09 Financial Results for Companies Listed Figure 8: Top Nationalities by Number of Shares Number of Shares for Nov 11 Number of Shares for Nov 6 5 4 3 2 1 Source: Securities Depository Center Page 6 of 53
Financial Results for Companies Listed Banking Sector This sector consists of 23 banks operating in Jordan, of which 15 are listed on the ASE, only JOKB and JCBK did not report their results for,both are listed on the secondary market and are not required by law to publish their Q3 results. Sector Brief The banking sector is the largest sector in Amman Stock Exchange in terms of market capitalization, revenues and assets size. of the reported banks have increased by about 4% to reach JD 1.58 Billion from JD 1.52 Billion during the first nine months for year. While net income reached JD 9 million for the three quarters of 11. Total assets of the sector reached JD 45.4 Billion by the end of the third quarter of year 11. Main Company Highlights Arab Bank Plc. (ARBK) is still the largest financial institution in Jordan; ARBK has the highest total assets, shareholders' equity, liabilities, revenues and net profit. Net Direct Credit Facilities have slightly decreased to JD.1 Billion, while provision of bad debt has increased 60% to reach JD 558 million by the end of ; from JD 349 million reported in. ARBK s net profit increased JD 12 million to reach JD 216 million in, an increase of 6% compared to the net profit of the same period of. ARBK stock price has dropped 22% from the beginning of 11. Figure 9: Revenue, Net Interest & Commission, Gross Profit & for Banking Sector Revenue Revenue Net Interest & Commission Net Interest & Commission Gross Profit Gross Profit Net Profit Net Profit JD Mn JD Mn JD Mn JD Mn JD Mn JD Mn JD Mn JD Mn ARBK 733.3 705.4 487.4 470.1 180.8 194.0 215.5 3.4 THBK 239.8 235.0 172.0 166.7 221.7 197.2 67.0 63.9 AHLI 8.7 8.0 72.2 70.0 82.8 77.5 18.2 16.1 CABK 96.8 93.0 73.9 70.0 86.6 77.8 26.8 24.1 BOJX 96.1 91.0 72.6 68.0 83.4 73.6 27.5 23.3 JOIB 81.1 72.6 41.4 39.6 56.5 51.2 21.1.7 EXFB 61.8 53.4 35.8 30.2 39.0 33.3 (4.7) 3.6 AJIB 35.4 38.0 21.9 23.0 28.3 23.3 9.3 9.3 INVB 33.7 34.0 21.5 21.6 27.6 26.5 3.6 9.1 UBSI 32.0 33.4 8.5.3 42.8.0 12.0 13.9 ABCO 31.3 30.0 21.1.7 27.8 26.5 9.6 8.1 SGBJ.3 22.1 8.5 9.7.2 11.6 2.7 2.6 JDIB 11.7 3.5 7.1 2.2 8.7 3.0 0.3 (3.3) Bank of Jordan (BOJX) increased its net profit by JD 4 million to reach JD 27 million in Q3 11 up from JD 23 million in. While BOJX nonperforming loans increased to JD 112 million, which makes about % of the net credit facilities in, an increase from JD 81 million in, which was 8% of the net credit facilities. BOJX increased its capital by 55% to reach 155 million shares during 11, by private placement for tow investors million shares in January 11 and a 41% stock dividend in April 11. BOJX stock price has slightly increased by 1.43% during 11 in spite of the stock dividend. Page 7 of 53
3.6 2.7 2.6 0.3 (3.3) (4.7) 3.6 9.6 8.1 9.3 9.3 9.1 12.0 13.9 27.5 23.3 21.1.7 18.2 16.1 26.8 24.1 67.0 63.9 Financial Results for Companies Listed Figure : & for Banking Sector 80 70 60 50 30 0 () *ARBK bank reported JD 216 million for compared with JD 3 million in Capital Bank of Jordan (EXFB) has reported a net loss of JD(4.7) million net losses in Q3 11 compared with JD 3.6 million in, a drop of JD 8.3 million. EXFB was the only bank from the reported banks that incurred losses during the first three quarters of year 11. The bank s liabilities has increased by 21% to reach JD 1,238 million in, because the deposits from other banks and financial institutions increased by 2% reaching JD 187 million in, while the customers' deposits increased by JD 114 million to reach JD 898 million in, a growth of 14% compared with JD 784 million in. The nonperforming loans increased in as EXFB reported JD 153 million which is % of net credit facilities compared with JD 119 million in, which was 17% of net credit facilities. EXFB stock price has dropped 15% since the beginning of year 11. Figure 11: Customers' Deposits, Net Direct Cr. Facilities & Provision for bad debt for Banks Customers' Deposits Customers' Deposits Net Direct Credit Facilities Net Direct Credit Facilities Provisions for bad debt Provisions for bad debt JD Mn JD Mn JD Mn JD Mn JD Mn JD Mn ARBK 14,069 13,485,095,9 558 349 THBK 4,734 4,470 2,529 2,339 148 125 JOIB 1,750 1,529 1,347 1,155 45 31 AHLI 1,672 1,632 1,172 1,037 93 81 BOJX 1,538 1,493 1,039 956 62 51 CABK 1,347 1,275 905 801 49 45 UBSI 933 872 748 697 44 31 EXFB 898 784 670 615 57 54 AJIB 572 519 315 326 12 9 INVB 459 464 342 345 34 18 ABCO 427 348 361 289 14 13 SGBJ 245 183 127 134 8 9 JDIB 194 112 233 3 0.3 0.2 Arab Banking Corporation (ABCO) net credit facilities amounted to JD 361 million in Q3 11 an increase of 25% from JD 289 million for the same period during previous year. Whereas the loans which were provided to corporations and individuals increased by 135% from JD 176 million in reaching JD 238 million in, ABCO stated that the growth in loan portfolio was 25% compared to. Page 8 of 53
345 305 328 259 926 873 701 665 657 670 2,850 2,485 2,502 2,433 2,073 1,962 1,869 1,802 1,453 1,231 1,429 1,481 6,746 6,067 Financial Results for Companies Listed Figure 12: Total Assets & for Banking Sector Total Assets Total Assets 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 *ARAB bank reported total Assets JD 23,497 million for compared with JD 23,223 million in Invest Bank (INVB) reported an 88% increase in provision for bad debt for about JD 34 million in up from JD 18 million for the same period in the previous year. INVB net profit decreased by 60% from JD 9.1 million in to reach JD 3.6 million in so the net profit margin dropped from 26.7% in reaching.8% in. Figure 13: Total Assets, Shareholders Equity & Liabilities for Banking Sector Total Assets Total Assets Shareholders' Equity Shareholders' Equity Liabilities Liabilities JD Mn JD Mn JD Mn JD Mn JD Mn JD Mn ARBK 23,497 23,223 3,852 3,886 19,645 19,337 THBK 6,746 6,067 923 902 5,717 5,164 JOIB 2,850 2,485 0 185 2,651 2,300 AHLI 2,502 2,433 231 221 2,269 2,2 BOJX 2,073 1,962 252 5 1,802 1,735 CABK 1,869 1,802 215 193 1,654 1,609 EXFB 1,454 1,231 198 4 1,238 1,026 UBSI 1,429 1,481 225 230 1,5 1,250 AJIB 926 873 128 127 799 746 ABCO 701 665 116 4 585 561 INVB 657 670 112 3 545 567 SGBJ 346 305 60 55 286 250 JDIB 328 259 1 111 218 148 Jordan Dubai Islamic Bank (JDIB) increased its capital from JD 50 million to JD 89 million by issuing three stock dividends, the first one which was 50% in December, the second in May 11 by 33% and the third was 14% in July 11. the bank increased its net credit facilities from JD 3 million in to JD 233 million in the main item that contributed to that increase was the credit sales which increased by JD 2 million, a 121% increase. increased by JD 8 million which was mostly to the increase in net interest income from JD 3 million to JD million in. Although the revenues has substantially increased JDIB s net profit was only JD 0.3 million in, an improvement compared with JD (3.3) million losses in, however the employees salaries increased JD 1.5 million from JD 2.8 million to JD 4.3 million in, it should be noted that the bank has finished converting to an Islamic bank (from the Industrial Bank) in the beginning of year which is most probably the reason behind the growth witnessed in year 11. Page 9 of 53
Financial Results for Companies Listed Figure 14: Operating Indicators for Banking Sector Growth in loan Por. Loans/ Deposits Loans/ Deposits Pro. of Bad Debt/ Net Cr. Facilities Pro. of Bad Debt/ Net Cr. Facilities Nonpre. loans/ Net Cr. Facilities Nonpre. loans/ Net Cr. Facilities JDIB 125.6% 1.3% 92.1% 0.1% 0.2% 0.2% 1.5% ABCO 25.1% 84.6% 83.0% 4.0% 4.4% 6.5% 7.0% JOIB 16.7% 77.0% 75.5% 3.4% 2.7% 0.9% 5.6% AHLI 13.1% 70.1% 63.5% 8.0% 7.8% 2.2% 3.0% CABK 12.9% 67.2% 62.8% 5.4% 5.7% 6.1% 7.7% EXFB 9.0% 74.7% 78.4% 8.5% 8.8%.5% 17.5% BOJX 8.7% 67.6% 64.0% 5.9% 5.3%.1% 8.0% THBK 8.2% 53.4% 52.3% 5.9% 5.3% N/A N/A UBSI 7.3% 80.2% 79.9% 5.8% 4.4% N/A N/A INVB 0.9% 74.5% 74.3%.1% 5.3% N/A N/A ARBK 1.1% 71.8% 75.7% 5.5% 3.4% 7.6% 7.6% AJIB 3.4% 55.0% 62.8% 3.7% 2.9% 7.7% 5.7% SGBJ 5.8% 51.6% 73.4% 6.7% 6.4% N/A 22.8% Societe Generale Bank (SGBJ) net credit facilities decreased by JD 8 million reaching JD 127 million in compared with JD 134 million for the same period in the previous year, a decrease of 5.8% in portfolio size. Whereas customers' deposits increased by 34% to reach JD 245 million in compared with JD 183 million in. SGBJ revenues dropped by 8% reaching JD million compared with JD 22 million in, which translated into a 12% drop in net income from JD 11.6 million in to reach JD.2 million in. Bank al Etihad (UBSI) gross profit increased 7% to JD 43 million in up from JD million, however, UBSI s profit dropped 13% from JD 14 million to reach JD 12 million in, whereas provision of bad debts increased by JD 3.8 million to reach in JD.5million compared with JD 6.6 million for the same period in. Figure 15: Profitability Indicators for Banking Sector Margin Margin UBSI 37.5% 41.5% 1.4% 1.3% 8.7% 8.4% ABCO 30.6% 26.9% 1.7% 1.6%.2%.1% ARBK 29.4% 28.8% 0.7% 1.0% 4.1% 6.1% BOJX 28.6% 25.6% 1.7% 1.4% 14.2% 13.0% THBK 27.9% 27.2% 1.2% 1.3% 8.9% 8.8% CABK 27.7% 25.9% 2.0% 1.7% 17.5% 16.2% AJIB 26.4% 24.6% 1.3% 1.3% 9.2% 8.7% JOIB 26.0% 28.4% 1.0% 1.0% 14.8% 13.7% AHLI 16.7% 15.0% 1.0% 1.1%.8% 11.9% SGBJ 13.3% 11.9% 1.4% 1.4% 7.8% 7.7% INVB.8% 26.7% 0.8% 1.9% 4.9% 12.6% JDIB 2.5% 94.6% 0.0% 1.1% 0.1% 2.6% EXFB 7.6% 6.8% 0.2% 0.2% 1.8% 1.2% Page of 53
Financial Results for Companies Listed Stock Among all of the banks, the only bank that had a positive stock performance was SGBJ which increased by 9.2%, while the stocks of all other banks has declined. While UBSI stock price decreased the most by 28.4%, while ARBK came in second place with a decrease of 21.3%. Figure 16: Stock Indicators for Banking Sector Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD Mn SGBJ 0.95 9.2% 18.7% 0.09.15 0.79 48 THBK 8.00 1.2% 13.3% 0.33 24.57 2.18 2,016 BOJX 2.05 2.4% 38.2% 0.23 8.87 1.26 318 INVB 1.34 3.6% 18.8% 0.06.96 1.02 114 ABCO 0.98 4.9% 19.8% 0.13 7.41 0.75 88 AJIB 1.31 7.7%.1% 0.12 11.21 1.03 131 JOIB 2.75 8.3% 5.4% 0.30 9.32 1.38 275 AHLI 1.43.1% 26.2% 0. 7.25 0.78 181 EXFB 1.36 11.7% 11.6% N/A N/A 1.03 4 CABK 2.77 12.9% 46.5% 0.37 7.39 1.29 277 JDIB 0.87 19.4% 48.3% 0.00 507.42 0.70 77 ARBK 7.85 21.3% 17.9% 0.29 26.67 1.09 4,192 UBSI 1.44 28.4% 11.7% 0.19 7.39 0.64 144, Amman Stock Exchange Page 11 of 53
3.0 2.9 3.1 2.0 2.2 0.6 0.5 8.7 8.6 12.6 11.5 12.3 13.2 11.2.9.7.8 36.8 38.7 57.0 56.1 54.7 56.3 52.7 66.0 65.3 70.8 75.3 1.1 0.7 Financial Results for Companies Listed Real Estate This sector consists of companies; three of those companies (DMAC, AMLK and AMWJ) got delisted in December, June and October 11 respectively. While only 17 companies reported their results for. Sector Brief The revenues and the profits of the companies that have reported has slightly decreased to JD 33 million in compared to JD 33.5 million in. The reported companies have accumulated a net loss of JD 6.5 million. Figure 17: Revenue & for Real Estate Sector AMAD 7,186,500 4,660,725 AMAD 1,525,918 750,161 JDPC 7,121,434 1,548,098 COHO 434,029 4,306 ULDC 4,175,599 13,445,383 THDI 218,388 N/A COHO 3,037,621 2,916,000 JNTH 161,990 (1,459,747) SPIC 3,035,230 4,875,683 JRCD 37,736 (663,733) JNTH 2,621,165 1,250,351 INMA 33,214 (81,196) REDV 1,571,980 1,198,572 ZAHI 21,453 6,125 DERA 1,506,550 2,037,636 VFED 14,342 (33,900) THDI 1,035,457 N/A IHCO (13,803) (2,252) IDMC 606,944 497,096 IDMC (35,501) (4,2) JRCD 558,565 488,350 JDPC (459,981) (376,142) BAMB 350,771 212,570 HIPR (465,076) (81,755) VFED 145,125 83,822 DERA (817,382) (259,721) INMA 67,3 50,935 REDV (1,263,075) (3,341,661) ZAHI 26,196 25,792 ULDC (1,4,671) 927,659 HIPR 2,989 BAMB (1,501,992) (212,790) IHCO SPIC (2,737,688) (1,511,349) Figure 18: Total Assets for Real Estate Sector Total Assets Total Assets 1 0 80 60 *REDV reported total assets JD 182 million for Page 12 of 53
2.5 2.3 2.0 1.2 0.6 0.8 0.5 0.3 0.4 0.4 1.2 0.4 0.3 0.2 0.1 0.1 5.4 3.8 4.4 5.8 7.5 6.3 17.7 21.4 33.0 35.7 38.9.1 2.8 3.0 2.6 1.6 1.9 0.6 0.5 9.2 9.7 8.2 8.2 8.2 8.4 12.3 11.2 11.7 12.4 19.5 24.9 15.8.6 32.4 32.9 51.6 52.3 49.4 57.6 68.2 69.0 65.8 Financial Results for Companies Listed Company Highlights Amad Investment & Real Estate Development (AMAD) is a company that focuses on selling residential apartments. AMAD was the highest earning company in the sector in terms of revenues and net income. AMAD s revenue increased by 54% to reach JD 7.2 million in Q3 11 up from JD 4.7 million for the same period during, this increase in sales led to an increase in profits of JD 0.8 million where sales amounted to JD 1.5 million in. AMAD had an impressive stock performance during 11 where its stock price grew 22%. Figure 19: Shareholders Equity for Real Estate Sector Shareholders' Equity Shareholders' Equity 80 70 60 50 30 *REDV reported shareholders equity JD 3 million for Specialized Investment Compounds (SPIC) is a company that focuses on constructing, selling, leasing, and investing in vocational warehouses specializing in the fields of industry. SPIC s revenue decreased by 41% from JD 3.5 million in to JD 2.1 million in Q3 11 whereas the net profit decreased by 81% to reach JD 2.7 million net losses for compared with JD 1.5 million in. Figure : Liabilities for Real Estate Sector Liabilities Liabilities 45 35 30 25 15 5 *REDV reported liabilities JD 61 million for Page 13 of 53
Financial Results for Companies Listed *ZAHI reported liabilities JD 4,866 for & 4,138 for Union Land Development Company (ULDC) is a company that focuses on selling residential apartments, lands and hotel management. ULDC witnessed a sharp drop in its revenues from JD 13.4 million to JD 4.2 in from JD 13.45 in due to a major decrease in apartment sales revenues, which resulted in a drop in net income to reach a net loss of JD 1.4 in. Figure 21: Profitability Indicator for Real Estate Sector Margin Margin ZAHI 81.9% 23.7% 5.8% 7.6% 5.8% 7.7% INMA 49.4% 159.4% 1.0% 0.7% 1.2% 0.8% AMAD 21.2% 16.1% 19.0% 9.4% 19.5% 9.7% THDI 21.1% N/A 9.8% N/A 11.3% N/A COHO 14.3% 14.1% 4.9% 6.2% 5.2% 6.4% VFED 9.9%.4% 8.8% 12.4% 11.0% 14.3% JRCD 6.8% 135.9% 0.9%.8% 1.0% 12.7% JNTH 6.2% 116.7% 2.1% 13.2% 2.7% 16.8% IDMC 5.8% 41.1% 0.3% 0.4% 0.3% 0.4% JDPC 6.5% 24.3% 0.7% 0.6% 1.1% 0.9% ULDC 34.0% 6.9% 2.8% 0.2% 4.0% 0.3% DERA 54.3% 12.7% 1.7% N/A 1.7% N/A REDV 80.3% 278.8% 0.9% N/A 1.6% N/A SPIC 90.2% 31.0%.4% 2.7% 28.1% 7.1% BAMB 428.2% 0.1% 7.5% 11.0% 26.0% 30.1% HIPR N/A.3% 4.5% 0.8% 4.8% 0.9% IHCO N/A N/A 3.0% 0.1% 3.1% 0.1% Stock High Real Estate (HIPR) a company that focuses on land sales showed the highest stock performance among the real estate company where its stock price increased by 29.8% during 11, comes in second place AMAD that witnessed an increase of 22.1%. SPIC was worst performing stock in the sector where it stock witnessed a drop of 72% during 11, comes in second place AdDulayl Industrial Park and Real Estate Company (IDMC) is a company that focuses on renting buildings and other services such as food catering inside industrial cities. IDMC s stock witnessed a drop of 43.3% in 11. Figure 22: Stock Indicator for Real Estate Sector Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD (000) HIPR 0.61 29.8%.3% (0.05) N/A 0.63 7,3 AMAD 2.49 22.1% 4.6% 0.36 6.86 1.34 16,434 ULDC 2.00 19.0% N/A (0.04) N/A 1.82 90,000 JRCD 0.50 11.1% 21.1% (0.01) N/A 0.53 17,250 JNTH 0.76 7.0% 22.8% (0.02) N/A 0.93 7,600 COHO 1.22 0.8% 6.1% 0.07 17.13 0.89 7,3 THDI 0.68 0.0% 6.8% 0.13 5.37 0.61 1,564 VFED 1.74 12.1% 9.4% (0.15) N/A 1.30 2,088 IHCO 0.96 14.3% 19.1% 0.03 32.56 1.02 2,880 DERA 0.64 19.0% 24.8% (0.03) N/A 0.39 25,600 ZAHI 1.42 25.3% 0.5% 0.07 19.90 1.16 7 INMA 0.51 31.1% 9.8% 0.02 31. 0.39 3,570 JDPC 0.50 31.5% 1.4% (0.01) N/A 0.51 35,000 REDV 0.21 38.2%.9% (0.02) N/A 0.19 19,215 IDMC 0.34 43.3% 7.7% 0.01 42.32 0.14 7,1 SPIC 0.42 72.0% 63.7% (0.21) N/A 0.55,819 BAMB N/A N/A N/A (0.21) N/A N/A N/A, Amman Stock Exchange Page 14 of 53
16.1 14.7 14.9 14.5 19.1 23.6 23.5 23.0 23.7 21.7 30.7 29.0 36.6 39.3 37.7 36.2 Financial Results for Companies Listed Insurance Sector Brief This sector consists of 27 companies, 8 of them has reported results for. Although the revenues of the reported companies have increased by 6% to reach JD 89.6 million, the companies have accumulated a net loss of JD 912 thousand compared to profit of JD 3.6 million. Company Highlights The highest net income was reported by First Insurance (FINS) which reported a net profit JD 537 thousand, while the highest loss was reported by The Mediterranean & Gulf Insurance Company (MDGF) which reported a net loss of JD 1.5 million, almost doubling its losses from where it reported a loss of JD 613. Figure 23: Revenue & for Insurance Sector JIJC 16,638,527 14,588,093 FINS 537,7 3,676 AAIN 15,690,782 13,845,831 AAIN 436,611 1,151,174 TIIC 12,574,3 12,413,034 YINS 191,741 118,972 FINS 11,697,742 9,500,677 JIJC 122,739 65,594 AIUI,679,423 12,235,119 TIIC 115,0 (1,218,586) MDGF 8,216,921,715,914 DICL (184,076) 338,225 YINS 7,842,112 6,161,137 AIUI (6,800) 3,334,327 DICL 6,295,576 5,027,099 MDGF (1,491,523) (613,347) Figure 24: Total Assets for Insurance Sector Total Assets Total Assets 45 35 30 25 15 5 Arab Union International Insurance Company (AIUI), reported JD 0.6 million losses for compared with JD 3.3 million net profit in, this huge change is most likely due to the change in the insurance claims paid or incurred which increased by JD 4 million from JD 4.5 million to JD 8.5 million in. Adding that AIUI reported drop in revenue by JD 1.5 million to reach JD.7 million in. AIUI distributed a 33% stock dividend in September 4th, 11 thus increasing its capital from JD 6 million to reach JD 8 million in. Page 15 of 53
4.4 3.7 5.9 5.8 5.7 6.8 8.0.2 11.8 12.4 14.1 13.9 15.3 15.6 17.4 21.3 7.3 9.2 8.8 9.0 8.9.1 9.8 9.8 15.5 14.5 18.0 21.3.5 19.2 25.0 25.3 Financial Results for Companies Listed Figure 25: Shareholders Equity for Insurance Sector Shareholders' Equity Shareholders' Equity 30 25 15 5 The Islamic Insurance company (TIIC) increased its net income to reach JD 0.1 million in compared with JD 1.2 million losses for the same period in, most probably net income affected by the decrease in insurance claims payment for about JD 0.7 million. Figure 26: Liabilities for Insurance Sector Liabilities Liabilities 25 15 5 Figure 27: Profitability Indicators for Insurance Sector Margin Margin Q3 11 Q3 Q3 11 Q3 FINS 4.6% 4.2% 2.0% 3.4% 2.5% 4.0% AAIN 2.8% 8.3% 1.6% 4.0% 3.4% 7.7% YINS 2.4% 1.9% 2.0% 5.0% 3.5% 8.4% TIIC 0.9% 9.8% 7.1% 2.4%.7% 3.9% JIJC 0.7% 0.4% 0.8% 0.6% 1.5% 1.1% DICL 2.9% 6.7% 1.5% 3.7% 2.5% 5.3% AIUI 6.0% 27.3% 18.6% 12.4% 48.0% 30.2% MDGF 18.2% 5.7% 9.8% 4.2% 25.5% 9.2% Page 16 of 53
Financial Results for Companies Listed Stock Among the reported companies, the highest stock performance was witnessed by MDGF where its stock price grew by 15.6% during 11, followed by Al Nisr AlArabi Insurance (AAIN) where its stock increased by 5% in 11. Among the worst performers was The Islamic Insurance (TIIC) where its stock price dropped 22.3% during 11. Figure 28: Stock Indicators for Insurance Sector Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD (000) MDGF 1.48 15.6% 18.5% (0.19) N/A 2.02 14,800 AAIN 2.75 5.0% 13.8% 0.06 44.73 1.53 27,500 AIUI 1.52 0.0% 67.0% (0.53) N/A 1.37 12,160 JIJC 0.58 3.3% 9.1% 0.02 33.68 0.50,527 DICL 1.70 3.4% 0.6% (0.03) N/A 1.50 13,600 YINS 0.79 7.1%.5% 0.04 19.34 0.69 6,3 FINS 0.70.3% 8.2% 0.03 27.11 0.67 16,800 TIIC 1.43 22.3% 5.6% 0.14.29 1. 17,160, Amman Stock Exchange Page 17 of 53
6 5.2 22 22.8 21.8 19.6 17 17.3 15 15.7 13 13 14.5 38 33 39.4 49.0 76 77.7 117 122.1 149.4 172.1 Financial Results for Companies Listed Diversified Financials Sector Brief This sector consists of 37 companies, one of them (FUTR) got delisted in September 11, and only 13 company has reported their results for. Figure 29: Revenue & Profit for Diversified Financials JMRC 7,125,738 9,711,761 AFIN 2,009,974 4,566,226 UINV 3,344,1 338,049 UINV 1,641,981 1,070,723 AFIN 1,535,962 3,829,750 JMRC 585,572 977,525 BLAD 1,036,494 N/A AMAL 358,313 511,133 UCFI 1,002,568 1,288,834 JOMC 255,1 198,724 JOMC 947,554 868,023 JLGC (3,273) 357,7 AMAL 903,268 1,362,262 BLAD (80,9) N/A JLGC 492,2 441,179 SANA (1,851) (18,843) SANA 247,7 197,972 UCFI (2,806) 505,859 JEIH 232,146 5,488 JEIH (450,254) 487,956 JOIT 188,726 76,036 AAFI (1,5,384) (782,490) AAFI 96,368 139,751 JOIT (1,443,680) 1,033,443 The accumulated revenues of the reported companies in the sector has decreased by 17% to reach JD 16 million, the accumulated losses of the companies has been greater than profits reported by companies, the sector has amounted to a net loss of JD (632) thousands compared to a profit of JD 5.9 million in. Figure 30: Total Assets for Diversified Financial Sector Total Assets Total Assets 0 180 160 1 1 0 80 60 Company Highlights Arab East Investment (AEIV) reported net losses of JD (2) million in, a JD 1 million decrease from the previous year, this improvement is most probably attributed to the drop in the share of losses in associated companies from JD 1.3 million to reach JD 0.6 million net losses in, however, AEIV reported zero revenues in and JD 50,000 in. Page 18 of 53
8.3 11.0 7.9 8.1 5.2 5.5 3.5 3.0 1.7 1.5 1.3 2.2 1.2 2.6 1.1 0.0 0.6 0.5 0.1 0.1 29.4 29.8 23.1.3 141.1 163.6 2.5 2.2.4.7 16.9 17.0 15.4 15.7 14.3 14.6 13.8 15.1 12.0 8.4 8.5 11.3 12.3 27.7 33.9 26.8 38.1 52.5 57.4 87.2 92.3 Financial Results for Companies Listed Arab Financial Investment (AFIN) reported a drop of 60% in revenues from JD 3.8 million in to reach JD 1.5 million for the same period in 11, whereas the net profit decreased by 56% reaching JD 2 million in net profits. Figure 31: Shareholders' Equity for Diversified Financial Sector Shareholders' Equity Shareholders' Equity 0 90 80 70 60 50 30 Jordan Mortgager Refinance (JMRC) total assets for dropped 13% to reach JD 149 million, compared to the same period in. JMRC reported mortgage refinancing of JD 134 million in compared with JD 148 million for the same period in the previous year, in addition cash dropped 42% to reach JD 11 million in in effect of bond settlement of JD 22 million, the change in those two items was the main reason total assets have dropped. Figure 32: Liabilities for Diversified Financial Sector Liabilities Liabilities 180 160 1 1 0 80 60 Jordan Investment Trust (JOIT) total assets has decreased 23% to reach JD 49 million in the change in total assets is most probably attributed to the change in investments in associates which decreased by JD 13 million from JD 27 million to reach JD 14 million in Q3 11. JOIT decreased its net profit by JD 2.5 million to reach JD 1.4 million losses in Q3 11. The main item that contributed to the decrease in net income was gains from trading investment; JOIT reported zero gains from trading investment in and JD 2 million in. Page 19 of 53
Financial Results for Companies Listed Jordanian Management and Consulting Company (JOMC) distributed a % stock dividend in August 2nd, 11 to increase its capital from JD 1.4 million to reach JD 1.54 million in. Figure 33: Profitability Indicators for Diversified Financial Sector Margin Margin AFIN 130.9% 119.2% 4.1%.2% 4.8% 11.9% UINV 49.1% 316.7% 1.1% 23.7% 1.5% 32.1% AMAL 39.7% 37.5% 1.2% 0.3% 1.3% 0.4% JOMC 26.9% 22.9% 5.3% 4.6% 12.8% 11.0% JMRC 8.2%.1% 0.5% 0.8% 8.1% 15.3% JLGC 0.7% 80.9% 1.6% 3.3% 2.4% 5.2% BLAD 7.7% N/A 0.8% N/A 0.9% N/A UCFI.2% 39.2% 1.3% 4.4% 1.4% 5.2% SANA 48.9% 9.5% 1.2% 1.6% 1.2% 1.7% JEIH 194.0% 93.7% 0.8% 0.6% 0.9% 0.7% JOIT 765.0% 1359.1% 4.8% 1.0% 6.7% 1.3% AAFI 1250.8% 559.9% 2.1% 5.4% 2.2% 5.6% AEIV N/A 6001.5% 4.0% 3.4% 5.4% 4.5% Stock In terms of stock performance, most of the reported companies have seen a decrease in their stock prices; only two had a positive stock performance during 11, JOMC and JMRC where each witnessed an increase of 2.8% and 1% respectively. Among the worst performers were the Arab Financial Investment (AFIN) where its stock decreased by 48.3% during 11. Figure 34: Stock Indicators for Diversified Financial Sector Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD (000) JOMC 1. 2.8% 1.9% 0.21 5.30 0.68 1,694 JMRC 1.01 1.0% N/A 0.14 7.45 0.60 5,050 JOIT 1.39 3.5% 3.6% (0.09) N/A 1.08 28,946 BLAD 1.03 8.0% 15.2% (0.01) N/A 1.03 12,360 AMAL 1.02 15.7% 4.0% 0.01 77.73 0.99 15,300 UCFI 1.01 24.6% 27.2% (0.02) N/A 0.71 8,080 AEIV 0.51 26.1% 25.8% (0.) N/A 0.27 23,970 AAFI 1.11 29.7% 4.8% (0.03) N/A 0.81 11,0 JLGC 0.49 31.9%.8% 0.03 14.02 0.34 4,900 JEIH 0.42 36.4%.0% (0.01) N/A 0. 6,773 UINV 0.76 43.3% N/A 0.02 47.28 0.72 38,000 SANA 0.58 45.3% 96.3% (0.01) N/A 0.57 11,600 AFIN 1.55 48.3% 11.8% 0.09 17.45 0.84 23,250, Amman Stock Exchange Page of 53
9.9 9.4 14.7 18.7 22.9 23.5 22.4 21.3 25.8 26.5 35.9 39.0 Financial Results for Companies Listed Transportation Sector brief The transportation sector consists of 14 companies, 7 of them published results for. Year 11 has been a bad year for the transportation industry, due mostly to the global unstable economical conditions, the fear of consumers to spend on travel, the political unrest in the region and the increase in the prices of fuel. Four companies out of the seven have reported losses in, and the remaining three companies profits have dropped more than 50%. Figure 35: Revenue & for Transportation Sector RJAL 543,815,000 515,776,000 JETT 1,247,893 2,256,9 SHIP 28,072,767,304,045 SHIP 759,575 3,2,574 JETT 9,374,962 9,826,098 NAQL 28,115 129,233 MSFT 6,781,923 5,823,218 MSFT (129,182) (2,773) NAQL 6,332,385 6,386,133 RUMM (156,676) 74,085 ALFA 2,139,389 3,299,376 ALFA (1,070,814) 84,899 RUMM 1,890,763 1,990,846 RJAL (42,393,000) 13,545,000 The revenues of the sector increased to reach JD 598 million, but the sector recorded a major drop in profits from amount of JD 19 million to a net loss of JD 41.7 million in Q3 11. Figure 36: Total Assets for Transportation Sector Total Assets Total Assets 45 35 30 25 15 5 *RJAL reported total assets JD 381 million in & JD 379 million in Company Highlights The largest company in the sector and the only listed airlines company on the ASE, Royal Jordanian Airlines (RJAL) was the main contributor to this loss were it recorded losses of JD 42 million in. While JETT Company was the most profitable were it recorded JD 1.2 million net income. Jordan Investment & Tourism Transport (ALFA) revenue dropped by 35% to reach JD 2.1 million in, while the gross profit decreased from JD 0.4 million reaching to JD (0.3) million gross losses, adding that ALFA reported losses from non operating items of JD (0.2) Page 21 of 53
1.9 3.4 4.0 5.0 4.8 4.7 5.3 6.2 7.9 8.2 16.8 16.1 6.4 7.5.6 14.1 16.3 16.3 19.0 18.0 18.1 17.9 18.3 19.8 Financial Results for Companies Listed million compared with 0.1 million profits in, this lead to losses in of JD 1 million. Figure 37: Shareholders Equity for Transportation Sector Shareholders' Equity Shareholders' Equity 25 15 5 *RJAL reported shareholders equity JD 16 million for & Jordan National Shipping Lines (SHIP) revenues increased by 38% reaching JD 28 million in, while the operating profit dropped by 4% to reach 3.4 million in.ship reported JD 3 million losses from non operating items this lead to drop in net profit 76% reaching JD 0.8 million in. Figure 38: Liabilities for Transportation Sector Liabilities Liabilities 18 16 14 12 8 6 4 2 *RJAL reported liabilities JD 6 million in & JD 5 million in Figure 39: Profitability Indicators for Transportation Sector Margin Margin JETT 13.3% 23.0% 5.7% 5.4% 7.2% 7.0% SHIP 2.7% 15.8% 4.5% 11.2% 9.3%.4% NAQL 0.4% 2.0% 0.0% 4.7% 0.0% 6.1% MSFT 1.9% 1.8% 1.7% 1.0% 2.4% 1.4% RJAL 7.8% 2.6% 14.7% 3.2% 75.7% 9.9% RUMM 8.3% 3.7% 1.2% 0.2% 1.6% 0.2% ALFA 50.1% 2.6% 14.4% 1.2% 22.3% 1.5% Page 22 of 53
Financial Results for Companies Listed Stock The stock performance of the sector witnessed a major drop during the last two years, were it dropped 21% in year ; it dropped a further 42% in year 11. Figure : Stock Indicators for Transportation Sector Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD (000) ALFA 2. 5.8% 15.6% (0.19) N/A 2.58 16,500 RUMM 0.96 11.9% 4.4% (0.02) N/A 0.96 13,4 SHIP 2.02 14.8% 11.3% 0.15 13.74 1.28 24,392 NAQL 0.76 21.6% 12.6% (0.00) N/A 0.56 9,196 JETT 2. 21.9% 37.2% 0.12 17.47 1.26 22,680 MSFT 0.25 45.7% 17.9% (0.02) N/A 0.25 4,463 RJAL 0.66 56.6% 25.1% (0.66) N/A 0.75 55,686 Source: Companies Financial, Amman Stock Exchange Only one company had a positive stock performance during 11, ALFA, which its stock increased by 5.8% during year 11. The highest company that reported losses during 11 was RJAL which has a rough year and reported huge losses, RJAL stock dropped 56.6% during 11. Page 23 of 53
5.4 3.8 3.2 3.4 3.4 8.2 7.6.5 30.4 30.4 51.7 55.3 Financial Results for Companies Listed Commercial Services Sector Brief The commercial services sector has 15 listed companies; six of them have published their results for. The companies revenues have increased 19% to reach JD 27 million, while net profit decreased 9%. Figure 41: Revenue & for Commercial Services Sector OFTC 13,696,173,847,913 OFTC 1,174,002 858,3 JMIL 4,735,276 4,232,454 JOTF 1,086,067 1,339,958 JITC 4,236+,056 3,853,3 JITC 478,316 422,434 JOTF 3,053,308 3,098,177 SPTI 83,060 25,480 SPTI 2,039,815 1,581,708 SIJC (448,699) (741,613) SIJC (365,128) (532,244) JMIL (886,599) (266,061) Figure 42: Total Assets for Commercial Services Total Assets Total Assets 60 50 30 Company Highlights Offtec Holding Group (OFTC) had the highest net income of the commercial services reaching JD 1.1 million. Comes in second place but with an impressive net profit margin is Jordan Trade (JOTF) which net income was JD 1.08 million. Page 24 of 53
0.3 1.1 0.8 1.5 3.8 3.4 2.9 3.1 5.4 9.5 11.0.9 (0.3) 4.8 4.7 3.0 3.0 1.8 4.3 7.4 19.4 19.5 45.1 44.9 Financial Results for Companies Listed Figure 43: Shareholders Equity for Commercial Services Shareholders' Equity Shareholders' Equity 50 30 () Specialized Jordanian Investment (SIJC) total assets dropped by 49% compared with the previous year from JD.5 million to JD 5.4 million in by reducing its investment in associates to JD 2.2 million in from JD 6.3 million in. Figure 44: Liabilities for Commercial Services Liabilities Liabilities 12 8 6 4 2 0 Figure 45: Profitability Indicators for Commercial Services Margin Margin SIJC 122.9% 139.3% 39.7% 7.9% 49.7% 11.2% JOTF 35.6% 43.2% 3.9% 2.9% 6.2% 4.6% JITC 11.3% 11.0% 5.1% 4.5% 8.7% 7.3% OFTC 8.6% 7.9% 2.3% 2.4% 2.8% 2.7% SPTI 4.1% 1.6% 1.1% 23.2% 1.4% 25.1% JMIL 18.7% 6.3%.9% 3.7% 4.8% 6.8% Page 25 of 53
Financial Results for Companies Listed Stock JOTF was the highest gainer in the sector where its price increased by 4% during 11, while SIJC was the highest loser in the sector where its stock price dropped by 69.3% during the same period. Figure 46: Stock Indicators for Commercial Services Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD (000) JOTF 1.04 4.0%.7% 0.07 14.34 0.89 17,160 SPTI 0.95 4.0% 4.8% (0.01) N/A 0.99 2,921 OFTC 0.38 5.0% 21.6% 0.03 12.66 0.35 15,960 JITC 0.85 8.6% 26.2% 0.12 6.85 0.60 2,890 JMIL 1.38 52.9% 17.9% 0.41 3.35 (6.87) 2,1 SIJC 0.43 69.3% 64.1% (0.47) N/A 0.45 1,935, Amman Stock Exchange Page 26 of 53
13.8 3.7.0 7.3 7.7 17.5 17.6 63.9 64.6 80.2 81.6 112.6 56.6 56.9 62.7 64.1 42.1 141.4 74.8 70.5 66.6 Financial Results for Companies Listed Hotels & Tourism Sector The sector consists of 14 companies; two of them got delisted in June 11, while only four published their results for. Figure 47: Revenue & for Hotels & Tourism Sector MALL 11,519,344 11,975,898 MALL 2,8,194 2,390,605 AIHO 7,764,769 8,471,788 AIHO 1,263,871 3,017,293 WIVA 72,527 170,577 WIVA (89,712) 42,7 TAJM 19,506 5,094 TAJM (559,050) (530,302) Hotels & Tourism sector reported in a decrease of 45% in net profit which amounted to JD 2.7 million compared with JD 4.9 million for the same period during the previous year. Hotels & Tourism sector revenues remained almost unchanged compared to the last year, while the revenues have decreased to JD 19.3 in million from revenues which was JD.6 million. Figure 48: Total Assets, Shareholders Equity & Liabilities for Hotels & Tourism Total Assets Total Assets Shareholders' Equity Shareholders' Equity Liabilities Liabilities 160 80 70 1 70 60 1 0 80 60 60 50 30 50 30 TAJM AIHO MALL WIVA TAJM AIHO MALL WIVA TAJM AIHO MALL WIVA Company Highlights Al Tajamouat for Touristic Projects Company (TAJM) has reported losses during this year and last year. The company has recently completed the construction of Taj mall and commercial operations commenced in the end of November, Also, TAJM increased its common stock by paying 5.6% stock dividend to rise its shares from 71 million share at the beginning of to reach 75 million share by the end of. Figure 49: Profitability Indicators for Hotels & Tourism Margin Margin MALL 18.3%.0% 4.3% 4.6% 4.8% 5.3% AIHO 16.3% 35.6% 2.4% 4.3% 3.1% 5.5% WIVA 123.7% 25.1% 0.9% N/A 1.2% N/A TAJM 2866.0% 4.3% 0.5% 0.6% 1.0% 0.9% Page 27 of 53
Financial Results for Companies Listed Stock All the companies in the tourism sector has reported negative performance during year 11, AlDawliyah For Hotels and Malls (MALL) the company that runs the Sheraton hotel in Amman witnessed the highest drop where its stock price dropped by 25.2% during year 11. Figure 50: Stock Indicators for Hotels & Tourism Stock 11 Stock Stock Market Cap. P/BV Price EPS P/E JD (000) AIHO 1.90 1.6% 4.3% 0.06 31.16 0.97 60,800 WIVA 0.67 8.2% 12.0% (0.01) N/A 0.64 6,428 TAJM 0.59 11.9% 11.8% (0.01) N/A 0.59 44,250 MALL 0.86 25.2% 6.5% 0.06 13.67 0.66 37,152, Amman Stock Exchange Page 28 of 53
Financial Results for Companies Listed Technology & Communication This sector consist of three companies listed on Amman Stock Exchange on of them delisted on June 1 st, 1 1 which is Batelco Jordan (FTGR) and one of the remaining two companies disclosed its Q3 financials which is Jordan Telecom (JTEL) so its reflects the overall sector. Figure 51: Total Assets, Shareholders Equity, Liabilities, Revenue & for Technology & Communication Sector 700 600 622 612 500 0 300 0 379 385 245 227 311 299 0 65 69 Jordan Telecom (JTEL) the revenue increased by 3.8% by JD 11 million to reach JD 311 million in, at the same time the gross profit decreased to 59.5% in compared to %64 in. The net profit decreased by JD 3.7 reaching JD 65 million in. Jordan Telecom expanded its customer base by 460 thousand new customer to reach 3.470 million customer, a growth of 15% compared to 3.0 million customer at the end of. Figure 52: Profitability Indicators for Technology & Communication Sector Margin Margin Q3 11 Q3 Q3 11 Q3 JTEL 21.1% 23.1% 14.7% 15.5% 24.1% 24.7% Figure 53: Stock Indicators for Technology & Communication Sector Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD Mn JTEL 5.53 2.8% 4.1% 0.37 15.13 3.65 1,383, Amman Stock Exchange Page 29 of 53
Financial Results for Companies Listed Media The media sector consists of three companies, one of them got delisted on February 11, and only Jordan Pres Foundation /Al Ra i (PRES) published its results for. Figure 54: Total Assets, Shareholders Equity, Liabilities, Revenue & for Media Sector 60 50 48.1 44.7 30 37.5 32.9 18.6.1 3.3 4.6 1.6 5.0 PRES net profit decreased to reach JD 1.6 million by, which is 67% decrease compared to net profit of JD 5 million. Several factors attributed to his decrease, first the revenues of the company has dropped by almost JD 1.5 million at the same time cost of sales increased by 12% and administrative expenses increased 25%. The drop in sales could attributed to growing trend of using electronic sources to obtain news, where several newspaper readers are switching to electronic resources. Figure 55: Profitability Indicators for Media Sector Margin Margin PRES 8.8% 25.1% 4.8% 15.9% 5.1% 18.1% Also, PRES maintained its current capital structure of 0% equity and the company has increased its capital by 2.3 million shares to reach 9.85 million shares, most probably to finance the new press printing building that is currently constructed at the airport road. Figure 56: Profitability Indicators for Media Sector Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD (000) PRES 7.50 38.5%.9% 0.23 32.35 1.65 73,878, Amman Stock Exchange Page 30 of 53
Financial Results for Companies Listed Printing & Packaging The sector consists of two companies; both published their results for. Printing and packaging sector s net profit dropped 12% from JD 0.8 million in to JD 0.7 million in, the sector s revenues remain unchanged with a slight decrease reaching JD.5 million in.total assets dropped by JD 0.4 million to reach JD 21.6 million in. Figure 57: Revenue & for Printing & Packaging Sector 5.6 5.5 5.4 5.3 5.2 5.1 5.0 4.9 4.8 4.7 4.6 5.5 5.0 EKPC 5.0 UADI 5.5 0.7 0.7 0.6 0.5 0.4 0.4 0.3 0.3 0.2 0.2 0.1 0.0 UADI EKPC Union Advanced Industries (UADI) net income dropped 41% to reach JD 383 thousand, due to a drop in revenues and an almost stable cost of sales. Figure 58: Total Assets Shareholders Equity & Liabilities for Printing & Packaging Sector Total Assets Total Assets Shareholders' Equity Shareholders' Equity Liabilities Liabilities 16 14 12 8 6 4 2 13.8 12.7 8.9 8.3 9 8 7 6 5 4 3 2 1 7.7 7.9 6.4 6.4 7 6 5 4 3 2 1 5.0 5.9 2.5 1.9 UADI EKPC UADI EKPC UADI EKPC Figure 59: Profitability Indicators for Printing & Packaging Sector Margin Margin UADI 7.7% 11.9% 4.3% 5.7% 7.1%.0% EKPC 6.2% 3.5% 3.6% 1.8% 5.0% 2.3% Figure 60: Stock performance for Printing & Packaging Sector Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD (000) EKPC 1.05 19.3% 11.4% 0.06 16.29 0.82 5,250 UADI 2. 4.3% 8.0% 0.18 12.02 0.86 6,600, Amman Stock Exchange Page 31 of 53
16.3 16.9 13.7 16.6 89.3 84.5 230.8 234.9 613.5 821.3 Financial Results for Companies Listed Mining & Extraction Industries: Sector Brief This sector consists of 17 companies, one of the companies (JMAG) got delisted in June 11, while only 6 companies reported their results for. The mining sector is the third largest profitable, revenues of the reported companies in the sector increased to reach JD 1.36, a 34% increase from reported results of JD 1.02. While the net income of the reported companies has more than doubled from JD 184 million to reach JD 321 million. Figure 61: Revenue & for Mining & Extraction Industries JOPH 591,804,000 397,048,000 APOT 217,064,000 117,489,000 APOT 554,558,000 7,039,000 JOPH 2,486,000 50,870,000 JOCM 1,334,919 133,453,871 JOST 5,357,847 1,756,609 JOST 86,564,866 59,860,459 AALU 561,477 4,398 AALU 11,918,388 9,817,426 NATA (514,272) 713,384 NATA 9,565,478 8,066,625 JOCM (3,676,705) 13,244,715 Company Highlights The Arab Potash Company (APOT) was the highest earner in the sector, almost doubling its profits to reach JD 217 million, the global increase in the prices of potash has well benefited the company, and it is expected that the company will have sold almost 2.2 MMT of potash by the end of year 11. While the Jordanian Phosphate Company (JOPH) comes in the second place in the sector, the company also has benefited from the global increase in the demand and the prices of fertilizers and its net income doubled from JD 50 million reported in to JD 2 million reported in. Figure 62: Total Assets for Mining & Extraction Industries Total Assets Total Assets 900 800 700 600 500 0 300 0 0 *APOT reported JD 1,137 million in Page 32 of 53
4.3 5.0 4.4 4.4 41.0.0 63.8 78.0 5.2 187.6 12.0 9.3 48.3 44.5 11.9 12.2 144.0 162.9 508.3 633.7 Financial Results for Companies Listed The Jordan Cement Factories (JOCM) reported JD (3.7) million net losses for over JD 13.2 million net profit in the same quarter of, JOCM revenues dropped by 24% reaching JD 1 million in, while the gross profit margin decreased from % in Q3 to 11% in.the company has been constantly losing market shares since the introduction of new competitors to the Jordanian market. Figure 63: Shareholders Equity for Mining & Extraction Industries Shareholders' Equity Shareholders' Equity 700 600 500 0 300 0 0 *APO reported JD 934 million in Jordan Steel (JOST) reports increased revenues and net profit for, revenues reached JD 86.6 million, a 45% increase over the same period in, net profit increased by JD 3.6 million to reach 5.4 million in. Figure 64: Liabilities for Mining & Extraction Industries Liabilities Liabilities 0 180 160 1 1 0 80 60 *APOT reported JD 5 million in National Aluminum Industrial (NATA) net profit dropped by JD 1.2 million to reach JD (0.5) million net losses in compared with, NATA reported 19% increase in revenues from JD 8 million in reaching JD 9.6 million in, while the gross profit dropped by JD 1.4 million from JD 1.3 million in to reach JD 86 thousand gross losses in. Page 33 of 53
Financial Results for Companies Listed Figure 65: Profitability Indicator for Mining & Extraction Industries Margin Margin APOT 39.1% 28.9% 23.1% N/A 28.1% N/A JOPH 17.3% 12.8% 16.1%.3%.8% 12.4% JOST 6.2% 2.9% 8.1% 2.4% 15.0% 4.5% AALU 4.7% 4.5% 3.1% 1.7% 4.3% 2.5% JOCM 3.6% 9.9% 7.3% 2.5% 11.7% 3.6% NATA 5.4% 8.8% 21.4% 3.8% 31.6% 5.1% Stock APOT was the highest gainer in the mining sector where its stock grew by 1.4%, the highest loss was witnessed by JOCM where its stock price dropped by 63.2%. Figure 66: Stock Indicator for Mining & Extraction Industries Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD Mn APOT 44. 1.4%.1% 3.15 14.01 3.94 3,674,324 JOST 2.19 0.5% 8.8% 0.21.59 1.59 76,650 AALU 1.27 12.4% 5.8% 0.08 16.78 0.72 8,573 JOPH 12.74 24.7% 5.9% 1.76 7.25 1.51 955,500 NATA 0.52 39.5% 9.5% (0.33) N/A 0.50 4,680 JOCM 1.75 63.2% 33.1% (0.28) N/A 0.73 5,778, Amman Stock Exchange Page 34 of 53
5.2 6.7 13.4 12.0 11.5.6 11.2 13.2 21.7 22.3 24.4 23.7 Financial Results for Companies Listed Chemical industries Sector Brief The chemical industries sector consists of 12 companies, one of those companies (JKAF) got delisted in June 11, while only 6 companies has published results for the third quarter of year 11. Figure 67: Revenue & for Chemical industries MBED,318,767 9,609,555 MBED 1,697,495 1,689,034 JOIR 8,046,596 7,462,778 JOIR 5,180 800,245 INOH 5,513,464 5,463,451 NATC 1,883 11,872 NATC 4,679,113 4,953,544 INOH 65,586 2,776 JOIC 2,671,8 2,938,027 IPCH 1,660 6,859 IPCH 2,482,799 2,835,364 JOIC (77,436) 245,980 of the sector has only slightly increased by JD.5 million to reach JD 33.7 million in compared to the same period during. While the net profit realized by the companies in the sector has dropped % to reach JD 2.2 million in. Company Highlights The largest company in the industry in terms of assets size, revenues and net income is The Arab Pesticides and Veterinary Drugs (MBED). increased by 7% from to reach JD.3 million in, sadly this increase in revenues only increased net income by 0.5% from to reach JD 1.7 million. Only one company out of the 6 reported a net loss. Figure 68: Total Assets for Chemical industries Total Assets Total Assets 30 25 15 5 Page 35 of 53
1.4 2.0 1.8 2.2 2.7 3.8 3.6 5.7 5.5 7.8 7.6 7.8 2.9 3.3 5.6 5.7 8.4 8.5.2.1 15.6 15.2 18.7 18.2 Financial Results for Companies Listed Figure 69: Shareholders Equity for Chemical industries Shareholders' Equity Shareholders' Equity 18 16 14 12 8 6 4 2 Figure 70: Liabilities for Chemical industries Liabilities Liabilities 9 8 7 6 5 4 3 2 1 Figure 71: Profitability Indicator for Chemical industries Margin Margin MBED 16.5% 17.6% 6.2% 8.3% 9.6% 11.9% JOIR 5.0%.7% 2.5% 4.3% 2.9% 5.6% NATC 2.4% 0.2% 3.6% 1.4% 4.3% 1.6% INOH 1.2% 0.1% 1.4% 1.5% 3.3% 3.4% IPCH 0.1% 0.2% 0.6% 0.4% 0.8% 0.5% JOIC 2.9% 8.4% 0.7% 6.2% 1.6%.0% Page 36 of 53
Financial Results for Companies Listed Stock Price performance for the sector continued to decrease even further than last year, where the sector dropped 8% during year, and the sector dropped a further 13% in year 11. Figure 72: Stock Indicator for Chemical industries Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD (000) INOH 1.00.5% 30.8% 0.04 23.47 0.76 4,250 MBED 1.52.6% 6.3% 0.14.73 1.03 16,112 IPCH 0.38 22.4% 31.9% (0.01) N/A 0.32 2,660 JOIC 2.00 25.9% 8.8% (0.03) N/A 1.24 3,599 NATC 0.68 26.9% 7.9% 0.05 14.04 0.60 6,1 JOIR 0.25 47.9% 15.8% 0.03 7.58 0.22 4,156, Amman Stock Exchange Page 37 of 53
1.6 0.0 1.3 0.5 12.5 7.9 7.6 6.6 7.1 25.7 26.4.9 9.6 11.8 16.1 14.6 0.6 99.2 58.6 60.2 42.0 38.6 Financial Results for Companies Listed Pharmaceutical and Medical Industries Sector Brief This sector consists of 7 companies, one company (AFOO) got delisted on June 11, While only four published their financial results. Figure 73: Revenue & for Pharmaceutical and Medical Industries DADI 33,062,463 34,783,779 HPIC 613,952 N/A HPIC 4,965,901 N/A APHC (776,246) (48,163) MPHA 4,5,958 8,538,367 DADI (929,483),145,626 APHC 628,509 848,467 MPHA (3,158,436) (537,0) Company Highlights Dar AlDawa Development & Investment (DADI) has reported net losses in of JD (0.9) million compared with a net income of JD.1 million for the same period during the previous year, The company has sold some of its investments in other companies with resulted in a gain of JD 7.4 during, which resulted in inflating the net income of the company during year, while the company did not report any sales of investments during the first three quarters of year 11 which contributed to the huge drop in net income in Q3 11 compared to the inflated income of year, the remaining difference was a result of a drop of JD 2.7 in income from core operations of the company. whereas the gross profit dropped from JD 17.2 million in to JD 14.4 million in. Figure 74: Total Assets, Shareholders' Equity & Liabilities for Pharmaceutical and Medical Industries Total Assets Total Assets Shareholders' Equity Shareholders' Equity Liabilities Liabilities 1 0 80 60 70 60 50 30 45 35 30 25 15 5 DADI MPHA HPIC APHC DADI HPIC MPHA APHC DADI MPHA HPIC APHC Middle East pharmaceutical & chemical Industries & medical appliances (MPHA) has reported JD 4.2 million revenues for which is a 50.7% decrease compared with the same period during, the cost of sales remained unchanged as Q3 levels which lead to a decrease of gross profit by 88.8% from JD 4.6 million in to JD 0.5 million in, this most probably magnified losses to reach JD 3.2 million in compared with JD 0.5 million net losses in. Page 38 of 53
Financial Results for Companies Listed Figure 75: Profitability Indicators for Pharmaceutical & Medical Industries Margin Margin HPIC 12.4% N/A 6.6% N/A 7.5% N/A DADI 2.8% 29.2% 1.9% 13.2% 3.3% 21.7% MPHA 75.1% 6.3% 8.5% 1.5% 22.7% 3.4% APHC 123.5% 5.7% 8.1% 0.3% 9.7% 0.3% The company also doubled its long term debt from JD 0.6 in to reach JD 1.2 million adding that MPHA increased its short term banking facilities by JD 1 million reaching JD.4 million in, debt to equity ratio in was 123% compared to 88% for the same period of the previous year. The company s CAPEX reached JD 732 thousand during the first three quarters of 11 which most probably why the company has obtained additional funding. Stock HPIC was the only company among the reported companies that reported profits during the period and was the highest company in terms of stock performance where its stock price increased by 48.6% during 11. The highest loser in the industry was DADI which its stock price dropped by 28.8% during the same period. Figure 76: Stock Indicators for Pharmaceutical & Medical Industries Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD (000) HPIC 1. 48.6% 43.1% 0.09 12.77 0.96,450 APHC 2.59 9.7% 14.0% (0.13) N/A 1.97 12,950 MPHA 5.09 2.6% 73.4% (0.22) N/A 5.23 50,236 DADI 2.35 28.8% 1.2% (0.08) N/A 0.92 54,050, Amman Stock Exchange Page 39 of 53
8.1 8.0 5.9 6.4 6.0 5.9 3.0 3.8 2.2 2.1 2.7 2.5 3.0 68.9 4.9 69.7 75.3 74.7 Financial Results for Companies Listed Textiles, Leathers and Clothing Sector Brief This sector consists of 8 companies, 3 of those companies got delisted in 11, while only three reported their results. The revenues of the reported companies increased by 18% to reach JD 13.4 million in, While profits have only slightly dropped to reach JD 4.6 million. Figure 77: Revenue & for Textiles, Leathers & Clothing Sector JOWM 11,060,163 9,039,0 JOWM 4,653,121 4,8,056 CJCC 2,375,853 2,230,289 CEIG 181,568 53,262 CEIG 117,988 CJCC (9,434) (133,255) Figure 78: Total Assets, Shareholders Equity & Liabilities for Textiles, Leathers & Clothing Sector Total Assets Total Assets Shareholders' Equity Shareholders' Equity Liabilities Liabilities 80 80 6 70 60 50 70 60 50 5 4 3 30 30 2 1 JOWM CEIG CJCC JOWM CEIG CJCC CJCC JOWM CEIG Figure 79: Profitability Indicators for Textiles, Leathers & Clothing Sector Margin Margin JOWM 42.1% 53.3% 7.4% 6.8% 8.1% 7.3% CJCC 8.8% 6.0% 3.8% 8.2% 7.5% 14.0% CEIG N/A 45.1% 3.7% 0.6% 5.1% 0.8% Stock Century Investment Group (CEIG) stock price grew by 8.1% during year 11 making it the top gainer in the sector, while comes in second place The Jordan Worsted Mills (JOWM) which its stock grew by 5.5%. Figure 80: Stock Indicators for Textiles, Leathers & Clothing Sector Stock 11 Stock Stock Market Cap. P/BV Price EPS P/E JD (000) CEIG 0. 8.1% 49.3% 0.06 6.80 0.35 2,077 JOWM 4.95 5.5% 1.5% 0.37 13.27 1.08 74,250 CJCC 1.01 1.0% 58.5% (0.07) N/A 1.13 3,333, Amman Stock Exchange Page of 53
1.7 7.6 9.7 5.6 3.5 4.3 4.2 18.8 19.0 14.6 51.4 51.0 28.5 28.8 22.8 22.2 Financial Results for Companies Listed Engineering and Construction Sector Brief This sector consists of 11 companies; two of them got delisted in 11 while only 3 reported their results. reported by the sector dropped 5% to reach JD 36 million, while profitability increased to reach JD 2.3 million compared to JD 1.4 million in. Figure 81: Revenue & for Engineering & Construction RMCC 23,034,450 24,696,152 ASPMM 1,964,1 1,641,225 ASPMM 9,228,083 8,512,887 JOPI 236,934 (79,373) JOPI 3,800,930 4,9,272 RMCC 112,315 (171,3) Company Highlights Jordan Pipes Manufacturing (JOPI) revenues has decreased but overall profitability has improved where the company reported a net profit of JD 237 thousand compared to a net loss of JD (79) thousand in, the company has decreased its administrative expenses and interest expense during the period. Figure 82: Total Assets, Shareholders & Liabilities for Engineering & Construction Total Assets Shareholders' Equity Liabilities Total Assets Shareholders' Equity Liabilities 60 35 25 50 30 30 25 15 5 15.1 5.9 15 5 RMCC ASPMM JOPI RMCC ASPMM JOPI RMCC ASPMM JOPI Figure 83: Profitability Indicators for Engineering & Construction Margin Margin ASPMM 21.3% 19.3%.2% 9.2% 12.7% 12.0% JOPI 6.2% 1.6% 5.0% 0.4% 6.4% 0.8% RMCC 0.5% 0.7% 0.4% 0.8% 0.8% 1.4% Source: Companies Financial Page 41 of 53
Financial Results for Companies Listed Arabian Steel Pipes Manufacturing (ASPMM) increased its net profit margin to 21.3% by adding a new revenues stream from contracting. Stock JOPI s stock price has increased 14.8% during year 11 most probably due the company s reported profits compared to losses during last year. ASPMM stock price dropped 2.9% during 11. Figure 84: Stock Indicators for Engineering & Construction Stock Price 11 Stock Stock EPS P/E P/BV Market Cap. JD (000) JOPI 0.93 14.8% 22.9% 0.11 8.73 0.56 3,325 RMCC 2.39 0.4% 16.1% (0.01) N/A 2.09 59,750 ASPMM 2.45 0.0% 4.3% 0.21 11.47 1.46 22,050, Amman Stock Exchange Page 42 of 53
2.3 8.7 9.4 6.4 2.7 6.6 38.4 36.8 24.8 24.4 12.4 13.6 Financial Results for Companies Listed Electrical Industries This sector consists of six companies. One of them (NMCO) got delisted in June 11, while only two companies published their financial results for. Figure 85: Revenue & for Electrical Industries WIRE 19,546,644 16,251,915 WIRE 329,819 738,825 AEIN 2,829,669 4,279,535 AEIN (132,426) (81,695) Although revenues reported by the companies increased from JD.5 million to JD 22.4 in, net profitability dropped to JD 197 thousand compared to JD 657 thousand in Q3. Figure 86: Total Assets, Shareholders Equity & Liabilities for Electrical Industries Total Assets Total Assets Shareholders' Equity Shareholders' Equity Liabilities Liabilities 45 35 30 25 15 5 30 25 15 5 16 14 12 8 6 4 2 WIRE AEIN WIRE AEIN WIRE AEIN Figure 87: Profitability Indicators for Electrical Industries Margin Margin WIRE 1.7% 4.5% 1.0% 2.9% 1.6% 4.4% AEIN 4.7% 1.9% 2.7% 1.0% 3.6% 1.4% Figure 88: Stock Indicators for Electrical Industries Stock 11 Stock Stock Market Cap. P/BV Price EPS P/E JD (000) AEIN 0.50 2.0% 19.7% (0.04) (12.88) 0.47 3,000 WIRE 0.66 28.3% 2.1% 0.02 31.93 0.51 12,738, Amman Stock Exchange In spite of reporting losses AEIN stock has increased by 2% during 11, a slight recovery compared to year drop of 19.7%. WIRE stock has decreased by 28.3% during 11, a much worse performance compared to year drop of 2.1%. Page 43 of 53