r es u l ts su m m ary of l is ted c om p an ies in th e sau ... es u l ts su m m ary of l is ted c...

1 © All rights reserved

Please read Disclaimer on the back

April 2015 R es u l ts Su m m ary of L is ted C om p an iesin th e Sau di Mark et1Q2015

Dar Alarkan had the lowest P/BV in the Saudi market at 0.6x, followed by

Methanol Chemicals and Saudi Arabian Amiantit Co at 1.0x and 1.1x,

respectively.

The TTM P/BV for the Saudi market stood at 2.32x.

Al Rajhi Takaful and Salama insurance lost 72.5% and 71% of their capital

(since inception), respectively.

12 of the top 15 highest accumulated loss to capital in the market are from

Insurance sector companies.

Taiba Holding Co. and Al Hassan Ghazi Ibrahim Shaker are trading at the

lowest PE in the Saudi market at 5x and 6.7x for the trailing twelve months

(TTM), followed by The Saudi Investment Bank at 11.4x.

Average PE for the Saudi market on TTM basis stood at 19.7x.

Northern Region cement and Taiba Holding had the highest dividend

yield in the Saudi market at 8.3% and 6.7% respectively. The Cement sector

dominated the market in terms of dividend yield, with eight companies

among the top 15.

Overall dividend yield in the Saudi market was 2.77%.

Company D/Y*(%) P/Bv (x) P/E (x)

Northern Region Cement Co. 8.3 1.95 21.6Taiba Holding Co. 6.7 1.61 5.1Qassim Cement Co. 6.4 4.54 14.9Saudi Cement Co. 6.3 4.67 13.2Arabian Cement Co. 6.3 2.38 11.8Yamama cement Co. 6.1 2.67 14.8Tabuk Cement Co. 6 1.93 17.8Yanbu Cement Co. 6 2.82 13.1National Gas & Industrialization co. 5.6 2.3 14.9Yanbu National Petrochemical 5.5 2.04 13.9Sahara Petrochemical Co 5.2 1.33 30.4Saudi Telecom 5.2 2.29 12.3SABIC 5.1 1.98 15.3Saudi Advanced Industries Co. 5.1 4.34 13.6Eastern Province Cement Co. 5 2.01 14.2

Source: Bloomberg, AlJazira Capital

Company P/E (x) P/BV (x) D/Y (%)

Taiba Holding Co. 5.1 1.61 6.7Al Hassan Ghazi Ibrahim Shaker 6.7 3.17 2.93The Saudi Investment Bank 11.4 1.37 2.88Samba Financial Group 11.9 1.5 2.7Arabian Cement Co. 11.8 2.38 6.3Alujain Corporation 12 1.81 -Arab National Bank 12 1.65 2.84Riyad Bank 12 1.45 4.11Banque Saudi Fransi 12.3 1.66 2.51Saudi Telecom 12.3 2.29 5.2Al-Jouf Agriculture Development 12.5 1.82 2.1The Saudi British Bank 12.8 2.11 1.9Southern Province Cement Co. 13 5.05 4.94Yanbu Cement Co. 13.1 2.82 6Yanbu National Petrochemical 13.9 2.04 5.5


Company Bk Value P/Bv (x) L/C (%)

Al Rajhi Takaful 2.75 10.49 72.50%Salama Insurance 2.9 10 71.00%Amana Insurance 3.14 4.56 68.60%AICC 3.29 5.37 67.10%Wafa Insurance 3.37 6.7 66.30%UCA 3.76 4.31 62.40%Solidarity 3.88 4.24 61.20%Atheeb Telecom 4 1.82 60.00%Alinma Tokyo M 4.14 13.12 58.60%SFICO 4.56 5.66 54.40%AXA Cooperative 4.82 5.22 51.80%Gulf Union Insurance 5.34 3.52 46.60%Saudi Cable Co. 5.57 1.87 44.30%Al Ahlia Insurance 5.68 6.18 4.32%ACIG 5.72 6.64 42.80%

L /C refers to losses to capital Source: Bloomberg, AlJazira Capital

Top 15 Companies

Lowest 15 Companies

Top 15 Companies

Highest 15 Companies

Lowest P/E

Accumulated Loss to Capital

Highest D/Y

Lowest P/BV

Company P/Bv (x) P/E (x) D/Y (%)

Dar Alarkan Real Estate 0.55 21.16 -Methanol Chemicals Co. 1.03 48.89 -Saudi Arabian Amiantit Co. 1.11 17.44 -Nama Chemicals Co. 1.21 - -Saudi Advanced Industries Co. 1.24 58.78 2.2Jazan Development Co. 1.25 74.78 -Sahara Petrochemical Co. 1.26 27.88 5.5Saudi Kayan Petrochemical 1.29 - -Arabian Pipes Co. 1.3 - -Mobile Telecommunications 1.3 - -Saudi Real Estate Co. 1.3 15.83 2.7Saudi Research and Marketing 1.33 176.42 -Saudi Electricity Co. 1.34 30.43 3.7Saudi Printing and Packaging 1.36 30.31 -Aseer Trading 1.36 18.29 3.6


Note: All statistics in this report are based on market close prices on April 29, 2015




Al Rajhi Bank has the highest share of about 8.03% in the Saudi market,

followed by SABIC at 7.08% and National Commercial Bank at 5.27%, these

three companies accounts for nearly 20% of the market index.

Notably, the most in�uential stocks in the Saudi market are from the Banking, Petrochemical and Telecommunication sectors; however, companies (from other sectors), including Kingdom Holding, Saudi Electricity, Almarai and Savola, also reported strong stock performance.

Knowledge Economic City has been the best performing stock since the

beginning of the year, appreciating 88.9%, followed by Allied Coop

Insurance Group, achieving 87.8% return.

The list indicates returns of over 40.0% for all companies since the

beginning of the year.

Middle East Specialized Cables Co. reported the highest negative return of

31.6%. This was followed by Solidarirty Saudi Takaful and Etihad Etisalalt,

with a stock price decline of 18.1% and 13.9% YTD, respectively.

The list indicates that �ve companies lost more than 10.0% since the

beginning of the year.

Company YTD % P/Bv (x) P/E (x)

Middle East Specialized Cables Co. -31.6 1.87 -Solidarity Saudi Takaful Co. -18.1 3.23 -Aljazira Takaful Taawuni Co. -13.9 5.51 301.73Etihad Etisalat Co. -13.9 1.51 -Eastern Province Cement Co. -10 1.93 14.2Amana Cooperative Insurance Co -9.4 - -National Industrialization Co. -9.3 1.39 33.83Southern Province Cement Co. -9.2 4.95 12.74Abdullah A. M. Al-Khodari Sons -6.6 1.72 18.4Saudi Fisheries Co. -6.3 5.43 -The Saudi British Bank -6.2 2.1 12.71National Gas & Industrialization Co. -5 2.29 14.48Saudi Airlines Catering Co. -3.6 10.64 22.29Saudi Marketing Co. -3.2 5.86 26.18Alkhaleej Training and Education -2.3 4.63 25.2


Company YTD % P/Bv (x) P/E (x)

Knowledge Economic City 88.9 3.48 -ACIG 87.8 6.85 74.6Tawuniya Insurance Co 85.3 4.75 15.5Al-babtain Power &Telecom 58.3 2.77 17.4Allianz Saudi Fransi Cooperative 54.5 6 52.6Saudi Transport & Investment Co. 51.3 3.96 22.6Buruj Cooperative Insurance 50.9 7.41 45.8Jabal Omar Development 50.9 7.85 174.9Wataniya Insurance Co 50.4 14.18 168.3Takween 50 5.05 78.5Al-Ahli Takaful Co 47.6 6.77 43.2Ace Arabia Co 46.5 4.16 64.6Abdulmohsen Al Hokair 44.2 6.57 23.9Alinma Tokio Marine 43.5 12.57 -Makkah Construction Co 42.6 2.08 56.5


Company Issued Shares

Free Shares F/I (%)

Kingdom Holding Co. 3,705,882 185,3 5.00%Saudi Telecom 2,000,000 325,1 16.30%Saudi Electricity Co. 4,166,594 715,8 17.20%National Petrochemical Co. 480,000 84 17.50%Saudi Basic Industries Corp 3,000,000 632,2 21.10%Rabigh Refining and Petrochemical 876,000 184,7 21.10%Saudi Hollandi Bank 571,536 157,4 27.50%Alabdullatif Industrial Investment 81,250 24,3 29.90%Saudi Marketing Co. 35,000 10,5 30.00%Al Hammadi Development 120,000 36 30.00%Abdulmohsen Alhokair Group 55,000 16,5 30.00%MetLife AIG ANB Coop Insurance 17,500 5,3 30.00%Aljazira Takaful Taawuni Co. 35,000 10,5 30.00%Saudi Airlines Catering Co. 82,000 24,6 30.00%Alinma Tokio Marine Co. 20000 6 30.00%

Source: Tadawul, Bloomberg, AlJazira Capital F/I refers to free to issued shares No. of shares in ‘000

Best 15 Companies

Top 15 Companies

Worst 15 Companies

Least 15 Companies

Top price performers

Weight to the market index

Worst price performers

Ratio of free to issued shares

Company % of TASI No. of Free Shares (mn) P/E (x)

RJHI 8.03 1,186 15.39SABIC 7.08 633 15.28NCB 5.27 713 15.81JOMAR 4.58 546 170.31SAVOLA 3.28 400 19.45SAMBA 3.23 603 11.91BSFR 2.74 648 12.80RIBL 2.68 1,423 11.91ALINMA 2.68 1,036 27.50STC 2.38 325 12.21JARIR 2.22 89.9 26.46ALMARAI 1.97 203.0 32.44SABB 1.91 325.0 12.70SAFCO 1.89 117.8 17.15MAADEN 1.88 394.2 30.92

Source: Tadawul, Bloomberg, AlJazira Capital

No. of shares in ‘000

Kingdom Holding Co. has the lowest ratio of free-to-issued shares, with only

5.0% of the stocks issued being traded in the market.

According to market statistics, four companies have less than 20.0% of free �oats, as government funds hold substantial part of their shares.




Jarir led in terms of return on equity (RoE) at 58.5% on TTM basis, followed

by Ibrahim Shaker at 57.4%. The top 15 companies realized RoE of more

than 30.0%.

Saudi Arabia Fertilizers Co. registered the highest return on assets (RoA)

in the Saudi market at 34.5%, followed by Saudi Airlines Catering Co. at

34.3%.

The top 15 companies generated RoA of more than 19.0%.

Company ROA (%) P/Bv (x) YTD %

Saudi Arabia Fertilizers Co. 34.5 6.13 2.6Saudi Airlines Catering Co. 34.3 10.64 -3.6Jarir Marketing Co 33 14.69 26.5Bupa Arabia for Coop Insurance 30.3 8.47 31.9Qassim Cement Co 27.7 4.56 6.1The Co for Cooperative Insurance 27.4 4.84 94.7Southern Province Cement Co. 27.1 4.95 -9.2Saudi Arabian Coop Insurance 26.7 6.91 44.7Taiba Holding Co. 26.1 1.54 10.8Saudi Cement Co. 25.3 4.71 0.6Al Hassan Ghazi Ibrahim Shaker 24.3 3.18 41.4Herfy Food Services Co 23.3 8.5 28.2Saudi Vitrified Clay Pipes Co. 21.9 5.92 10.4National Agriculture Marketing Co. 20.6 12.04 -2.2Advanced Petrochemical Co. 19.8 4.08 38


Company ROE (%) P/Bv (x) YTD %

Jarir Marketing Co 58.5 14.69 26.5Al Hassan Ghazi Ibrahim Shaker 57.4 3.18 41.4Saudi Airlines Catering Co. 51.7 10.64 -3.6Al-Tayyar Travel Group Holding Co. 44 7.8 24.1Southern Province Cement Co. 41.7 4.95 -9.2Saudi Vitrified Clay Pipes Co. 41.6 5.92 10.4Saudi Arabia Fertilizers Co. 39.4 6.13 2.6Saudi Cement Co. 35.9 4.71 0.6Taiba Holding Co. 34.5 1.54 10.8Bupa Arabia for Cooperative Insurance 34.3 8.47 31.9Fawaz Abdulaziz AlHokair 33.8 9.18 8.1The Co for Cooperative Insurance 33 4.84 94.7Herfy Food Services Co 32.2 8.5 28.2Advanced Petrochemical Co. 31.8 4.08 38Qassim Cement Co 30.6 4.56 6.1


Best 15 Companies Best15 CompaniesReturn on Equity (ROE) Return on Assets (ROA)

The net earnings of companies listed on the TASI declined 21.6% YoY during 1Q2015. The overall earnings for the quarter was SAR 22.05bn, compared with

SAR 28.1bn in the corresponding period of the previous year. Banking and Petrochemicals accounted for more than 71% of earnings.

E arn in g s ( P rior Y ear T T M) E arn in g s ( C u rren t Y ear T T M) % Y oY ( R H S)

25. 3%

2. 2%

-25. 0% -21. 6

-30. 0%

-20. 0%

-10. 0%

0. 0%

10. 0%

20. 0%

30. 0%

0

7,000

14 ,000

21,000

28 ,000

35,000

Q 22013/ 2014 Q 32013/ 2014 Q 4 2013/ 2014 Q 12014 / 2015

(SA

R M

n)

Total net pro�t for listed companies in the Saudi Market





h The net profit for the Saudi market was SAR 22.05bn during 1Q2015, compared with SAR 28.1bn in 1Q2014, showing a 21.6% YoY decline.

h Weighted-average Earnings per share (EPS) for the Saudi market was SAR 0.7 for the quarter.

h Index heavyweights Petrochemicals and Banking made the highest contribution to earnings, with 19.9% and 50.6% share, respectively, while the Cement sector’s net profit was 7.7% of the entire Saudi market’s net profit.

h Media & Publishing sector was the best performer in the Saudi market, with a profit of SAR 32.9mn at the end of 1Q2015 as compared to loss of SAR 29.8mn at the end of 1Q2014. This improvement was primarily driven by Saudi Research and Marketing Group, which posted a profit of SAR 19.7mn in 1Q2015, compared with loss of SAR -27.6mn in 1Q2014.

h While four sectors witnessed a YoY decline in profit, 11 registered YoY growth in profit in 1Q2015. The combined decline in profit after tax (PAT) decline of five sectors was 61.9% YoY, led by decline in the Energy & Utilities sector, and the combined increase in PAT increase of 11 sectors was 8.1% YoY, led by the Transport sector.

Y T D T A SI I n dex P erf orm an ce

7,000 7,500 8 ,000 8 ,500 9 ,000 9 ,500

10,000

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

Tele

com

& IT

-10% 0%

10% 20% 30% 4 0%

Bank

s

Ener

gy

Cem

ent

Mul

ti-In

vt

Hot

el

Insu

ranc

e R

etai

l Ag

ri. &

Pe

tche

m

Tran

spor

t In

dust

rial

Med

ia

Rea

l Est

ate

Build

ing

YTD 2015 Sector Performance

15.4% YTD

Sector

1Q2014 1Q2015YoY

Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

Sector profit to Total

Banks & Financial Services 10,590.10 0.77 11,160.70 0.79 5.40% 50.60%Petrochemicals 9,315.50 1.26 4,376.40 0.71 -53.00% 19.90%Cement 1,643.60 1.22 1,697.00 1.28 3.20% 7.70%Retail 744.5 1.94 833.4 2.21 11.90% 3.80%Energy & Utilities -879.8 -0.15 -1,898.30 -0.36 - -8.70%Agri & Food 987.2 0.81 1,077.70 0.86 9.20% 4.90%Telecom & IT 3,616.90 1.37 2,013.90 0.51 -44.30% 9.10%Insurance -30 -0.63 33 0.3 - 0.20%Multi-Investment 204 0.15 227.8 0.15 11.60% 1.00%Industrial Investment 503 0.49 582.9 0.46 15.90% 2.70%Real Estate Development 512.9 0.14 779.8 0.28 56.40% 3.10%Transport 257.5 0.55 590.9 1 129.50% 2.70%Media & Publishing -29.8 -1.52 32.9 1 - 0.20%Hotel & Tourism 378.4 1.24 389.2 1.28 2.80% 1.80%Building & Construction 378.7 0.85 239.7 0.75 -36.70% 1.10%Total Saudi Market 28,123.60 0.84 22,051.20 0.7 -21.60% 100.00%

Source: Tadawul website, AlJazira Capital

Sectors Performance




After posting 14.4% YoY growth in 4Q2014, net earnings for Saudi Arabia’s Banking sector increased 5.4% YoY to SAR 11.2bn in 1Q2015. The weighted-

average EPS stood at SAR 0.8 per share.

Most banking stocks posted YoY increase in profit, with Bank AlJazira registering the maximum growth in earnings (up 42.5% YoY). Only Al Rajhi Bank

posted YoY decline in profit (down 11.0%).

Other heavyweights National Commercial Bank, Samba Financial, and Riyad Bank registered 2.8%, 3.1%, and 8.5% YoY growth, respectively.

Riyad Bank had the highest dividend yield in the sector at 3.9%.

The following factors led to YoY fluctuations in net profit for some companies in the sector :

h Al Rajhi Bank: Marginal decline in profit was primarily due to a 2.2% YoY drop in operating income. This was the seventh straight decline in

quarterly profit for the bank. Loans and advances grew 6.3% YoY and deposits rose 11.4% YoY.

h Saudi Fransi: Strong YoY profit growth of 22.7% was primarily driven by a 7.4% YoY surge in special commission income, and a 13.5% increase in

operating income. Net special commission income was supported by 4.8% YoY growth in loans and advances, with an 8.9% YoY rise in customer

deposits.

h Riyad Bank: The increase in profit was primarily led by a 6.1% YoY rise in operating income. Net special commission income rose 4.2% YoY to

SAR 1.3bn.

h Samba Financial: The modest 3.1% YoY rise in net profit was primarily driven by a 4.2% YoY increase in net special commission income and a

5.3% YoY surge in operating income.

h Saudi Hollandi Bank: Strong profitability was driven by robust 19.9% YoY growth in net special commission income. Total operating income rose

23.1% YoY to SAR 931.7mn. Loans and advances, and deposits grew 17.3% and 18.2% YoY, respectively.

h Saudi British Bank: The bank’s bottom-line rose 3.2% YoY due to 5.9% YoY growth in operating income. This was mainly due to 7.4% YoY growth

in net special commission income. Moreover, loans and advances grew 9.6% YoY, and customer deposits rose 8.8% YoY.

B an k in g Sector

14 ,200

16,200

18 ,200

20,200

22,200

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

-14 % -7% 0% 7%

14 % 21% 28 % 35%

SABB

SAIB

Riy

ad

Bank

AlB

ilad

Bank

AlJ

azira

Arab

Nat

iona

l

Alin

ma

Saud

i Hol

land

i

Al R

ajhi

BSF

NC

B

Sam

ba

YTD 2015 Banking Sector

4.1% YTD

Company Name

1Q2014 1Q2015YoY

Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X) D/Y (%)

Bank AlJazira 159.3 0.4 227 0.57 42.50% 19.61 2.05 -

Saudi Hollandi Bank 417 0.73 538.9 0.94 29.30% 13.14 2.38 1.9

Banque Saudi Fransi 855.8 0.71 1,050 0.87 22.70% 12.35 1.73 2.6

Alinma Bank 292.8 0.2 344 0.23 17.50% 27.47 2.02 2.1The Saudi Investment Bank 337.5 0.52 366.7 0.56 8.70% 11.1 1.37 3

Riyad Bank 1,079 0.36 1,171 0.39 8.50% 12.09 1.46 3.9

Arab National Bank 712.9 0.71 770.6 0.77 8.10% 11.84 1.68 3.2

The Saudi British Bank 1,080 0.72 1,115 0.74 3.20% 12.71 2.1 1.9Samba Financial Group 1,240 0.62 1,278 0.64 3.10% 11.84 1.54 2.8

NCB 2,535 1.27 2,605 1.3 2.80% 15.59 3.02 1

BANK ALBILAD 173.7 0.43 174.1 0.44 0.20% 23.2 3.39 1

Al Rajhi Bank 1,705 1.05 1,519 0.94 -11.00% 15.22 2.42 2.4

Total 10,590 0.77 11,160 0.79 5.39% 14.96 2.08 2.53


Banking Sector




Net earnings of Saudi Arabia’s Petrochemical sector was SAR 4.4bn during 1Q2015, compared with SAR 9.3bn in 1Q2014, a 53.0% YoY decline. This was

led by heavyweights Rabigh Refinery (down 50.3% YoY) and Saudi Basic Industries Group (down 38.9% YoY). The weighted-average EPS stood at SAR 0.7

per share.

Saudi Kayan, Alujian Corporation, and National Industrialization Co. were the worst performers in terms of YoY decline in net profit in 1Q2015. Only

SIPCHEM (up 17.4%) reported growth in net profit to SAR 80.6mn.

Saudi Basic Industries and Yanbu National Petrochemicals had high dividend yield at 6.2% and 6.1%, respectively.


h SABIC: Low average sales prices were partially offset by low costs of certain feedstock.

h Petro Rabigh: A low profit margin on the sale of petrochemical products despite relatively stable operations and an improved refining margin.

h SAFCO: A drop in average sale prices, sales volumes and share of profits in fellow company Ibn Al-Baytar led to 30.0% decline in profit on YoY

basis.

h Tasnee: 1) A lower sales price of products, and 2) negative market valuation of foreign exchange hedge and derivatives contracts which were

transacted by one of the group subsidiaries.

h SIIG: 1) lower average selling prices of Petrochem subsidiaries’ products despite the decline in some feedstock prices, 2) a decrease in the SIIG

portion in the National Petrochem Co’s profits from SAR 71.0mn in 1Q2014 to SAR 51.0mn in 1Q2015, and 3) an increase in the SIIG portion in

the Petrochemical Conversion Company’s losses from SAR 2.0mn in 1Q2014 to SAR 20.0mn in 1Q2015.

h Kayan: 1) A decrease in sales prices, 2) lower sales volumes due to shutdown of a plant on 12th March, 2015 for maintenance, and 3) a decrease

in prices of liquid feedstock.

Company Name

1Q2014 1Q2015YoY

Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X) D/Y (%)

SIPCHEM 68.7 0.19 80.6 0.22 17.40% 19.98 2.07 3.86National Petrochemical 141 0.29 101.8 0.21 -27.80% 17.02 2.5 -SAFCO 842.5 2.02 590 1.77 -30.00% 16.48 6.13 4.15Advanced Petrochemical 137.5 0.83 89.6 0.55 -34.80% 12.94 4.08 5.41

SABIC 6,441 2.15 3,934 1.31 -38.90% 13.9 1.75 6.19Yanbu National 555.7 0.99 285.1 0.51 -48.70% 12.53 1.85 6.09Petro Rabigh 413 0.47 205.4 0.23 -50.30% 42.42 2.1 -SIIG 260.7 0.58 125.7 0.28 -51.80% 15.56 1.8 3.61Sahara Petrochemical 99.9 0.23 -49.5 -0.11 - 27.88 1.26 5.47Methanol Chemicals 24.2 0.2 -15 -0.12 - 48.89 1.03 -National Industrialization 320.8 0.48 -332.5 -0.5 - 33.83 1.39 4.15Alujain Corporation 14.8 0.21 -16.8 -0.24 - 11.73 1.73 -Saudi Kayan 9.9 0.01 -591.6 -0.39 - - 1.29 -Nama Chemicals Co. -14.9 -0.12 -31.2 -0.24 - - 1.21 -Total 9,315 1.26 4,376 0.71 -53.00% 17.5 2.06 2.9


Petrochemical Sector

P etroch em ical s Sector

4 ,500

5,100

5,700

6,300

6,9 00

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

-14 % -7% 0% 7%

14 % 21% 28 % 35% 4 2% 4 9 %

TASN

EE

Saha

ra

SAFC

O

Yanb

u

Saud

i Kay

an

Nam

a SI

IG

Met

hano

l SA

BIC

N

atio

nal

SIPC

HEM

Pe

tro R

abig

h Ad

vanc

ed

Aluj

ain

% YTD 2015 Petrochemical Sector

10.6% YTD




Net earnings of Saudi Arabia’s Cement sector increased 3.2% YoY to SAR 1.7bn in 1Q2015 from SAR 1.6bn in 1Q2014. The weighted-average EPS stood

at SAR 1.3 per share.

Al Jouf Cement (up 71.6% YoY), Najran Cement (up 71.3% YoY) and Southern Province Cement (up 20.4% YoY) registered robust earnings growth, while

Eastern Province Cement (down 45.8% YoY), Tabuk Cement (down 25.8% YoY) and Northern Region Cement Co. (down 16.7% YoY) led the decline in

earnings.

Currently, seven cement companies are among the top 15 by dividend yield, led by Arabian Cement (8.0%) and Northern Region Cement (8.0%), this

offers an attractive proposition for investors.

The following factors led to YoY fluctuations in net profit for some companies in the sector:

h Saudi Cement: An increase in exports, the share of associated companies’ profits and other income.

h Arabian Cement: 1) An increase in sales revenue to SAR 453.0mn in 1Q2015 from SAR 422.5mn in 1Q2014, 2) improved performance of the

subsidiary company, and 3) a decrease in production costs as a result of lower consumption of outsourced clinker.

h Najran Cement: Higher sales volumes partially offset by higher selling, distribution, finance and zakat expenses. In 1Q2014, the company

incurred high costs for imported clinker used in cement production.

h Southern Province Cement: Higher sales revenue owing to increased sales volumes led to 20.4% YoY growth in net income.

Company Name

1Q2014 1Q2015

YoY Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X) D/Y (%)

AL Jouf Cement 15 0.12 25.8 0.2 71.60% 35.13 1.49 -Najran Cement 53.7 0.32 92 0.54 71.30% 17.02 2.35 2.1Southern Province 221 1.58 266 1.9 20.40% 12.74 4.95 5Arabian Cement 167.1 1.67 195.3 1.95 16.80% 11.97 2.41 6.2Hail Cement Co. 35.1 0.36 37.5 0.38 6.80% 14.89 2.11 4.8Saudi Cement 286 1.87 303.1 1.98 6.00% 13.5 4.71 6.3City Cement 65.3 0.35 67.6 0.36 3.60% 21.7 2.38 3.8Qassim Cement 159 1.77 162.7 1.81 2.30% 15.01 4.56 6.35Yanbu Cement 205.2 1.3 207 1.31 0.90% 12.86 2.93 6Yamamah Saudi 174.6 0.86 175.4 0.87 0.40% 14.44 2.59 6.1Northern Region 60.8 0.34 50.6 0.28 -16.70% 18.21 1.98 8.3Tabuk Cement Co. 44 0.49 32.6 0.36 -25.80% 17.32 1.89 5.9Eastern Province 156.7 1.82 85 0.99 -45.80% 14.2 1.93 5.02Umm Al-Qura Cement 0 0 -3.6 -0.06 - - 4.44 -

Total 1,643.60 1.22 1,697.00 1.28 3.20% 15.26 2.97 5.8


Cement Sector

C em en t Sector

6,000

6,600

7,200

7,8 00

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

-20%

-10%

0%

10%

20%

30%

East

ern

Sout

hern

Ta

buk

Yam

amah

H

ail

Saud

i Ar

abia

n Ya

nbu

Nor

ther

n N

ajra

n C

ity

Um

m A

l Al

Jou

f Q

assi

m

YTD 2015 Cement Sector

2٫1% YTD




Saudi Arabia’s Retail sector recorded 11.9% YoY growth in net profit in 1Q2015 following a 0.7% YoY decline in 4Q2014. Net earnings stood at SAR

833.4mn in 1Q2015, compared with SAR 744.5mn in 1Q2014. The weighted-average EPS stood at SAR 2.2 per share.

Heavyweights Jarir and Fawaz Al-Hokair continued to dominate the sector, accounting for 53.8% of net profit (SAR 448.8mn) during 1Q2015. Jarir’s and

Fawaz Abdulaziz’s net profit grew 22.7% YoY and 5.7% YoY, respectively, in 1Q2015.

In terms of dividend yield, Jarir topped with 3.8% yield. Jarir also had the best RoE (58.5%) in the market.


h Jarir: 1) Growth in sales for all sections and other income, 2) an increase in rent as the number of showrooms rose to 36 from 32, and 3) a

decrease in SG&A expenses and Financial charges due to a decline in borrowings.

h AlHokair: 1) 19.0% increase in sales driven by the grant of an additional two months’ salary by the Custodian of the Two Holy Mosques, and

2) SAR 82.8mn reduction in other income and SAR 14.0mn increase in finance charges.

h Al Othaim: Sales from existing and new branches grew 15.1% and income from associates also grew.

h Fitaihi holding: Sales declined 7.8% to SAR 68.9mn in 1Q2015 from SAR 74.8mn in 1Q2014, leading to a SAR 3.1mn decline in gross profit to

SAR 33.6mn in 1Q2015.

h Dallah Healthcare: Higher sales revenue due to 1) Operating the North Clinics Building, and 2) a rise in the number of inpatients and

outpatients.

Company Name

1Q2014 1Q2015YoY

Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X)

P/Bv (X)

D/Y (%)

National Agriculture 6 0.6 38.9 3.89 546.90% 15.58 12.04 -

Aldrees Petroleum 30.5 0.76 42 1.05 37.70% 19.7 4.58 3.01

Jarir Marketing 201.3 2.24 247 2.74 22.70% 26.93 14.69 2.9

Al Hammadi 34.2 0.65 41 0.55 19.80% 47.99 5.66 1

Dallah Healthcare 40.5 0.86 47.8 1.01 18.00% 40.62 4.93 0.75

Fawaz AlHokair 190.8 3.67 201.7 3.82 5.70% 27.94 9.18 2.1

Saudi Marketing Co 27.6 0.79 29.1 0.83 5.20% 26.18 5.86 2.0

Abdullah Al Othaim 46.5 1.04 48.9 1.09 5.20% 23.01 5.25 1.58

Alkhaleej Training 15.6 0.45 15.6 0.45 0.20% 25.2 4.63 1.25

Mouwasat Medical 57.9 1.16 55.9 1.12 -3.50% 29.19 6.77 1.44

National Medical Care 32.4 0.72 27.7 0.62 -14.40% 32.12 3.41 2.44

Fitaihi Holding Group 24.1 0.44 18.5 0.34 -23.30% 31.6 1.88 -

United Electronics 29.2 0.98 16.1 0.54 -45.10% 26.29 5.48 3.2

SASCO 7.8 0.17 3.2 0.07 -58.50% 17.63 1.86 4.8

Total 744.5 1.94 833.4 2.21 11.90% 31.25 6.41 2.4Source: Tadawul, Bloomberg, AlJazira Capital

Retail Sector

R etail Sector

13,000 14 ,000 15,000 16,000 17,000 18 ,000 19 ,000

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

-10% 0%

10% 20% 30% 4 0%

Saud

i Al

khal

eej

THIM

AR

Dal

lah

Al

Oth

aim

Al

Hok

air

Mou

was

at

Car

e Ex

tra

Al H

amm

adi

SASC

O

Fita

ihi H

oldi

ng

Jarir

Al

dree

s

YTD 2015 Retail Sector

15.9% YTD




Net earnings of Saudi Arabia’s Agriculture and Food sector grew 9.2% YoY to SAR 1,077.7mn in 1Q2015 from SAR 987.2mn in 1Q2014. The weighted-average EPS was SAR 0.9 per share.

The sector’s robust performance was led by the performance of heavy-weight stocks, including Almarai and Savola. Almarai and Savola reported 12.0% YoY and 11.2% YoY growth in net profit, respectively. Another major player, Saudi Airlines Catering, contributed to overall growth in the sector, with a net profit rise of 3.5% YoY.


h Almarai: 1) Growth in quarterly sales of 11.7% YoY, led by continuous sales growth in Poultry, and Dairy & Juice segments by 46.4% YoY and 10.7% YoY, respectively, despite a 4.8% YoY fall in the sales of the Bakery segment, 2) relatively stable cost of sales leading to 20.8% YoY growth in gross profit, 3) an increase in SG&A expenses and depreciation due to continuous infrastructure expansion, and 4) a reduction in net finance costs. Net profit rose for all business segments, except Poultry, which reduced losses by 53.6% YoY to SAR 61.7mn.

h Savola: 1) Net income rose in 1Q2015 from 1Q2104, due to capital gains of SAR 265.2mn from the sale of the group’s all shares in Savola Packaging Systems Co., and 2) higher sales in both the Foods and Retail segments.

h Saudi Airlines Catering: A robust 13% YoY increase in sales, led by continued growth in Airline business, and 51.0% YoY growth in Non-airlines sales. Moreover, General and Administrative expenses declined 18.0% YoY in the current quarter. However, the decision by the board to pay two additional months’ salaries to all Saudi Nationals impacted net profit.

Company Name

1Q2014 1Q2015YoY

Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X) D/Y(%)

Tabuk Agriculture 1.7 0.06 4.5 0.1 159.90% 64.06 1.56 -Al-Jouf Agriculture 5.2 0.17 8.6 0.29 66.10% 12.4 1.81 2.19Herfy Food Services 48 1.04 54.5 1.18 13.60% 27.13 8.5 2.57Almarai Co. 273.6 0.44 306.5 0.49 12.00% 33.58 5.1 1.06Savola Group 423.3 0.79 470.5 0.88 11.20% 19.9 4.14 2.55Halwani Bros 23.6 0.83 25.9 0.91 9.60% 26.84 4.1 2.28NADEC 24.8 0.32 26.2 0.34 5.60% 24.93 2.17 2.58Saudi Airlines Catering 161.8 1.97 167.4 2.04 3.50% 22.29 10.64 3.91SADAFCO 53.2 5.28 29.4 4.35 -44.80% 29.41 4.53 2.73Wafrah 1.1 0.05 -3.7 -0.19 - - 3.75 -Ash-Sharqiyah -1.5 -0.2 0.7 0.09 - - 11.67 -Jazan Development -2.1 -0.04 0.1 0 - 74.78 1.25 -Anaam International -7.5 -0.38 1.5 0.08 - - 3.67 -Saudi Fisheries Co. -10.3 -0.19 -11 -0.21 - - 5.43 -Qassim Agriculture Co. -7.3 -0.15 -3 -0.06 - - 2.14 -Bishah Agriculture -0.2 -0.03 -0.4 -0.07 - - - -Total 987.2 0.81 1,077.70 0.86 9.20% 28.48 4.54 2.1

Tadawul, Bloomberg, AlJazira Capital

Agriculture & Food Industries Sector

A g ri & F ood Sector

10,000 10,500 11,000 11,500 12,000 12,500 13,000

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

-25%

0%

25%

50%

Saud

i Fis

herie

s Sa

udi A

irlin

es

Savo

la

Bish

ah A

gri

Qas

sim

Agr

i Ja

zan

Dep

t. SA

DAF

CO

Ta

buk

Agri

Hal

wan

i Bro

s An

aam

Fo

od P

rodu

cts

Al-J

ouf A

gri

Alm

arai

As

h-Sh

arqi

yah

NAD

EC

Her

fy F

ood

YTD 2015 Agriculture & Food Industries Sector

7٫2% YTD




Saudi Arabia’s Telecom sector continued with its slow performance in 1Q2015, with a 44.3%

YoY decline in net profit to SAR 2,013.9mn from SAR 3,616.9mn. The sector’s performance

was weak, primarily due to reported loss by Etihad Etisalat’s. The weighted-average EPS for

1Q2015 fell to SAR 0.5 per share from SAR 1.4 per share in 1Q2014.

Etihad Etisalat Co was the worst performer during the quarter, reporting a net loss of SAR

198.9mn in 1Q2015 after registering a net profit of SAR 1,612.0mn a year ago.

Mobile Telecommunications and Etihad Atheeb Telecommunications reduced their losses to

SAR 257.0mn and SAR 33.7mn in 1Q2015 from SAR 318.4mn and SAR 67.7mn in 1Q2014,

respectively.

The YTD performance of Etihad Atheeb was the highest (6.1% gain) in the sector, while Etihad

Etisalat was down 13.9% YTD.

Saudi Telecom Co had the highest dividend yield in the sector at 5.8%.

The following factors led to YoY fluctuations in net profit for major companies in the sector:

h Saudi Telecom: 1) A 16.0% YoY increase in revenue from services, 2) an increase in

operating expenses (up 17.5% YoY), 3) a decline of SAR 683.0mn in other income

and expenses (net), and 4) a low zakat provision compared with that in 1Q2014.

h Etihad Etisalat: 1) SAR 250.0mn increase in depreciation expense, 2) SAR 133.0mn

additional provision for doubtful debt, and 3) a fall in revenues (mainly due to FTTH

(fiber-to-the-home) capital leases worth SAR 1.3bn in 1Q2014).

h Zain - KSA: 1) An improvement in revenues (up 9.0%) to SAR 1.7bn in 1Q2015 due

to rising demand for internet services, and 2) a 54.0% decline in operational losses.

Company Name

1Q2014 1Q2015YoY

Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X) D/Y (%)

Saudi Telecom 2,390.90 1.2 2,503.60 1.3 4.70% 12.36 2.27 5.84Etihad Etisalat Co 1,612.00 2.1 -198.9 -0.3 - - 1.51 -zain -318.4 -0.3 -257 -0.3 - - 1.3 -Etihad Atheeb -67.7 -1.6 -33.7 -0.4 - - 1.7 -

Total 3,616.90 1.4 2,013.90 0.5 -44.30% 163.04 1.81 5.1Source: Tadawul, Bloomberg, AlJazira Capital *Suspended from Trading

Telecom.& I T Sector

T el ecom & I T Sector

1,500

1,8 00

2,100

2,4 00

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

-15%

-10%

-5%

0%

5%

10%

Mob

ily

Zain

- KS

A

STC

Athe

eb T

elec

om

YTD 2015 Telecom.& I T Sector

-3٫8% YTD




Saudi Arabia’s Insurance sector registered net profit of SAR 33.0mn during 1Q2015 following net losses of SAR 30.0mn in 1Q2014, registering 210% YoY

growth. The sector posted weighted-average profit of SAR 0.3 per share in the quarter.

Cooperative Insurance (Tawuniya), with the biggest weight in the sector index, posted net profit of SAR 96.2mn in 1Q2015 compared to SAR 39.7mn in

1Q2014, making the highest contribution to sector growth. Heavyweight MEDGULF reported loss of SAR 52.4mn in 1Q2015, while Bupa Arabia posted

net profit of SAR 36.8mn as compared to loss of SAR 20.8mn in 1Q2014. With 24 of the 35 companies in the sector reporting gains, the sector’s overall

performance was strong.

The Co for Coop Insurance, Allied Coop Insurance, Alahli Takaful, Allianz, Buruj, Wataniya and Alinma Tokio were among the best performers in terms of

YTD gains, up 94.4%, 84.4%, 69.0%, 60.4%, 50.7%, 50.5%, and 48.0%, respectively.

Following factors led to YoY fluctuations in net profits for some companies in the sector:

h Tawuniya: 1) Operating transaction results rose 195.1% YoY, 2) net profit of policy holders investment rose 282.3% YoY.

h MEDGULF: 1) An increase in net claims incurred, 2) gross paid claims and other expenses by 17.0% YoY and 33.0% YoY, respectively.

Company Name

1Q2014 1Q2015YoY

Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X)

P/Bv (X) D/Y(%)

Salama Cooperative 0.8 0.1 2.6 0.2 221.00% 218.58 10.51 -United Cooperative 2.3 0.1 6.6 0.2 186.70% - 3.21 -Alahli Takaful 5.3 0.5 13.9 1.8 161% 44.99 7.06 -Tawuniya 39.7 0.3 96.2 0.9 142.50% 15.81 4.84 1.49Arabian Shield Coop 2 0.1 4.5 0.2 120% 84.01 3.15 -SAICO 3.2 0.3 6.6 0.5 105.50% 31.4 6.91 -WAFA Insurance 2.4 0.2 4.7 0.5 92.40% 603.56 11.16 -AXA Cooperative 5.7 0.3 9.9 0.2 72.80% 46.11 3.64 -Allied Cooperative 2.3 0.1 3.8 0.2 68.70% 113.24 6.76 -BURUJ Coop 3.5 0.2 5.8 0.4 63% 37.01 7.25 -Al-Rajhi Takaful 4.4 0.2 6.4 0.3 47.20% 58.08 8.88 -Aljazira Takaful 2.1 0 3 0.1 43.30% 301.73 5.51 -SABB Takaful 2.8 0.1 3.1 0.1 13.50% 86.79 3.48 -Al-Ahlia Insurance 0.4 0 0.5 0 6.40% - 2.52 -Wataniya Insurance 5.8 0.6 3.2 0.3 -46% 165.59 13.95 -Gulf General Coop 9.2 0.4 1.2 0 -87.30% 53.62 2.99 -Al Sagr Coop 7.7 0.2 0.8 -0.1 -89.20% 83.97 2.33 1.61Saudi Re 22.5 0.2 -9.3 -0.1 - - 1.44 -Ace Arabia 1.8 0.2 -1 -0.1 - 58.87 4.06 -MEDGULF 50.8 0.5 -52.4 -0.5 - 40.91 4.97 -Allianz Saudi Fransi -5.3 -0.3 5.5 0.3 - 69.75 5.94 -Arabia Insurance -2.1 -0.1 2.2 0.1 - 88.32 5.56 -Malath Cooperative -9.7 -17.7 -11.4 -0.4 - - 3.3 -Al Alamiya -16.5 -0.5 2.1 0.1 - - 33.16 -Trade Union -12.7 -0.5 2.5 0.1 - - 4.48 -Sanad Insurance -13 -0.7 4.7 0.2 - - 8.55 -Solidarity Saudi -41.8 -0.8 -64 -1.2 - - 3.23 -Bupa Arabia -20.8 -0.5 36.8 0.9 - 26.52 8.47 0.22Saudi Enaya -11.5 -0.3 -9.8 -0.2 - - 4.69 -Amana Cooperative -7.8 -0.2 -25.9 -0.8 - - - -Alinma Tokio Marine -6.5 -0.3 -4.5 -0.2 - - 12.51 -Gulf Union Coop -4.6 -0.2 1.6 0.1 - - 3.49 -Saudi United -19.2 -1 -9 -0.5 - 18.26 2.52 -Weqaya Takaful* -28.5 -1.4 - - - - 43.96 -MetLife AIG ANB -4.9 -0.3 -7.9 -0.4 - - 9.97 -Total -30 -0.6 33 0.3 - 59 5.01 0.51

Source: Tadawul, Bloomberg, AlJazira Capital*No data available for comparison,

Insurance Sector

I n s u ran ce Sector

1,000 1,100 1,200 1,300 1,4 00 1,500 1,600 1,700

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

-20%

-10%

0%

10%

20%

Solid

arity

Tak

aful

Al

jazir

a Ta

kafu

l Am

ana

WAL

AA

Weq

aya

Sana

d In

sura

nce

Mal

ath

Unite

d As

sur.

SALA

MA

Al-A

hlia

G

ulf U

nion

AX

A In

sura

nce

Arab

ia

Trad

e Un

ion

Arab

ian

Shie

ld

Enay

a In

sura

nce

0% 20% 4 0% 60% 8 0%

100%

WAF

A SA

BB T

akaf

ul

Med

gulf

Gul

f Gen

eral

Al

Sag

r Al

Ala

miy

a Al

-Raj

hi

Met

Life

Bu

pa In

sura

nce

Rein

sura

nce

ACE

Insu

ranc

e SA

ICO

Al

inm

a To

kio

W

atan

iya

BURU

J Al

lianz

AL

AHLI

AC

IG

Coo

pera

tive

% YTD 2015 Insurance Sector

% YTD 2015 Insurance Sector

29.0% YTD




Net earnings of Saudi Arabia’s Hotel and Tourism sector stood at SAR 389.2mn in 1Q2015, compared with SAR 378.4mn in 1Q2014, registering 2.8% YoY growth. The weighted-average EPS was SAR 1.3 per share.

Earnings growth in the sector was driven by AlHokair (up 10.6% YoY) and heavyweight Al-Tayyar, with 13.5% YoY increase in net earnings.

The dividend yield for Saudi Hotels & Resorts and Alhokair was 3.9% and 2.8%, respectively.

Saudi Hotels registered the lowest P/B ratio at 2.0x, followed by Tourism Enterprise Co. at 5.0x.

Company Name

1Q2014 1Q2015

YoY Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X) D/Y (%)

Abdulmohsen Alhokair 52.1 0.95 57.6 1.05 10.60% 24.02 6.95 2.8Tourism Enterprise Co. 0.6 0.06 0.6 0.06 5.80% 96.67 5.04 -Al-Tayyar Travel Group 280 1.4 286 1.43 2.10% 19.79 7.8 1.4

Saudi Hotels & Resort 45.8 0.46 45 0.45 -1.80% 34.52 2.02 3.9Total 378.4 1.24 389.2 1.28 2.80% 20.46 5.35 2.39

Source: Tadawul, Bloomberg, AlJazira Capital*YTD data not available

Hotel & Tourism Sector

0%

20%

4 0%

60%

H otel & T ou ris m Sector

18 ,000

20,000

22,000

24 ,000

26,000

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

% YTD 2015 Hotel & Tourism Sector

25٫5% YTD

Saudi Arabia’s Energy & Utilities sector reported a net loss of SAR 1,898.3mn in 1Q2015, compared with a net loss of SAR 879.8mn in the corresponding quarter of the previous year. SEC’s loss led to overall loss for the sector. The weighted-average EPS was SAR -0.4 per share.

Dividend yield for SEC was 3.7%, while that for National Gas was highest at 4.5%.

Losses increased for SEC in 1Q2015 due to the implementation of the convention on the use of the transport system (new transmission regulation), and high depreciation and other expenses.

Company Name

1Q2014 1Q2015YoY

Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X)

P/Bv (X)

D/Y (%)

National Gas 33.5 0.45 41.7 0.56 24.30% 14.48 2.29 4.53Saudi Electricity -913.3 -0.22 -1,940.00 -0.47 - 30.43 1.34 3.68

Total -879.8 -0.15 -1,898.30 -0.36 - 26.22 1.48 3.9


Energy & Utilities Sector

E n erg y & U til ity Sector

5,000 5,500 6,000 6,500 7,000 7,500

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

G AS C O S au d i E l ec t ri c i t y

-10%

0%

10%

20%

30% % YTD 2015 Energy & Utilities Sector

22٫4% YTD




Saudi Arabian Industrial Investment sector’s earnings rose 15.9% YoY in 1Q2015. Net profit grew to SAR 582.9mn in 1Q2015 from SAR 503.0mn in

1Q2014. The weighted-average EPS for the quarter was SAR 0.5 per share.

Even as eight of the 14 companies in the sector reported a YoY decline in net profit, the sector witnessed robust YoY growth, primarily led by the strong

performance of heavyweights Saudi Arabian Mining Co. (Maaden) (up 108.4%) and Saudi Pharma Industry (up 9.0%).

Takween Advanced reported loss in 1Q2015, while Saudi Industrial Export and Basic Chemical reported 90.6% YoY and 68.0% YoY decline in net profit,

respectively.

Saudi Chemical had the highest dividend yield in the sector at 5.4%.

The following factors led to YoY fluctuations in net profit for some companies in the sector:

h Saudi Arabian Mining: 1) Higher sales growth due to a rise in prices and quantities of all products, except gold prices and volumes of

ammonia, 2) an increase in other income, 3) an increase in General & Administrative expenses, Financial Charges, Zakat provision, and 4) an

increase in net loss for the jointly controlled entity.

h Saudi Chemical: Net profit growth declined, primarily led by a decrease in sales and the profit margin for some products.

h Saudi Paper: 1) Higher administrative expenses and Finance Charges and 2) capital gains due to sale of fixed assets in 1Q2014.

h Al Sorayai Trading: A decrease in sales prices, and an increase in the cost of production and provision of slow-moving items.

Company Name

1Q2014 1Q2015

YoY Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X) D/Y(%)

Saudi Arabian Mining 125.2 0.13 260.9 0.22 108.40% 30.5 1.92 -Maadaniyah 7.7 0.27 12.5 0.44 61.20% 40.12 2.62 1.38Ghazi Ibrahim Shaker 20.6 0.59 26.2 0.75 26.90% 7.01 3.18 2.95Zoujaj 14.8 0.49 18.6 0.62 25.70% 18.83 1.93 4.16SPIMACO 91.2 1.16 99.4 0.83 9.00% 16.34 1.57 3.32Saudi Chemical 90.9 1.44 86.2 1.36 -5.20% 16.73 3.02 5.41Alabdullatif Industrial 59.9 0.74 45 0.55 -24.80% 16.97 2.53 2.58Astra Industrial Group 63.1 0.85 42.1 0.57 -33.20% 29.51 1.42 2.12Saudi Paper 8.1 0.18 4.9 0.11 -40.20% 51.97 1.8 -Filing & Packing 6.9 0.6 2.5 0.22 -63.90% 29.35 3.15 1.97Basic Chemical 8.8 0.32 2.8 0.1 -68.00% 58.26 2.23 2.67Saudi Industrial Export 1.7 0.16 0.2 0.02 -90.60% 564.53 4.5 -Takween Advanced 8.8 0.25 -15.5 -0.44 - 79.35 5.1 -Al Sorayai Trading -4.8 -0.13 -2.9 -0.08 - - 1.68 -Total 503 0.49 582.9 0.46 15.90% 30.53 2.06 1


Industrial Investment Sector

I n du s trial I n v es tm en t Sector

5,000 6,000 7,000 8 ,000 9 ,000

10,000

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

0%

20%

4 0%

60%

FIPC

O

Saud

i Pap

er

Astra

Indu

stria

l Al

Abdu

llatif

M

aada

niya

h Al

Sora

yai

Zouj

aj

Basi

c C

hem

ical

Sa

udi C

hem

ical

SP

IMAC

O

SIEC

O

Shak

er

Maa

den

Takw

een

% YTD 2015 Industrial Investment Sector

35٫3% YTD




Net profit for Saudi Arabia’s Building & Construction sector stood at SAR 239.7mn in 1Q2015 compared with a net profit of SAR 378.8mn in 1Q2014. The

weighted-average EPS for the quarter was SAR 0.8 per share.

A total of 10 out of 17 companies in the sector reported a YoY decline in net profit, with Mohammad AL Mojil registering the highest loss of SAR 110.5mn

in 1Q2015. It was followed by Saudi Industrial Development and A.M. Al-Khodari Sons which registered a 76.3% and 57.2% YoY decrease in net profit to

SAR 4.7.mn and SAR 14.0mn, respectively, during 1Q2015.

Al-Babtain’s shares were among the best performers in terms of YTD gains at 65.3%. Saudi Vitrified Clay topped in terms of dividend yield, with a 6%

return.


h Mohammad Al Mojil Group: The company continued to register higher net losses in 1Q2015, with a net loss of SAR 110.5mn, compared with

a net loss of SAR 22.7mn in 1Q2014. Accumulated losses reached SAR 3.3bn (267.4% of capital) by the end of 1Q2015. The rising net loss was

primarily driven by a rise in contract costs.

h National Gypsum: A decline in profit due to lower sales in the current quarter.

h Saudi Ceramic: 1) Lower selling prices, and 2) an increase in costs, and selling, administrative and zakat expense.

h Zamil: 1) Better margins in AC & Insulation sectors, 2) a reduction in Financial charges, and 3) an increase in other income and the share of

profit from associates.

Company Name

1Q2014 1Q2015

YoY Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X)

D/Y (%)

Saudi Steel Pipe 4 0.1 11.4 0.2 183.30% 38.58 1.88 1.69Saudi Arabian Amiantit 20.6 0.2 25.9 0.2 25.60% 17.44 1.11 -Al-babtain Power 22.2 0.5 26.3 0.6 18.60% 17.39 2.76 2.22Zamil Industrial 66 1.1 73.7 1.2 11.70% 14.14 4.18 3.16Saudi vitrified clay 22.7 1.5 21.9 1.5 -3.50% 14.95 5.92 6.03Saudi Ceramic Co. 87.4 2.3 84.3 2.3 -3.60% 14.28 2.44 1.71National Gypsum 5.5 0.2 5.1 0.2 -6.90% 43.45 1.89 2.11Red Sea Housing 43.5 0.7 30 0.5 -31.10% 17.91 2.65 2.34Bawan Co. 46.7 0.9 27.3 0.5 -41.50% 14.67 3.4 0.97Electric Industries Co 55.5 1.2 28.8 0.6 -48.10% 18.15 4.63 1.71United Wire Factories 30.4 0.7 14 0.3 -53.90% 16.56 2.97 2.93A. M. Al-Khodari Sons 32.6 0.6 14 0.3 -57.20% 18.4 1.72 0.44SIDC 20 0.5 4.7 0.1 -76.30% - 1.77 -Saudi Cable -41.1 -0.5 -7.9 -0.1 - - 1.79 -Arabian Pipes -6.8 -0.2 -6.3 -0.2 - - 1.3 -MESC -7.8 -0.1 -3 0 - - 1.87 -Mohammad Al Mojil -22.7 -0.2 -110.5 -0.9 - - - -Total 378.7 0.85 239.7 0.75 -36.70% 22 2.32 1.97


Building & Construction Sector

B & C Sector

2,750

3,150

3,550

3,9 50

4 ,350

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

-4 0% -20%

0% 20% 4 0% 60% 8 0%

MES

C

Al-K

hoda

ri A

SLA

K

Al M

ojil

E

IC

Am

iant

it B

awan

Sa

udi C

able

Vi

trifie

d cl

ay

Saud

i Cer

amic

Pi

pes

Red

Sea

G

ypsu

m

Saud

i Ste

el

SID

C

Zam

il

AL-

BA

BTA

IN

% YTD 2015 Building & Construction Sector

13.2% YTD




Net earnings of Saudi Arabia’s Transport sector stood at SAR 590.9mn in 1Q2015,

compared with SAR 257.5mn in 1Q2014, registering 129.5% YoY growth. The weighted-

average EPS was SAR 1.0 per share.

All companies, except Saudi Transport and Investment Co. (down 70.7% YoY), reported

earnings growth. Saudi Public Transport (up 598.2%) grew the most, followed by National

Shipping Co. (up 104.2% YoY).

An increase in operating revenue, lower depreciation expenses, capital gains, gains in

equity investment and higher other income led to 598.2% YoY growth in net income for

Saudi Public Transport Co. The company’s net income stood at SAR 147.3mn in 1Q2015.

Saudi Public Transport shares ranked first in terms of dividend yield at 2.5%.

Company Name

1Q2014 1Q2015YoY

Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X) D/Y (%)

Saudi Public Transport 21.1 0.17 147.3 1.18 598.20% 16.3 2.27 2.52Bahri 195.1 0.62 398.4 1.01 104.20% 24.23 2.38 2.01United InterNational 39.9 0.98 44.8 1.1 12.30% 18.25 4.09 2.15Mubarrad 1.4 0.08 0.4 0.02 -70.70% 20.26 3.54 1.03Total 257.5 0.55 590.9 1 129.50% 21.36 2.47 2.4

Source: Tadawul website, AlJazira Capital،

Transport Sector

0%

15%

30%

4 5%

60%

B u d g et S au d i

S AP T C O Mu barrad B ah ri

% YTD 2015 Transport Sector

T ran s p ort Sector

6,000

7,000

8 ,000

9 ,000

10,000

11,000

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

36.1% YTD

Net earnings of Saudi Arabia’s Multi-investment sector grew 11.6% to SAR 227.8mn in 1Q2015

from SAR 204.0mn in 1Q2014. The weighted-average EPS stood at SAR 0.2 per share for

1Q2015.

Profits grew for five of the seven companies in the sector. Sector heavyweights Aseer Trading

and Kingdom Holding Co. reported 14.7% and 10.3% YoY growth in earnings, respectively.

Specialised Industrial Services Co. posted the highest YoY earnings growth of 49.3%.

Aseer had the highest dividend yield in the sector at 3.6%.

Company Name

1Q2014 1Q2015

YoY Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X) D/Y (%)

SISCO 12.4 0.18 18.5 0.27 49.30% 18.39 1.4 2.66SAIC 6 0.12 7.5 0.15 24.90% 58.78 1.24 2.22Aseer Trading, 52.7 0.42 60.5 0.48 14.70% 18.29 1.36 3.55Kingdom Holding 126.4 0.03 139.4 0.04 10.30% 83.11 2.27 2.53Al-Ahsa Development 4.7 0.09 2.6 0.05 -45.60% - 1.55 -SARCO 2.9 0.2 -0.7 -0.05 - 41.18 1.96 1.12Al-Baha Investment -1.1 -0.07 0 0 - - 52.44 -Total 204 0.15 227.8 0.15 11.60% 47.17 2.29 2.22


Multi-Investment Sector

Mu l t i -i nv es t m ent S ec t o r

3,000

3,500

4 ,000

4 ,500

5,000

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

0% 5%

10% 15% 20% 25% 30%

Al-B

aha

Al-A

hsa

King

dom

H

oldi

ng

SAIC

Asee

r

SISC

O

SAR

CO

% YTD 2015 Multi-Investment Sector

15.4% YTD




Net profit for Saudi Arabia’s Real Estate Development sector increased 52% to SAR 779.8mn in 1Q2015 from SAR 512.9mn in 1Q2014. Weighted-average

EPS for the quarter was SAR 0.28 per share.

Taiba Holding Co. posted the highest net earnings growth of 240.0% YoY in 1Q2015, with a profit of SAR 202.3mn compared with a profit of SAR 59.5mn

in 1Q2014.

While all companies contributed to the sector’s profit, Knowledge Economic City registered a net loss of SAR 4.8mn in 1Q2015. Dar Alarkan Real Estate

Development (down 40.6% YoY) was the other company to report a decline in net profit. After Taiba, Emaar The Economic City’s net profit grew an

impressive 70.9% to SAR 85.1mn in 1Q2015 from SAR 49.8mn in 1Q2014.

Shares of Knowledge Economic City, Jabal Omar, and Makkah Construction were among the best performers in terms of YTD gains, posting 55.2%,

47.8%, and 44.9% increase.


h Knowledge Economic City: Net loss due to 1) lower revenues, 2) and increase in Administration & General expenses, and 3) a decline in

Finance income.

h Saudi Real Estate: Higher profits due to an increase in rental revenue and revenue from investee companies during the quarter.

h Emaar: 1) Higher sales of residential plots, villas and apartments and 2) higher lease income from the industrial zone.

Company Name

1Q2014 1Q2015

YoY Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X) D/Y(%)

Taiba Holding Co.* 59.5 0.4 202.3 1.3 240.00% 4.92 1.54 6.8Emaar The Economic 49.8 0.1 85.1 0.1 70.90% - 1.55 -Arriyadh Development 51.4 0.5 71.2 0.5 38.40% 15.66 1.87 4Saudi Real Estate Co. 37.5 0.3 43.1 0.4 15.10% 15.83 1.3 2.67Dar Alarkan 247.9 0.2 147.3 0.1 -40.60% 21.16 0.55 -Makkah Construction** 71.8 0.4 86.3 0.5 20.10% 57.55 2.12 2.19KEC -2.5 0 -4.8 0 - - 2.83 -Jabal Omar** -2.5 - 149.3 0.16 - 174.9 7.67 -Total 512.9 0.14 779.8 0.28 52.00% 35.8 2.48 2.1


*Nonreccuring income * * Hejri calender

Real Estate Development Sector

0%

15%

30%

4 5%

60%

Taib

a

Dar A

l Ark

an

SREC

O

Arriy

adh

Emaa

r EC

Mak

kah

Cons

truct

ion

Jaba

l Om

ar

KEC

% YTD 2015 Real Estate Development Sector

R eal E s tate

4 ,000

5,000

6,000

7,000

8 ,000

9 ,000

Jan-

15

Feb-

15

Mar

-15

Apr-1

5

36.8% YTD




Saudi Arabia’s Media & Publishing sector reported net profit of SAR 32.9mn for 1Q2015,

compared with a loss of SAR 29.8mn in 1Q2014.

Tihama Advertising reported net profit mainly due to SAR 17.0mn decline in Cost of Sales.

Additionally, SAR 1.3mn increase in the share from associates, SAR 1.0mn drop in zakat, and a

SAR 6.0mn decline in selling, distribution and general expenses boosted profit.

The Saudi Research and Marketing Group registered a profit of SAR 19.7mn in 1Q2015,

compared with a loss of SAR 27.6mn in 1Q2014. The improvement was attributed to lower

raw material prices and higher income for the group’s subsidiary.

Saudi Research registered the lowest P/B ratio at 1.3x, followed by Saudi Printing at 1.4x and

Tihama Advertising at 9.6x.

Company Name

1Q2014 1Q2015

YoY Change%

1Q2015

Net Profit (SARmn)

EPS(SAR)

Net Profit (SARmn)

EPS(SAR)

P/E (X) P/Bv (X) D/Y (%)

SPPC 9.5 0.2 11.6 0.2 22.50% 30.31 1.36 -SRMG -27.6 -0.3 19.7 0.2 - 176.42 1.33 -Tihama Advertising -11.7 -3.5 1.6 2.5 - - 9.58 -Total -29.8 -1.5 32.9 1 144.30% 46 1.97 -


Media and Publishing Sector

-2% 0% 2% 4 % 6% 8 %

10% 12% 14 %

T AP R C O S P P C S R MG

% YTD 2015 Media and Publishing Sector

6٫1% YTD

Media Sector

1,750

2,050

2,350

2,650

Jan-

15

Feb-

15

Mar

-15

Apr-1

5


Monthly TASI Movement in 5 Years

12000

76.4% (10231.16)

61.8% (9656.84)

38.2% (8728.50)

11000

10000

9000

8000

7000

6000

5000

4000

2017201620152014201320122011201020092008

9834.49

R es u l ts Su m m ary of L is ted C om p an iesin th e Sau di Mark et

1Q2015

April 2015

Asset Management | Brokerage | Corporate Finance | Custody | Advisory

Head Office: King Fahad Road, P.O. Box: 20438, Riyadh 11455, Saudi Arabia، Tel: 011 2256000 - Fax: 011 2256068

Aljazira Capital is a Saudi Investment Company licensed by the Capital Market Authority (CMA), license No. 07076-37

RESE

ARC

H D

IVIS

ION

RESE

ARC

H

DIV

ISIO

NRA

TIN

GTE

RMIN

OLO

GY

BRO

KERA

GE A

ND IN

VEST

MEN

T CE

NTER

S DI

VISI

ON

Disclaimer

AlJazira Capital, the investment arm of Bank AlJazira, is a Shariaa Compliant Saudi Closed Joint Stock company and operating under the regulatory supervision of the Capital Market Authority. AlJazira Capital is licensed to conduct securities business in all securities business as authorized by CMA, including dealing, managing, arranging, advisory, and custody. AlJazira Capital is the continuation of a long success story in the Saudi Tadawul market, having occupied the market leadership position for several years. With an objective to maintain its market leadership position, AlJazira Capital is expanding its brokerage capabilities to o�er further value-added services, brokerage across MENA and International markets, as well as o�ering a full suite of securities business.

1. Overweight: This rating implies that the stock is currently trading at a discount to its 12 months price target. Stocks rated “Overweight” will typically provide an upside potential of over 10% from the current price levels over next twelve months.

2. Underweight: This rating implies that the stock is currently trading at a premium to its 12 months price target. Stocks rated “Underweight” would typically decline by over 10% from the current price levels over next twelve months.

3. Neutral: The rating implies that the stock is trading in the proximate range of its 12 months price target. Stocks rated “Neutral” is expected to stagnate within +/- 10% range from the current price levels over next twelve months.

4. Suspension of rating or rating on hold (SR/RH): This basically implies suspension of a rating pending further analysis of a material change in the fundamentals of the company.

The purpose of producing this report is to present a general view on the company/economic sector/economic subject under research, and not to recommend a buy/sell/hold for any security or any other assets. Based on that, this report does not take into consideration the specific financial position of every investor and/or his/her risk appetite in relation to investing in the security or any other assets, and hence, may not be suitable for all clients depending on their financial position and their ability and willingness to undertake risks. It is advised that every potential investor seek professional advice from several sources concerning investment decision and should study the impact of such decisions on his/her financial/legal/tax position and other concerns before getting into such investments or liquidate them partially or fully. The market of stocks, bonds, macroeconomic or microeconomic variables are of a volatile nature and could witness sudden changes without any prior warning, therefore, the investor in securities or other assets might face some unexpected risks and fluctuations. All the information, views and expectations and fair values or target prices contained in this report have been compiled or arrived at by Aljazira Capital from sources believed to be reliable, but Aljazira Capital has not independently verified the contents obtained from these sources and such information may be condensed or incomplete. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information and opinions contained in this report. Aljazira Capital shall not be liable for any loss as that may arise from the use of this report or its contents or otherwise arising in connection therewith. The past performance of any investment is not an indicator of future performance. Any financial projections, fair value estimates or price targets and statements regarding future prospects contained in this document may not be realized. The value of the security or any other assets or the return from them might increase or decrease. Any change in currency rates may have a positive or negative impact on the value/return on the stock or securities mentioned in the report. The investor might get an amount less than the amount invested in some cases. Some stocks or securities maybe, by nature, of low volume/trades or may become like that unexpectedly in special circumstances and this might increase the risk on the investor. Some fees might be levied on some investments in securities. This report has been written by professional employees in Aljazira Capital, and they undertake that neither them, nor their wives or children hold positions directly in any listed shares or securities contained in this report during the time of publication of this report, however, The authors and/or their wives/children of this document may own securities in funds open to the public that invest in the securities mentioned in this document as part of a diversified portfolio over which they have no discretion. This report has been produced independently and separately by the Research Division at Aljazira Capital and no party (in-house or outside) who might have interest whether direct or indirect have seen the contents of this report before its publishing, except for those whom corporate positions allow them to do so, and/or third-party persons/institutions who signed a non-disclosure agreement with Aljazira Capital. Funds managed by Aljazira Capital and its subsidiaries for third parties may own the securities that are the subject of this document. Aljazira Capital or its subsidiaries may own securities in one or more of the aforementioned companies, and/or indirectly through funds managed by third parties. The Investment Banking division of Aljazira Capital maybe in the process of soliciting or executing fee earning mandates for companies that is either the subject of this document or is mentioned in this document. One or more of Aljazira Capital board members or executive managers could be also a board member or member of the executive management at the company or companies mentioned in this report, or their associated companies. No part of this report may be reproduced whether inside or outside the Kingdom of Saudi Arabia without the written permission of Aljazira Capital. Persons who receive this report should make themselves aware, of and adhere to, any such restrictions. By accepting this report, the recipient agrees to be bound by the foregoing limitations.

AGM - Head of ResearchAbdullah Alawi+966 11 [email protected]

Senior Analyst

Talha Nazar +966 11 [email protected]

AnalystSultan Al Kadi+966 11 [email protected]

Analyst

Jassim Al-Jubran +966 11 [email protected]

General manager - brokerage services and sales

Ala’a Al-Yousef+966 11 [email protected]

AGM-Head of international and institutional

brokerage

Luay Jawad Al-Motawa +966 11 [email protected]

AGM- Head of Western and Southern Region Investment Centers & ADC

Brokerage

Abdullah Q. Al-Misbani +966 12 6618400 [email protected]

AGM-Head of Sales And Investment Centers

Central Region

Sultan Ibrahim AL-Mutawa +966 11 [email protected]

AGM-Head of Qassim & Eastern Province

Abdullah Al-Rahit +966 16 3617547 [email protected]

AGM - Head of Institutional Brokerage

Samer Al- Joauni +966 1 225 6352 [email protected]

r es u l ts su m m ary of l is ted c om p an ies in th e sau ... es u l ts su m m ary of l is ted c...

Documents