Arabian Cement Company (ACC)
Global Research Result Update Equity – Saudi Arabia Cement Sector 16th May, 2012
BUY
Arabian Cement Company (ACC)
Target Price SAR66.9
Market Data Bloomberg Code: Reuters Code: th CMP (15 May 2012): O/S (mn) Market Cap (SAR mn): Market Cap (USD mn): P/E 2012e (x): P/Bv 2012e (x):
ARCCO AB 3010.SE SAR55.25 80.0 4,420 1,178 8.3 1.5
Price Performance 1-Yr High (SAR): Low (SAR): Average Volume: (000)
61.00 38.00 342.1 1m 0.9 4.2
Absolute (%) Relative (%)
3m 16.1 11.8
12m 25.3 18.2
Price Volume Performance 3,000
65 60
2,500 55
2,000
1Q12 net profit increases by 26%YoY Strong growth in dispatches YoY Slowdown in its Jordanian subsidiary Fair value upgraded; Recommendation upgraded to BUY
ACC profits nearly double on QoQ Arabian Cement Company (ACC) witnessed an impressive 26% increase in 1Q12 net profit to SAR146.1mn as compared to the same period a year ago. The profit rose by astonishing 90.6% on a QoQ basis. The profits are attributable to ACC having the best sales quarter ever due to the positive demand situation in the Kingdom, with huge development plans and increasing construction activity in the highly populated western region.
Increase in production reflected positively In 2011, ACC managed to increase production by 300,000tons in its Rabigh factory. The increase was reflected positively in the 1Q12, and will continue to do so in 2012.Cement dispatches for Arabian for 1Q12 increased by 35% QoQ to 1.166mn tons. Strong growth in cement dispatches reflected in strong growth in sales revenue which increased by 32.6% QoQ to SAR355.1mn. Production on the other hand increased 37% during 1Q12 as compared to the previous quarter to reach 1.171mn tons. Additionally, Gross margins managed to increase 932bps to reach 49.1% on a QoQ basis, while net margins managed to increase 1,252bps to reach 41.2% on a quarterly basis. 1Q12 was a very good quarter for Arabian Cement in terms of production, dispatches, revenues and profits.
50
Slowdown in subsidiary, but promising outlook 45 1,500 40 1,000
35 30
500 25
Volume ('000)
Faisal Hasan, CFA Head of Research [email protected] Tel.: (965) 2295-1270 Turki O. AlYaqout Financial Analyst [email protected] Tel.: (965) 2295-1295 Global Investment House www.globalinv.net
10-May-12
10-Feb-12
10-Nov-11
10-Aug-11
10-May-11
10-Feb-11
10-Nov-10
10-Aug-10
20
10-May-10
0
ACC (SAR)
Qatrana Cement, which is owned 86.7% by ACC started production on April 2011 and has a cement production capacity of 1.8mtpa, producing 386,000tons of clinker and 390,000tons of cement during the period. Unfortunately, ACC was hit by SAR57mn bottom line loss in 2011 which were 51% lower than the expected by ACC due to the slowdown in Jordan’s economy, low cement demand and increased competition. In 1Q12 Qatrana reported a SAR60.9mn in revenues and recorded a SAR15.7mn bottom line loss. Currently Qatrana cement is trying to decrease cost and improve efficiency, by replacing heavy oil to produce cement by coal. Also the company is increasing its marketing schemes by adding new points of sale to improve revenue. Notably the factory in Jordan is located in Southern Jordan, which is an area of close proximity to local markets, seaports, and highways. With an expected real GDP growth of 2.8% in 2012 and 3.0% in 2013, Qatrana Cement is expected to witness higher sales and production in upcoming years, which will benefit ACC tremendously.
Healthy financial base ACC managed to witness a 12.7% increase in equity for 1Q12 to reach SAR3.0bn, in addition to an healthy 8.8% increase in assets. Arabian’s debt/equity ratio is currently at 0.5x in 1Q12 which is considered high as compared to its sector, however it’s expected to decrease to 0.4x in 2012. The company has a healthy current and quick ratio of 1.8x and 1.2x respectively.
Valuation update We have upgraded our fair value to SAR66.9/share from SAR59.3/share after incorporating improved cement demand forecast for 2012-14 in our model. Our recommendation has changed to a BUY. The stock at its current price of SAR55.25/share is trading at a discount of 14.5% to the fair value. Thus, we upgrade our recommendation on the stock to BUY.
Global Research – Saudi Arabia
Arabian Cement Company (ACC)
Financial Statements
Income Statement
(SAR mn) Revenue Revenue growth Cost of sales Gross Profit SG&A Operating Profit Financial charges Other income Profit Before Taxation Zakat and minority interest Net Profit Net profit growth
Balance Sheet
Cash and Bank Balance Receivables Inventories Other Current assets Total Current Assets
2009
2010
2011
2012 (F)
2013(F)
2014 (F)
2015 (F)
737 2.2% (347) 390 (146) 244 (10) (53) 190 (18) 172 -46.9%
745 1.0% (426) 319 (31) 288 (8) (28) 263 (8) 255 48.5%
1,079 44.9% (575) 504 (57) 447 (61) 3 410 (7) 407 59.4%
1,379 27.9% (722) 657 (84) 573 (30) (3) 560 (29) 531 30.3%
1,400 1.5% (741) 659 (85) 574 (27) (3) 565 (29) 536 1.0%
1,464 4.6% (778) 686 (89) 597 (24) (3) 593 (31) 563 5.0%
1,518 3.6% (811) 707 (93) 614 (22) (3) 616 (32) 584 3.7%
66 143 157 45 410
147 159 214 45 565
304 210 309 44 866
249 254 267 46 815
379 269 270 48 967
497 292 286 50 1,125
560 353 310 52 1,275
Long-term investments Deferred expenses and other dues Net fixed assets Total Fixed Assets
300 21 3,099 3,420
254 20 3,316 3,589
312 24 3,245 3,580
328 41 3,223 3,592
344 42 3,199 3,585
361 44 3,172 3,577
379 46 3,142 3,567
Total Assets
3,830
4,155
4,447
4,407
4,551
4,702
4,842
Accounts payables Current portion of long-term loan Other current liabilities Long-term debt Employee end-of-service benefits
199 221 23 1,074 36
185 214 27 1,191 36
190 286 28 1,105 39
163 149 17 994 41
162 134 17 895 43
169 121 18 805 45
174 109 18 725 47
Share capital Retained Earnings Other reserves Total Shareholders Equity Total Equity & Liability
800 455 967 2,276 3,830
800 678 967 2,503 4,155
800 923 1,021 2,795 4,447
800 1,212 978 3,043 4,407
800 1,466 978 3,300 4,551
800 1,707 978 3,544 4,702
800 1,930 978 3,769 4,842
591 (160) (487) (55) 249
642 (118) (393) 131 379
658 (118) (422) 118 497
634 (119) (451) 64 560
Gross margin 52.9% 42.8% 46.7% Operating profit margin 33.1% 38.7% 41.4% Net Profit Margin 23.3% 34.3% 37.8% Return on Average Assets 4.7% 6.4% 9.5% Return on Average Equity 7.6% 10.7% 15.4% EV/ton (USD) 330.5 335.8 323.9 Quick ratio (x) 0.6 0.8 1.1 Debt / Equity (x) 0.57 0.56 0.50 EV/EBITDA (x) 24.3 17.8 11.2 EV/Revenues (x) 6.4 6.4 4.3 FCF Yield -15.5% -0.8% 9.2% EPS (SAR) 2.2 3.2 5.1 Book Value Per Share (SAR) 28.5 31.3 34.9 Market Price (SAR) * 43.5 34.2 44.1 Market Capitalization (SAR mn) 3,480 2,736 3,528 Dividend Yield 6.7% 0.7% 4.5% P/E Ratio (x) 20.2 10.7 8.7 P/BV Ratio (x) 1.5 1.1 1.3 Source: Company Reports & Glob al Research * Market price for 2012 and sub sequent years as per closing prices on May 15th, 2012
47.6% 41.5% 38.5% 12.0% 18.2% 345.7 1.7 0.38 9.5 3.9 10.9% 6.6 38.0 55.3 4,420 5.4% 8.3 1.5
47.1% 41.0% 38.3% 12.0% 16.9% 329.8 2.2 0.31 9.0 3.6 12.0% 6.7 41.3 55.3 4,420 6.3% 8.2 1.3
46.9% 40.8% 38.4% 12.2% 16.4% 315.4 2.7 0.26 8.2 3.3 12.4% 7.0 44.3 55.3 4,420 7.2% 7.9 1.2
46.6% 40.5% 38.5% 12.2% 16.0% 305.2 3.2 0.22 7.6 3.1 11.9% 7.3 47.1 55.3 4,420 8.1% 7.6 1.2
Cash Flow
421 (85) (180) 157 304
Ratio Analysis
Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Change in Cash Net Cash at End
May - 2012
448 (983) 137 (399) 52
306 (304) 94 95 147
2
Global Research – Saudi Arabia
Arabian Cement Company (ACC)
Disclosure The following is a comprehensive list of disclosures which may or may not apply to all our researches. Only the relevant disclosures which apply to this particular research has been mentioned in the table below under the heading of disclosure. Disclosure Checklist Company Arabian Cement Company
Recommendation BUY
Bloomberg Ticker ARCCO AB
Reuters Ticker 3010.SE
Price SAR55.25
Disclosure 1,10
1.
Global Investment House did not receive and will not receive any compensation from the company or anyone else for the preparation of this report. 2. The company being researched holds more than 5% stake in Global Investment House. 3. Global Investment House makes a market in securities issued by this company. 4. Global Investment House acts as a corporate broker or sponsor to this company. 5. The author of or an individual who assisted in the preparation of this report (or a member of his/her household) has a direct ownership position in securities issued by this company. 6. An employee of Global Investment House serves on the board of directors of this company. 7. Within the past year, Global Investment House has managed or co-managed a public offering for this company, for which it received fees. 8. Global Investment House has received compensation from this company for the provision of investment banking or financial advisory services within the past year. 9. Global Investment House expects to receive or intends to seek compensation for investment banking services from this company in the next three month. 10. Please see special footnote below for other relevant disclosures. Global Research: Equity Ratings Definitions Global Rating Definition STRONG BUY Fair value of the stock is >20% from the current market price BUY Fair value of the stock is between +10% and +20% from the current market price HOLD Fair value of the stock is between +10% and -10% from the current market price SELL Fair value of the stock is < -10% from the current market price
Disclaimer This material was produced by Global Investment House KSCC (‘Global’),a firm regulated by the Central Bank of Kuwait. This document is not to be used or considered as an offer to sell or a solicitation of an offer to buy any securities. Global may, from time to time to the extent permitted by law, participate or invest in other financing transactions with the issuers of the securities (‘securities’), perform services for or solicit business from such issuer, and/or have a position or effect transactions in the securities or options thereof. Global may, to the extent permitted by applicable Kuwaiti law or other applicable laws or regulations, effect transactions in the securities before this material is published to recipients. Information and opinions contained herein have been compiled or arrived by Global from sources believed to be reliable, but Global has not independently verified the contents of this document. 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 document. Global accepts no liability for any loss arising from the use of this document or its contents or otherwise arising in connection therewith. This document is not to be relied upon or used in substitution for the exercise of independent judgment. Global shall have no responsibility or liability whatsoever in respect of any inaccuracy in or omission from this or any other document prepared by Global for, or sent by Global to any person and any such person shall be responsible for conducting his own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject matter of this or other such document. Opinions and estimates constitute our judgment and are subject to change without prior notice. Past performance is not indicative of future results. This document does not constitute an offer or invitation to subscribe for or purchase any securities, and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. It is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. Neither this report nor any copy hereof may be distributed in any jurisdiction outside Kuwait where its distribution may be restricted by law. Persons who receive this report should make themselves aware of and adhere to any such restrictions. By accepting this report you agree to be bound by the foregoing limitations.
May - 2012
3
Global Investment House Website: www.globalinv.net Global Tower Sharq, Al-Shuhada Str. Tel. + (965) 2 295 1000 Fax. + (965) 2 295 1005 P.O. Box: 28807 Safat, 13149 Kuwait
Research Faisal Hasan, CFA (965) 2295-1270 [email protected]
Brokerage Fouad Fahmi Darwish (965) 2295-1700 [email protected]
Wealth Management - Kuwait Rasha Al-Qenaei (965) 2295-1380 [email protected]
Wealth Management - International Fahad Al-Ibrahim (965) 2295-1400 [email protected]
Global Kuwait Tel: (965) 2 295 1000 Fax: (965) 2 295 1005 P.O.Box 28807 Safat, 13149 Kuwait
Global Bahrain Tel: (973) 17 210011 Fax: (973) 17 210222 P.O.Box 855 Manama, Bahrain
Global Egypt Tel: (202) 24189705/06 Fax: (202) 22905972 24 Cleopatra St., Heliopolis, Cairo
Global Saudi Arabia Tel: (966) 1 2994100 Fax: (966) 1 2994199 P.O. Box 66930 Riyadh 11586, Kingdom of Saudi Arabia
Global Wealth Manager E-mail: [email protected] Tel: (965) 1-804-242
Global UAE Tel: (971) 4 4477066 Fax: (971) 4 4477067 P.O.Box 121227 Dubai, UAE Global Jordan Tel: (962) 6 5005060 Fax: (962) 6 5005066 P.O.Box 3268 Amman 11180, Jordan
BUY
Arabian Cement Company (ACC)
Target Price SAR66.9
Market Data Bloomberg Code: Reuters Code: th CMP (15 May 2012): O/S (mn) Market Cap (SAR mn): Market Cap (USD mn): P/E 2012e (x): P/Bv 2012e (x):
ARCCO AB 3010.SE SAR55.25 80.0 4,420 1,178 8.3 1.5
Price Performance 1-Yr High (SAR): Low (SAR): Average Volume: (000)
61.00 38.00 342.1 1m 0.9 4.2
Absolute (%) Relative (%)
3m 16.1 11.8
12m 25.3 18.2
Price Volume Performance 3,000
65 60
2,500 55
2,000
1Q12 net profit increases by 26%YoY Strong growth in dispatches YoY Slowdown in its Jordanian subsidiary Fair value upgraded; Recommendation upgraded to BUY
ACC profits nearly double on QoQ Arabian Cement Company (ACC) witnessed an impressive 26% increase in 1Q12 net profit to SAR146.1mn as compared to the same period a year ago. The profit rose by astonishing 90.6% on a QoQ basis. The profits are attributable to ACC having the best sales quarter ever due to the positive demand situation in the Kingdom, with huge development plans and increasing construction activity in the highly populated western region.
Increase in production reflected positively In 2011, ACC managed to increase production by 300,000tons in its Rabigh factory. The increase was reflected positively in the 1Q12, and will continue to do so in 2012.Cement dispatches for Arabian for 1Q12 increased by 35% QoQ to 1.166mn tons. Strong growth in cement dispatches reflected in strong growth in sales revenue which increased by 32.6% QoQ to SAR355.1mn. Production on the other hand increased 37% during 1Q12 as compared to the previous quarter to reach 1.171mn tons. Additionally, Gross margins managed to increase 932bps to reach 49.1% on a QoQ basis, while net margins managed to increase 1,252bps to reach 41.2% on a quarterly basis. 1Q12 was a very good quarter for Arabian Cement in terms of production, dispatches, revenues and profits.
50
Slowdown in subsidiary, but promising outlook 45 1,500 40 1,000
35 30
500 25
Volume ('000)
Faisal Hasan, CFA Head of Research [email protected] Tel.: (965) 2295-1270 Turki O. AlYaqout Financial Analyst [email protected] Tel.: (965) 2295-1295 Global Investment House www.globalinv.net
10-May-12
10-Feb-12
10-Nov-11
10-Aug-11
10-May-11
10-Feb-11
10-Nov-10
10-Aug-10
20
10-May-10
0
ACC (SAR)
Qatrana Cement, which is owned 86.7% by ACC started production on April 2011 and has a cement production capacity of 1.8mtpa, producing 386,000tons of clinker and 390,000tons of cement during the period. Unfortunately, ACC was hit by SAR57mn bottom line loss in 2011 which were 51% lower than the expected by ACC due to the slowdown in Jordan’s economy, low cement demand and increased competition. In 1Q12 Qatrana reported a SAR60.9mn in revenues and recorded a SAR15.7mn bottom line loss. Currently Qatrana cement is trying to decrease cost and improve efficiency, by replacing heavy oil to produce cement by coal. Also the company is increasing its marketing schemes by adding new points of sale to improve revenue. Notably the factory in Jordan is located in Southern Jordan, which is an area of close proximity to local markets, seaports, and highways. With an expected real GDP growth of 2.8% in 2012 and 3.0% in 2013, Qatrana Cement is expected to witness higher sales and production in upcoming years, which will benefit ACC tremendously.
Healthy financial base ACC managed to witness a 12.7% increase in equity for 1Q12 to reach SAR3.0bn, in addition to an healthy 8.8% increase in assets. Arabian’s debt/equity ratio is currently at 0.5x in 1Q12 which is considered high as compared to its sector, however it’s expected to decrease to 0.4x in 2012. The company has a healthy current and quick ratio of 1.8x and 1.2x respectively.
Valuation update We have upgraded our fair value to SAR66.9/share from SAR59.3/share after incorporating improved cement demand forecast for 2012-14 in our model. Our recommendation has changed to a BUY. The stock at its current price of SAR55.25/share is trading at a discount of 14.5% to the fair value. Thus, we upgrade our recommendation on the stock to BUY.
Global Research – Saudi Arabia
Arabian Cement Company (ACC)
Financial Statements
Income Statement
(SAR mn) Revenue Revenue growth Cost of sales Gross Profit SG&A Operating Profit Financial charges Other income Profit Before Taxation Zakat and minority interest Net Profit Net profit growth
Balance Sheet
Cash and Bank Balance Receivables Inventories Other Current assets Total Current Assets
2009
2010
2011
2012 (F)
2013(F)
2014 (F)
2015 (F)
737 2.2% (347) 390 (146) 244 (10) (53) 190 (18) 172 -46.9%
745 1.0% (426) 319 (31) 288 (8) (28) 263 (8) 255 48.5%
1,079 44.9% (575) 504 (57) 447 (61) 3 410 (7) 407 59.4%
1,379 27.9% (722) 657 (84) 573 (30) (3) 560 (29) 531 30.3%
1,400 1.5% (741) 659 (85) 574 (27) (3) 565 (29) 536 1.0%
1,464 4.6% (778) 686 (89) 597 (24) (3) 593 (31) 563 5.0%
1,518 3.6% (811) 707 (93) 614 (22) (3) 616 (32) 584 3.7%
66 143 157 45 410
147 159 214 45 565
304 210 309 44 866
249 254 267 46 815
379 269 270 48 967
497 292 286 50 1,125
560 353 310 52 1,275
Long-term investments Deferred expenses and other dues Net fixed assets Total Fixed Assets
300 21 3,099 3,420
254 20 3,316 3,589
312 24 3,245 3,580
328 41 3,223 3,592
344 42 3,199 3,585
361 44 3,172 3,577
379 46 3,142 3,567
Total Assets
3,830
4,155
4,447
4,407
4,551
4,702
4,842
Accounts payables Current portion of long-term loan Other current liabilities Long-term debt Employee end-of-service benefits
199 221 23 1,074 36
185 214 27 1,191 36
190 286 28 1,105 39
163 149 17 994 41
162 134 17 895 43
169 121 18 805 45
174 109 18 725 47
Share capital Retained Earnings Other reserves Total Shareholders Equity Total Equity & Liability
800 455 967 2,276 3,830
800 678 967 2,503 4,155
800 923 1,021 2,795 4,447
800 1,212 978 3,043 4,407
800 1,466 978 3,300 4,551
800 1,707 978 3,544 4,702
800 1,930 978 3,769 4,842
591 (160) (487) (55) 249
642 (118) (393) 131 379
658 (118) (422) 118 497
634 (119) (451) 64 560
Gross margin 52.9% 42.8% 46.7% Operating profit margin 33.1% 38.7% 41.4% Net Profit Margin 23.3% 34.3% 37.8% Return on Average Assets 4.7% 6.4% 9.5% Return on Average Equity 7.6% 10.7% 15.4% EV/ton (USD) 330.5 335.8 323.9 Quick ratio (x) 0.6 0.8 1.1 Debt / Equity (x) 0.57 0.56 0.50 EV/EBITDA (x) 24.3 17.8 11.2 EV/Revenues (x) 6.4 6.4 4.3 FCF Yield -15.5% -0.8% 9.2% EPS (SAR) 2.2 3.2 5.1 Book Value Per Share (SAR) 28.5 31.3 34.9 Market Price (SAR) * 43.5 34.2 44.1 Market Capitalization (SAR mn) 3,480 2,736 3,528 Dividend Yield 6.7% 0.7% 4.5% P/E Ratio (x) 20.2 10.7 8.7 P/BV Ratio (x) 1.5 1.1 1.3 Source: Company Reports & Glob al Research * Market price for 2012 and sub sequent years as per closing prices on May 15th, 2012
47.6% 41.5% 38.5% 12.0% 18.2% 345.7 1.7 0.38 9.5 3.9 10.9% 6.6 38.0 55.3 4,420 5.4% 8.3 1.5
47.1% 41.0% 38.3% 12.0% 16.9% 329.8 2.2 0.31 9.0 3.6 12.0% 6.7 41.3 55.3 4,420 6.3% 8.2 1.3
46.9% 40.8% 38.4% 12.2% 16.4% 315.4 2.7 0.26 8.2 3.3 12.4% 7.0 44.3 55.3 4,420 7.2% 7.9 1.2
46.6% 40.5% 38.5% 12.2% 16.0% 305.2 3.2 0.22 7.6 3.1 11.9% 7.3 47.1 55.3 4,420 8.1% 7.6 1.2
Cash Flow
421 (85) (180) 157 304
Ratio Analysis
Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Change in Cash Net Cash at End
May - 2012
448 (983) 137 (399) 52
306 (304) 94 95 147
2
Global Research – Saudi Arabia
Arabian Cement Company (ACC)
Disclosure The following is a comprehensive list of disclosures which may or may not apply to all our researches. Only the relevant disclosures which apply to this particular research has been mentioned in the table below under the heading of disclosure. Disclosure Checklist Company Arabian Cement Company
Recommendation BUY
Bloomberg Ticker ARCCO AB
Reuters Ticker 3010.SE
Price SAR55.25
Disclosure 1,10
1.
Global Investment House did not receive and will not receive any compensation from the company or anyone else for the preparation of this report. 2. The company being researched holds more than 5% stake in Global Investment House. 3. Global Investment House makes a market in securities issued by this company. 4. Global Investment House acts as a corporate broker or sponsor to this company. 5. The author of or an individual who assisted in the preparation of this report (or a member of his/her household) has a direct ownership position in securities issued by this company. 6. An employee of Global Investment House serves on the board of directors of this company. 7. Within the past year, Global Investment House has managed or co-managed a public offering for this company, for which it received fees. 8. Global Investment House has received compensation from this company for the provision of investment banking or financial advisory services within the past year. 9. Global Investment House expects to receive or intends to seek compensation for investment banking services from this company in the next three month. 10. Please see special footnote below for other relevant disclosures. Global Research: Equity Ratings Definitions Global Rating Definition STRONG BUY Fair value of the stock is >20% from the current market price BUY Fair value of the stock is between +10% and +20% from the current market price HOLD Fair value of the stock is between +10% and -10% from the current market price SELL Fair value of the stock is < -10% from the current market price
Disclaimer This material was produced by Global Investment House KSCC (‘Global’),a firm regulated by the Central Bank of Kuwait. This document is not to be used or considered as an offer to sell or a solicitation of an offer to buy any securities. Global may, from time to time to the extent permitted by law, participate or invest in other financing transactions with the issuers of the securities (‘securities’), perform services for or solicit business from such issuer, and/or have a position or effect transactions in the securities or options thereof. Global may, to the extent permitted by applicable Kuwaiti law or other applicable laws or regulations, effect transactions in the securities before this material is published to recipients. Information and opinions contained herein have been compiled or arrived by Global from sources believed to be reliable, but Global has not independently verified the contents of this document. 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 document. Global accepts no liability for any loss arising from the use of this document or its contents or otherwise arising in connection therewith. This document is not to be relied upon or used in substitution for the exercise of independent judgment. Global shall have no responsibility or liability whatsoever in respect of any inaccuracy in or omission from this or any other document prepared by Global for, or sent by Global to any person and any such person shall be responsible for conducting his own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject matter of this or other such document. Opinions and estimates constitute our judgment and are subject to change without prior notice. Past performance is not indicative of future results. This document does not constitute an offer or invitation to subscribe for or purchase any securities, and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. It is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. Neither this report nor any copy hereof may be distributed in any jurisdiction outside Kuwait where its distribution may be restricted by law. Persons who receive this report should make themselves aware of and adhere to any such restrictions. By accepting this report you agree to be bound by the foregoing limitations.
May - 2012
3
Global Investment House Website: www.globalinv.net Global Tower Sharq, Al-Shuhada Str. Tel. + (965) 2 295 1000 Fax. + (965) 2 295 1005 P.O. Box: 28807 Safat, 13149 Kuwait
Research Faisal Hasan, CFA (965) 2295-1270 [email protected]
Brokerage Fouad Fahmi Darwish (965) 2295-1700 [email protected]
Wealth Management - Kuwait Rasha Al-Qenaei (965) 2295-1380 [email protected]
Wealth Management - International Fahad Al-Ibrahim (965) 2295-1400 [email protected]
Global Kuwait Tel: (965) 2 295 1000 Fax: (965) 2 295 1005 P.O.Box 28807 Safat, 13149 Kuwait
Global Bahrain Tel: (973) 17 210011 Fax: (973) 17 210222 P.O.Box 855 Manama, Bahrain
Global Egypt Tel: (202) 24189705/06 Fax: (202) 22905972 24 Cleopatra St., Heliopolis, Cairo
Global Saudi Arabia Tel: (966) 1 2994100 Fax: (966) 1 2994199 P.O. Box 66930 Riyadh 11586, Kingdom of Saudi Arabia
Global Wealth Manager E-mail: [email protected] Tel: (965) 1-804-242
Global UAE Tel: (971) 4 4477066 Fax: (971) 4 4477067 P.O.Box 121227 Dubai, UAE Global Jordan Tel: (962) 6 5005060 Fax: (962) 6 5005066 P.O.Box 3268 Amman 11180, Jordan
