Saudi Basic Industries Corp. (SABIC)
Saudi Basic Industries Corp. (SABIC) April 2018
Please read Disclaimer on the back
Current Price* (SAR)
118.07
Target Price (SAR)
107.00
Upside / (Downside)
-9.3%
Source: Tadawul *prices as of 29th of April 2018
Key Financials Revenue
-3.4%
4.7%
13.6%
Net Income
17,614
18,430
23,187
Growth %
-6.2%
4.6%
25.8%
5.87
6.14
7.73
EPS
Source: Company reports, Aljazira Capital policy
1
Revenue Gross Profit Gross Margin EBIT Net Profit EPS
1Q-2017 36,320 13,530 37.25% 8,340 5,230 1.74
Q4-2017 40,340 12,430 30.8% 6,570 3,700 1.22
Q1-2018 41,860 14,210 33.95% 8,940 5,510 1.84
Change YoY 15.3% 5.0% 7.2% 5.4% -
Change QoQ 3.8% 14.3% 36.1% 48.9% -
1.9% 2.8% 6.3% -2.4% -
Source: Company reports, Aljazira Capital
© All rights reserved
Gross Margin
33.0%
33.4%
34.0%
Net Margin
12.3%
12.3%
13.6%
P/E
15.58x
16.60x
15.27x
P/B
1.74x
1.87x
2.06x
EV/EBITDA (x)
7.15x
6.74x
6.50x
4.4%
4.1%
3.8%
Dividend Yield
Source: Company reports, Aljazira Capital
Key Market Data Market Cap (bn)
354.0
YTD %
15.7%
52 Week (High )
123.80
52 Week (Low)
94.75
Shares Outstanding (mn)
3000.0
Source: Company reports, Aljazira Capital
Price Performance 8500 8300 8100 7900 7700 7500 7300 7100 6900 6700 6500
125 120 115 110 105 100 95
TASI
Apr-18
Mar-18
Jan-18
90 Feb-18
Deviation from AJC Estimates
FY18E
Dec-17
SARmn (unless specified)
FY17
Jul-17
Results Summary
FY16
SARmn (unless specified)
Jun-17
Ajc View: Despite the one-off impact of SAR 1.1bn during 1Q2018 for strategic initiative; we believe that the metals segment had already shown an improvement during 1Q2018, where the construction activity, prices and market fundamental have picked-up and is expected to maintain profitability during next quarters. In addition, higher oil prices, global demand stability, investment diversification and improved production efficiency are the key factors for SABIC in FY2018. We believe that the impact on the company’s sales and margins during 2017 was partially attributed to shutdown of some plants, metal losses and assets impartment losses, however; the company is expected to continue to raise its production efficiency and operating rate in FY2018 and forward. SABIC Co. is expected to post SAR 23.1bn in net income (7.73 EPS) for FY2018, indicating an increase of 25.8%YoY for the year supported by better product prices, improved oil fundamentals and expected stopping of Ibn-Rushed provisions. The company is trading at a forward PE and P/B of 15.3x and 2.1x respectively based on our FY2018 earnings forecast. We expect the company to raise its dividend payment to SAR 4.5 DPS (3.8% D/Y) in 2018 from SAR 4.2 DPS in FY2017.
Key Ratios
Apr-17
our forecast of SAR 13.8bn due to higher than expected sales and gross margin. Gross margin stood at 33.95% in 1Q2018, higher than our estimates of 33.65%. Based on our estimates, Saudi Propane average price declined by 8.3%QoQ to an average price of USD 532/MT; however, polypropylene prices increased by 6.8%QoQ. Consequently, an increase in Polypropylene prices compared to a decline in propane price led to higher PP-Propane spreads in 1Q2018. PP-Propane spread expanded by 18.1%QoQ to USD 687/ MT from USD 582/MT in 1Q2017. SABIC’s implementation of cost efficiency since 2016 continue leading to a strong upsurge in the gross margin for the last quarters; however gross margin during FY2018 is expected to be slightly better compared to FY2017 due to improved performance of Ibn-Rushed/Hadeed and the dramatically change on the total downstream spreads. Operating profit for 1Q2018 stood at SAR 8.94bn; higher than our estimates of SAR 8.4bn due to lower than expected OPEX. The Company’s OPEX (SG & A) declined by SAR 688mn to stand at SAR 5.27bn, as compared to SAR 5.96bn in 4Q2017.
FY18E
Growth %
May-17
• Gross profit stood at SAR 14.21bn depicting an increase of 5.0%YoY and 14.3%QoQ, slightly better than
FY17
143,000 149,766 170,178
• SABIC’s revenue in 1Q2018 stood at SAR 41.86bn, which is in-line with AJC estimates of SAR 41.1bn with a 1.9% deviation. Higher revenue we believe were a culmination of higher average prices in 1Q2018; higher volumetric sales and as a result of planned maintenance during last year. Thus, operating rate is expected to stabilize high in 2Q2018 and onwards due to ramping up of production and higher global demand. During the quarter, the average selling prices of Polyethylene derivatives increased by 3.0%QoQ, and 5.2%YoY. MEG (SABIC) prices increased by 8.7%QoQ and by 3.2%YoY. Polypropylene (PP-Asia) improved by 6.8%QoQ and 15.8%YoY. On the other hand, the fertilizer segment witnessed mixed performance during 1Q2018, where Urea prices declined by 2.6%QoQ, but an increase of 1.1%YoY. Ammonia price increased by 10.2%YoY and 7.0%QoQ.
FY16
SARmn (unless specified)
Oct-17
market censuses profits estimates of SAR 5.65mn and SAR 5.60mn, respectively. SABIC posted net income of SAR 5.51bn; indicating an increase of 5.4%YoY and 48.9%QoQ. We believe that the YoY better result is mainly attributed to i) higher average sales prices and volumetric sales ii) lower than expected OPEX and Zakat & income tax iii) Improved performance of Ibn-Rushed/Hadeed. However, additional expenses for strategic restructuring initiatives contributed negatively to the bottom line in 1Q2018. As the other (expense) income, net is expected to stand at SAR -950mn (10.6% from operating income) compared to a positive of SAR 223mn in 1Q2017. On the other hand, the deviation of 1Q2018 earnings from our estimates is attributed mainly to the lower than expected OPEX and the impact of other expenses of SAR 1.1bn, as compared to our estimates of SAR 203mn in other (expense) income, net.
Neutral
Nov-17
• Saudi Basic Industries Corporation (SABIC) result came in-line with estimates, slightly below AJC and
Recommendation
Sep-17
SABIC: 1Q2018 net income came in-line with estimates; standing at SAR 5.51bn with an increase of 5.4%YoY. However, better than expected sales and gross margin were offset by an increase of SAR 1.1bn in other expenses due to strategic restructuring initiative that aims to increase productivity and lowering the cost structure. Improved performance of Ibn-Rushed/Hadeed led to better performance in 1Q2018. Lower than expected production cost in 1Q2018 led to gross margin of 34.0% vs. our estimates of 33.7%. SAR 688mn (QoQ) decline in OPEX, along with lower Zakat expenses reduced the impact on the bottom line. Better YoY margins of Propane/Butane/Ethane derivatives and the expected discontinued provisions of SABIC’s subsidiaries are likely to improve margin during FY2018. In addition, global demand stability, investment diversification and improved production efficiency are the key factors for SABIC. Dividend payment is expected to be raised to SAR 4.5 DPS in 2018. We remain “Neutral” on the stock with a PT of SAR 107.0/share.
Aug-17
Result Flash Note 1Q-2018
SABIC
Source: Bloomberg, Aljazira Capital
Analyst
Jassim Al-Jubran +966 11 2256248 [email protected]
RESEARCH DIVISION
Head of Research
RESEARCH DIVISION
BROKERAGE AND INVESTMENT CENTERS DIVISION
Talha Nazar
Sultan Al Kadi, CAIA
Analyst
Jassim Al-Jubran
+966 11 2256250 [email protected]
+966 11 2256374 [email protected]
Analyst
Analyst
Waleed Al-jubayr
Muhanad Al-Odan
+966 11 2256146 [email protected]
+966 11 2256115 [email protected]
General Manager – Brokerage Services &
AGM-Head of international and institutional
AGM- Head of Western and Southern Region Investment
sales
brokerage
Centers
Alaa Al-Yousef
Luay Jawad Al-Motawa
Mansour Hamad Al-shuaibi
+966 11 2256060 [email protected]
+966 11 2256277 [email protected]
AGM-Head of Sales And Investment Centers
AGM-Head of Qassim & Eastern Province
+966 11 2256248 [email protected]
+966 12 6618443 [email protected]
Central Region
Sultan Ibrahim AL-Mutawa
Abdullah Al-Rahit
+966 11 2256364 [email protected]
+966 16 3617547 [email protected]
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 offer further value-added services, brokerage across MENA and International markets, as well as offering a full suite of securities business. 1.
RATING TERMINOLOGY
Analyst
2. 3. 4.
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. 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. 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. 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.
Disclaimer 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.
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
Please read Disclaimer on the back
Current Price* (SAR)
118.07
Target Price (SAR)
107.00
Upside / (Downside)
-9.3%
Source: Tadawul *prices as of 29th of April 2018
Key Financials Revenue
-3.4%
4.7%
13.6%
Net Income
17,614
18,430
23,187
Growth %
-6.2%
4.6%
25.8%
5.87
6.14
7.73
EPS
Source: Company reports, Aljazira Capital policy
1
Revenue Gross Profit Gross Margin EBIT Net Profit EPS
1Q-2017 36,320 13,530 37.25% 8,340 5,230 1.74
Q4-2017 40,340 12,430 30.8% 6,570 3,700 1.22
Q1-2018 41,860 14,210 33.95% 8,940 5,510 1.84
Change YoY 15.3% 5.0% 7.2% 5.4% -
Change QoQ 3.8% 14.3% 36.1% 48.9% -
1.9% 2.8% 6.3% -2.4% -
Source: Company reports, Aljazira Capital
© All rights reserved
Gross Margin
33.0%
33.4%
34.0%
Net Margin
12.3%
12.3%
13.6%
P/E
15.58x
16.60x
15.27x
P/B
1.74x
1.87x
2.06x
EV/EBITDA (x)
7.15x
6.74x
6.50x
4.4%
4.1%
3.8%
Dividend Yield
Source: Company reports, Aljazira Capital
Key Market Data Market Cap (bn)
354.0
YTD %
15.7%
52 Week (High )
123.80
52 Week (Low)
94.75
Shares Outstanding (mn)
3000.0
Source: Company reports, Aljazira Capital
Price Performance 8500 8300 8100 7900 7700 7500 7300 7100 6900 6700 6500
125 120 115 110 105 100 95
TASI
Apr-18
Mar-18
Jan-18
90 Feb-18
Deviation from AJC Estimates
FY18E
Dec-17
SARmn (unless specified)
FY17
Jul-17
Results Summary
FY16
SARmn (unless specified)
Jun-17
Ajc View: Despite the one-off impact of SAR 1.1bn during 1Q2018 for strategic initiative; we believe that the metals segment had already shown an improvement during 1Q2018, where the construction activity, prices and market fundamental have picked-up and is expected to maintain profitability during next quarters. In addition, higher oil prices, global demand stability, investment diversification and improved production efficiency are the key factors for SABIC in FY2018. We believe that the impact on the company’s sales and margins during 2017 was partially attributed to shutdown of some plants, metal losses and assets impartment losses, however; the company is expected to continue to raise its production efficiency and operating rate in FY2018 and forward. SABIC Co. is expected to post SAR 23.1bn in net income (7.73 EPS) for FY2018, indicating an increase of 25.8%YoY for the year supported by better product prices, improved oil fundamentals and expected stopping of Ibn-Rushed provisions. The company is trading at a forward PE and P/B of 15.3x and 2.1x respectively based on our FY2018 earnings forecast. We expect the company to raise its dividend payment to SAR 4.5 DPS (3.8% D/Y) in 2018 from SAR 4.2 DPS in FY2017.
Key Ratios
Apr-17
our forecast of SAR 13.8bn due to higher than expected sales and gross margin. Gross margin stood at 33.95% in 1Q2018, higher than our estimates of 33.65%. Based on our estimates, Saudi Propane average price declined by 8.3%QoQ to an average price of USD 532/MT; however, polypropylene prices increased by 6.8%QoQ. Consequently, an increase in Polypropylene prices compared to a decline in propane price led to higher PP-Propane spreads in 1Q2018. PP-Propane spread expanded by 18.1%QoQ to USD 687/ MT from USD 582/MT in 1Q2017. SABIC’s implementation of cost efficiency since 2016 continue leading to a strong upsurge in the gross margin for the last quarters; however gross margin during FY2018 is expected to be slightly better compared to FY2017 due to improved performance of Ibn-Rushed/Hadeed and the dramatically change on the total downstream spreads. Operating profit for 1Q2018 stood at SAR 8.94bn; higher than our estimates of SAR 8.4bn due to lower than expected OPEX. The Company’s OPEX (SG & A) declined by SAR 688mn to stand at SAR 5.27bn, as compared to SAR 5.96bn in 4Q2017.
FY18E
Growth %
May-17
• Gross profit stood at SAR 14.21bn depicting an increase of 5.0%YoY and 14.3%QoQ, slightly better than
FY17
143,000 149,766 170,178
• SABIC’s revenue in 1Q2018 stood at SAR 41.86bn, which is in-line with AJC estimates of SAR 41.1bn with a 1.9% deviation. Higher revenue we believe were a culmination of higher average prices in 1Q2018; higher volumetric sales and as a result of planned maintenance during last year. Thus, operating rate is expected to stabilize high in 2Q2018 and onwards due to ramping up of production and higher global demand. During the quarter, the average selling prices of Polyethylene derivatives increased by 3.0%QoQ, and 5.2%YoY. MEG (SABIC) prices increased by 8.7%QoQ and by 3.2%YoY. Polypropylene (PP-Asia) improved by 6.8%QoQ and 15.8%YoY. On the other hand, the fertilizer segment witnessed mixed performance during 1Q2018, where Urea prices declined by 2.6%QoQ, but an increase of 1.1%YoY. Ammonia price increased by 10.2%YoY and 7.0%QoQ.
FY16
SARmn (unless specified)
Oct-17
market censuses profits estimates of SAR 5.65mn and SAR 5.60mn, respectively. SABIC posted net income of SAR 5.51bn; indicating an increase of 5.4%YoY and 48.9%QoQ. We believe that the YoY better result is mainly attributed to i) higher average sales prices and volumetric sales ii) lower than expected OPEX and Zakat & income tax iii) Improved performance of Ibn-Rushed/Hadeed. However, additional expenses for strategic restructuring initiatives contributed negatively to the bottom line in 1Q2018. As the other (expense) income, net is expected to stand at SAR -950mn (10.6% from operating income) compared to a positive of SAR 223mn in 1Q2017. On the other hand, the deviation of 1Q2018 earnings from our estimates is attributed mainly to the lower than expected OPEX and the impact of other expenses of SAR 1.1bn, as compared to our estimates of SAR 203mn in other (expense) income, net.
Neutral
Nov-17
• Saudi Basic Industries Corporation (SABIC) result came in-line with estimates, slightly below AJC and
Recommendation
Sep-17
SABIC: 1Q2018 net income came in-line with estimates; standing at SAR 5.51bn with an increase of 5.4%YoY. However, better than expected sales and gross margin were offset by an increase of SAR 1.1bn in other expenses due to strategic restructuring initiative that aims to increase productivity and lowering the cost structure. Improved performance of Ibn-Rushed/Hadeed led to better performance in 1Q2018. Lower than expected production cost in 1Q2018 led to gross margin of 34.0% vs. our estimates of 33.7%. SAR 688mn (QoQ) decline in OPEX, along with lower Zakat expenses reduced the impact on the bottom line. Better YoY margins of Propane/Butane/Ethane derivatives and the expected discontinued provisions of SABIC’s subsidiaries are likely to improve margin during FY2018. In addition, global demand stability, investment diversification and improved production efficiency are the key factors for SABIC. Dividend payment is expected to be raised to SAR 4.5 DPS in 2018. We remain “Neutral” on the stock with a PT of SAR 107.0/share.
Aug-17
Result Flash Note 1Q-2018
SABIC
Source: Bloomberg, Aljazira Capital
Analyst
Jassim Al-Jubran +966 11 2256248 [email protected]
RESEARCH DIVISION
Head of Research
RESEARCH DIVISION
BROKERAGE AND INVESTMENT CENTERS DIVISION
Talha Nazar
Sultan Al Kadi, CAIA
Analyst
Jassim Al-Jubran
+966 11 2256250 [email protected]
+966 11 2256374 [email protected]
Analyst
Analyst
Waleed Al-jubayr
Muhanad Al-Odan
+966 11 2256146 [email protected]
+966 11 2256115 [email protected]
General Manager – Brokerage Services &
AGM-Head of international and institutional
AGM- Head of Western and Southern Region Investment
sales
brokerage
Centers
Alaa Al-Yousef
Luay Jawad Al-Motawa
Mansour Hamad Al-shuaibi
+966 11 2256060 [email protected]
+966 11 2256277 [email protected]
AGM-Head of Sales And Investment Centers
AGM-Head of Qassim & Eastern Province
+966 11 2256248 [email protected]
+966 12 6618443 [email protected]
Central Region
Sultan Ibrahim AL-Mutawa
Abdullah Al-Rahit
+966 11 2256364 [email protected]
+966 16 3617547 [email protected]
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 offer further value-added services, brokerage across MENA and International markets, as well as offering a full suite of securities business. 1.
RATING TERMINOLOGY
Analyst
2. 3. 4.
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. 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. 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. 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.
Disclaimer 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.
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
