Jabal Omar Development Company

Transcription

December 2013
Initiation | KSA | Real Estate Development Sector
Please read Disclaimer on the back
• Well diversified revenues mitigate the impact of seasonality on hotels
occupancy: We believe the rising share of revenues from long-term lease for
some Tower hotels, residential units (villas) and commercial shops will provide
the necessary counter balance to support revenue growth; Jabal Omar is
expected to witness stable growth rate during the coming years. We expect the
share of revenues from long-term lease to stand around 38% over our First 3
years of forecasting, while share of room renting revenues is likely to be below
65% over our First 3 years of forecasting horizon.
• Strong profitability to support self financing for the final stages (4,5) of
the project: We expect the company’s revenues to expand at a CAGR of 21.9%
over fiscal Hijri years 1435E–38E. Thus, Jabal Omar’s healthy profitability would
provide further support to finance its final two phases (4th and 5th) of the
projects.
Current Price:
SAR 29.10
Upside / (downside):
42٫6%
Price Chart
8700
TASI
8200
Jabal Omar
7700
7200
6700
6200
49
46
43
40
37
34
31
28
25
22
19
16
13
10
Sep-13
Jul-13
Aug-13
Jun-13
Apri-13
May-13
Mar-13
Jun-13
Feb-13
5200
Nov-12
5700
Dec-12
• Religious tourism, the key driver: Tourism revenue in 2012 reached SAR 66bn,
according to the Centre of Studies and Research at Asharqia Chamber. Revenues
from religious tourism is expected to reach SAR 230bn by 2020. Makkah real
estate is considered one of the most expensive land bank in the world.
SAR 41.5
12-month price target;
Oct-12
• The attraction of Makkah: Due to the religious significance of the al-haram
mosque, Muslims from across the globe travel to the city of Makkah. The
numbers of Pilgrims have increased significantly over the last couple of years.
The city of Makkah sees a growing number of pilgrims from around the world
and from within Saudi Arabia every year.
‘Overweight’
Recommendation
Sep-12
• Jabal Omar: is a mix commercial and residential projects located next to
the Al haram mosque in Makkah. The project will be spread over an area of
230.000 sqm with around 2mn sqm of construction covering 38 residential
towers, hotels, a mosque of 14,0000 sqm that can hold up to 150.000 people.
The project include a retail concourse, a conference hall, public parks, a
3,000 car parking lot and other related facilities, as well as 11,454 hotel and
residential rooms, and 208 villas. The location of the project gives it a strategic
advantage, due to the significance of Alharam mosque for the Muslims. For this
unique reason, we believe the project will be insulated against any economic
downturn locally or globally.
Source: TASI & Zawya
Key information
Reuters code:
Bloomberg code:
Country:
Sector:
Primary Listing:
M-Cap:
52 Weeks H/L (SAR):
4250.SE
JOMAR:AB
Saudi Arabia
Real Estate Develpment
KSA exchange
SAR27,789.1mn
35.50/17.90
Senior Analyst
Analyst
Talha Nazar
Jassim Al-Jubran
+966 12 6618603
+966 12 6618602
• Valuation: Jabal Omar is strategically located near the Grand mosque, which
attract over 4mn to 5mn pilgrims every year, location near the grand mosque is
the most sorted prime property in the world. We initiate our coverage on JABAL
Omar with an “Overweight” Stance.
Key financial indicators
Company Snapshot
Sales (SAR mn)
Growth in Sales (%)
Net Income (SAR mn)
Growth in net income (%)
EPS (SAR)
Gross Margins
EBIT Margins
Net Margins
ROE
ROA
PE (x)
PB (x)
EV/EBITDA (x)
1
© All rights reserved
E2013/1434
E2014/1435
E2015/1436
E2016/1437
E2017/1438
45.6
(32.0)
(0.03)
19.0%
-106.9%
-70.2%
-0.36%
-0.21%
3.1
-
1,820.2
813.6
0.88
55.0%
50.4%
44.7%
8.24%
5.02%
34.2
2.8
31.0
2,716.4
49%
1,419.8
74.5%
1.53
60.0%
56.1%
52.3%
12.42%
8.29%
19.6
2.4
17.8
2,981.6
10%
1,635.7
15.2%
1.76
64.0%
59.7%
54.9%
12.36%
8.95%
17.0
2.1
13.9
4,026.4
35%
2,310.7
41.3%
2.49
68.0%
64.6%
57.4%
14.65%
11.54%
12.0
1.8
8.3
December 2013
Valuation
Discounted Cash Flow
We have used the Discounted Cash Flow valuation to attain company’s 12 month value. Following are the key basic steps &
assumptions we have assumed to value Jabal Omar.
• 10-year forecasted cash flow ( 5 years Implicit)
• Terminal value calculation based on Gordon Growth model
• Expected Terminal growth of 2%
Using Capital Asset Pricing Model to calculate cost of equity. The calculation is based on the following variables
hh
Risk free rate of 3.3% based on 10 years US bond Yield of 2.63% + country risk premium of Saudi Arabia of 0.7%
hh
Equity Risk Premium of 9.8%
hh
Beta of 0.862 from Bloomberg ( 5 year monthly Beta)
We are using weighted Average Cost of Capital (WACC) for discounting the future FCF of the company, where the calculation
of WACC is based on the following variables
hh
Cost of equity based on CAPM
hh
Cost of Debt at 5%
hh
Contribution from equity and debt in budged-capital structure is taken at 41% & 59%, respectively.
Using the above assumption, we arrived at DCF based value of SAR 41.5/share for the company
DCF based valuation methodology
E2013/1434 E2014/1435 E2015/1436 E2016/1437 E2017/1438 E2018/1439 E2019/1440 E2020/1441 E2021/1442 E2023/1443
FCF
(250.48)
1,038.14
1,389.34
1,824.61
2,618.09
2,889.98
3,323.47
3,655.82
3,838.61
3,953.77
(248.69)
945.78
1,161.40
1,399.55
1,842.66
1,866.38
1,969.43
1,987.82
1,915.18
1,810.05
57,757
Terminal Value
Discounted FCF
26,441
Discounted TV
Less:Net Debt
2,513
38,578
FCFE
41.5
Price Target
Source: Aljazira Research
Sensitivity of DCF value to key assumptions
Terminal
growth
WACC
1.0%
1.5%
2.0%
2.5%
3.0%
6.99%
53.6
57.4
61.8
67.3
74.2
7.99%
44.5
47.0
49.9
53.4
57.5
8.99%
37.6
39.4
41.4
43.8
46.5
9.99%
32.4
33.7
35.1
36.8
38.6
10.99%
28.2
29.2
30.2
31.4
32.8
Price Target
Based on the above assumption our price target for the company is SAR 41.5, we initiate our coverage on Jabal Omar with
“Overweight” stance.
2
December 2013
Makkah Construction
The city of Makkah is considered the holiest site for Muslims all across the world, due to the presence of the Al Haram
Mosque which in its premises contains the “Kaaba”. The Muslims are required to perform Hajj at least once in their lives,
where Umrah is optional in the city Makkah, where most of the rituals are performed in the Al- Haram mosque.
Due to the religious significance of the al-haram mosque, Muslims from across the globe travel to the city of Makkah. The
numbers of Pilgrims have increased significantly over the last couple of years. The city of Makkah sees a number of pilgrims
from around the world and from within Saudi Arabia, given that the 99% of the population in Saudi Arabia are Muslims .
Given the 1.3bn plus Muslim population, demand for hotel rooms in the city of Makkah is very high, especially during
Ramadan and Hajj season. The hotels are usually fully occupied during these seasons. Makkah currently has a total of 650
hotels comprising of 125,000rooms1 , which can roughly accommodate 500,000 pilgrims. However it should be noted that
this does not include the total accommodation for pilgrims, as a number of pilgrims travelling for Hajj stay in government
owned buildings.
Religious tourism, the key driver
Tourism revenue in 2012 reached SAR 66bn, according to the Centre of Studies and Research at Asharqia Chamber. Revenues
are expected to reach SAR 230bn by 2020. Makkah real estate is considered one of the most expensive land bank in the
world, where 1 sqm in 2011, was valued at USD 133,0002.
The city of Makkah over the years has seen a huge influx of religious tourist. According to World Travel and Tourism Council
(WTTC) saudi travel and tourism industry will grow steadily and is forecast to increase by 4.2% YoY to reach SAR 74.6bn in
2022 (in constant 2011 prices). The number of religious tourists to Saudi Arabia are expected to reach 15.8 million by 2014,
compared to 13 million in 2010, according to the Saudi Commission for Tourism and Antiquities (SCTA).It also aims to attract
88mn visitors by 2020, in line with its plans to develop the domestic and business tourism. Investment in Saudi Arabia’s
travel and tourism industry would increase by 6.7% in 2012, and rise by 3.3% yearly over the next ten years to 29.5 billion
riyals in 2022.
Hajj Pilgrims
25%
3.00
20%
2.50
15%
2.00
10%
1.50
5%
1.00
0%
0.50
-5%
Mn
3.50
0.00
-10%
2006
2007
2008
2009
Hajj Pilgrims
2010
2011
2012
% Growth
Source: Company’s annual report & Aljazira Capital
1
http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20131002182328
2
3
http://www.constructionweekonline.com/article-7657-makkah-land-prices-hit-133000-per-sq-metre/#.ULTQBG83vf
December 2013
Religious residential market reflects seasonal growth
Demand for residential market for religious purposes tends to be more seasonal, with Ramadan, the two Eids, and the
summer holidays being the peak seasons. Occupancy for rental properties surges among Saudi and expatriate alike;
according to market sources, property rental agencies witness 100% bookings. During peak seasons, property rental rates
and prices go up 40–50%3 . Hotel occupancy is lower but not significantly lower during off-season. As the number of
pilgrims for Hajj and Umrah is expected to rise to 13.7mn by 2019E from 7.7mn currently4 , demand in residential market is
also likely to rise.
Growing population to drive demand for the residential market in Makkah
Most of Saudi Arabia’s population are Muslims and has been growing gradually over the last few years, especially with the
increasing number of expatriate workers every year. The Kingdom’s population stood at 29.2mn at the end of 2012, up from
27.6mn in 2010. Total expatriate population has grown to 9.4mn in 2012 from 8.6mn in 2010. As per the latest IMF estimate6
, the Kingdom’s population is expected to rise up to 32.7mn by 2018. Majority of the current population resides in the region
of Makkah with 25.6% of the total population. Going forward, the demand of residential market in Makkah is estimated to
improve further due to a growing number of population.
Saudi Population by Geographic Distribution E2013
Saudi National & Expatriate Population (mn) – 2010-2015
3.5%
25.0
Others
25.1%
Makkah
25.6%
3.0%
20.0
2.5%
15.0
2.0%
1.5%
10.0
15.1%
Asser
7.0%
Riyadh
27.20%
Eastern Province
1.0%
5.0
0.0
0.5%
2010
Source: Central Department of Statistics & Information, AlJazira Capital
2011
2012
2013E
Saudi National
Expatriate
2014E
2015E
Growth (%)
0.0%
Residential Units Market Challenges and Competitive landscape
The residential units market in Makkah is one of the most seasonal markets and there is a considerable variation between
peak seasons and the period of low demand. There are also significant challenges facing operators of hotels in Makkah such
as maintaining occupancy rates and the level of prices during off-season. Alongside, there is a rapid increase in the number
of hotels, as there are three major ongoing projects in Makkah such as Jabl Omar, Al-Shamia and Jabl Al-Ka’ba.
4
3
According to Mohammed Al-Amir, chairman of the committee of tourist accommodation at the Saudi Commission for Tourism and Antiquities (SCTA)
4
PhoCusWright
5
IMF Country Report No. 13/229
December 2013
Company Overview:
Jabal Omar is a mix commercial and residential projects located next to the Al haram mosque in Makkah. The project covers
an area of 230,000 sqm with around 2mn sqm of construction consisting of 38 residential towers, hotels, a mosque of
14,0000 sqm that can hold up to 150.000 people, a retail concourse, a conference hall, public parks, a 3,000 car parking lot
and other related facilities. A total of 11,454 hotel and residential rooms as well as 208 villas.
The location of the project gives it a strategic advantage, due to the significance of Alharam mosque for the Muslims. We
believe the project will be insulated against any economic downturn locally or globally.
A lot of effort is being put in to develop the Makkah region; new projects worth SAR 300bn to expand the grand mosque,
and connect the city of Makkah by metro will make the city more accessible. To cope with expected influx of pilgrims, the
government has issued licenses for 500 new hotels, which will also include a hotel with 5,000rooms.
The government is also looking to improve its airport facilities. First and foremost is the new Jeddah airport, which when
fully completed will be able to service more than 80mn passengers per year. The airport will be connected with a high speed
rail link to the cities of Makkah and Madina. Second the expansion of Madina airport from 12mn to 30mn passengers.
Major Events
• January 2008: Phase 1 of the project was started, the project was supposed to end in January 2011.
• October-2008: The global financial crisis hit the market, resulting in difficulty of raising finance for the project. Jabal Omar in
consultation with its financial partner changes its strategy, as it added more phases to the project to tap local banks and financial
institutions.
The company raised funds from the following sources:
Source
Amount
Status
IPO
SAR 2bn
Achieved
SAR 2.58bn
Achieved
Increase in capital
Loan from Ministry of Finance
SAR 3bn
Achieved
Sukuk
SAR 3bn
Achieved
Syndicated Loan
SAR 1.17bn
Achieved
Syndicated Loan
SAR 3bn
Achieved
Others
Leasing of Commercial Shops
Long term lease on Villas
Total
SAR 2bn
Achieved
SAR 750mn
In process
SAR 1 bn
In process
SAR 18.5 bn
-
Jabal Omar Company receives revenue from a range of sources to ensure wide and diversified access to the market and
services while maintaining high standards of quality. These sources of revenue are:
• The main revenue will comes from operating hotels, which will be operated by renowned hotel management companies,
like Hilton Worldwide, Marriott, Starwood and Hyatt.
• Long-term lease of the hotel towers in the projects.
• Long-term lease of the residential units (villas) in the projects.
• Renting the commercial shops.
5
December 2013
Projects’ Phases:
In April 2009, the company has appointed a financial adviser6 to assess the cost of the project based on five phases, which
was estimated to reach approximately SAR 18.5bn in addition to the value of project land at SAR 4.7bn. However, the
current value of the land has increased to SAR 14.6bn, and therefore the project is currently worth SAR 33.1bn.
Phase (1)
Phase (2)
Phase (3)
Phase (4) Phase (5)
N2 (H3,H4)
AREA
N3 (H5) + (H) Convention Hall
S3 (H12,H13A)
N1 ( 2 Towers)
S1 (H6,H7,H8,H9)
S4 (H13B,H13C) N6A (2 Towers)
S2 (H10,H11)
podium tower
4
1
2
5
4
Towers
10
4
4
12
8
Towers' Floors
20
20
20
20
20
Villas
86
72
NA
NA
NA
Rooms
2256
549
NA
NA
NA
Suites
658
44
NA
NA
AN
Q1-2014
Q2-2014
Q1-2016
NA
NA
Completion expected
Source: Jabel Omar, AlJazira Capital , NA= Not available
The first phase also includes 86 villas and furnished apartments. Hilton Worldwide will manage six hotels while Marriott,
Starwood and Hyatt will manage three hotels each at the project. Renting all the commercial outlets in the first phase of
the project is expected to be completed early 2014. Contracts for the second phase of the project on Ibrahim Al-Khalil
Street were awarded to Saudi Arabian Baytur Construction Co. and Azmeel Contracting and Construction Corporation for
an amount of SAR1.49 bn. In December 2012, the company signed a contract to implement the third phase, which includes
the twin towers and is expected to be completed in Q1-2016.
Source: company, Prospectus 2011, Imaginal images of the project after its completion
Up to date, Jabal Omar so far has been able to lease 115 shops in phase (1) for SAR 151.2mn per year , representing
10% of the total commercial area. We expect the number of leased shops to double in early 2014 after the completion of
construction works in the first and second phases. In addition, the company announced opening a part of the Makkah
Hilton Hotel in Q3-2013 and we expect a positive effect on the company’s results 7 for the first quarter of the current Hijri
fiscal year 1435.
6The company’s annual general meeting 2012
6
7The company’s financial year based on Hijri Calendar
December 2013
Diversified revenues to mitigate the impact of seasonality on hotels occupancy
The project is expected to see higher occupancy during 2H of
Figure 3: Expected Operational Revenue
the Hijri calendar due to the high-seasonality trend of Saudi
Arabia because of Ramadan and Hajj season. Occupancy 120.0%
levels during off-season may decline to 80% from more than 100.0%
95% during Ramadan and Hajj. Moreover, Saudi Arabia has
80.0%
limited the number of permits for pilgrims performing Hajj
58.9%
62.6%
63.7%
67.3%
60.0%
due to extensive construction work being conducted at the
40.0%
Grand Mosque. Therefore, we believe with the rising share
of revenues from long-term lease for some towers hotel,
20.0%
41.1%
37.4%
36.3%
32.7%
residential units (villas) and commercial shops will provide
0.0%
E1435
E1436
E1437
E1438
the necessary counter balance to support revenue growth.
Long-term lease Room Renting
However, Jabal Omar is expected to witness stable growth
rate during the coming years. We expect the share of revenues
from long-term lease to stand around 38% in over our First 3
years of forecasting, while share of room renting revenues is likely to be below 65% over our First 3 years of forecasting
horizon.
Strong profitability to support self-financing for the final stages (Phase4&5)
Jabal Omar’s net income is expected to increase at a CAGR of 23.2% over 1435-38E, while net margins is expected to
increase from 45% in 1435E to 57% in 1438E due to increase in cost efficiency over the period. Furthermore, the company’s
return on equity (RoE) will remain strong between 8.5-14.6% during 1435–38E and will increase at a CAGR of 12.42%. We
expect the company’s revenues to expand at a CAGR of 21.9% over 1435E–38E. Thus, Jabal Omar’s healthy profitability
would provide further support to finance its final two phases (4th and 5th) of the projects.
Figure 4: Profitability Remains Strong
70.0%
4,500.0
4,000.0
60.0%
3,500.0
50.0%
3,000.0
2,500.0
40.0%
2,000.0
30.0%
1,500.0
20.0%
1,000.0
10.0%
500.0
0
7
Figure 5: Expected Returne on Equity
E1435
E1436
E1437
Revenues (SAR mn)
Net Income (SAR mn)
0.0%
E1438
Net margin (%)
Source: AlJazira Capital
25.00%
20.00
20.00%
15.00
15.00%
10.00
10.00%
5.00%
5.00
0
0.00%
E1435
E1436
Equity ( SAR bn)
E1437
E1438
Growth (%)
-5.00%
Source: AlJazira Capital
December 2013
SWOT ANALYSIS
Strengths:
• A wide variety of rooms and luxury apartments with different categories such as (3), (4) and (5) stars, which targets a
broad customer base.
• The strategic location of the project near the Grand Mosque.
• Hotels and units are operated by international hotel companies such as Hilton and Marriott, which raises the quality
of services.
• Availability of parking for the residential units, which grant customers an easy access to the hotel rooms and the
grand mosque.
Weaknesses:
• The real estate market in Makkah’s reliance on seasonal demand, particularly in the second half of the Hijri year.
Opportunities:
• The steady growth of the number of Muslims around the world is an additional factor to increase the potentail visitors
to Makkah every year.
• Government’s ambitious plans to activate the tourism sector in the Kingdom.
• Limitation of luxury rooms and hotels near to the Grand Mosque, will provide a significant growth opportunity in the
medium term.
Threats:
• A large increase in the supply of rooms because of the expected future projects.
• Intense internal competition between the units of Jabal Omar project, which may adversely affect the company’s
revenues.
• The possibility of controlling the rooms pricing by the government, which could reduce the company’s revenues.
8
December 2013
Key financial data
Amount in SARmn, unless otherwise specified
Sales
Growth In sales%
Cost of Sales
Gross Income
General and Admin Expenses
Sales and Marketing Expenses
Income from Operations
Growth in operating profits%
Other Income
Financing Expenses
Income before Zakat and Minority Interest
Zakat
Income before Minority Interests
Net Income for the Period
Growth In net income%
EPS (Net Income)
Balance Sheet
Assets
Current Assets
Cash and Cash Equivalent
Prepaid Expenses,A/R and other current assets
Non-Current Assets
restricted deposits
Payments for the Founder
Working in progession
Deferred Finance expenses
Property ,Plant & Equipment
Total Assets
Liabilities
Current liabilities
Bank facilities - current portion
Non-Current liabilities
Long term loan
Employees terminal benefits
Total Liabilities
Equity
Capital
Statuary Reserve
Accumulated losses/Retained earnings
Total Shareholders Equity
Total Liabilities and Equity
Cash Flow Statement
Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Changes in Cash
Cash Opening Balance
Cash Ending Balance
E2013/1434
E2014/1435
E2015/1436
E2016/1437
E2017/1438
45.60
(36.94)
8.66
(50.54)
(6.84)
(48.72)
(0.03)
1,820.16
(819.07)
1,001.09
(70.21)
(13.06)
917.81
8.65
(91.99)
834.47
(20.86)
813.61
813.61
0.88
2,716.43
49%
(1,086.57)
1,629.86
(89.36)
(16.65)
1,523.84
66%
8.70
(76.30)
1,456.24
(36.41)
1,419.84
1,419.84
75%
1.53
2,981.60
10%
(1,073.38)
1,908.23
(107.29)
(19.91)
1,781.03
17%
8.74
(112.10)
1,677.67
(41.94)
1,635.73
1,635.73
15%
1.76
4,026.44
35%
(1,288.46)
2,737.98
(112.61)
(23.81)
2,601.56
46%
8.79
(240.42)
2,369.93
(59.25)
2,310.68
2,310.68
41%
2.49
3,823.33
64.77
3,888.10
4,882.13
71.38
4,953.50
5,685.54
63.11
5,748.65
7,245.03
70.06
7,315.09
9,193.36
78.44
9,271.80
653.00
273.05
6,113.83
213.56
4,181.01
15,322.54
653.00
273.05
5,969.00
189.22
4,178.04
16,215.81
653.00
273.05
6,078.96
200.57
4,174.44
17,128.68
653.00
150.00
5,991.60
4,169.33
18,279.02
653.00
30.00
5,913.71
4,163.07
20,031.58
6,336.31
3.02
6,339.33
647.26
5,689.05
3.52
6,339.83
647.26
5,041.79
4.02
5,693.07
787.49
4,254.30
4.52
5,046.32
1,208.21
3,046.09
5.02
4,259.32
9,294.00
(310.79)
8,983.21
15,322.54
9,294.00
81.36
500.62
9,875.98
16,215.81
9,294.00
223.34
1,918.26
11,435.60
17,128.68
9,294.00
386.92
3,551.79
13,232.71
18,279.02
9,294.00
617.99
5,860.27
15,772.26
20,031.58
(49.20)
(201.28)
1,924.72
1,674.24
2,149.09
3,823.33
894.04
144.11
20.65
1,058.80
3,823.33
4,882.13
1,500.09
(110.75)
(585.93)
803.41
4,882.13
5,685.54
1,737.97
86.65
(265.12)
1,559.49
5,685.54
7,245.03
2,540.93
77.16
(669.76)
1,948.33
7,245.03
9,193.36
16.72
(32.01)
(32.01)
(32.01)
Source:Aljazira Research
9
December 2013
Key ratios
E2013/1434
E2014/1435
E2015/1436
E2016/1437
E2017/1438
Liquidity Ratio
Current Ratio(x)
Quick Ratio (x)
-
7.7
7.7
8.9
8.9
9.3
9.3
7.7
7.7
Profitability
ROE
ROA
ROIC
Gross Margins
EBITDA Margins
EBIT Margins
Net Margins
-0.36%
-0.21%
-0.21%
19.0%
-114.2%
-106.9%
-70.2%
8.24%
5.02%
5.02%
55.0%
50.2%
50.4%
44.7%
12.42%
8.29%
8.29%
60.0%
55.9%
56.1%
52.3%
12.36%
8.95%
8.95%
64.0%
59.5%
59.7%
54.9%
14.65%
11.54%
11.54%
68.0%
64.4%
64.6%
57.4%
70.5%
41.4%
41.4%
-
64.2%
39.1%
39.1%
9.98
49.7%
33.2%
33.2%
19.97
38.1%
27.6%
27.6%
15.89
27.0%
21.2%
21.2%
10.82
9.7
27.8
30.3
3.1
-
10.6
27.8
28.6
34.2
2.8
31.0
12.3
27.8
27.1
19.6
2.4
17.8
14.2
27.8
24.8
17.0
2.1
13.9
17.0
27.8
21.6
12.0
1.8
8.3
Leverage Ratios
Debt/Equity
Debt/Capital
Debt/Assets
Times interest Earned (TIE)
Valuations
Book Valuer Per Share (BVPS)
Market Capitalization(in SAR Bn)
Enterprise value (in SAR Bn)
PE (x)
PB (x)
EV/EBITDA (x)
Source:Aljazira Research
10
RESEARCH DIVISION
BROKERAGE AND INVESTMENT
CENTERS DIVISION
RESEARCH
DIVISION
Senior Analyst
Abdullah Alawi
Syed Taimure Akhtar
+966 12 6618275
a.alawi@aljaziracapital.com.sa
+966 12 6618271
s.akhtar@aljaziracapital.com.sa
Senior Analyst
Analyst
Analyst
Talha Nazar
Saleh Al-Quati
Jassim Al-Jubran
+966 12 6618603
t.nazar@aljaziracapital.com.sa
+966 12 6618253
s.alquati@aljaziracapital.com.sa
+966 12 6618602
j.aljabran@aljaziracapital.com.sa
General Manager - Brokerage Division
Ala’a Al-Yousef
AGM-Head of international
Regional Manager - West and South Regions
and institutional brokerage
Abdullah Al-Misbahi
+966 11 2256000
a.yousef@aljaziracapital.com.sa
Luay Jawad Al-Motawa
+966 12 6618404
a.almisbahi@aljaziracapital.com.sa
+966 11 2256277
lalmutawa@aljaziracapital.com.sa
Sales And Investment Centers Central Region
Area Manager - Qassim & Eastern Province
Manger
Abdullah Al-Rahit
Sultan Ibrahim AL-Mutawa
+966 16 3617547
aalrahit@aljaziracapital.com.sa
+966 11 2256364
s.almutawa@aljaziracapital.com.sa
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
AGM - Head of Research
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: Madinah Road, Mosadia، P.O. Box: 6277, Jeddah 21442, Saudi Arabia، Tel: 02 6692669 - Fax: 02 669 7761
Aljazira Capital is a Saudi Investment Company licensed by the Capital Market Authority (CMA), license No. 07076-37

Jabal Omar Development Company

Transcription

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