Qatari stock report - Qatar Islamic Bank

QATAR

Qatar Islamic Bank rises for a third consecutive day, a three-day rise of 0.5% October 19, 2017 12:30 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

Qatar Islamic Bank (QE:QIBK), Qatar's 3rd largest Bank by market cap, has risen 20.0 Dirham (0.2%) for a third consecutive day on Thursday. This brought its three-day rise to 46.0 Dirham (0.5%), compared with the QE Index which fell 127.5 points (1.5%) in the three days for a relative price increase of 2.0%. The 3-day rise was fuelled by a cumulative volume of 1.5 times the average 3-day volume of 73,722 shares. The stock last traded at QAR93.98.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

Fundamentals, Undervaluation [compared with sector average], Technicals, High Performance Indicators

SECTION 2 BEARISH SIGNALS

Fundamentals, Overvaluation [compared with sector average], Technicals, Low Performance Indicator

SECTION 3 PRICE VOLUME DYNAMICS

Technicals, Moving Annual Return, Turnover Rate & Turnover Period

SECTION 4 RANKING

Global, Independent Ratings

SECTION 5 FINANCIALS

Financials Summary, Trailing 12 Months Dividends

SECTION 6 PROFILE

Activities, Industry & Sector, Top Management, Issued Capital

SECTION 7 STOCK BUZZ

SECTION 1 QATAR ISLAMIC BANK BULLISH SIGNALS

1.1 Fundamentals:

+ The P/E of 11 multiplied by the P/NTA of 1.1 is 12.4. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

+ The relative yield of the stock, defined by its yield of 5%, divided by average yield of dividend yielding stocks in the QE Index of 4.1% is 122.0%. This suggests the stock is undervalued in dividend yield terms.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stocks by value of Q Ratio.

+ The company is cash rich with Cash to Market Capitalisation at 28.5%.

1.2 Undervaluation [compared with sector average]:

+ Price to Book of 1.1 [1.4]. We estimate Qatar Islamic Bank stock is trading at a current year Price to Book of 1 and a forward year Price to Book of 0.8.

+ Dividend yield of 5% [3.8%].

1.3 Technicals:

+ The price increased 0.7% in the last week and climbed 5.9% in the last month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 93.11 minus the 26-day EMA of 92.74 is positive 0.37 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ Rises to Falls: in the past month the number of rises outnumbered falls 17:6 or 2.8:1.

+ The present value of QAR1,000 (PV1000) invested five years ago in Qatar Islamic Bank is QAR1,977, including a capital gain of QAR538 and dividend reinvested of QAR440.

+ 5 years Multiplier in QAR = 1.977x

+ Compound Annual Growth Rate (CAGR) in QAR = 14.6%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in Qatar Islamic Bank is $US1,973, including a capital gain of $US534 and dividend reinvested of $US439.

+ 5 years ago USD 1 equalled QAR 3.6403

+ 5 years Multiplier in USD = 1.973x

+ Compound Annual Growth Rate (CAGR) in USD = 14.6%

Oct 19, 2017: USD 1 equals QAR 3.65

1.4 High Performance Indicators:

DescriptionValueRank In Market
Price/MAP501.01In Top 8%
Price/MAP2000.96In Top 10%

SECTION 2 QATAR ISLAMIC BANK BEARISH SIGNALS

2.1 Fundamentals:

+ Total Liabilities/EBITDA of 18.9 which compares unfavourably with the Joseph Piotroski benchmark of 5.

+ As per the Du Pont analysis, Return on Equity of 10.3% is lower than sector average of 12.8%. This is computed as net profit margin of 38.5% times asset turnover [sales/assets] of 0.04 times leverage factor [total assets/shareholders' equity] of 7.0.

2.2 Overvaluation [compared with sector average]:

+ Price/Earnings of 11 [9.8]. We estimate Qatar Islamic Bank stock is trading at a current year P/E of 8.9 and a forward year P/E of 7.6.

+ Return on Equity 10.3% [12.8%].

2.3 Technicals:

Overbought/Bearish/Resistance Signals:

+ The stock is overbought according to the Williams % R indicator of -18.5, suggesting the price is close to its 14-day high of QAR94.95.

2.4 Low Performance Indicator:

DescriptionValueRank In Market
Return on Assets [ROA] %1.5In Bottom Quartile

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 283,597 shares worth QAR26.7 million (US$7.3 million) traded today. In the past week, volume was 1.0 times average and the shares were up 0.7%. The rise has been propped up by extraordinary volume of 3.8 times the average daily volume of 73,722 shares.

+ Qatar Islamic Bank is at a discount of 11.0% to its 12-month high of QAR105.59 on January 25. It is also at a premium of 8.2% to the 12-month low of QAR86.90 on July 03.

+ The present value of QAR1,000 (PV1000) invested one year ago in Qatar Islamic Bank is QAR979, comprising a capital loss of QAR64 and dividend reinvested of QAR44.

PV10001-week1-month1-year
QIBK.QE1,0071,059979
QE Index980983782

3.2 Moving Annual Return

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 2 out of 5 years.

QIBKClose (QAR)Dividends (QAR)Capital Gain / (Loss) %% YieldAnnual Return %
Oct 1993.984.75(6.4)4.7(1.7)
1 Yr ago100.434.25(7.0)3.9(3.0)
2 Yrs ago107.964.2512.84.417.2
3 Yrs ago95.74469.47.176.4
4 Yrs ago56.533.75(7.5)6.1(1.4)

Close 5 years ago QAR61.12

3.3 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 10.7% (or a turnover period of 9 years 3 months). This average length of ownership of the stock at 1.3 times the average holding period of 7 years 3 months for stocks in the QE Index suggests a larger number of core investors, making a long-term investment safer.

SECTION 4 RANKING

4.1 Global Rank [out of 47,821 stocks] and Rank in the Middle East & Africa Region [out of 2,304 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)6.1B2,27861
Total Assets (US$)38.3B1,06531
Revenue (US$)1.5B5,112130
Net Profit (US$)590.7M1,50845
Return on Equity %10.312,500761
Net Profit Margin %38.52,739253
Price to Book1.112,152827
Price/Earnings11.05,923525
Yield %5.14,161504
PV$1000 (1Year) US$*97925,6401,122
US$* Change (1Year) %-6.026,7561,175

* 1 year ago USD 1 = QAR 3.65

Oct 19, 2017: USD 1 equals QAR 3.65

4.2 Independent Ratings

Qatar Islamic Bank was ranked 321 in the Brand Finance list of the world's 500 Valuable Banking brands by brand value in 2015; an improvement over a year from rank 466 in 2014. Brand Finance valued the brand at US$317 million.

It is the 1936th largest by revenue in the Forbes Global 2000.

It is placed 6/39 in BSS News Bites' ranking of Qatar performers in the past year, a percentile ranking of 85.

SECTION 5 QATAR ISLAMIC BANK FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD)1.5B1.2B-
Pretax (USD M)581.5559.6468.2
Net (USD M)590.9535.9439.1
EPS (QAR)8.558.066.78

Net profit was up 10.3% from US$535.9 million in 2015 to US$590.9 million in 2016. Earnings Per Share (EPS) was up 6.1% from QAR8.06 to QAR8.55.

5.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (QAR)
19 Oct 20174.75
19 Oct 20164.25
19 Oct 20154.25
19 Oct 20144
19 Oct 20133.75

SECTION 6 QATAR ISLAMIC BANK PROFILE

6.1 Activities

Qatar Islamic Bank provides banking services according to Islamic Sharia principles. The Bank carries out banking services, investment and financing activities through various Islamic modes of financing, such as Sukuk, Murabaha, Mudaraba, Musharaka, Musawama, Istisnaa and Ijarah. It also offers individual and corporate banking services. The Bank operates through 18 domestic branches and representative offices.

6.2 Industry & Sector

Classification LevelName of Sector
Industry GroupBanking Services
IndustryBanks
Economic SectorFinancials
Business SectorBanking & Investment Services

6.3 Top Management

The chairman is Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber Ai Thani and the chief executive officer is Bassel Gamal.

6.4 Issued Capital

Based on 236,293,200 issued shares the market capitalisation is QAR22.2 billion (US$6.1 billion).

SECTION 7 STOCK BUZZ

Corporate Wire

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October 09: QATAR ISLAMIC BANK ENTERS A STRATEGIC PARTNERSHIP WITH IBN AJAYAN TRADING GROUP

Qatar Islamic Bank (QIB), announced that it has entered a strategic partnership with Ibn Ajayan Trading Group. Under the terms of the deal, QIB will be the preferred financing partner for the Qatar-based equipment dealer. Senior executives from both organizations gathered at the Bank's corporate headquarters in Doha for the official signing, with Mr.

September 28: QIB DECIDES TO DISCLOSE THE 3RD QUARTER FINANCIAL STATEMENTS ON OCTOBER 18, 2017

Qatar Islamic Bank (QIB) announces its intent to disclose its Third quarter Financial Statements results for the year 2017 on Wednesday, 18 October, 2017.

August 24: QIB SIGN QR 1.6 BILLION FINANCING DEAL FOR FOOD SECURITY FACILITIES PROJECT

Qatar Islamic Bank (QIB) signed a QR 1.6bn financing deal with AlJaber Engineering (JEC). The agreement was signed at QIB's headquarters, by Mr. Bassel Gamal, QIB's Group CEO, and Osama Hadid, CEO of JEC. The financing deal will support JEC's current project to execute the design and construction of strategic food security facilities and warehouses at Hamad Port.

August 07: Qatar Islamic Bank issues second series of deposit certificates

Qatar Islamic Bank (QIB), Qatar's leading Islamic Bank, has launched its second series of Certificates of Deposit. The new Certificates of Deposit will be available for individuals and corporate customers in Qatari Riyal and US Dollar for different terms of one and two years. Certificates of Deposit are developed to encourage customers to make long term saving and get attractive annual profit based on the certificate's maturity and selected currency.

August 06: QIB LAUNCHES SECOND SERIES OF CERTIFICATE OF DEPOSIT

Qatar Islamic Bank (QIB), has announced the launch of its second series of Certificates of Deposit. The new Certificates of Deposit will be available for individuals and corporate customers in Qatari Riyal and US Dollar for different tenors of one and two years.

Certificates of Deposit are developed to encourage customers to make long term saving and get attractive annual profit based on the certificate's maturity and selected currency.

Contact: 974 -4409409

Physical Address: Grand Hamad Ave. - Doha 559

State/Province/Country: Qatar

Exchange: Qatar Stock Exchange

ISIN: QA0006929853

QA:QIBK; QD:QIBK; QISB.QA

PermID: 4295886959

Source: www.BuySellSignals.com