Saudi Arabian stock report - Saudi Basic Industries
UPDATE: Saudi Basic Industries in its biggest weekly gain in 3 weeks, issued 3 new patents April 19, 2018 15:30 AST
NEWS BITES - MIDDLE EAST & NORTH AFRICA
Saudi Basic Industries Corp. (TASI:2010), Saudi Arabia's largest Petrochemical industries company by market cap, has increased SAR1.80 (1.5%) from its last trading session of April 18 to close at SAR122.80. Compared with the All Share Index (TASI) which rose 131.0 points (1.6%) in the day, the relative price change was -0.1%. The rise has been propped up by firm volume of 1.4 times the average daily volume of 4.2 million shares. In the past week the shares have climbed 5.1%, the biggest weekly gain since March 28.
SAUDI BASIC INDUSTRIES ISSUED 3 NEW PATENTS IN THE WEEK OF APRIL 17, 2018
Saudi Basic Industries (2010) has been issued 3 new patents by the USPTO and EPO.
THE PAST TWO YEARS
Saudi Basic Industries accelerates rise, up 62% in 2 years
Saudi Basic Industries Corp. (TASI:2010), has strengthened SAR46.87 (61.7%) over the past two years, compared with the All Share Index (TASI) which rose 1,745.2 points (26.7%) in the two years for a relative price increase of 35.0%. The shares rose SAR20.53 (27.0%) a year ago and SAR26.34 (27.3%) in the past year to close at SAR122.80.
Highlights in today's Report:
SECTION 1 BULLISH SIGNALS
Fundamentals, Undervaluation [compared with sector average], Technicals, High Performance Indicators
SECTION 2 BEARISH SIGNALS
Fundamentals, Technicals, Overbought/Bearish/Resistance Signals
SECTION 3 PRICE VOLUME DYNAMICS
Technicals, Moving Annual Return, Beta, Turnover Rate & Turnover Period
SECTION 4 RANKING
Global, Independent Rating
SECTION 5 FINANCIALS
Financials Summary, Annual Report for the year ended December 31, 2017 (year-on-year comparisons with previous corresponding period)-, Trailing 12 Months Dividends
SECTION 6 PROFILE
Activities, Top Management, Issued Capital
SECTION 7 PATENTS
SECTION 8 STOCK BUZZ
Acquisition, Corporate Wire
SECTION 1 SAUDI BASIC INDUSTRIES BULLISH SIGNALS
+ The relative yield of the stock, defined by its yield of 3.3%, divided by average yield of dividend yielding stocks in the All Share Index (TASI) of 2.9% is 114.4%. This suggests the stock is undervalued in dividend yield terms.
+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 1.1. Compared with the rest of the market the stock is undervalued.
+ As per the Du Pont analysis, Return on Equity of 11.2% is better than sector average of 10.8%. This is computed as net profit margin of 12.3% times asset turnover [sales/assets] of 0.47 times leverage factor [total assets/shareholders' equity] of 2.0.
1.2 Undervaluation [compared with sector average]:
+ Return on Assets 5.7% [4.8%].
+ Return on Capital Employed 7.7% [6.5%].
+ Dividend yield of 3.3% [2.7%].
Significant Uptrend: The stock rose 1.5% on high volatility today and expanding price range.
+ The price climbed 5.1% in the last week and soared 11.6% in the last month.
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 119.06 minus the 26-day EMA of 116.23 is positive 2.84 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.
+ In the last three months the stock has hit a new 52-week high eleven times, pointing to a significant uptrend.
+ The present value of SAR1,000 (PV1000) invested one year ago in Saudi Basic Industries is SAR1,327, comprising a capital gain of SAR273 and dividend reinvested of SAR53.
|All Share Index (TASI)||1,059||1,048||1,191|
1.4 High Performance Indicators:
|Description||Value||Rank In Market|
|Today's Turnover||SAR704.2 million (US$187.8 million)||In Top 3%|
|Price/MAP200||1.19||In Top Quartile|
|Price/MAP50||1.1||In Top Quartile|
|Price Change %||1.5||In Top Quartile|
SECTION 2 SAUDI BASIC INDUSTRIES BEARISH SIGNALS
+ Total Liabilities/EBITDA of 5.3 which compares unfavourably with the Joseph Piotroski benchmark of 5.
+ Net profit margin has averaged 12.8% in the last 3 years. This is lower than the sector average of 13.6% and suggests a low margin of safety.
+ The 0.8% discount to 12-month high of SAR123.80 against the 33.0% premium to 12-month low of SAR92.34 suggests the climb might be peaking.
2.3 Overbought/Bearish/Resistance Signals:
+ At SAR122.80 the price has risen above the upper Bollinger band resistance of SAR122.46, indicating a downside risk for it to fall back within the band.
+ The Relative Strength Index (RSI) of 70.7 has penetrated the overbought line of 70, suggesting the price gain of 6.2% in the last 14 days is unusually high.
+ The stock is overbought according to the Williams % R indicator of -10.9, suggesting the price is close to its 14-day high of SAR123.80.
+ The Stochastic indicator of 89.1 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.
SECTION 3 PRICE VOLUME DYNAMICS
+ Volume: there were 5,734,708 shares worth SAR704.2 million (US$187.8 million) traded today. In the past week, volume was 1.1 times average and the shares were up 5.1%. The rise has been propped up by firm volume of 1.4 times the average daily volume of 4.2 million shares.
+ The present value of SAR1,000 (PV1000) invested ten years ago in Saudi Basic Industries is SAR1,039, including a capital loss of SAR220 and dividend reinvested of SAR260.
+ 10 years Multiplier in SAR = 1.039x
+ Compound Annual Growth Rate (CAGR) in SAR = 0.4%
Present Value of USD1,000 invested 10 years ago:
+ The present value of USD1,000 (PV1000) invested ten years ago in Saudi Basic Industries is $US1,039, including a capital loss of $US221 and dividend reinvested of $US260.
+ 10 years ago USD 1 equalled SAR 3.7481
+ 10 years Multiplier in USD = 1.039x
+ Compound Annual Growth Rate (CAGR) in USD = 0.4%
Apr 19, 2018: USD 1 equals SAR 3.75
3.2 Moving Annual Return
Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 3 of the last 5 years. An investment a year ago in 2010 would have produced a return of 31.5%.
|2010||Close (SAR)||Dividends (SAR)||Capital Gain / (Loss) %||% Yield||Annual Return %|
|1 Yr ago||96.46||5||30||6.7||36.7|
|2 Yrs ago||74.22||5.5||(12.9)||6.5||(6.5)|
|3 Yrs ago||85.24||5.5||(23.3)||4.9||(18.4)|
|4 Yrs ago||111.2||5||24.4||5.6||30.0|
Close 5 years ago SAR89.40
+ Beta: the Beta of Saudi Basic Industries stock is 0.5. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
3.4 Turnover Rate & Turnover Period:
+ The turnover rate in the 12 months to date was 28.2% (or a turnover period of 3 years 6 months). This average length of ownership of the stock at 1.7 times the average holding period of 2 years 44 days for stocks in the All Share Index (TASI) suggests a larger number of core investors, making a long-term investment safer.
SECTION 4 RANKING
4.1 Global Rank [out of 47,659 stocks] and Rank in the Middle East & Africa Region [out of 2,305 stocks]
|Description||Value||Global Rank||In MEA Region|
|Total Assets (US$)||86B||586||15|
|Net Profit (US$)||4.9B||204||5|
|Return on Equity %||11.2||11,687||664|
|Net Profit Margin %||12.3||9,617||692|
|Price to Book||2.1||20,719||1,190|
|PV$1000 (1Year) US$*||1,329||10,985||497|
|US$* Change (1Year) %||22.8||12,703||544|
* 1 year ago USD 1 = SAR 3.76
Apr 19, 2018: USD 1 equals SAR 3.75
4.2 Independent Rating
+ FT 500:
Saudi Basic Industries Corp. is the 102nd largest by revenue in the FT Global 500.
+ Fortune 500:
It was ranked 299 by total revenues in the Fortune 500 annual list for 2017; a deterioration over a year from rank 247 in 2016.
+ Newsweek 500:
It was ranked 415 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 10.4% in Water productivity, 2.1% in Energy productivity and 1.7% in Carbon productivity.
+ Industryweek 1000:
It is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 94.
+ Forbes 2000:
It is the 176th largest by revenue in the Forbes Global 2000.
+ BSS/News Bites:
It is placed 39/164 in BSS News Bites' ranking of Saudi Arabian performers in the past year, a percentile ranking of 76.
SECTION 5 SAUDI BASIC INDUSTRIES FINANCIALS
5.1 Financials Summary
|Year ended||Dec 2017||Dec 2016||Dec 2015|
|Sales (USD B)||40.7||36.2||40.2|
|Pretax (USD B)||5.6||5.6||5.6|
|Net (USD B)||4.9||4.8||5|
Sales were up 12.5% from US$36.2 billion in 2016 to US$40.7 billion in 2017. Net profit was up 3.3% from US$4.8 billion in 2016 to US$4.9 billion in 2017.
5.2 Annual Report for the year ended December 31, 2017 (year-on-year comparisons with previous corresponding period)-
+ Net profit up 3.3% from SAR17.8b ($US4.8b) to SAR18.4b ($US4.9b)
+ Total revenue up 12.5% from SAR135.8b ($US36.2b) to SAR152.7b ($US40.7b).
+ Total revenue to total assets up from 0.4 to 0.5.
+ Total current assets to Total Assets up from 26.9% to 28.4%.
+ Non-current inventory to Total Assets up from 7.3% to 8.1%.
+ EBIT Margin down from 15.7% to 14.0%.
+ Profit before tax to Sales down from 15.7% to 14%.
+ Administration expenses to Sales up from 9.5% to 14%.
+ Current ratio down 8.7% from 2.1 to 1.9.
+ Working capital to total assets down from 14.0% to 13.5%.
+ Total non-current assets to Total Assets down from 73.1% to 71.6%.
+ Fixed Assets to Total Assets down from 53.6% to 51.9%.
+ Other non-current assets to Total Assets down from 6.8% to 6%.
+ Total Liabilities to EBITDA of 5.3 compares unfavourably with the Joseph Piotroski benchmark of <5. This ratio has deteriorated by 4.5% from the previous year's ratio of 5.1.
+ EBIT to total assets steady at 6.5%.
+ Tax expenses to Sales down from 2.3% to 1.7%.
+ Total liabilities to Total assets steady at 0.3.
5.3 Trailing 12 Months Dividends
|Trailing 12 Months To||Value (SAR)|
|19 Apr 2018||4|
|19 Apr 2017||5|
|19 Apr 2016||5.5|
|19 Apr 2015||5.5|
|19 Apr 2014||5|
SECTION 6 SAUDI BASIC INDUSTRIES PROFILE
Saudi Basic Industries (SABIC) is a petrochemical company that operates in the non-oil industrial sector worldwide. SABIC operates six core business units. The Basic Chemicals unit products include methanol, ethylene, propylene, benzene, xylene, styrene, crude industrial ethanol, butadiene and butadiene-1. The Intermediates unit produces ethylene glycol, ethylene dichloride, and vinyl chloride monomer and dioctyl phthalate. The polyvinyl chloride (PVC) and Polyester unit provides polymeric materials and allied products. Its main products include polyester, melamine, polypropylene, PVC and polystyrenes. The Fertilizers unit offers ammonia and urea, phosphate and liquid fertilizers. The Metals unit is a supplier of flat steel, long steel and aluminum products. The Polyolefins business unit is a producer of polyethylene (PE), polypropylene (PP) and their by-products.
6.2 Top Management
The chairman is Abdulaziz Saleh Aljarbou and the chief executive officer is Yousef Abdullah Al-Benyan.
6.3 Issued Capital
Based on 3,000,000,000 issued shares the market capitalisation is SAR368.4 billion (US$98.2 billion).
SECTION 7 SAUDI BASIC INDUSTRIES PATENTS
Issued April 17, 2018
Method for the purification of acetic acid and acrylic acid [9,944,582]
The present disclosure relates to a method for purifying an acid, wherein the method comprises: a) producing a crude product mixture by a partial oxidation reaction, wherein the crude product mixture comprises acrylic acid and acetic acid; b) purifying the crude product mixture by distillation using a high-boiling solvent to purify the acrylic acid; and c) purifying the crude product mixture by distillation using a low-boiling solvent to purify the acetic acid.
Catalyst system for polymerization of an olefin [9,944,731]
A process for the preparation of a procatalyst suitable for preparing a catalyst composition for olefin polymerization, the procatalyst obtained or obtainable by the process; and a catalyst composition for olefin polymerization comprising the procatalyst. In particular a benzamide can be used as an activator in the preparation of a supported Ziegler-Natta type procatalyst useful for a process for the preparation of polyolefins. The Polyolefins and polypropylene homopolymers are also disclosed.
Catalyst system for polymerization of an olefin [9,944,734]
The invention relates to a process for preparing a catalyst system suitable for olefin polymerization. The present invention further relates to a catalyst system obtainable by such process. In addition, the invention relates to a polyolefin. The invention also relates to ashaped article. The catalyst system comprises a procatalyst, a co-catalyst and optionally at least one external electron donor.
To view more details on these Patents, click here
SECTION 8 STOCK BUZZ
August 16 2017: Saudi Basic Industries Corp. announces the latest developments on the completion of its acquisition of Shell Chemical Arabia L.L.C.s shares in Saudi Petrochemical Company (Sadaf)
With reference to SABICs announcement on Tadawul dated Jan 22, 2017, regarding its proposed acquisition of Shell Chemicals Arabia L.L.C.s entire 50% stake in Saudi Petrochemical Company (Sadaf), with a value amounting to USD 820,000,000 including the foreign partners share of the net assets value, SABIC announces that the proposed acquisition was completed on August 16th, 2017. The financial impact of the transaction will be reflected in SABICs results during the 3rd quarter of 2017.
Sadaf produces ethylene, MTBE, styrene and other basic chemicals. The Sadaf complex includes six petrochemical plants, with a total production capacity of more than 4 million metric tons per year. This agreement with Shell Chemicals Arabia L.L.C. follows SABICs strategy to enhance returns of its investments to contribute more effectively in achieving its strategic objectives.
8.2 Corporate Wire
To view Recent Company Headlines, click here
March 15: Saudi Basic Industries Corp announces the annual financial results for the period ending on 31-12-2017
January 02: SABIC launches NUSANED to support local content development
SABIC launched a groundbreaking initiative, NUSANED, which seeks to promote investments in small and medium enterprises and support the development of local content, here on Monday.
NUSANED is the first initiative launched by SABIC's Local Content and Business Development Unit (LCBDU) formed in early 2017.
October 29 2017: Saudi Basic Industries Corp. announces the interim financial results for the period ending on 30-09-2017 (Nine Months)
October 09 2017: Saudi Basic Industries Corporation (SABIC) announces the results of its second Extraordinary General Assembly of 2017 (First Meeting)
Saudi Basic Industries Corporation (SABIC) announces the results of its Extraordinary General Assembly held at SABIC HQ, Riyadh, on Sunday, October 8, at 8:30 pm, after the quorum was completed. The attendance recorded was 80.59 % of the capital. The results of the vote on the agenda of the Assembly was as follows:
Physical Address: PO Box 5101
State/Province/Country: Saudi Arabia
Exchange: Saudi Stock Exchange (Tadawul)
SA:2010; SAU:2010; AB:2010; 2010.SE