NEWS BITES - MIDDLE EAST & NORTH AFRICA
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Saudi Basic Industries Corp. (TASI: 2010 SAR89.0) ranks 12 in the Top 20 by dividend yielding stocks in the All Share Index (TASI) Index of 175 stocks.
Saudi Basic Industries Corp. is Saudi Arabia's largest Petrochemical industries company by market cap.
Past 12 months DPS: SAR4.25;
Last price: SAR89.0;
Dividend yield: 4.8%;
SAUDI BASIC INDUSTRIES (2010) Stock Dashboard [traded in Saudi Riyal, SAR] End-of-Day
| Exchange | SAUDI ARABIAN [Saudi ] | 52-Week Price Range | 77.47 - 108.78 |
| Currency | 1.000 USD = 3.75 Saudi Riyal (SAR) | Sector | Petrochemical Industries |
| Jun 08, 2023 | SAR89.0 | Market Cap | SAR267 billion [US$71 billion] |
| DPS (past 12 months) | SAR4 | Shares Outstanding | 3,000,000,000 |
| EPS Growth (Q1 2023 vs Q1 2022) | -89.8% | 2010 in Indices | All Share [of 175 stocks] |
| Ave Daily Volume | 481,171 shares | PVSAR1000 (1 yr) PVUS$1000 (1 yr) | SAR864 US$864* |
*If You Invested $1,000 in Saudi Basic Industries a year ago, This is How Much You Would Have Today: $864. USD1000 would have bought SAR3,750 for 34.8 shares (@the then price of 107.83) worth SAR864 @89 today. Dividends reinvested are worth $38.
INDEX
SECTION 1 RECENT NEWS AND RESEARCH
SECTION 2 TODAY'S BULLISH SIGNALS
SECTION 3 ONGOING BULLISH PARAMETERS
SECTION 4 TODAY'S BEARISH SIGNALS
SECTION 5 ONGOING BEARISH PARAMETERS
SECTION 6 CORPORATE PROFILE AND INDEPENDENT RATINGS
APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER
APPENDIX II STOCK IDENTIFIERS
GLOSSARY
SECTION 1 RECENT NEWS AND RESEARCH
Financial News
Quarterly Report (Q1/2023):
Release Date: May 18, 2023
Quarterly Report Analysis Q1 2023: Saudi Basic Industries reports Net Profit of SAR657m ($175m)
Saudi Basic Industries (TASI:2010) announced net profit for the quarter-ended 31 March 2023 [Q1/2023] of SAR657m ($175m).
Quarterly Report
| March 31 | 2023 | 2022 | 2023 | 2022 | Change |
| Description | SAR m | SAR m | $ m | $ m | (%) |
| EBIT | 1,664.5 | 9,706.4 | 443.9 | 2,588.4 | Down 82.9 |
| Pre Tax Profit/(Loss) | 1,664.5 | 9,706.4 | 443.9 | 2,588.4 | Down 82.9 |
| Profit/(Loss) after Tax | 656.9 | 6,474.9 | 175.2 | 1,726.7 | Slumped 89.9 |
BEARISH BREAKOUT
A bearish breakout is evident in the stock as price weakens on volume which is 1.9 times its average volume, after breaking past a defined support level of SAR88.1.
SECTION 2 TODAY'S BULLISH SIGNALS
Saudi Basic Industries stock is the twelfth highest dividend yielding stock in the All Share Index (TASI).
2.1 PAST WEEK: STRONG MOMENTUM UP - 2010 strengthens 0.8% propelled by week's volume 1.9 times average
Week 23 of 2023: Up 0.8%; the price ranged between a high of SAR90.10 on Sunday Jun 04 and a low of SAR89.0 on Thursday Jun 08.
| Jun | Saudi Basic Industries | Close [SAR] | Change % | RPC % * | Comment |
| Sun 04 | Climbs 2.0% on robust volume | 90.1 | 2.0 | 0.2 | Week-high of 90.1; Top Rise; VI*=1.4 |
| Mon 05 | Offers dividend yield of 4.7% | 89.7 | -0.4 | -1.1 | VI*=2.1 |
| Tue 06 | Trailing 89% of stocks | 89.7 | 0 | -0.2 | VI*=1.7 |
| Wed 07 | Offers dividend yield of 4.8% | 89.2 | -0.6 | -1.1 | Steepest Fall; VI*=2.2 |
| Thu 08 | Decreases on high volume | 89 | -0.2 | -0.4 | VI*=1.9 |
* RPC - Relative Price Change is % price change of stock less % change of the All Share Index (TASI).
[Volume Index (VI); 1 is average]
2.2 Rank in the top 25% by Relative Valuation in the Saudi Arabian market
| Description | Value | Rank |
| Dividend Yield % | 4.8% | In Top 14% |
| Price to Sales | 1.7 | In Top 25% |
2.3 Other Bullish Signals
MCap/Total Assets:
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.9. Compared with the rest of the market the stock is undervalued.
- The company is cash rich with Cash to Market Capitalisation at 15.6%.
- Net profit margin has averaged 25.2% in the last 3 years. This is considered superior and suggests a high margin of safety.
SECTION 3 ONGOING BULLISH PARAMETERS
3.1 Rank in the top 4% by Size in the Saudi Arabian market
| Description | Value | Rank |
| Tr 12 months Revenue | SAR158.3 billion ($42.2 billion) | In Top 2% |
| MCap | $71 billion | In Top 3% |
| Ave daily Turnover | SAR82.3 million ($21.9 million) | In Top 4% |
3.2 Present Value of SAR1000 Invested in the Past [3 Mo, 3 Yrs]; The Best Periods with PVSAR1000 > 1,023
| PVSAR1,000 | 3 mo ago | 3 yrs ago |
| 2010.TASI | SAR1,024 | SAR1,241 |
| Petrochemical Industries sector | SAR1,027 | SAR1,226 |
| All Share Index (TASI) | SAR1,116 | SAR1,561 |
3.3 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Period with TSR > 7.3%
| TSR % | 3 yrs |
| 2010.TASI | 7.4 |
3.4 Satisfies one criterion of Benjamin Graham
-"Current ratio of two or more"; current assets are 3.1 times current liabilities.
SECTION 4 TODAY'S BEARISH SIGNALS
Price to Book of 8.5 > Petrochemical Industries sector (of 12 stocks) average of 3.5:
- The Price to Book of 8.5 indicates overvaluation compared with sector average of 3.5 and 2.4 for the Saudi Market.
4.1 Rank in the bottom 7% by Relative Valuation in the Saudi Arabian market
| Description | Value | Rank |
| Price to Book Value | 8.5 | In Bottom 7% |
4.2 Rank in the bottom 19% by Price Performance in the Saudi Arabian market
| Description | Value | Rank |
| 1-month Price Change % | -2.4 | In Bottom 19% |
| Price/MAP50 | 0.98 | In Bottom 14% |
4.3 Downtrend
Negative MACD:
- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 89.68 minus the 26-day EMA of 90.18 is negative, suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.
Trailing Relative Strength (6 months) at 28 percentile:
- The stock has a 6-month relative strength of 28 in the Saudi Arabian market of 216 stocks indicating it is trailing 72% of the market.
4.4 Other Bearish Signals
- Total Liabilities/EBITDA of 5.2 is more than 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.
- Return on Capital Employed of 7% versus sector average of 8.2% and market average of 15.8%.
SECTION 5 ONGOING BEARISH PARAMETERS
5.1 Past two-years
- The shares fell SAR7.85 (6.8%) a year ago which accelerated to SAR18.83 (17.5%) in the past year.
5.2 Present Value of SAR1000 Invested in the Past Year; The Worst Period with PVSAR1000 < 865
| PVSAR1,000 | 1 yr ago |
| 2010.TASI | SAR864 |
| Petrochemical Industries sector | SAR798 |
| All Share Index (TASI) | SAR905 |
5.3 Past year: price fall of 17.5%
1-Year price change of -17.5% for Saudi Basic Industries underperformed the change of -10% in the All Share index (TASI) for a relative price change of -7.5%.
| Price Change % | Year |
| Saudi Basic Industries | -17.5 |
| Petrochemical Industries sector | -20.7 |
| All Share index (TASI) | -10 |
5.4 Moving Annual Return of -13.5% in the past year:
Moving Annual Return was -13.5% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 3.2%. The Moving Annual Return has been negative in 4 out of 5 years.
| 2010 | Close (SAR) | Dividends (SAR) | Capital Gain / (Loss) % | % Yield | Annual Return % |
| Jun 08 | 89 | 4.25 | (17.5) | 3.9 | (13.5) |
| 1 Yr ago | 107.83 | 4 | (7.2) | 3.4 | (3.8) |
| 2 Yrs ago | 116.23 | 3 | 45.2 | 3.7 | 48.9 |
| 3 Yrs ago | 80.08 | 4.4 | (15.8) | 4.6 | (11.2) |
| 4 Yrs ago | 95.15 | 4.4 | (8.7) | 4.2 | (4.5) |
Close 5 years ago SAR104.20
5.5 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < 4.3%
| TSR % | 1 yr | 5 yrs | 10 yrs |
| 2010.TASI | -13.6 | 1.1 | 4.2 |
5.6 Declining Volume, down 86% in 5 years
In the past five years, Average Daily Volume of Trading (ADVT) has decreased 85.9% to 481,171 shares.
Avg. Daily Volume Traded 12 months ended Jun 08, thousand shares
| Year | ADVT |
| 2023 | 481.2 |
| 2022 | 2218.1 |
| 2021 | 9962.5 |
| 2020 | 2648.9 |
| 2019 | 3406.2 |
5.7 Declining VWAP, down 11% in 5 years
In the past five years Volume Weighted Average Price (VWAP) has decreased by 11.1% to SAR90.74. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.
Past five years, 12 months ended Jun 08 (SAR)
| Year | High Price | VWAP | Low Price |
| 2023 | 108.78 | 90.74 | 77.47 |
| 2022 | 132.92 | 116.33 | 100.4 |
| 2021 | 118.83 | 81.48 | 77.47 |
| 2020 | 102.81 | 79.89 | 53.96 |
| 2019 | 109.06 | 102.05 | 88.85 |
5.8 Declining share turnover, down 52% in 5 years
In the past five years, average daily share turnover has decreased 52.0% to SAR160.3 million ($42.8 million). This suggests decreased liquidity.
Past five years, 12 months ended Jun 08 (SAR million)
| Year | Average Daily Turnover |
| 2023 | 160.3 |
| 2022 | 252.9 |
| 2021 | 808.5 |
| 2020 | 206.5 |
| 2019 | 333.7 |
5.9 Satisfies 4 out of 9 criteria of Joseph Piotroski [pass mark 5]:
- Positive net income.
- Positive operating cashflow.
- Good quality of earnings [operating cashflow exceeds net income].
- Improvement in current ratio from 3 to 3.1.
But does not meet the following 5 criteria of Joseph Piotroski:
- Return on Assets improvement.
- Improvement in long-term debt to total assets.
- Total shares on issue unchanged (or reduction in total shares on issue).
- Improvement in gross margin.
- Improvement in asset turnover.
SECTION 6 CORPORATE PROFILE AND INDEPENDENT RATINGS
6.1 Activities
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. It is Saudi Arabia's largest Petrochemical industries company by market capitalisation.
6.2 Independent Ratings and Relative Value Indicators
+ Industryweek 1000:
Saudi Basic Industries Corp. is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 94.
+ 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.
6.3 Contact Details
| Website | http:// www.sabic.com |
| Physical Address | PO Box 5101 , Riyadh 11422 |
| Phone | 2258000-2259701 |
| Fax | 2259000 |
| shares@sabic.com |
APPENDIX I DATA & ARCHIVE DOWNLOAD CENTER
2010: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:
+ PRICE VOLUME - 5-YEAR HISTORY
+ FINANCIALS - 10-YEAR HISTORY [INCLUDING Q1/2023]:
+ PEER COMPARISON - STOCK IN PETROCHEMICAL INDUSTRIES SECTOR AND STOCK IN INDICES
+ PATENTS - CATEGORISED LIST OF 5-YEAR HISTORY OF 44 :
2010: LINKS IN HTML TO FURTHER INFORMATION:
+ NEWS ARCHIVES - 2010 PAST 4 YEARS IN HTML:
+ EUR vs SAR EXCHANGE RATE CHARTS IN HTML
APPENDIX II STOCK IDENTIFIERS
ISIN: SA0007879121
PermID: 4295887293
RIC: 2010.SE
GLOSSARY
ADVT: Average Daily Volume of shares Traded
Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Cash/MCap: Cash plus Liquids/Market Capitalisation (times)
Current Ratio: Current Assets/Current Liabilities (times)
Dividend Yield: Dividend Per Share/Share Price (%)
EBIT Margin : Earnings Before Interest and Tax/Revenue (%)
Income during the n years (3/2/1): Dividends received during the Period
Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods
PV1000: Present value of 1000 invested 1 year/'n' years ago
Price Close/Moving Avg Price: Latest Price/Moving Average Price
Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)
Price/Sales: Share Price/Sales Per Share (times)
Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index
Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.
Return on Assets: Net Profit/Total Assets (%)
Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)
TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend
Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.
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