Saudi Basic Industries (2010: SAR89.0) offers dividend yield of 4.8%; -20 hallalah [-0.2%] Vol Index 1.9 [1 is avg] 08 June 2023

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

ExchangeSAUDI ARABIAN [Saudi ]52-Week Price Range77.47 - 108.78
Currency1.000 USD = 3.75 Saudi Riyal (SAR)SectorPetrochemical Industries
Jun 08, 2023SAR89.0Market CapSAR267 billion [US$71 billion]
DPS (past 12 months)SAR4Shares Outstanding3,000,000,000
EPS Growth (Q1 2023 vs Q1 2022)-89.8%2010 in IndicesAll Share [of 175 stocks]
Ave Daily Volume481,171 sharesPVSAR1000 (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 312023202220232022Change
DescriptionSAR mSAR m$ m$ m(%)
EBIT1,664.59,706.4443.92,588.4Down 82.9
Pre Tax Profit/(Loss)1,664.59,706.4443.92,588.4Down 82.9
Profit/(Loss) after Tax656.96,474.9175.21,726.7Slumped 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.

JunSaudi Basic IndustriesClose [SAR]Change %RPC % *Comment
Sun 04Climbs 2.0% on robust volume90.12.00.2Week-high of 90.1; Top Rise; VI*=1.4
Mon 05Offers dividend yield of 4.7%89.7-0.4-1.1VI*=2.1
Tue 06Trailing 89% of stocks89.70-0.2VI*=1.7
Wed 07Offers dividend yield of 4.8%89.2-0.6-1.1Steepest Fall; VI*=2.2
Thu 08Decreases on high volume89-0.2-0.4VI*=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

DescriptionValueRank
Dividend Yield %4.8%In Top 14%
Price to Sales1.7In 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

DescriptionValueRank
Tr 12 months RevenueSAR158.3 billion ($42.2 billion)In Top 2%
MCap$71 billionIn Top 3%
Ave daily TurnoverSAR82.3 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

PVSAR1,0003 mo ago3 yrs ago
2010.TASISAR1,024SAR1,241
Petrochemical Industries sectorSAR1,027SAR1,226
All Share Index (TASI)SAR1,116SAR1,561

3.3 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Period with TSR > 7.3%

TSR %3 yrs
2010.TASI7.4

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

DescriptionValueRank
Price to Book Value8.5In Bottom 7%

4.2 Rank in the bottom 19% by Price Performance in the Saudi Arabian market

DescriptionValueRank
1-month Price Change %-2.4In Bottom 19%
Price/MAP500.98In 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

PVSAR1,0001 yr ago
2010.TASISAR864
Petrochemical Industries sectorSAR798
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.

2010Close (SAR)Dividends (SAR)Capital Gain / (Loss) %% YieldAnnual Return %
Jun 08894.25(17.5)3.9(13.5)
1 Yr ago107.834(7.2)3.4(3.8)
2 Yrs ago116.23345.23.748.9
3 Yrs ago80.084.4(15.8)4.6(11.2)
4 Yrs ago95.154.4(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 yr5 yrs10 yrs
2010.TASI-13.61.14.2

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

YearADVT
2023481.2
20222218.1
20219962.5
20202648.9
20193406.2

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)

YearHigh PriceVWAPLow Price
2023108.7890.7477.47
2022132.92116.33100.4
2021118.8381.4877.47
2020102.8179.8953.96
2019109.06102.0588.85

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)

YearAverage Daily Turnover
2023160.3
2022252.9
2021808.5
2020206.5
2019333.7

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

Websitehttp:// www.sabic.com
Physical AddressPO Box 5101 , Riyadh 11422
Phone2258000-2259701
Fax2259000
Emailshares@sabic.com

+ ANNEXURE

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:

+ PRICE VOLUME CHARTS IN HTML

+ EUR vs SAR EXCHANGE RATE CHARTS IN HTML

+ BOARD OF DIRECTORS

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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