Talha Nazr

ICT spending to grow at a 2022-2027f CAGR of 11.9%. Net income to grow at a 2022-2025f CAGR of 23.8%. Remain Neutral with a PT of SAR299.4.

Date: Monday 28 August 2023. Time: 03:30 pm (Saudi), 01:30 pm (London), 08:30 am (New York), 04:30 pm (Dubai). Host: Talha Nazr.

Local cement sales increased by 9.4% mom (+5.0% yoy) to 3.86mn tons, compared to 3.67mn tons in July 2022. Clinker production increased by 4.1% mom (+6.0% yoy) to 5.07mn tons. Clinker inventory increased by 1.3% mom to 39.06mn tons (+8.6% yoy) in Jul...

According to the MoJ, real estate transactions declined by 20% during July 2022- June 2023 to SAR164.5bn. The company recorded revenues of SAR764mn in Q1 23, a decline of 52.8% yoy. We remain neutral on Dar Alarkan with a revised PT of SAR15.6.

High finance cost to impact profitability. Consumption to recover in summer. Capex drive to support RAB earnings.

After more than 2 years of COVID-19 related restrictions, the Saudi tourism industry is accelerating in 2023. Tourism is one the key tools of Vision 2030 to diversify the economy. Based on the stocks under coverage, we expect the sector to report a c...

We host an earnings call with SGS Company on Wednesday 24 May 2023. Dial in at 03:30 pm (Saudi), 01:30pm (GMT), 08:30 am (New York), 04:30 pm (Dubai). Hosted by Talha Nazr.

We upgrade Mobily to Overweight with a revised PT of SAR50.0. In line with Saudi digitization strategy, the telecom sector has shifted towards B2B and enterprise solution. Mobily’s enterprise segment revenue posted a 2017-2022 CAGR of 21.3% to SAR2.9...

Private sector attracts the largest number of patients. NHIC to improve insurance coverage. 2023f earnings growth to continue.

Saudi cement sector’s total sales volume decreased by 0.5% mom (-1.3% yoy) to 4.90mn tons in February 2023. Local cement sales decreased by 1.6% mom (+1.4% yoy) to 4.22mn tons. Out of the 17 companies, 7 showed a mom increase.

Revenues increased 21.6% yoy (+38.7% qoq) to SAR343mn in Q4 22. Strong growth in pharmacy segment (+146.3% yoy) led to robust top line growth this quarter. The variance in earnings is primarily due to higher-than-expected revenues.

Revenues increased by 212% yoy (+14.4% qoq) to SAR104mn in Q4 22. Gross margins expanded significantly to 62.1% in Q4 22. Operating expenses in absolute terms decreased 52.4% yoy to SAR23.4mn.

Solutions’ total revenue increased by 22% yoy to SAR8,805mn in 2022. In 2022 gross profit stood at SAR2,011mn (+18%yoy). On 3 October  2022, Solutions has completed the acquisition of Giza systems.

Arabian Cement reported a weaker than expected set of Q4 22 results. Arabian Cement reported a weaker than expected set of Q4 22 results. Gross margins contracted by 573bps yoy to 23.2% in Q4 22.

Saudi German reported a strong set of results with a net income of SAR33mn in Q4 22. Revenue increased 23.9% yoy (+20.6% qoq) to SAR618mn. Gross profit increased 27.4% yoy (+34.0% qoq).

Revenues grew by 14.5% yoy (+9.8% qoq) to SAR2.25bn and were higher than our estimate of SAR2.11bn. Gross profit increased by 14.5% yoy (+8.1% qoq) to SAR737mn. HMG announced a cash dividend of SAR0.93/share for Q4 22.

Revenues increased by 22.2% yoy to SAR8.81bn and the growth was driven by strong growth across all business segments. EBIT stood at SAR1.16bn, up 29.0% yoy. he company announced a cash dividend of SAR5.0/share for 2022.

Revenues stood at SAR147mn, up 34.0% yoy (-28.2% qoq). EBIT stood at SAR10mn, up 66.3% yoy (-52.5% qoq). In Q4 22, SSP recorded a positive FCF of SAR71mn.

Mobily reported a strong set of Q4 22 results with net income increasing by 88.9% yoy (+62.7% qoq) to SAR606mn. Gross profit came in at SAR2.5bn, up 9.9% yoy (+8.3% qoq), and was in-line with our estimates. EBITDA stood at SAR1.6bn in Q4 22, up 18.0%...

Revenues increased by 8.6% yoy (+3.4% qoq) to reach SAR17.03bn and came in-line with our estimates. Gross profit increased 6.0% yoy (-10.1% qoq) to SAR9.03bn and was broadly in-line with our estimates. EBITDA declined by 4.6% yoy to SAR5.50bn (-22.2%...

Total selling quantities (composed entirely of local cement sales) in Q4 22 stood at 1.20mn tons. Revenues grew 65.3% yoy (+30.1% qoq) to SAR167mn. Qassim Cement announced a DPS of SAR0.60 for Q4 22.

Saudi cement sector’s total sales volume decreased by 5.8% mom (-6.9% yoy). Exports stood at 638,000 tons, decreasing by 23.2% mom (+67.4% yoy). Companies in the Central region had the highest decline in market share (-90bps) standing at 32.2%.

The REITs sector properties reached 203 by the end of 2022. The sector’s FFO increased by 13.7% yoy to SAR1.09bn. The annualized dividend yield stood at 6.3% compared to 5.5% and 4.5% in 2021 and 2020.

Hajj pilgrims increased from 2.4mn in 2018 to reached 2.5mn in 2019, of which foreigners were 1.9mn (1.8mn in 2018). In 2022, the number of pilgrims improved to c0.9mn. In addition, insurance charges for Hajj pilgrims have also been reduced by 73% fr...

2022 was indeed a decade wrapped in a year. We believe the outlook is shifting towards positive territory for EMs as the strong US$ period is ending. The Saudi economy is expected to grow by 3.1% in 2023f as the strong growth in non-oil GDP continues...