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2010.SE (Reuters)
SABIC AB Equity (Bloomberg)
Saudi Basic Industries Corporation
CMP: SR52.5
» SABIC’s growth story is mainly associated with the expected increase in the production capacity at a CAGR of
6.2% during 2007-11.
» The Company is focusing on the acquisition and establishment of companies in European, American and Far
East regions. This will help the company to encounter with the expected slowdown in demand of petrochemical
product.
SRmn 2005 2006 2007 2008E 2009E 2010E 2011E
Sales Revenue 78,254 86,328 126,204 165,908 163,418 173,736 181,999
Gross Profit 33,084 34,912 47,950 58,051 53,041 57,231 61,994
Operating Profit 29,170 30,886 41,047 46,215 44,053 47,676 51,984
Net Profit 19,160 20,294 27,022 28,074 27,254 29,177 31,756
Total Assets 136,950 166,589 256,247 297,369 327,794 347,512 361,571
Total Liabilities 51,729 66,099 121,751 144,946 158,131 160,897 161,331
Total Shareholders’ Equity & Minority Interest 85,222 100,490 134,496 152,423 169,663 186,615 200,240
Ratios
Current Ratio (x) 2.6 2.9 3.1 2.5 2.1 1.9 1.8
EBITDA 35,073 35,936 48,653 58,668 59,154 64,925 70,896
EV 257,945 202,864 426,342 202,169 212,179 215,785 214,519
EV/EBITDA (x) 7.4 5.6 8.8 3.4 3.6 3.3 3.0
EBITDA Margin% 44.8% 41.6% 38.6% 35.4% 36.2% 37.4% 39.0%
Net Profit Margin% 24.5% 23.5% 21.4% 16.9% 16.7% 16.8% 17.4%
Return On Average Assets % 14.6% 13.4% 12.8% 10.1% 8.7% 8.6% 9.0%
Return On Average Equity % 33.8% 30.0% 32.9% 28.2% 23.5% 22.0% 21.6%
EPS 6.4 6.8 9.0 9.4 9.1 9.7 10.6
Book Value Per Share 31.2 29.2 36.5 36.0 41.4 46.8 51.0
Dividend Payout % 40.2% 48.0% 32.4% 40.0% 40.0% 45.0% 60.0%
Market Price 87.7 70.2 132.3 52.5 52.5 52.5 52.5
P/E Ratio (x) 13.7 10.4 14.7 5.6 5.8 5.4 5.0
P/BV (x) 2.8 2.4 3.6 1.5 1.3 1.1 1.0
Historical P / E & P / BV multiples pertain to respective year -end prices, while those for future years are based on closing prices on the TASI as of Dec 29, 2008
(Source: Company Reports & Global Research)
Global Investment House 92 Saudi Arabia Economic Overview - January 2009