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2310.SE (Reuters)
SIPCHEM AB Equity (Bloomberg)
Saudi International Petrochemical Company
CMP: SR15.6
» The production is expected to increase at 2007-11 CAGR of 20.4%, which will lead the profitability to increase at
a CAGR of 22.1% during 2007-11.
» SIPCHEM is under bidding process to acquire Lucite International Company of UK, which is involved in the
production of acrylic products by using Acetate Acid as a feedstock.
SRmn 2005 2006 2007 2008E 2009E 2010E 2011E
Sales Revenue 726 1,334 1,528 1,833 2,614 3,494 3,422
Gross Profit 476 822 953 1,089 1,491 2,213 2,106
Operating Profit 451 773 896 1,029 1,387 2,073 1,969
Net Profit 325 494 594 613 927 1,382 1,318
Total Assets 4,428 5,262 7,750 9,725 10,055 10,608 11,112
Total Liabilities 2,073 2,302 3,858 3,673 3,529 3,152 2,790
Total Shareholders’ Equity & Minority Interest 2,355 2,960 3,892 6,052 6,527 7,456 8,322
Ratios
Current Ratio (x) 6.2 3.0 0.9 1.8 1.8 1.6 1.9
EBITDA 575 975 1,087 1,425 1,909 2,640 2,589
EV 690 8,048 14,223 5,105 4,776 5,240 5,118
EV/EBITDA (x) 1.2 8.3 13.1 3.6 2.5 2.0 2.0
EBITDA Margin% 79.2% 73.1% 71.1% 77.7% 73.0% 75.6% 75.6%
Net Profit Margin% 44.8% 37.0% 38.9% 33.4% 35.5% 39.6% 38.5%
Return On Average Assets % 9.2% 10.2% 9.1% 7.0% 9.4% 13.4% 12.1%
Return On Average Equity % 19.0% 18.6% 17.3% 12.3% 14.7% 19.8% 16.7%
EPS 1.0 1.5 1.8 1.8 2.8 4.1 4.0
Book Value Per Share 12.6 14.4 15.7 15.5 16.9 19.7 22.3
Dividend Payout % 0.0% 0.0% 0.0% 73.5% 48.5% 32.6% 34.1%
Market Price - 23.6 44.1 15.6 15.6 15.6 15.6
P/E Ratio (x) - 15.9 24.7 8.5 5.6 3.8 3.9
P/BV (x) - 1.6 2.8 1.0 0.9 0.8 0.7
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
93 Saudi Arabia Economic Overview - January 2009