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RETAILFawaz Abdulaziz AlhokairPriceSR29.2Pricing / Valuation as May 27, 2009Mkt capSR2.0bn ($545.8mn)Sh. outstanding70.0mnKey statistics52 week range H/L (SR) 51.0/21.3Avg daily turnover (mn) SR US$3m 22.99 6.1412m 25.51 6.81Raw Beta 6m 2yr1.03 0.98Reuters4240.SEBloombergALHOKAIR ABPrice perform (%) 1M 3M 12MAbsolute (%) 16 16 (38)Market (%) 6 32 (39)Sector (%) 9 20 (16)Website: www alhokair.com.saValuation multiples2007 2008 2009P/E (x) 16.2 18.9 8.0P/B (x) 5.2 4.2 1.9P/Sales (x) 2.7 2.4 0.9Div yield (%) 0.0 5.1 7.5Fawaz Abdulaziz AlHokair Company (AlHokair), established in 1990, is engaged inretail trading and real estate activities. AlHokair has also diversified into food &entertainment, furniture, financial services, telecom, fitness & healthcare, andautomotive sectors.Company financials*2006 2007 2008 2009YoY(%)CAGR(%)(06-09)Net Revenues SRmn 1,294 1,481 1,584 1,888 19.2 13.4EBITDA SRmn 305 287 254 234 (8.0) (8.5)Net Income SRmn 246 247 201 202 0.5 (6.3)Assets SRmn 759 963 1,233 1,590 28.9 28.0Equity SRmn 527 774 905 863 (4.7) 17.9Total Debt SRmn 7 - 102 370 264.1 281.4Cash & Equiv SRmn 13 66 28 24 (12.2) 24.1EBITDA Mgn % 23.6 19.3 16.1 12.4 - -Net Mgn % 19.0 16.7 12.7 10.7 - -ROE % 52.4 38.0 24.0 30.9 - -ROA % 36.2 28.7 18.3 14.3 - -Div Payout % - - 95.6 60.5 - -EPS SR 6.2 6.2 2.9 2.9 0.5 (22.2)BVPS SR 7.5 11.1 12.9 12.3 (4.7) 17.9Source: Company, NCBC Research, *The company’s year ending is 31 st March.Segment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncApparel Stores 100.0 Saudi Arabia 100.0Weightage (%)TASI (free float weight) 0.18MSCI Saudi (domestic – mid cap) 1.29Free float (%)Free float 39.00Relative share price perf.11,0009,0007,0005,0003,000M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASITop 5 shareholders (%)AlHokair (RHS)605040302010-Saudi Fas Holding Co. 49.0Fawaz Abdul Aziz Fahd Al Hokair 7.0Salman Abdul Aziz Fahd Al Hokair 7.0Abdul Hameed Abdul Aziz Fahd Al 7.0HokairSource: NCBC ResearchSource: Company, NCBC Research• Business brief: AlHokair operates more than 700 fashion stores and is the retailfranchisee of over 40 global brands. The company’s product offerings include adultapparel, kids & teen fashion, footwear, eyewear, and accessories. AlHokair has twosubsidiaries – Al Waheeda Equipment Co. (95.0% stake) and Haifa Badai Al Kalamand Partners International Co. for Trading (95.0% stake).• Financials: AlHokair recorded 19.2% y-o-y growth in revenues to SR1,888.8mnduring FY 2009. However, the EBITDA margin declined to 12.4% in FY 2009 from16.1% in FY 2008 mainly due to 34.8% y-o-y increase in selling, general andadministrative (SG&A) expenses to SR629.9mn. AlHokair’s net income grew by ameager 0.5% y-o-y from SR201.4mn in FY 2008 to SR202.4mn in FY 2009;supported by income from associates of SR12.9mn.• Recent developments: In April 2009, the company reached a final agreement toacquire Wehbi Commercial Co. for SR175mn. In February 2009, AlHokair announcedthe appointment of Simon Marshal as the new CEO of the company with effect fromMarch 2009. In January 2009, the company announced that it has signed aMemorandum of Understanding with a Saudi retail company for buying some of thelatter's assets having an approximate value of SR80-120mn.JUNE 2009ALHOKAIR149