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RETAILAldrees PetroleumAlso known asAPTSCO. AldreesPricePricing / Valuation as on May 27, 2009Mkt capSh. outstandingKey statisticsSR27.4SR0.7bn ($182.9mn)25.0mn52 week range H/L (SR) 45.0/17.6Avg daily turnover (mn) SR US$3m 22.72 6.0712m 14.17 3.78Raw Beta 6m 3yr0.93 1.01ReutersBloomberg4200.SEALDREES ABPrice perform (%) 1M 3M 12MAbsolute (%) 4 17 (34)Market (%) 6 32 (39)Sector (%) 9 20 (16)Website: www aldreestransport.comValuation multiples2006 2007 2008P/E (x) 37.7 26.1 11.8P/B (x) 6.4 4.4 2.0P/Sales (x) 2.0 1.5 0.5Div yield (%) - 2.3 6.0Weightage (%)TASI (free float weight) 0.15MSCI Saudi (domestic – mid cap) 0.40Free float (%)Free float 100.00Relative share price perf.11,0009,0007,0005,0003,000M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASITop 5 shareholders (%)Aldrees (RHS)Abdul Mohsen Mohammed Saad Al 8.5DreesHamad Mohammed Saad Al Drees 6.7Source: NCBC Research5040302010-Aldrees Petroleum & Transport Services Co. (Aldrees) has three main operations —petroleum, transport and Super 2 division (manages coffee, pastry and car-washingcenters). The company owns a 98% stake in Aldrees Sudan, which is engaged inmarine, land & air transportation.Company financials2005 2006 2007 2008YoY(%)CAGR(%)(05-08)Net Revenues SRmn 784 784 867 1,134 30.9 13.1EBITDA SRmn 51 51 74 93 25.5 22.5Net Income SRmn 39 41 50 53 4.7 10.3Assets SRmn 290 416 532 664 24.9 31.9Equity SRmn 204 245 296 317 7.1 15.8Total Debt SRmn - - 76 122 60.5 -Cash & Equiv SRmn 8 11 13 20 51.8 32.8EBITDA Mgn % 6.4 6.5 8.5 8.2 - -Net Mgn % 5.0 5.3 5.8 4.7 - -ROE % 19.5 18.4 18.6 17.2 - -ROA % 12.9 11.7 10.6 8.8 - -Div Payout % - - 59.52 71.0 - -EPS SR 9.8 2.1 2.5 2.1 (16.2) (40.1)BVPS SR 8.2 9.8 11.8 12.7 7.1 15.8Source: Company, NCBC ResearchSegment-wise business analysisProduct segment 2007 Geographic 2007%Rev % Net Inc Breakup %Rev % Net IncGas Stations 87.8 Saudi Arabia 100.0Transport 11.9Super 2 division 0.3Source: Company, NCBC Research• Business brief: Aldrees Petroleum division is engaged in the wholesale and retaildistribution of petrol products, with a network of 300 gas stations as of 2006, underthe brand - ‘Petrol’. It also services contracts for fuel supply to government andprivate companies. The Aldrees Transportation division operates and maintains afleet of trucks, trailers and tank trucks to transport goods within and outside SaudiArabia. The Super 2 division manages coffee and cake stores under the brand –‘Super Café’ and car wash & car detailing under the brand –‘Super Wash’ locatedwithin the company’s gas station network.• Financials: Aldrees recorded a robust 30.9% y-o-y growth in revenues during 2008.However, the EBITDA margin contracted 30 basis points y-o-y to 8.2% due to higheroperating expenses. Consequently, net income growth was contained to a meager4.7% y-o-y to SR52.8mn during the period.• Recent developments: The company’s net profit for 1Q-09 rose 11% y-o-y toSR13.8mn. In January 2009, Aldrees’s board elected Hamad Aldrees as its newchairman, Abdulmohsen Aldrees as the vice-chairman and re-elected AbdulilahAldrees as the Managing Director (M.D.) of the company. In June 2008, the companywon contract of SR232mn to supply petroleum materials for Northern CementCompany and the transport beans for Soya Company.JUNE 2009ALDREES PETROLEUM150