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RETAILSaudi AutomotiveAlso known asSASCOPricePricing / Valuation as on May 27, 2009Mkt capSh. outstandingKey statisticsSR14.9SR0.7bn ($179.0mn)45.0mn52 week range H/L (SR) 21.3/9.7Avg daily turnover (mn) SR US$3m 36.07 9.6312m 27.03 7.22Raw Beta 6m 3yr1.06 1.21ReutersBloomberg4050.SESACO ABPrice perform (%) 1M 3M 12MAbsolute (%) 6 25 (22)Market (%) 6 32 (39)Sector (%) 9 20 (16)Website: www sasco.com.saValuation multiples2006 2007 2008P/E (x) NM 36.0 14.6P/B (x) 3.1 2.9 1.3P/Sales (x) 7.0 6.3 2.4Div yield (%) 0.0 0.0 0.0Weightage (%)TASI (free float weight) 0.15MSCI Saudi (domestic – mid cap) 0.73Free 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 (%)Ibrahim Mohammed Ibrahim Al-HadithiSource: NCBC ResearchSASCO (RHS)2520155-06.0Saudi Automotive Services Company (SASCO), headquartered in Riyadh andestablished in 1982 provides a variety of services and utilities for cars, motoristsand travelers. SASCO owns specialized maintenance workshops in Saudi Arabia. Italso owns and manages supermarkets, rest areas and restaurants for travelers.Company financials2005 2006 2007 2008YoY(%)CAGR(%)(05-08)Net Revenues SRmn 153 166 192 214 11.8 11.9EBITDA SRmn 31 20 33 33 (1.9) 1.9Net Income SRmn 78 (10) 33 36 6.3 (23.0)Assets SRmn 538 433 481 469 (2.5) (4.5)Equity SRmn 477 374 422 413 (2.2) (4.7)Total Debt SRmn - - - - - -Cash & Equiv SRmn 111 76 36 73 105.7 (12.9)EBITDA Mgn % 20.2 12.2 17.4 15.3 - -Net Mgn % 50.8 (5.9) 17.4 16.6 - -ROE % 19.1 (2.3) 8.4 8.5 - -ROA % 16.6 (2.0) 7.3 7.5 - -Div Payout % - - - - - -EPS SR 26.7 (0.2) 0.7 0.8 6.6 NMBVPS SR 79.4 8.3 9.4 9.2 (2.2) NMSource: Company, NCBC ResearchSegment-wise business analysisProduct segment 2007 Geographic 2007%Rev % Net Inc Breakup %Rev % Net IncStations & Rest Area 87Automobile Club 13Source: Company, NCBC Research• Business brief: SASCO offers services such as car maintenance and repair, spareparts, car rescue, first aid, issuance of car test certificates, and international drivinglicenses. The company also runs a network of supermarkets, petrol pumps, housingfacilities, rest areas, restaurants, and other facilities across Saudi Arabia to servicemotorists and travelers. In addition, SASCO is involved in creating clubs such as theSaudi Automobile Touring Association (SATA), which is concerned with motor sports.• Financials: SASCO recorded 11.8% y-o-y growth in revenues to SR214.3mn in 2008from SR191.7mn in 2007. However, the EBITDA margins of the company fell 210basis points in 2008 due to higher cost of sales as well as operating (S,G&A)expenses. Nevertheless, the company posted 6.3% y-o-y net income growth fromSR33.4mn in 2007 to SR35.5mn in 2008 due to an increase in investment incomeduring the year.• Recent developments: In April 2009, the company announced its 1Q-09 resultswherein it reported a y-o-y increase of 3.8% in net profit to SR 5.5mn, In March 2009,SASCO in partnership with NCB has announced 0% down-payment & low 4.99%interest scheme to Saudi customers on purchase of Chevrolet and GMC.JUNE 2009SAUDI AUTOMOTIVE SERVICES COMPANY151