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RETAILNational AgricultureAlsoknown asTHIMARPriceSR35.6Pricing / Valuation as on May 27, 2009Mkt capSR0.4bn ($95.1mn)Sh. outstanding10.0mnKey statistics52 week range H/L (SR) 39.4/10.3Avg daily turnover (mn) SR US$3m 62.82 16.7812m 32.85 8.77Raw Beta 6m 3yr0.95 1.43Reuters4160.SEBloombergTHIMAR ABPrice perform (%) 1M 3M 12MAbsolute (%) 34 105 10Market (%) 6 32 (39)Sector (%) 9 20 (16)Website: www.thimar com.saValuation multiples2006 2007 2008P/E (x) NM 205.8 NMP/B (x) 4.9 5.9 1.8P/Sales (x) 4.2 4.4 1.0Div yield (%) 0.0 0.0 0.0National Agriculture Marketing Co (THIMAR), headquartered in Riyadh, is engagedin the production, procurement, processing and marketing of agricultural products,accessories, meat, and other supplies through its various dealers. The companywas established in 1987 and holds a 100% stake in Wasmi Meat.Company financials2005 2006 2007 2008YoY(%)CAGR(%)(05-08)Net Revenues SRmn 84 104 122 146 20.0 20.1EBITDA SRmn (1) (7) 1 2 96.0 NMNet Income SRmn 2 (16) 3 (8) NM NMAssets SRmn 119 108 121 118 (2.5) (0.1)Equity SRmn 105 89 91 84 (8.5) (7.3)Total Debt SRmn - 5 2 NA NA NMCash & Equiv SRmn 2 18 3 2 (37.0) 5.4EBITDA Mgn % (1.3) (6.3) 0.7 1.2 - -Net Mgn % 2.9 (15.5) 2.1 (5.3) - -ROE % 2.4 (16.7) 2.8 (8.8) - -ROA % 2.2 (14.3) 2.2 (6.5) - -Div Payout % - - - - - -EPS SR 4.2 (1.6) 0.3 (0.8) NM NMBVPS SR 52.5 8.9 9.1 8.3 (8.4) NMSource: Company, NCBC ResearchSegment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncWeightage (%)TASI (free float weight) 0.08MSCI Saudi (domestic – mid cap) 0.00Free float (%)Free float 100.00Relative share price perf.11,000409,000307,000205,000103,000-M ay-08Aug-08Nov-08Feb-09M ay-09TASIThim'ar (RHS)Top 5 shareholders (%)Source: Company, NCBC Research• Business brief: THIMAR is primarily involved in the sale of agricultural and meatproducts to its clients, which include hotels, restaurants, and the military sector. Inaddition, the company provides services for the operation, management, andmarketing of agricultural projects. THIMAR is also involved in the wholesale and retailtrading of agricultural and meat products. In addition, the company grants creditfacilities to its customers for payment within a month.• Financials: THIMAR has reported consistent revenue growth over the previous yearswith a CAGR of 20.1% during 2005-08. Keeping in line with the trend, in 2008,revenues grew 20.0% y-o-y. Driven by revenue growth and decline in operating(SG&A) expenses, the company reported significant EBITDA growth of 96% y-o-yduring the year. This resulted in a 50 basis points increase in the EBITDA marginsduring 2008. However, the company posted a net loss of SR7.7mn during 2008compared to a profit of SR2.6mn in 2007, mainly due to investment losses as well asdecline in other income.• Recent developments: The company reported a net loss of SR1.51mn in 1Q-09,compared to a loss of SR 951,131 for the same period last year. In June 2008, AbdelSource: NCBC ResearchRahman Saleh Al Hadheef was appointed as chairman of the company’s Board ofDirectors.JUNE 2009NATIONAL AGRICULTURE MARKETING COMPANY154