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PriceSR13.6Pricing / Valuation as on May 27, 2009Mkt capSR0.6bn ($156.3mn)Sh. outstanding43.2mnKey statistics52 week range H/L (SR) 24.3/8.2Avg daily turnover (mn) SR US$3m 41.46 11.0712m 22.93 6.12Raw Beta 6m 3yr1.12 1.16Reuters2120.SEBloombergSAIC ABPrice perform (%) 1M 3M 12MAbsolute (%) 3 23 (42)Market (%) 6 32 (39)Sector (%) 11 28 (45)Website: www.saic com.saValuation multiples2006 2007 2008P/E (x) N/M 91.4 21.8P/B (x) 6.2 1.7 0.6P/Sales (x) N/M 64.2 17.3Div yield (%) N/A N/A 5.0MULTI-INVESTMENTSaudi Advanced IndsAlsoknown asSAIOSaudi Advanced Industries Co. (SAIC) is involved in participation, development andpromotion of industrial projects under The Economic Offset Program organized by theMinistry of Defense and Aviation. SAIC encourages U.S, U.K and French firms tocollaborate with Saudi companies to establish high-tech plants in diversified industries.Company financials2005 2006 2007 2008YoY(%)CAGR (%)(05-08)Net Revenues SRmn 5 2 22 25 14.9 71.3EBITDA SRmn 5 2 20 22 10.9 58.6Net Income SRmn 3 0 16 20 27.6 79.7Assets SRmn 103 168 822 894 8.7 105.7Equity SRmn 100 124 820 704 (14.2) 91.9Total Debt SRmn - - - -Cash & Equiv SRmn 2 1 401 1 (99.7) (11.6)EBITDA Mgn % 106.9 100.4 87.9 84.8 (3.5) (7.4)Net Mgn % 67.6 17.7 70.2 78.0 11.0 4.9ROE % 3.5 0.4 1.9 2.6 - (9.3)ROA % 3.4 0.3 1.9 2.3 - (12.0)Div Payout % N/A N/A N/A 1.1 - -EPS SR 0.1 0.0 0.4 0.5 27.6 79.7BVPS SR 2.3 2.9 19.0 16.3 (14.2) 91.9Source: Company, NCBC ResearchSegment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncWeightage (%)TASI (free float weight) 0.13MSCI Saudi (domestic –small cap) 1.05Free float (%)Free float 100.00Relative share price perf.11,000309,000207,0005,000103,000-M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASISaudi Advanced (RHS)Top 5 shareholders (%)Khalid Saleh Abdul Rahman Al Shethry 9.6Source: Company, NCBC Research• Business brief: SAIC has investments in Al Salam Aircraft Co. (10% stake), GulfSalt Co. (4.6% stake), Industrialization & Energy Services Co. (3.4%), ArabianIndustrial Fibers Co. (1.5% stake), and Yanbu National Petrochemicals Co. Moreover,the company enters into contracts with other firms to develop new technologyorientedcompanies.• Financials: SAIC’s total revenue increased 14.9% on y-o-y basis to SR25.5mn in2008 primarily due to increase in income from investment in Islamic Murabaha. Netincome in 2008 increased 27.6% y-o-y to SR19.9mn due to significant decrease infinance charges. This helped a 7.8 percentage points improvement in net marginsform 70.2% in 2007 to 78.0% in 2008• Recent developments: In April 2009, SAIC reported a 40.7% increase in 1Q 09net profit to SR6.2 mn. In October 2008, SAIC acquired a 20% stake in NPS Bahrainfor Oil & Gas Wells Services WLL, an oil and gas exploration and productioncompany, for SR 375mn.Source: NCBC ResearchJUNE 2009SAUDI ADVANCED INDUSTRIES210