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MULTI-INVESTMENTAl-Ahsa DevelopmentAlsoknown asADCPriceSR12.6Pricing / Valuation as on May 27, 2009Mkt capSR0.6bn ($164.9mn)Sh. outstanding49.0mnKey statistics52 week range H/L (SR) 23.6/7.8Avg daily turnover (mn) SR US$3m 46.14 12.3212m 30.27 8.08Raw Beta 6m 3yr0.50 1.19Reuters2140.SEBloombergAADC ABPrice perform (%) 1M 3M 12MAbsolute (%) 14 1 (42)Market (%) 6 32 (39)Sector (%) 11 28 (45)Website: www.ahsa-dev com.saValuation multiples2006 2007 2008P/E (x) 20.4 41.6 NMP/B (x) 3.2 2.8 1.1P/Sales (x) 81.3 81.1 NMDiv yield (%) N/A N/A N/AAl-Ahsa Development Company (AADC) was established in 1993 by Royal decree,to undertake investment activities in the industrial and service sectors of SaudiArabia, particularly in the region of Al-Ahsa. AADC has business interests in foods,textiles, and medical services sectors.Company financials2005 2006 2007 2008YoY(%)CAGR(%)(05-08)Net Revenues SRmn 31 18 18 0 (100.0) (100.0)EBITDA SRmn 2 (3) (1) (6) (100.0) 100.0)Net Income SRmn 96 71 35 (56) (100.0) (100.0)Assets SRmn 726 792 727 558 (23.2) (8.4)Equity SRmn 451 456 521 397 (22.7) (3.7)Total Debt SRmn 257 313 168 131 (28.1) (22.2)Cash & Equiv SRmn 2 6 3 6 (55.6) (2.4)EBITDA Mgn % 6.4 (15.2) (6.6) NM - -Net Mgn % 304.1 397.7 194.3 NM - -ROE % 21.2 15.6 6.6 (14.1) - -ROA % 13.2 9.4 4.5 (10.1) - -Div Payout % N/A N/A N/A N/A - -EPS SR 13.9 1.7 0.8 (1.2) NM NMBVPS SR 10.5 10.6 12.1 8.2 (32.3) (7.9)Source: Company, NCBC ResearchSegment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncWeightage (%)TASI (free float weight) 0.14MSCI Saudi (domestic –small cap) 1.44Free float (%)Free float 100.00Relative share price perf.11,0009,0007,0005,0003,000M ay-08 Aug-08 Nov-08 Feb-09TASITop 5 shareholders (%)252015105-Al Ahsa for Dev. (RHS)Source: Company, NCBC Research• Business brief: AADC’s affiliate - Al-Ahsa Medical Services Co. (30% Stake),manages a modern 220 bed hospital in the Al-Ahsa region, Al-Ahsa Food ServicesCo. (50% Stake) a JV with Eastern Agriculture Development Co. with a capacity of5,000 tons of data processing, is engaged in production of date molasses vinegar,dates pest and compressed dates. The company’s affiliate, Saudi Japanese TextileCo. (82% Stake, produces synthetic fiber used in the production of dress material.Currently, AADC is in the process of setting up an aluminum foil factory, a cementplant, and a National University in Al-Ahsa.• Financials: AADC’s did not record any revenue in 2008. The company recorded anegative EBITDA of SR5.9mn in 2008 as compared to negative SR1.7mn in 2007owing to decline in revenues coupled with increase in SG&A expenses. AADCincurred a net loss of SR56.2mn as compared to net income of SR34.5mn in 2007mainly due to decline in revenues and investment income.• Recent developments: In March 2009, the company announced that it signed aSource: NCBC Researchmemorandum of understanding with a Chinese company, to make it a partner in theADC’s aluminum and gypsum plants. In December 2008, the Board of AADCapproved a one-for-seven bonus share issue, which increased the company’s capitalby 14% to SR490 mn with 49mn outstanding shares.JUNE 2009AL-AHSA DEVELOPMENT CO211