to download the complete report - GulfBase.com

INDUSTRIAL INVESTMENTSaudi Pharma.Also known asSPIMACOPricePricing / Valuation as on May 27, 2009Mkt capSh. outstandingKey statisticsSR35.0SR2.1bn ($560.7mn)60.0mn52 week range H/L (SR) 62.0/19.4Avg daily turnover (mn) SR US$3m 11.07 2.9512m 24.82 6.63Raw Beta 6m 3yr1.14 1.28ReutersBloomberg2070.SESPIMACO ABPrice perform (%) 1M 3M 12MAbsolute (%) 6 41 (38)Market (%) 6 32 (39)Sector (%) 11 29 (33)Website: www.spimaco.com.saValuation multiples2006 2007 2008P/E (x) 29.4 30.0 11.2P/B (x) 1.5 1.3 1.1P/Sales (x) 4.2 4.6 1.7Div yield (%) 1.9 2.5 6.1Weightage (%)TASI (free float weight) 0.31MSCI Saudi (domestic)NAFree float (%)Free float 65.03Relative share price perf.11,0009,0007,0005,0003,000M ay-08 Aug-08 Nov-08 Feb-09TASITop 5 shareholders (%)-M ay-09SP M ACO (RHS)Arab Company for Drug Industries and 20.0Medical AppliancesPublic Pension Authority (PPA) 13.0Source: NCBC Research80604020Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO)manufactures medicines and medical appliances for local and international markets.The company’s annual production capacity includes 3mn liters of liquid medicines,550mn tablets, 12mn tubes of cream and ointment, aseptic drops, and penicillin.Company financials2005 2006 2007 2008YoY(%)CAGR(%)(05-08)Net Revenues SRmn 649 728 798 872 9.3 10.3EBITDA SRmn 124 129 129 142 10.3 4.8Net Income SRmn 96 105 122 132 8.5 11.2Assets SRmn 2,466 2,402 3,357 1,937 (42.3) (7.7)Equity SRmn 2,048 1,995 2,884 1,406 (51.2) (11.8)Total Debt SRmn - - - 40 - -Cash & Equiv SRmn 120 131 170 63 (63.2) NMEBITDA Mgn % 19.0 17.7 16.2 16.3 - -Net Mgn % 14.8 14.4 15.3 15.2 - -ROE % 5.3 5.2 5.0 6.2 - -ROA % 4.4 4.3 4.2 5.0 - -Div Payout % 62.4 57.1 73.9 68.4 - -EPS SR 8.0 1.8 2.0 2.2 8.0 (35.1)BVPS SR 170.6 33.2 48.0 23.3 (51.4) (48.5)Source: Company, NCBC ResearchSegment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncPharmaceutical and Medical Mnfg. 97.1Investments 2.9Source: Company, NCBC Research• Product profile: SPIMACO commenced production in 1990 with six products. Thecompany’s products include Zimax, Formit, Proton, Famocid 10, Cortimax, SapoffenPlus and Glaze. Through its state-of-the-art facility, the Al-Qassim Plant, thecompany’s portfolio increased to 768 registered products marketed in over 14countries in 2006. SPIMCO offers oral solids, oral liquids, dry powders, injectables,ointments, creams and suppositories.• Financials: SPIMACO’s revenues have grown consistently in the last few years dueto expansion of the sales force and its innovative product line. On a yearly basis,revenues grew 9.3% and net income rose 8.5% in 2008. Company’s net margin slidmarginally to 15.2% in 2008 mainly due to rise in interest expenses.• Recent developments: SPIMACO’s net profit for 1Q-09 increased 4.4% y-o-y toSR42.70mn. In February 2009, Dr. Hussein Al Kahtani, VP Marketing and Sales,was appointed as the CEO of the company. In November 2008, the company won acontract from Ministry of Health for SR102.1mn for the supply of medicines to theGulf Cooperation Council. The company announced to liquidate its fully owned unitSaudi Dawa'akoum Co. during the same month. In June 2008, Spimaco acquired5.83 million new shares of National Industrialization Co. or Tasnee for SR104.94mn;thereby increasing its total stake to 5.25%.JUNE 2009SAUDI PHARMACEUTICALS & MEDICAL APPLIANCES216