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INDUSTRIAL INVESTMENTNational Co for GlassAlsoknown asZOUJAJPriceSR33.9Pricing / Valuation as on May 27, 2009Mkt capSR0.8bn ($226.3mn)Sh. outstanding25.0mnKey statistics52 week range H/L (SR) 85.0/22.3Avg daily turnover (mn) SR US$3m 20.96 5.6012m 20.77 5.55Raw Beta 6m 3yr0.93 1.13Reuters2150.SEBloombergZOUJAJ ABPrice perform (%) 1M 3M 12MAbsolute (%) 2 20 (57)Market (%) 6 32 (39)Sector (%) 11 29 (33)Website: www.zoujaj-glass comValuation multiples2006 2007 2008P/E (x) 22.9 20.1 10.7P/B (x) 3.0 3.6 1.7P/Sales (x) 14.4 15.2 6.7Div yield (%) 1.8 1.6 5.2Weightage (%)National Company for Glass Industries (Zoujaj) owns two glass container factories,one each in Riyadh and Dammam. Zoujaj has stakes (45% each) in Saudi GuardianInternational Float Glass and Guardian RAK; a joint venture with Guardian Industries.These facilities manufacture float glass for automotive and construction applications.Company financials2005 2006 2007 2008YoY(%)CAGR(%)(05-08)Net Revenues SRmn 88 77 106 109 2.1 7.3EBITDA SRmn 36 31 46 44 (5.0) 7.2Net Income SRmn 130 48 80 68 (15.8) (19.5)Assets SRmn 418 458 501 488 (2.6) 5.3Equity SRmn 387 367 443 428 (3.3) 3.4Total Debt SRmn 4 53 25 25 1.2 89.4Cash & Equiv SRmn 7 16 3 17 525.0 36.2EBITDA Mgn % 40.7 40.8 43.6 40.6 - -Net Mgn % 148.0 62.9 75.6 62.4 - -ROE % 39.0 12.8 19.9 15.5 - -ROA % 35.8 11.0 16.8 13.7 - -Div Payout % 15.4 41.3 31.1 55.6 - -EPS SR 32.5 2.4 3.2 2.7 (16.1) (56.3)BVPS SR 96.8 18.4 17.7 17.1 (3.6) (43.9)Source: Company, NCBC ResearchSegment-wise business analysisProduct segment 2007 Geographic 2007%Rev % Net Inc Breakup %Rev % Net IncGlass Container Manufacturing 100 Saudi Arabia 84.0Rest of the World 16.0TASI (free float weight) 0.16MSCI Saudi (domestic – small cap) 1.25Free float (%)Free float 83.76Relative share price perf.11,0001009,00080607,000405,000203,000-M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASIZoujaj (RHS)Source: Company, NCBC Research• Product profile: Zoujaj’s plants in Riyadh and Dammam, which have a productioncapacity of 92,000 metric tons per year, manufacture glass containers for the foodand beverage industry. Saudi Guardian International Float Glass Co has a float glassproduction capacity of 220,000 tons per year, while Guardian RAK has a capacity of700 tons per day. In addition, Guardian RAK is planning to implement a hi-tech glasscoating technology to expand its float glass offerings to regional customers.• Financials: Revenues grew 2.1% year-on-year (y-o-y) to SR108.5mn in 2008. Due tohigher other expenses and sluggish growth in revenues, the company’s net income in2008 declined 15.8% y-o-y to SR67.7mn. Zoujaj’s net profit margin declined to 62.4%in 2008 as compared to 75.6%, a year ago.Top 5 shareholders (%)Riyadh Mohammed Abdullah AlHumaidan14.4• Recent developments: In April 2009, Zoujaj announced a 19% y-o-y decline in Q109net profits to SR20.6mn. In September 2007, Zoujaj commenced the production offloat glass at Guardian RAK.Source: NCBC ResearchJUNE 2009NATIONAL CO. FOR GLASS219