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INDUSTRIAL INVESTMENTAlsoSaudi Indl Export Coknown asSIECPricePricing / Valuation as on May 27, 2009Mkt capSh. outstandingKey statisticsSR48.9SR0.5bn ($141.0mn)10.8mn52 week range H/L (SR) 56.0/15.7Avg daily turnover (mn) SR US$3m 47.27 12.6212m 26.43 7.06Raw Beta 6m 3yr1.48 1.38ReutersBloomberg4140.SESIECO ABPrice perform (%) 1M 3M 12MAbsolute (%) 51 50 23Market (%) 6 32 (39)Sector (%) 11 29 (33)Website: www siec.com.saValuation multiples2006 2007 2008P/E (x) 83.2 136.5 20.7P/B (x) 8.4 8.4 2.5P/Sales (x) 4.5 4.6 0.4Div yield (%) 0.7 0.0 3.7Weightage (%)TASI (free float weight) 0.12MSCI Saudi (domestic – small cap) 0.51Free float (%)Free float 100.00Relative share price perf.11,0009,0007,0005,0003,000M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASITop 5 shareholders (%)S ECO (RHS)605040302010-Ibrahim Oudah Abdullah Al Oudah 5.9Source: NCBC ResearchSaudi Industrial Export Co (SIECO) is a trading company engaged in the export, importand distribution of agro goods, industrial products and bulk commodities. The companywas established in 1990. SIECO is represented by its associates across the globe andhas exported over 10 million tons of domestic products to more than 40 markets.Company financials2005 2006 2007 2008YoY(%)CAGR(%)(05-08)Net Revenues SRmn 229 220 220 709 222.6 45.9EBITDA SRmn 7 2 5 22 379.5 48.9Net Income SRmn 32 12 7 14 92.6 -23.3Assets SRmn 150 163 164 147 (10.3) (0.5)Equity SRmn 130 118 121 119 (1.3) (3.0)Total Debt SRmn 12 27 16 0 (100.0) (100.0)Cash & Equiv SRmn 10 82 80 98 23.7 113.6EBITDA Mgn % 2.8 0.7 2.0 3.0 - -Net Mgn % 13.8 5.4 3.4 2.0 - -ROE % 28.0 9.6 6.2 11.9 - -ROA % 22.8 7.6 4.5 9.2 - -Div Payout % 0.0 60.4 0.0 76.9 - -EPS SR 22.0 1.7 0.7 1.3 92.6 (60.8)BVPS SR 90.6 16.4 11.2 11.0 (1.3) (50.5)Source: Company, NCBC ResearchSegment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncSource: Company, NCBC Research• Product profile: SIECO trades bulk food products including rice, maize, sugar andedible oils; fertilizers, minerals, chemicals and petrochemicals; iron, steel and othermetals; air conditioners, trucks and cables. The company also provides a number ofservices to its suppliers and customers including guaranteed payments, arm-lengthmarketing, financing, and logistics for land and sea transport. SIECO is investing indistribution channels and warehousing facilities to reach more manufacturers andcustomers.• Financials: In 2008, the company’s revenues more than tripled to SR709.1mn ascompared to SR219.8mn in 2007. EBITDA margin increased almost 100 basis points(bps) to 3.0% in 2008. Despite 92.6% yearly growth in the net income, company’s netmargin fell to 2.0% in FY08, a 136 bps decline over the same period last year. Thiscould be attributable to input cost pressures, provisions and absence of investmentincome in 2008. SIECO incurred losses of SR6.8mn in 4Q-08 alone due to massivedip in the top-line.• Recent developments: In April 2009, SIECO announced that it posted a net loss ofSR1.4mn during Q109 as compared to a net profit of SR3.1mn, a year earlier. InAugust 2008, the company bought 3.85% stake in Warehousing And AuxiliaryServices Co. for SR11.0mn. In January 2008, the company signed a memorandum ofunderstanding (with 6-month maturity) to buy 80% stake (SR40.0mn) in PrivateLaboratories Company through a share swap.JUNE 2009SAUDI INDUSTRIAL EXPORT CO222