to download the complete report - GulfBase.com

BUILDING & CONSTRUCTIONSaudi Ceramic CoAlso known asPricePricing / Valuation as on May 27, 2009Mkt capSh. outstandingKey statisticsSR99.0SR2.5bn ($660.9mn)25.0mn52 week range H/L (SR) 172.0/70.8Avg daily turnover (mn) SR US$3m 11.59 3.1012m 17.23 4.60Raw Beta 6m 3yr0. 90 1.05ReutersBloomberg2040.SESCERCO ABPrice perform (%) 1M 3M 12MAbsolute (%) 1 23 (29)Market (%) 6 32 (39)Sector (%) 8 19 (53)Website: www.saudiceramics comValuation multiples2006 2007 2008P/E (x) 16.6 21.3 15.0P/B (x) 2.8 4.4 3.7P/Sales (x) 3.1 4.4 3.1Div yield (%) 4.0 2.3 2.3Weightage (%)TASI (free float weight) 0.35MSCI Saudi (domestic – small cap) 4.48Free float (%)Free float 63.62Relative share price perf.11,0009,0007,0005,0003,000M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASITop 5 shareholders (%)Ceramic (RHS)180140100General Organization for Social 15.9InsuranceSaleh Abdul Aziz Saleh Al Rajhi 14.3Falcom Financial Services Co 6.8Public Investment Fund 5.4Source: NCBC Research6020Saudi Ceramic Company was initially set-up to manufacture sanitary ware products.Currently, the company also produces and sells ceramic wall and floor tiles, electricwater heaters and ceramic road markers as well as operate 26 showrooms in KSA.Saudi Ceramic, established in 1977, is headquartered in Riyadh.Company financials2005 2006 2007 2008YoY(%)CAGR(%)(05-08)Net Revenues SRmn 425 500 615 857 39.4 26.3EBITDA SRmn 137 146 178 NA NA NANet Income SRmn 84 93 128 178 39.5 28.6Assets SRmn 778 1,026 1,284 1,559 21.5 26.1Equity SRmn 504 546 613 724 18.1 12.8Total Debt SRmn 158 326 499 NA NA NACash & Equiv SRmn 7 14 21 25 21.4 57.1EBITDA Mgn % 32.3 29.2 29.0 NA - -Net Mgn % 19.6 18.6 20.7 20.8 - -ROE % 17.1 17.8 22.0 26.6 - -ROA % 11.9 10.3 11.0 12.5 - -Div Payout % 59.8 67.0 49.0 35.1 - -EPS SR 3.3 3.7 5.1 7.1 39.5 28.7BVPS SR 20.2 21.8 24.5 29.0 18.1 12.8Source: Company, NCBC ResearchSegment-wise business analysisProduct segment 2007 Geographic 2007%Rev % Net Inc Breakup %Rev % Net IncCeramic tiles manufacturing 77.3 88.8 Saudi Arabia 100.0 100.0Heaters/Boilers 22.7 11.2Source: Company, NCBC Research• Business brief: Saudi Ceramics has an annual production capacity of 23 mn sqm ofporcelain and ceramic tiles, 1.8mn pieces of sanitary ware, 950,000 pieces of electricwater heaters and 1.2mn pieces of ceramic road markers. Apart from the domesticmarket, the company exports its products to more than 45 countries. Saudi Ceramicsinvestment portfolio includes a 15.8% stake in Natural Gas Distribution Company.• Financials: Saudi Ceramics performed well over the years as booming constructionsector helped demand growth. The company’s sales increased 39.4% y-o-y in 2008.The net income of the company also grew 39.5% y-o-y to SR177.9mn. While thecompany’s net margins improved marginally to 20.8% in 2008, the ROE and ROAimproved to 26.6% and 12.5% respectively.• Recent developments: The company announced its 1Q-09 results on April 11, 2009.The net income increased 7.9% y-o-y to SR41.0mn in 1Q-09. In October 2008, SaudiCeramics announced it would proceed with its SR300mn expansion in 2009, boostingits tile production capacity to 50mn square meters. In the same month, the companyreceived a loan of SR57mn from Saudi Industrialization Development Fund for plantexpansion for tenure of 6 years. In June 2008, the company announced it wasconsidering setting up of a factory along Riyadh-Alkharj Highway with a productioncapacity of 21mn square meters of floor tiles.JUNE 2009SAUDI CERAMIC COMPANY230