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BUILDING & CONSTRUCTIONMohammad Al MojilAlso known asMMGPricePricing / Valuation as on May 27, 2009Mkt capSh. outstandingKey statisticsSR32.8SR4.1bn ($1,094.8mn)125.0mn52 week range H/L (SR) 104.3/28.5Avg daily turnover (mn) SR US$3m 75.28 20.1012m 132.11 35.28Raw Beta 6m 1yr0.97 1.25ReutersBloomberg1310.SEMMG ABPrice perform (%) 1M 3M 12MAbsolute (%) 24 21 (51)Market (%) 6 32 (39)Sector (%) 8 19 (53)Website: www almojilgroup.comValuation multiples2006 2007 2008P/E (x) N/A N/A 6.6P/B (x) N/A N/A 2.3P/Sales (x) N/A N/A 1.3Div yield (%) N/A N/A 2.3Weightage (%)TASI (free float weight) 0.26MSCI Saudi (domestic)N/AFree float (%)Free float 28.35Relative share price perf.11,0009,0007,0005,0003,000M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASITop 5 shareholders (%)MMG (RHS)100Mohammad Hamad Abdul Karim Al 50.0MoajilAdel Mohammed Hamad Al Moajil 5.0Al Moajil Holding Co. 5.0Al Moajil Limited Investment Co. 5.0Mohammed Hamad Al MoajilInvestment Co.5.0Source: NCBC Research80604020Mohammad Al Mojil Group Company (MMG) executes the construction projectswithin oil, gas and petrochemical industry. The services include maintenance andturnkey contracts, industrial cleaning and pre-commission services, etc. Thecompany delivers the tailor-made construction services both onshore and offshore.Company financials2005 2006 2007 2008YoY(%)CAGR(%)(05-08)Net Revenues SRmn 466 894 1,955 3,345 71.1 92.9EBITDA SRmn 102 246 640 850 32.9 102.8Net Income SRmn 81 208 549 666 21.3 101.7Assets SRmn 552 1,293 2,225 3,669 64.9 88.0Equity SRmn 402 881 1,295 1,901 46.9 67.9Total Debt SRmn - - 200 500 150.0 -Cash & Equiv SRmn 20 106 63 86 35.7 61.7EBITDA Mgn % 21.9 27.6 32.7 25.4 - -Net Mgn % 17.4 23.3 28.1 19.9 - -ROE % 20.2 32.4 50.4 41.6 - -ROA % 14.7 22.5 31.2 22.6 - -Div Payout % - - - 14.9 - -EPS SR 1.2 2.6 4.7 6.7 42.2 77.5BVPS SR 3.5 10.1 13.6 19.0 40.0 75.1Source: Company, NCBC ResearchSegment-wise business analysisProduct segment 2008 Geographic 2008Source: Company, NCBC Research%Rev % Net Inc Breakup %Rev % Net Inc• Business brief: MMG is involved in construction, contracting, maintenance andsupplying equipments for the petrochemical, oil and gas projects, civil andelectromechanical services for refineries, power plants, cement factories and waterdesalination plants. The company has production capacity of 1400 dia inches of steel,1,600 dia inches of stainless steel and 3000 dia inches of steel pipes per day. Inaddition, it has the capacity to produce 2,000 tons of structural steel per month andowns 19 vessels.• Financials: MMG’s revenues increased 71.1% y-o-y to SR3,345.0 mn in 2008.However, its EBITDA margin contracted y-o-y to 25.4% in 2008 from 32.7% in 2007.The net profit grew at a lower rate of 21.3% y-o-y to SR665.5mn. Consequently, thenet margin contracted to 19.9% in FY 08 compared to 28.1% in FY 07.• Recent developments: MMG’s net profit declined 96% y-o-y to SR5.4mn in 1Q-09.In May 2009, MMG signed a letter of intent (LoI) with Saudi Polymers Co. forconstruction of the latter’s Jubail project for SR88.8mn. In May 2009, the company’sgeneral assembly approved the 1:4 bonus share issue. In March 2009, MMG enteredinto a contract with Eastern Petrochemical Co. (SABIC’s subsidiary) worth SR200mn, for the latter’s Jubail project. In February 2009, MMG signed a LoI with ArabianJGC Co. to construct the ethylene plant worth SR408.7mn. In December 2008, thecompany appointed Fahd bin Ali al-Raqtan as its CEO.JUNE 2009MOHAMMAD AL MOJIL231