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TRANSPORTSaudi Tpt and InvAlso known asMubarradPriceSR24.1Pricing / Valuation as on May 27, 2009Mkt capSR0.4bn ($115.8mn)Sh. outstanding18.0mnKey statistics52 week range H/L (SR) 31.5/10.2Avg daily turnover (mn) SR US$3m 42.75 11.4212m 21.61 5.77Raw Beta 6m 3yr1.30 1.21Reuters4110.SEBloombergSLTCO ABPrice perform (%) 1M 3M 12MAbsolute (%) 43 67 (22)Market (%) 6 32 (39)Sector (%) 5 12 (43)Website: www..mubarrad.com.saValuation multiples2006 2007 2008P/E (x) NM 55.3 20.0P/B (x) 4.0 4.0 1.3P/Sales (x) 14.2 16.2 4.6Div yield (%) - - -Saudi Transport and Investment Company (Mubarrad) is engaged in the landtransport business across Saudi Arabia and the Gulf Cooperation Councilcountries. Mubarrad has recently forayed into the purchase and sale of land as wellas construction, management and operation of buildings.Company financials2005 2006 2007 2008YoY(%)CAGR(%)(05-08)Net Revenues SRmn 44 46 47 49 4.8 3.1EBITDA SRmn 10 13 15 16 4.2 16.3Net Income SRmn 14 (8) 14 11 (18.1) (6.6)Assets SRmn 339 196 219 225 2.8 (12.8)Equity SRmn 288 160 188 166 (11.6) (16.7)Total Debt SRmn - - - 32 - -Cash & Equiv SRmn 15 6 4 6 55.4 (24.2)EBITDA Mgn % 22.1 28.9 31.9 31.7 - -Net Mgn % 30.9 (16.5) 29.3 22.9 - -ROE % 5.0 (3.4) 7.8 6.3 - -ROA % 4.1 (2.8) 6.6 5.0 - -Div Payout % 105.1 0.0 0.0 0.0 - -EPS SR 3.8 (0.4) 0.8 0.6 (18.1) (45.4)BVPS SR 79.9 8.9 10.4 9.2 (11.6) (51.3)Source: Company, NCBC ResearchSegment-wise business analysisProduct segment 2008 Geographic 2008%Rev % Net Inc Breakup %Rev % Net IncWeightage (%)TASI (free float weight) 0.10MSCI Saudi (domestic – small cap) 0.74Free float (%)Free float 99.99Relative share price perf.11,000409,000307,000205,000103,000-M ay-08 Aug-08 Nov-08 Feb-09 M ay-09TASIM ubarrad (RHS)Top 5 shareholders (%)Source: NCBC ResearchSource: Company, NCBC Research• Business brief: Mubarrad owns a fleet of more than 1,000 vehicles (including truckheads, reefer trailers, reefer trucks, flat trucks for dry transport, and trailers for bulktransport.) for carrying all types of general and industrial cargo. It also runs theExpress Parcel Services throughout Saudi Arabia. Furthermore, it constructs,manages and leases cold stores and trailers.• Financials: Mubarrad’s top line continued to grow in 2008 by 4.8% y-o-y to reachSR48.7mn; keeping in line with the trend since 2005; registering a CAGR of 3.1%. In2008, Mubarrad’s net profit fell by 18.1% from SR13.6mn in 2007 to SR11.2mn in2008 mainly due to decline in investment income. Consequently, net margin stood at22.9% in 2008 as compared to 29.3% in 2007.• Recent developments: In April 2009, the company reported 73.0% y-o-y decline inQ1 FY09 net income to SR348.0mn. In September 2008, Mubarrad signed twocontracts worth SR33.1 mn to buy trucks and refrigeration units to boost its fleetcapacity. In February 2008, the company announced the approval of EGM for thedevelopment of hotels, commercial complexes and hospitals. During the same month,the company changed its name from Saudi Land Transport Company to SaudiTransport and Investment Company as it started investing its surplus funds ininvestment portfolios.JUNE 2009SAUDI TRANSPORT AND INVESTMENT CO251