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INDUSTRIAL INVESTMENTFirms in KSA lag their GCC peers on RoE but have higher pricing multiples.Exhibit 119: Revenues of GCC industrial investment companies,2005–08 (USD mn)50004500Exhibit 120: Comparison of RoE and P/E of GCC companies,2008604000350050Kuwait3000250020001500RoE (%)4030Qatar100050002005 2006 2007 2008KSA Qatar UAE Kuwait20KSAUAEP/E100 4 8 12 16 20Source: ReutersThe companies list is not exhaustiveSource: Reuters, NCBC ResearchSize of the bubble represents market cap. as on 31 Dec 2008In 2H-08, three new companies listed on the index—MAADEN, Basic Chemical Industries (BCI),and Astra Industrial Group. MAADEN is the sector’s largest company in market capitalizationwith 43.5% share in the sector, followed by AlAbdulatif with 15.9% share, as on 31 December2008.Exhibit 121: Sector details% weight in Indexas on Dec 2008*Avg. NPM (%),1Q05 – 4Q08*Avg. RoE (%),2005 – 2008*Saudi Pharmaceutical Indust. Med. Appliances 0.16 15.3 5.4The National Co. for Glass 0.08 97.5 21.8Filing & Packing Materials Manufacturing Co 0.03 9.2 15.9National Metal Manufacturing and Casting Co 0.06 6.7 10.3MAADEN 1.07 50.8 1.8Saudi Chemical Company 0.14 12.4 17.3BCI 0.06 8.5 13.3Astra 0.20 17.4 12.8Saudi Paper Manufacturing Co 0.24 17.5 24.9AlAbdulatif Industrial Investment Co 0.39 14.8 20.2Saudi Industrial Export Co 0.03 6.6 13.9Source: Bloomberg , Tadawul, Gulfbase, Reuters* start periods may differ based on the availability of dataDuring 2005–08, the total revenue of the eleven listed companies increased at 39.0% CAGRand their average profit margin stood at 23.3%. Revenue was up 39.7% YoY to SR7.5bn in2008, of which Saudi Chemical accounted for 20.5%, followed by AlAbdulatif with 15.2% andAstra Industrial Group with 13.2%. In 4Q-08, total revenue declined 0.7% to SR1.8bn, withSaudi Chemical, Saudi Pharmaceutical and Al Abdulatif contributing 26.1%, 16.1%, and 14.1%to the decline respectively. Average net profit margin for the eleven listed companies was10.66% in 4Q-08, although it was 17.54% for eight listed companies in 4Q-07. During 2008,industrial investment sector recorded a 51.1% rise in net profits to SR1.2bn.JUNE 2009SAUDI ARABIA FACTBOOK79