to download the complete report - GulfBase.com

BUILDING AND CONTRUCTIONThe building and construction sector has a large number of private players with only 12 listedcompanies. Profit margins were the highest for National Gypsum Company, whereasMohammad Al Mojil group had the highest market weight in the sector.Exhibit 130: Sector details% weight in Indexas of Dec 2008*Avg. NPM (%),1Q05 - 4Q08*Avg. RoE (%),2005 - 2008*Saudi Ceramic Co 0.29 19.9 21.2National Gypsum Company 0.10 46.1 29.4Saudi Cable Company 0.22 5.9 18.4Saudi Industrial Development Co 0.03 NM NMSaudi Arabian Amiantit Co 0.22 2.3 7.8Arabian Pipes Company 0.15 16.0 18.6Zamil Industrial Investment Co 0.28 5.4 24.2AL-Babtain Power & Telecommunication Co 0.19 12.4 24.3Saudi Vitrified Clay Pipes Co 0.05 19.3 44.2Mohammad Al Mojil Group 0.48 23.9 16.4Middle East Specialized Cables Co 0.16 8.8 33.5Red Sea Housing 0.24 22.3 39.4Source: Bloomberg, Gulfbase, Reuters and Tadawul, Annual Report* start periods may differ based on availability of dataTotal revenue of the 12 listed companies increased at 37.8% CAGR and profits grew at 72.6%CAGR in 2005–08. The rise in revenue was backed by growing demand created by the severalongoing infrastructure and industrial projects. For 2008, the revenue of the total sector grew27.5% YoY (compared with 55.2% YoY growth in 2007), on an average. Moreover, net profitshowed an improvement of 17.7% YoY in 2008. Although the potential for construction activitiesis high in KSA, weakening sentiments for the sector in the global market might restrict theupside potential of the sector in the short-term. Demand for the construction of petrochemicalfacilities could see a downturn in the short term due to weak oil prices. This could adverselyimpact the revenue performance of building material providers.In 4Q-08, the average revenue ofthe companies declined 10.0%QoQ, while earnings plummeted75% QoQ.The global credit crisis has resulted in a slowdown in development work on many projects,which is evident in the 4Q-08 results of some of the companies. In 4Q-08, the average revenueof the companies has declined 10.0% QoQ. The picture is grimmer with net profit, whichplummeted an average 75.0% QoQ. Exhibits 131 and 132 display the profitability and revenueof the 12 listed companies until 4Q-08.Exhibit 131: Revenue of companies, 2005–2008 (SR mn) Exhibit 132: Profitability (%) of companies, 2005–200850003540003025300020200015101000502005 2006 2007 2008Saudi CeramicsAmiantitZamilSpecialized CablesSaudi Cable Co.Al babatainRedseaMohamed Al Mojil02005 2006 2007 2008Saudi CeramicsAmiantitZamilSpecialized CablesSaudi Cable Co.Al babatainRedseaMohamed Al MojilSource: Gulfbase , Bloomberg, ReutersSource: Gulfbase , Bloomberg, ReutersJUNE 2009SAUDI ARABIA FACTBOOK84