Riyad Cap issues Q3 profit estimates, SABIC seen 28% lower

10/10/2017 Argaam

 

Riyad Capital has issued its Q3 2017 earnings forecasts for several Tadawul-listed companies under its coverage.

 

Petrochemical giant Saudi Basic Industries Corporation (SABIC) is expected to record a 28 percent year-on-year (YoY) fall in net income to SAR 3.77 billion.

 

Saudi International Petrochemical Co. (Sipchem) will likely outperform sector peers, with a profit surge of 244 percent YoY.

 

Alinma Bank and Al Rajhi Bank are projected to see profit increases by 46 percent and 8 percent YoY, respectively.

 

 Saudi Telecom Co. (STC), the Kingdom’s largest telecom operator, is expected to report a 9 percent YoY rise in its net profit to SAR 2.34 billion for the same period.

 

The outlook was negative for all cement producers under coverage, dragged by Yamama Cement with a profit drop of 66 percent YoY.

 

Earnings of Saudi juice and dairy producer Almarai are likely to decline by 9 percent YoY in Q3.

 

In the building materials sector, profit of the National Co. for Glass Industries (Zoujaj) is forecast to jump six times to SAR 22 million. 

 

Riyad Capital Q3 Forecasts (SAR mln)

Company

Estimates

YoY Variation

 

Cement

 

Yamama Cement

19

(66%)

Yanbu Cement

64

(31%)

Qassim Cement

50

(29%)

Southern Cement

83

(52%)

Saudi Cement

81

(57%)

 

Petrochemicals

 

Petrochem

170

(11%)

SABIC

3,767

(28%)

SAFCO

192

6%

SIIG

208

28%

Sahara

98

(7%)

Yansab

592

(3%)

SIPCHEM

85

NM

Kayan

187

4%

Petro Rabigh

(20)

20%

 

Banks

 

Alawwal

309

19%

BSF

1,006

0%

SABB

1,071

8%

ANB

798

10%

Samba

1,253

15%

Albilad

275

21%

Al Rajhi

2,177

8%

Alinma

456

46%

 

Retail

 

Almarai

596

9%

 

Telecom

 

STC

2,339

9%

Mobily

(190)

13%

Zain Saudi

(7)

(98%)

 

Building Materials

 

Saudi Ceramic

(4)

109%

Bawan

10

(55%)

Aslak

1

(93%)

Zoujaj

22

450%

 

Riyad Capital Recommendations

Company

Recommendation

Target price (SAR/share)

Previous

New

Previous

New

Cement

Yamama Cement

Neutral

Neutral

16.00

16.00

Yanbu Cement

Neutral

Neutral

31.00

31.00

Qassim Cement

Neutral

Neutral

53.00

53.00

Southern Cement

Neutral

Neutral

56.00

56.00

Saudi Cement

Neutral

Neutral

53.00

53.00

Petrochemicals

Petrochem

Neutral

Neutral

19.00

19.00

SABIC

Neutral

Neutral

98.00

98.00

SAFCO

Neutral

Neutral

65.00

65.00

SIIG

Buy

Buy

21.00

21.00

Sahara

Buy

Buy

15.00

15.00

Yansab

Neutral

Neutral

53.00

53.00

SIPCHEM

Buy

Buy

18.50

18.50

Advanced

Neutral

Neutral

46.00

46.00

Kayan

Neutral

Neutral

10.00

10.00

Petro Rabigh

Neutral

Neutral

16.00

16.00

Telecom

STC

Neutral

Neutral

73.00

73.00

Mobily

Neutral

Neutral

26.00

26.00

Zain

Buy

Buy

14.00

 

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