Shaker’s H1 2023 profit up 69% to SAR 44.7 mln; Q2 at SAR 15.9 mln

Shaker’s H1 2023 profit up 69% to SAR 44.7 mln; Q2 at SAR 15.9 mln

31/07/2023 Argaam Exclusive

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Al Hassan Ghazi Ibrahim Shaker Co. (Shaker) reported a 69% increase in H1 2023 net profit to SAR 44.7 million from SAR 26.4 million in the year-earlier period.



Financials (M)

Item 6m 2022 6m 2023 Change‬
Revenues 591.53 653.96 10.6 %
Gross Income 132.51 161.34 21.8 %
Operating Income 27.60 46.95 70.1 %
Net Income 26.41 44.66 69.1 %
Average Shares 55.50 55.50 -
EPS (Riyals) 0.48 0.80 69.1 %

Shaker’s revenue rose 10.54% year-on-year (YoY) as the growth strategy was realized with a more diversified and expanded product portfolio, along with a better market share. The heating, ventilation and air conditioning (HVAC) solutions and home appliances segments’ revenue grew YoY by 14.82% and 4.56%, respectively.

 

The cost of goods sold (COGS) improved on a favourable portfolio mix, which pushed the company’s gross profit 21.76% higher from SAR 132.51 million in H1 2022 to SAR 161.34 million in H1 2023. During the six-month period, operating profit leapt by 66.86% YoY.

 

In H1 2023, Shaker also reported a higher profit share from the LG-Shaker HVAC factory, which offset the rise in finance costs due to increased SAIBOR.

 

In Q2 2023, the company’s net profit leapfrogged 36% to SAR 15.9 million from SAR 11.65 million in the prior-year period, as revenue grew by 4.42% YoY to SAR 307.39 million. Better operating performance and profit share from LG-Shaker HVAC factory also bolstered the second-quarter results.

 

Sequentially, net earnings fell by 44.8% from SAR 28.77 million in Q1 2023 on a quarter-on-quarter (QoQ) revenue drop of 11.30% amid lower sales of home appliances due to seasonal factors. 



Current Quarter Comparison (M)

Compared With The
Item Q2 2022 Q2 2023 Change‬
Revenues 294.40 307.39 4.4 %
Gross Income 60.14 74.23 23.4 %
Operating Income 11.02 19.08 73.1 %
Net Income 11.65 15.89 36.3 %
Average Shares 55.50 55.50 -
EPS (Riyals) 0.21 0.29 36.3 %

Total shareholders’ equity, after minority interest, stood at SAR 697.03 million by the end of the six-month period, compared to SAR 648.52 million a year earlier. 



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 312.18 (31.9 %) 70.03 (52.6 %) 20.62 (58.6 %) 0.37
Q2 2014 484.41 (8.0 %) 131.43 (4.8 %) 382.45 410.4 % 6.89
Q3 2014 408.05 3.6 % 110.81 19.2 % 43.78 39.7 % 0.79
Q4 2014 352.02 10.5 % 73.75 178.0 % (9.95) 67.9 % (0.18)
Q1 2015 426.44 36.6 % 98.32 40.4 % 26.16 26.9 % 0.47
Q2 2015 643.25 32.8 % 160.77 22.3 % 82.01 (78.6 %) 1.48
Q3 2015 442.12 8.4 % 115.78 4.5 % 46.22 5.6 % 0.83
Q4 2015 374.72 6.4 % 60.00 (18.6 %) (17.84) (79.4 %) (0.32)
Q1 2016 395.07 (7.4 %) 98.66 0.3 % 27.98 7.0 % 0.50
Q2 2016 533.76 (17.0 %) 135.40 (15.8 %) 47.00 (42.7 %) 0.85
Q3 2016 401.38 (9.2 %) 94.41 (18.5 %) 4.04 (91.3 %) 0.07
Q4 2016 324.20 (13.5 %) 60.46 0.8 % (30.21) (69.3 %) (0.54)
Q1 2017 288.30 (27.0 %) 58.81 (40.4 %) (14.89) (153.2 %) (0.27)
Q2 2017 335.15 (37.2 %) 68.27 (49.6 %) (21.09) (144.9 %) (0.38)
Q3 2017 202.89 (49.5 %) 27.34 (71.0 %) (49.17) (1317.4 %) (0.89)
Q4 2017 212.23 (34.5 %) 21.53 (64.4 %) (85.88) (184.3 %) (1.55)
Q1 2018 214.87 (25.5 %) 52.77 (10.3 %) (20.55) (38.0 %) (0.37)
Q2 2018 212.36 (36.6 %) 41.06 (39.8 %) (36.65) (73.7 %) (0.66)
Q3 2018 173.98 (14.2 %) 27.29 (0.2 %) (44.92) 8.6 % (0.81)
Q4 2018 172.81 (18.6 %) (21.21) (198.5 %) (94.42) (9.9 %) (1.70)
Q1 2019 197.33 (8.2 %) 33.02 (37.4 %) (27.39) (33.2 %) (0.49)
Q2 2019 253.53 19.4 % 48.28 17.6 % (8.96) 75.5 % (0.16)
Q3 2019 247.84 42.5 % 49.05 79.7 % (6.05) 86.5 % (0.11)
Q4 2019 184.12 6.5 % 35.29 266.4 % (7.39) 92.2 % (0.13)
Q1 2020 220.98 12.0 % 49.36 49.5 % (2.93) 89.3 % (0.05)
Q2 2020 267.77 5.6 % 52.12 7.9 % 7.62 185.0 % 0.14
Q3 2020 247.47 (0.2 %) 52.67 7.4 % 3.59 159.3 % 0.06
Q4 2020 196.49 6.7 % 41.41 17.4 % (0.85) 88.5 % (0.02)
Q1 2021 288.30 30.5 % 57.63 16.8 % 6.32 315.9 % 0.11
Q2 2021 289.48 8.1 % 61.33 17.7 % 8.76 14.9 % 0.16
Q3 2021 260.12 5.1 % 57.15 8.5 % 12.03 235.6 % 0.22
Q4 2021 165.76 (15.6 %) 39.57 (4.5 %) 0.32 137.3 % 0.01
Q1 2022 297.23 3.1 % 72.37 25.6 % 14.76 133.6 % 0.27
Q2 2022 294.40 1.7 % 60.14 (1.9 %) 11.65 33.1 % 0.21
Q3 2022 235.67 (9.4 %) 51.86 (9.3 %) 8.52 (29.2 %) 0.15
Q4 2022 210.03 26.7 % 53.27 34.6 % (2.11) (764.0 %) (0.04)
Q1 2023 346.56 16.6 % 87.11 20.4 % 28.77 94.9 % 0.52
Q2 2023 307.39 4.4 % 74.23 23.4 % 15.89 36.3 % 0.29

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 21.12 % 5.30 % 0.50 %
Q2 2014 21.27 % 5.27 % (0.03 %)
Q3 2014 22.24 % 6.12 % 1.53 %
Q4 2014 24.80 % 7.85 % 4.90 %
Q1 2015 24.80 % 7.89 % 6.65 %
Q2 2015 24.25 % 7.33 % 8.82 %
Q3 2015 24.07 % 6.57 % 8.79 %
Q4 2015 23.05 % 5.56 % 7.28 %
Q1 2016 23.46 % 5.60 % 7.46 %
Q2 2016 23.48 % 4.67 % 5.76 %
Q3 2016 22.78 % 3.99 % 3.42 %
Q4 2016 23.51 % 4.30 % 2.78 %
Q1 2017 22.56 % 2.01 % 0.20 %
Q2 2017 20.90 % (1.36 %) (4.61 %)
Q3 2017 18.68 % (5.64 %) (10.03 %)
Q4 2017 16.94 % (9.27 %) (16.47 %)
Q1 2018 17.60 % (8.91 %) (18.31 %)
Q2 2018 16.94 % (12.50 %) (22.82 %)
Q3 2018 17.54 % (12.70 %) (23.11 %)
Q4 2018 12.91 % (17.55 %) (21.48 %)
Q1 2019 10.60 % (19.42 %) (22.88 %)
Q2 2019 10.96 % (14.20 %) (18.23 %)
Q3 2019 12.52 % (9.91 %) (12.22 %)
Q4 2019 18.76 % (0.42 %) (5.64 %)
Q1 2020 20.08 % 1.17 % (2.79 %)
Q2 2020 20.18 % 1.85 % (0.95 %)
Q3 2020 20.58 % 2.89 % 0.10 %
Q4 2020 20.97 % 1.96 % (0.64 %)
Q1 2021 20.38 % 2.38 % 0.32 %
Q2 2021 20.85 % 3.14 % 0.43 %
Q3 2021 21.03 % 3.93 % 1.24 %
Q4 2021 21.49 % 5.09 % 2.73 %
Q1 2022 22.76 % 6.55 % 3.54 %
Q2 2022 22.53 % 5.85 % 3.81 %
Q3 2022 22.55 % 5.40 % 3.55 %
Q4 2022 22.91 % 4.97 % 3.06 %
Q1 2023 23.23 % 5.65 % 4.21 %
Q2 2023 24.23 % 6.19 % 4.55 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 55.50 1.73 0.14 12.15
Q2 2014 55.50 7.27 (0.01) 17.46
Q3 2014 55.50 7.49 0.42 18.25
Q4 2014 55.50 7.87 1.38 16.49
Q1 2015 55.50 7.97 2.00 16.78
Q2 2015 55.50 2.56 2.91 18.44
Q3 2015 55.50 2.60 2.95 19.28
Q4 2015 55.50 2.46 2.48 18.95
Q1 2016 55.50 2.49 2.49 19.28
Q2 2016 55.50 1.86 1.81 20.13
Q3 2016 55.50 1.10 1.05 20.20
Q4 2016 55.50 0.88 0.83 18.81
Q1 2017 55.50 0.11 0.06 18.55
Q2 2017 55.50 (1.12) (1.12) 18.17
Q3 2017 55.50 (2.08) (2.08) 17.28
Q4 2017 55.50 (3.08) (3.08) 15.75
Q1 2018 55.50 (3.18) (3.18) 15.38
Q2 2018 55.50 (3.46) (3.46) 14.72
Q3 2018 55.50 (3.39) (3.39) 13.91
Q4 2018 55.50 (3.54) (3.00) 12.20
Q1 2019 55.50 (3.66) (3.12) 11.69
Q2 2019 55.50 (3.17) (2.62) 11.51
Q3 2019 55.50 (2.47) (1.92) 11.40
Q4 2019 55.50 (0.90) (0.90) 11.24
Q1 2020 55.50 (0.46) (0.46) 11.21
Q2 2020 55.50 (0.16) (0.16) 11.31
Q3 2020 55.50 0.02 0.02 11.37
Q4 2020 55.50 0.13 (0.11) 10.73
Q1 2021 55.50 0.30 0.06 11.51
Q2 2021 55.50 0.32 0.08 11.02
Q3 2021 55.50 0.47 0.23 11.23
Q4 2021 55.50 0.49 0.49 11.22
Q1 2022 55.50 0.65 0.65 11.48
Q2 2022 55.50 0.70 0.70 11.69
Q3 2022 55.50 0.64 0.64 11.82
Q4 2022 55.50 0.59 0.57 11.79
Q1 2023 55.50 0.84 0.82 12.30
Q2 2023 55.50 0.92 0.90 12.56

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 30.20 More than 100 4.30
Q2 2014 6.61 NEG 2.75
Q3 2014 7.36 More than 100 3.02
Q4 2014 4.80 27.44 2.29
Q1 2015 6.26 24.94 2.97
Q2 2015 18.47 16.25 2.56
Q3 2015 14.86 13.10 2.01
Q4 2015 13.07 12.99 1.70
Q1 2016 10.80 10.80 1.40
Q2 2016 14.86 15.28 1.38
Q3 2016 14.31 15.00 0.78
Q4 2016 21.68 23.00 1.01
Q1 2017 More than 100 More than 100 0.97
Q2 2017 NEG NEG 0.82
Q3 2017 NEG NEG 0.84
Q4 2017 NEG NEG 0.84
Q1 2018 NEG NEG 0.77
Q2 2018 NEG NEG 0.87
Q3 2018 NEG NEG 0.70
Q4 2018 NEG NEG 0.79
Q1 2019 NEG NEG 0.84
Q2 2019 NEG NEG 0.84
Q3 2019 NEG NEG 0.84
Q4 2019 NEG NEG 1.10
Q1 2020 NEG NEG 0.85
Q2 2020 NEG NEG 1.08
Q3 2020 More than 100 More than 100 1.48
Q4 2020 More than 100 NEG 1.71
Q1 2021 74.22 More than 100 1.94
Q2 2021 More than 100 More than 100 3.38
Q3 2021 63.23 More than 100 2.66
Q4 2021 50.91 50.91 2.24
Q1 2022 38.51 38.51 2.17
Q2 2022 21.38 21.38 1.28
Q3 2022 26.16 26.16 1.41
Q4 2022 28.09 29.04 1.41
Q1 2023 20.18 20.66 1.39
Q2 2023 24.74 25.27 1.81

Business Segments (Million)

Compared With The
Period HVAC Solutions Home appliances Other segments LG Air Conditioners and Home Appliances Conditioners and products from the non-LG production Eliminations
Q1 2014 - - - 246.01 66.17 -
Q2 2014 - - - 417.85 66.56 -
Q3 2014 - - - 348.47 59.58 -
Q4 2014 - - - 117.32 234.71 -
Q1 2015 - - - 341.04 85.39 -
Q2 2015 - - - 523.13 120.12 -
Q3 2015 - - - 359.40 82.73 -
Q4 2015 - - - 278.73 95.99 -
Q1 2016 273.05 118.40 3.63 - - -
Q2 2016 389.18 139.57 5.01 - - -
Q3 2016 275.31 119.57 6.50 - - -
Q4 2016 228.19 87.40 8.61 - - -
Q1 2017 193.07 92.49 2.73 - - -
Q2 2017 222.43 108.78 5.26 - - -
Q3 2017 123.71 62.56 10.12 - - -
Q4 2017 123.20 72.23 12.19 - - -
Q1 2018 113.49 81.29 20.09 - - -
Q2 2018 137.99 71.09 3.28 - - -
Q3 2018 106.93 64.04 3.02 - - -
Q4 2018 112.20 61.84 (1.23) - - -
Q1 2019 112.19 84.02 1.12 - - -
Q2 2019 172.62 79.67 1.25 - - -
Q3 2019 165.44 81.15 1.25 - - -
Q4 2019 110.14 59.42 14.55 - - -
Q1 2020 123.98 95.82 1.18 - - -
Q2 2020 166.08 99.69 2.01 - - -
Q3 2020 134.85 110.59 2.04 - - -
Q4 2020 114.79 76.58 5.12 - - -
Q1 2021 140.34 146.66 1.30 - - -
Q2 2021 170.59 118.04 0.86 - - -
Q3 2021 144.10 115.09 - - - -
Q1 2022 144.08 153.15 - - - -
Q2 2022 200.34 94.06 - - - -
Q3 2022 174.87 60.70 - - - -
Q4 2022 157.79 52.24 - - - -
Q1 2023 175.91 170.65 - - - -
Q2 2023 219.57 87.83 - - - -

Analysts Estimates (Million)

Item Q2 2023 (e) Q2 2023 (a) Change‬
Average 20.85 15.89 (23.8 %)

Estimates vs Actual (Million)

Item Q2 2023 (e) Q2 2023 (a) Change
Hermes 18.00 15.89 (11.8) %
SNB Capital 23.70 15.89 (33.0) %

Current
Market Cap (M Riyal) 1,673.33
Enterprise Value (EV) (M) 2,022.65
Shares Outstanding ((M)) 55.50
EPS ( Riyal) (TTM) 1.24
Book Value (BV) ( Riyal) 13.51
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 24.04
P/E (TTM) 24.28
Price/book 2.23
Return on Average Assets (%) (TTM) 4.0
Return on Average Equity (%) (TTM) 9.6

Share Price

Al Hassan Ghazi Ibrahim Shaker Co. (SHAKER)


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