Bawan 2023 profit falls to SAR 136M; Q4 at SAR 36.4M

Bawan 2023 profit falls to SAR 136M; Q4 at SAR 36.4M

03/03/2024 Argaam Exclusive

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Bawan Co.’s net profit slipped to SAR 136 million in 2023, compared to SAR 163 million a year earlier.



Financials (M)

Item 2022 2023 Change‬
Revenues 3,364.26 3,351.81 (0.4 %)
Gross Income 404.11 385.73 (4.5 %)
Operating Income 207.36 177.13 (14.6 %)
Net Income 162.85 136.04 (16.5 %)
Average Shares 60.00 60.00 -
EPS (Riyals) 2.71 2.27 (16.5 %)

The annual earnings were hurt by a drop in the metal and wood segment’s net profit amid decreased average selling prices, which pushed profit margin lower.

 

The company realized a net loss of SAR 2.5 million from discontinued operations related to the concrete industries segment. Bawan exited the segment in mid-2023.

 

An increase of SAR 9.5 million in finance costs also weighed on Bawan’s 12-month results, due to the higher cost of borrowing and SAIBOR. Operating expenses (OpEx) also increased amid improved volume of activity.

 

On the other hand, the net profit of the electrical industries segment rose by SAR 30.6 million to SAR 58 million in 2023, compared to SAR 27.4 million in 2022, mainly on an increase in sales value and volume, as well as average selling prices, which led to an improvement in the profit margin.

 

Bawan also recorded higher net profit from the plastics industries segment, mainly due to the increase in gross profit and a decrease in the cost of sales.

 

Other income and profit of investment in financial assets at fair value through profit or loss also increased. In addition, Zakat expenses edged lower.



Current Quarter Comparison (M)

Compared With The
Item Q4 2022 Q4 2023 Change‬
Revenues 859.94 859.28 (0.1 %)
Gross Income 90.16 107.18 18.9 %
Operating Income 38.13 45.78 20.1 %
Net Income 29.83 36.37 21.9 %
Average Shares 60.00 60.00 -
EPS (Riyals) 0.50 0.61 21.9 %

The fourth-quarter net profit jumped 22% to SAR 36.4 million from SAR 29.8 million in Q4 2022. The company noted an improvement in the profit margin in the metal, wood and plastic industries segments and a decrease in cost of financing.

 

Bawan’s net profit declined 9.3% from SAR 40.1 million in Q3 2023.

 

Total shareholders’ equity, after minority interest, rose to SAR 919.92 million as of Dec. 31, 2023, compared to SAR 863.48 million a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 773.49 35.3 % 113.12 37.0 % 46.72 15.8 % 0.78
Q2 2014 758.47 22.4 % 107.51 2.2 % 47.10 7.1 % 0.79
Q3 2014 613.76 (0.4 %) 92.10 (18.2 %) 45.42 1.0 % 0.76
Q4 2014 654.49 2.1 % 81.30 (12.8 %) 37.22 (4.3 %) 0.62
Q1 2015 661.53 (14.5 %) 76.76 (32.1 %) 27.33 (41.5 %) 0.46
Q2 2015 646.04 (14.8 %) 71.90 (33.1 %) 23.81 (49.5 %) 0.40
Q3 2015 546.48 (11.0 %) 70.02 (24.0 %) 20.13 (55.7 %) 0.34
Q4 2015 549.94 (16.0 %) 76.47 (5.9 %) 16.88 (54.6 %) 0.28
Q1 2016 611.19 (7.6 %) 83.15 8.3 % 28.52 4.4 % 0.48
Q2 2016 642.66 (0.5 %) 120.65 67.8 % 53.22 123.6 % 0.89
Q3 2016 535.02 (2.1 %) 73.70 5.3 % 21.11 4.9 % 0.35
Q4 2016 529.76 (3.7 %) 74.24 (2.9 %) 11.52 (31.8 %) 0.19
Q1 2017 549.99 (10.0 %) 68.85 (17.2 %) 21.59 (24.3 %) 0.36
Q2 2017 475.66 (26.0 %) 53.25 (55.9 %) 8.90 (83.3 %) 0.15
Q3 2017 506.94 (5.2 %) 62.89 (14.7 %) 23.29 10.4 % 0.39
Q4 2017 596.16 12.5 % 78.21 5.3 % 17.23 49.6 % 0.29
Q1 2018 522.35 (5.0 %) 56.60 (17.8 %) 14.02 (35.1 %) 0.23
Q2 2018 465.77 (2.1 %) 39.73 (25.4 %) 1.60 (82.0 %) 0.03
Q3 2018 443.81 (12.5 %) 40.11 (36.2 %) (4.13) (117.7 %) (0.07)
Q4 2018 521.52 (12.5 %) 19.14 (75.5 %) (229.84) (1433.9 %) (3.83)
Q1 2019 596.81 14.3 % 71.18 25.8 % 15.04 7.3 % 0.25
Q2 2019 519.17 11.5 % 58.94 48.4 % 3.03 89.3 % 0.05
Q3 2019 525.59 18.4 % 57.07 42.3 % 3.26 179.1 % 0.05
Q4 2019 593.66 13.8 % 62.00 223.9 % 5.30 102.3 % 0.09
Q1 2020 644.14 7.9 % 80.24 12.7 % 15.21 1.1 % 0.25
Q2 2020 520.90 0.3 % 61.21 3.8 % 15.46 410.9 % 0.26
Q3 2020 548.78 4.4 % 86.93 52.3 % 29.58 806.7 % 0.49
Q4 2020 709.46 19.5 % 113.49 83.0 % 29.92 464.7 % 0.50
Q1 2021 862.12 33.8 % 102.46 27.7 % 41.68 174.1 % 0.69
Q2 2021 788.82 51.4 % 115.43 88.6 % 43.12 178.8 % 0.72
Q3 2021 727.44 32.6 % 95.89 10.3 % 40.93 38.4 % 0.68
Q4 2021 849.04 19.7 % 111.70 (1.6 %) 44.61 49.1 % 0.74
Q1 2022 893.11 3.6 % 117.59 14.8 % 50.35 20.8 % 0.84
Q2 2022 798.25 1.2 % 106.94 (7.4 %) 44.56 3.3 % 0.74
Q3 2022 812.96 11.8 % 89.42 (6.7 %) 38.12 (6.9 %) 0.64
Q4 2022 859.94 1.3 % 90.16 (19.3 %) 29.83 (33.1 %) 0.50
Q1 2023 892.45 (0.1 %) 95.44 (18.8 %) 34.53 (31.4 %) 0.58
Q2 2023 768.08 (3.8 %) 83.96 (21.5 %) 25.04 (43.8 %) 0.42
Q3 2023 832.01 2.3 % 99.02 10.7 % 40.10 5.2 % 0.67
Q4 2023 859.28 (0.1 %) 107.18 18.9 % 36.37 21.9 % 0.61
2023 3,351.81 (0.4 %) 385.73 (4.5 %) 136.04 (16.5 %) 2.27

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 16.01 % 11.23 % 7.36 %
Q2 2014 15.29 % 10.41 % 6.54 %
Q3 2014 14.57 % 9.81 % 6.02 %
Q4 2014 14.07 % 9.60 % 5.89 %
Q1 2015 13.30 % 8.89 % 5.18 %
Q2 2015 12.50 % 8.18 % 4.65 %
Q3 2015 11.96 % 7.43 % 3.80 %
Q4 2015 12.28 % 7.47 % 3.67 %
Q1 2016 12.81 % 7.81 % 3.80 %
Q2 2016 14.90 % 9.35 % 5.05 %
Q3 2016 15.13 % 9.52 % 5.12 %
Q4 2016 15.17 % 9.26 % 4.93 %
Q1 2017 14.95 % 9.12 % 4.76 %
Q2 2017 12.92 % 7.55 % 3.02 %
Q3 2017 12.57 % 7.50 % 3.17 %
Q4 2017 12.36 % 7.64 % 3.34 %
Q1 2018 11.94 % 7.16 % 3.02 %
Q2 2018 11.35 % 6.60 % 2.68 %
Q3 2018 10.58 % 5.59 % 1.42 %
Q4 2018 7.96 % 2.70 % (1.49 %)
Q1 2019 8.39 % 3.04 % (1.39 %)
Q2 2019 9.10 % 3.54 % (1.28 %)
Q3 2019 9.54 % 3.97 % (0.89 %)
Q4 2019 11.15 % 5.57 % 0.60 %
Q1 2020 11.31 % 5.80 % 0.91 %
Q2 2020 11.40 % 6.05 % 1.31 %
Q3 2020 12.58 % 7.09 % 2.23 %
Q4 2020 14.11 % 8.54 % 3.64 %
Q1 2021 13.78 % 8.52 % 4.08 %
Q2 2021 14.38 % 8.97 % 4.77 %
Q3 2021 13.84 % 8.80 % 5.01 %
Q4 2021 13.18 % 8.28 % 5.11 %
Q1 2022 13.52 % 8.70 % 5.33 %
Q2 2022 13.22 % 8.74 % 5.36 %
Q3 2022 12.69 % 8.60 % 5.14 %
Q4 2022 12.01 % 8.46 % 4.84 %
Q1 2023 11.36 % 7.99 % 4.37 %
Q2 2023 10.77 % 7.51 % 3.68 %
Q3 2023 10.99 % 7.31 % 3.63 %
Q4 2023 11.50 % 7.47 % 3.83 %
2023 11.51 % 7.47 % 3.83 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 60.00 2.91 3.25 12.68
Q2 2014 60.00 2.96 3.04 12.18
Q3 2014 60.00 2.97 2.80 12.51
Q4 2014 60.00 2.94 2.75 12.66
Q1 2015 60.00 2.62 2.32 12.69
Q2 2015 60.00 2.23 2.00 12.66
Q3 2015 60.00 1.81 1.59 12.79
Q4 2015 60.00 1.47 1.47 12.79
Q1 2016 60.00 1.49 1.49 13.02
Q2 2016 60.00 1.98 1.98 13.65
Q3 2016 60.00 2.00 2.00 13.62
Q4 2016 60.00 1.91 1.91 13.52
Q1 2017 60.00 1.79 1.79 13.64
Q2 2017 60.00 1.05 1.05 13.39
Q3 2017 60.00 1.09 1.09 13.78
Q4 2017 60.00 1.18 1.18 14.03
Q1 2018 60.00 1.06 1.06 13.84
Q2 2018 60.00 0.94 0.94 13.86
Q3 2018 60.00 0.48 0.48 13.80
Q4 2018 60.00 (3.64) (0.49) 10.11
Q1 2019 60.00 (3.62) (0.47) 10.36
Q2 2019 60.00 (3.60) (0.45) 10.42
Q3 2019 60.00 (3.48) (0.32) 10.48
Q4 2019 60.00 0.44 0.23 10.44
Q1 2020 60.00 0.45 0.35 10.68
Q2 2020 60.00 0.65 0.50 10.94
Q3 2020 60.00 1.09 0.86 11.43
Q4 2020 60.00 1.50 1.47 11.54
Q1 2021 60.00 1.94 1.80 11.64
Q2 2021 60.00 2.41 2.31 12.36
Q3 2021 60.00 2.59 2.58 12.32
Q4 2021 60.00 2.84 2.75 12.33
Q1 2022 60.00 2.98 2.90 13.16
Q2 2022 60.00 3.01 2.92 13.91
Q3 2022 60.00 2.96 2.87 13.69
Q4 2022 60.00 2.71 2.71 14.39
Q1 2023 60.00 2.45 2.45 14.32
Q2 2023 60.00 2.13 2.04 14.73
Q3 2023 60.00 2.16 2.03 14.75
Q4 2023 60.00 2.27 2.14 15.33

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 16.90 15.13 3.88
Q2 2014 21.00 20.46 5.10
Q3 2014 22.05 23.40 5.23
Q4 2014 13.46 14.41 3.13
Q1 2015 15.62 17.62 3.22
Q2 2015 18.03 20.15 3.18
Q3 2015 15.58 17.70 2.20
Q4 2015 15.89 15.89 1.83
Q1 2016 11.49 11.49 1.31
Q2 2016 11.78 11.78 1.71
Q3 2016 8.58 8.58 1.26
Q4 2016 11.87 11.87 1.67
Q1 2017 10.81 10.81 1.42
Q2 2017 16.67 16.67 1.31
Q3 2017 15.70 15.70 1.24
Q4 2017 14.80 14.80 1.25
Q1 2018 16.31 16.31 1.25
Q2 2018 18.30 18.30 1.23
Q3 2018 29.58 29.58 1.03
Q4 2018 NEG NEG 1.31
Q1 2019 NEG NEG 1.36
Q2 2019 NEG NEG 1.31
Q3 2019 NEG NEG 1.41
Q4 2019 36.18 71.30 1.54
Q1 2020 24.86 32.12 1.04
Q2 2020 19.94 26.15 1.19
Q3 2020 17.23 21.92 1.65
Q4 2020 16.53 16.88 2.15
Q1 2021 16.74 18.13 2.80
Q2 2021 16.84 17.53 3.28
Q3 2021 16.71 16.81 3.52
Q4 2021 12.35 12.74 2.84
Q1 2022 11.13 11.47 2.52
Q2 2022 9.54 9.83 2.06
Q3 2022 11.91 12.27 2.57
Q4 2022 10.81 10.81 2.04
Q1 2023 11.51 11.51 1.97
Q2 2023 17.06 17.73 2.46
Q3 2023 15.24 16.21 2.23
Q4 2023 20.11 21.32 2.97

Business Segments (Million)

Compared With The
Period Steel and Wood Electrical products Plastic concrete Iron Industry Wood Others
Q1 2014 - 214.90 - 49.87 354.48 154.23 -
Q2 2014 - 213.59 - 48.86 330.29 165.73 -
Q3 2014 - 140.24 - 38.50 243.33 191.69 -
Q4 2014 - 119.18 - 53.22 316.65 165.44 -
Q1 2015 - 90.02 - 57.09 330.33 184.08 -
Q2 2015 - 113.47 - 51.96 301.33 179.29 -
Q3 2015 - 119.82 - 46.97 215.28 164.41 -
Q4 2015 - 146.98 - 51.18 200.32 151.46 -
Q1 2016 398.15 161.52 - 51.52 - - -
Q2 2016 406.92 184.17 - 51.57 - - -
Q3 2016 325.99 165.20 - 43.83 - - -
Q4 2016 365.21 116.84 - 47.70 - - -
Q1 2017 390.68 110.76 - 48.56 - - -
Q2 2017 337.01 94.47 - 44.18 - - -
Q3 2017 400.03 63.71 - 43.20 - - -
Q4 2017 455.36 91.42 - 49.38 - - -
Q1 2018 408.92 75.86 - 37.58 - - -
Q2 2018 366.07 67.85 - 31.85 - - -
Q3 2018 344.77 59.99 - 39.06 - - -
Q4 2018 417.37 58.45 - 45.70 - - -
Q1 2019 404.71 66.12 75.71 50.27 - - -
Q2 2019 323.14 68.05 82.88 45.10 - - -
Q3 2019 332.42 67.62 75.16 50.39 - - -
Q4 2019 403.10 59.25 76.31 55.01 - - -
Q1 2020 450.93 72.47 73.18 47.57 - - -
Q2 2020 350.47 78.94 56.95 34.55 - - -
Q3 2020 343.45 94.27 63.06 48.00 - - -
Q4 2020 495.11 96.22 69.70 48.43 - - -
Q1 2021 601.67 136.63 81.02 42.80 - - -
Q2 2021 552.98 118.87 86.38 30.59 - - -
Q3 2021 499.75 103.52 81.64 42.52 - - -
Q4 2021 584.15 89.85 115.91 59.13 - - -
Q1 2022 618.82 179.63 94.66 57.32 - - -
Q2 2022 564.05 139.59 94.62 - - - -
Q3 2022 594.44 129.11 89.41 - - - -
Q4 2022 612.18 160.32 87.45 - - - -
Q1 2023 591.51 206.48 94.47 - - - -
Q2 2023 519.62 165.81 82.66 - - - -
Q3 2023 588.62 161.50 81.89 - - - -
Q4 2023 667.60 103.97 87.70 - - - -

Analysts Estimates (Million)

Item Q4 2023 (e) Q4 2023 (a) Change‬
Average 42.57 36.37 (14.6 %)

Estimates vs Actual (Million)

Item Q4 2023 (e) Q4 2023 (a) Change
Al Rajhi Capital 40.00 36.37 (9.1) %
OSOOL AND BAKHEET 45.14 36.37 (19.4) %

Current
Market Cap (M Riyal) 2,685.00
Enterprise Value (EV) (M) 3,082.54
Shares Outstanding ((M)) 60.00
EPS ( Riyal) (TTM) 2.18
Book Value (BV) ( Riyal) 14.97
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 21.84
P/E (TTM) 20.55
Price/book 2.99
Return on Average Assets (%) (TTM) 5.7
Return on Average Equity (%) (TTM) 14.9

Share Price

44.75
0.10 0.22 %

Bawan Co. (BAWAN)


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