Dar Al Arkan 9M 2023 profit rises 6% to SAR 416 mln, Q3 at SAR 151.9 mln

Dar Al Arkan 9M 2023 profit rises 6% to SAR 416 mln, Q3 at SAR 151.9 mln

05/11/2023 Argaam Exclusive

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Dar Al Arkan Real Estate Development Co. said net profit rose 6% to SAR 416 million in the first nine months of 2022, compared to SAR 393 million a year ago. 



Financials (M)

Item 9m 2022 9m 2023 Change‬
Revenues 3,039.83 2,306.25 (24.1 %)
Gross Income 1,112.53 901.78 (18.9 %)
Operating Income 875.15 737.22 (15.8 %)
Net Income 393.01 416.01 5.9 %
Average Shares 1,080.00 1,080.00 -
EPS (Riyals) 0.36 0.39 5.9 %

The higher income was driven by a decline in operating expenses, an upsurge in lease revenue, and an increase in the share of income from associates.  

 

Although there was an escalation in finance costs, this was partially offset by higher non-operating income from the Murabaha deposit, leading to a favorable impact on the net income. 



Current Quarter Comparison (M)

Compared With The
Item Q3 2022 Q3 2023 Change‬
Revenues 742.54 715.70 (3.6 %)
Gross Income 304.26 285.35 (6.2 %)
Operating Income 218.52 234.31 7.2 %
Net Income 79.42 151.91 91.3 %
Average Shares 1,080.00 1,080.00 -
EPS (Riyals) 0.07 0.14 91.3 %

In Q3 2023, the developer's net earnings climbed to SAR 151.9 million, recording a 91% surge from SAR 79.42 million in Q3 2022. This growth was supported by a decrease in operating expenses, an increase in lease revenue, and a higher share of profit from associates.  

 

On a quarterly basis, net profit grew 3.7% from SAR 146.48 million in Q2 2023.  

 

Total shareholders’ equity, no minority interest, reached SAR 20.10 billion as of Sept. 30, 2023, compared to SAR 19.55 billion in the prior-year period. 



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 924.09 10.6 % 402.77 7.2 % 247.86 4.3 % 0.23
Q2 2014 774.21 13.7 % 294.24 41.4 % 121.34 17.0 % 0.11
Q3 2014 751.01 4.1 % 296.13 (3.4 %) 89.90 (51.0 %) 0.08
Q4 2014 606.75 (12.4 %) 306.11 16.4 % 115.60 (26.3 %) 0.11
Q1 2015 722.36 (21.8 %) 330.92 (17.8 %) 147.29 (40.6 %) 0.14
Q2 2015 528.69 (31.7 %) 229.36 (22.0 %) 70.48 (41.9 %) 0.07
Q3 2015 540.95 (28.0 %) 242.16 (18.2 %) 92.73 3.1 % 0.09
Q4 2015 419.35 (30.9 %) 180.79 (40.9 %) 48.66 (57.9 %) 0.05
Q1 2016 434.61 (39.8 %) 191.60 (42.1 %) 57.85 (60.7 %) 0.05
Q2 2016 407.56 (22.9 %) 184.70 (19.5 %) 43.23 (38.7 %) 0.04
Q3 2016 617.57 14.2 % 245.20 1.3 % 112.47 21.3 % 0.10
Q4 2016 410.49 (2.1 %) 170.46 (5.7 %) 37.29 (23.4 %) 0.03
Q1 2017 360.33 (17.1 %) 135.69 (29.2 %) 12.13 (79.0 %) 0.01
Q2 2017 456.49 12.0 % 160.14 (13.3 %) 10.94 (74.7 %) 0.01
Q3 2017 1,482.74 140.1 % 352.81 43.9 % 209.62 86.4 % 0.19
Q4 2017 2,435.12 493.2 % 465.37 173.0 % 320.68 760.0 % 0.30
Q1 2018 2,793.91 675.4 % 474.61 249.8 % 331.12 2629.1 % 0.31
Q2 2018 1,784.80 291.0 % 266.17 66.2 % 108.60 892.3 % 0.10
Q3 2018 987.63 (33.4 %) 164.67 (53.3 %) 36.73 (82.5 %) 0.03
Q4 2018 846.09 (65.3 %) 151.86 (67.4 %) 32.53 (89.9 %) 0.03
Q1 2019 823.68 (70.5 %) 159.28 (66.4 %) 25.51 (92.3 %) 0.02
Q2 2019 927.85 (48.0 %) 201.72 (24.2 %) 74.96 (31.0 %) 0.07
Q3 2019 899.41 (8.9 %) 250.56 52.2 % 134.87 267.2 % 0.12
Q4 2019 840.92 (0.6 %) 212.87 40.2 % 69.26 112.9 % 0.06
Q1 2020 593.02 (28.0 %) 160.03 0.5 % 12.42 (51.3 %) 0.01
Q2 2020 464.34 (50.0 %) 156.05 (22.6 %) 10.37 (86.2 %) 0.01
Q3 2020 391.24 (56.5 %) 161.64 (35.5 %) (18.59) (113.8 %) (0.02)
Q4 2020 496.26 (41.0 %) 196.93 (7.5 %) 14.60 (78.9 %) 0.01
Q1 2021 554.84 (6.4 %) 204.54 27.8 % 28.52 129.7 % 0.03
Q2 2021 567.76 22.3 % 207.73 33.1 % 22.44 116.5 % 0.02
Q3 2021 595.41 52.2 % 216.52 34.0 % 25.17 235.4 % 0.02
Q4 2021 775.07 56.2 % 267.94 36.1 % 56.40 286.2 % 0.05
Q1 2022 1,619.34 191.9 % 562.78 175.1 % 221.02 675.0 % 0.20
Q2 2022 677.95 19.4 % 245.49 18.2 % 92.58 312.5 % 0.09
Q3 2022 742.54 24.7 % 304.26 40.5 % 79.42 215.6 % 0.07
Q4 2022 885.67 14.3 % 345.06 28.8 % 48.71 (13.6 %) 0.05
Q1 2023 764.32 (52.8 %) 300.84 (46.5 %) 117.63 (46.8 %) 0.11
Q2 2023 826.23 21.9 % 315.59 28.6 % 146.48 58.2 % 0.14
Q3 2023 715.70 (3.6 %) 285.35 (6.2 %) 151.91 91.3 % 0.14

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 39.09 % 35.67 % 22.91 %
Q2 2014 40.68 % 36.30 % 22.79 %
Q3 2014 39.97 % 34.70 % 19.60 %
Q4 2014 42.51 % 36.47 % 18.81 %
Q1 2015 43.00 % 36.39 % 16.61 %
Q2 2015 44.56 % 37.60 % 16.22 %
Q3 2015 46.21 % 39.61 % 17.76 %
Q4 2015 44.46 % 38.36 % 16.24 %
Q1 2016 43.87 % 38.20 % 14.02 %
Q2 2016 44.34 % 39.09 % 13.45 %
Q3 2016 42.69 % 38.63 % 13.95 %
Q4 2016 42.34 % 37.93 % 13.41 %
Q1 2017 40.98 % 36.42 % 11.42 %
Q2 2017 38.57 % 34.05 % 9.37 %
Q3 2017 30.22 % 27.00 % 9.96 %
Q4 2017 23.53 % 21.73 % 11.69 %
Q1 2018 20.27 % 19.08 % 12.17 %
Q2 2018 18.35 % 17.34 % 11.42 %
Q3 2018 17.13 % 16.05 % 9.96 %
Q4 2018 16.49 % 15.08 % 7.94 %
Q1 2019 16.70 % 14.45 % 4.58 %
Q2 2019 18.90 % 16.03 % 4.73 %
Q3 2019 21.83 % 18.75 % 7.66 %
Q4 2019 23.61 % 20.20 % 8.72 %
Q1 2020 25.30 % 21.53 % 8.94 %
Q2 2020 27.86 % 23.78 % 8.11 %
Q3 2020 30.16 % 25.09 % 3.21 %
Q4 2020 34.69 % 28.77 % 0.97 %
Q1 2021 37.72 % 32.16 % 1.83 %
Q2 2021 38.35 % 32.45 % 2.34 %
Q3 2021 37.29 % 31.12 % 4.10 %
Q4 2021 35.97 % 29.43 % 5.32 %
Q1 2022 35.28 % 29.87 % 12.90 %
Q2 2022 35.25 % 28.85 % 13.32 %
Q3 2022 36.19 % 29.30 % 14.23 %
Q4 2022 37.13 % 29.29 % 13.63 %
Q1 2023 38.94 % 29.18 % 9.70 %
Q2 2023 39.32 % 30.97 % 12.19 %
Q3 2023 39.06 % 31.78 % 14.56 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 1,080.00 0.64 0.64 15.96
Q2 2014 1,080.00 0.66 0.66 16.08
Q3 2014 1,080.00 0.57 0.57 16.16
Q4 2014 1,080.00 0.53 0.53 16.27
Q1 2015 1,080.00 0.44 0.44 16.40
Q2 2015 1,080.00 0.39 0.39 16.47
Q3 2015 1,080.00 0.39 0.39 16.55
Q4 2015 1,080.00 0.33 0.33 16.60
Q1 2016 1,080.00 0.25 0.25 16.65
Q2 2016 1,080.00 0.22 0.22 16.69
Q3 2016 1,080.00 0.24 0.24 16.80
Q4 2016 1,080.00 0.23 0.23 16.83
Q1 2017 1,080.00 0.19 0.19 16.84
Q2 2017 1,080.00 0.16 0.16 16.85
Q3 2017 1,080.00 0.25 0.25 17.05
Q4 2017 1,080.00 0.51 0.51 17.35
Q1 2018 1,080.00 0.81 0.81 17.65
Q2 2018 1,080.00 0.90 0.90 17.25
Q3 2018 1,080.00 0.74 0.74 17.29
Q4 2018 1,080.00 0.47 0.47 17.32
Q1 2019 1,080.00 0.19 0.19 17.34
Q2 2019 1,080.00 0.16 0.16 17.41
Q3 2019 1,080.00 0.25 0.25 17.54
Q4 2019 1,080.00 0.28 0.28 17.60
Q1 2020 1,080.00 0.27 0.27 17.61
Q2 2020 1,080.00 0.21 0.21 17.62
Q3 2020 1,080.00 0.07 0.07 17.61
Q4 2020 1,080.00 0.02 0.02 17.62
Q1 2021 1,080.00 0.03 0.03 17.64
Q2 2021 1,080.00 0.04 0.04 17.66
Q3 2021 1,080.00 0.08 0.08 17.69
Q4 2021 1,080.00 0.12 0.12 17.74
Q1 2022 1,080.00 0.30 0.42 17.95
Q2 2022 1,080.00 0.37 0.45 18.03
Q3 2022 1,080.00 0.42 0.50 18.10
Q4 2022 1,080.00 0.41 0.50 18.15
Q1 2023 1,080.00 0.31 0.28 18.26
Q2 2023 1,080.00 0.36 0.36 18.39
Q3 2023 1,080.00 0.43 0.43 18.61

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 19.52 19.52 0.78
Q2 2014 18.80 18.80 0.77
Q3 2014 24.41 24.41 0.86
Q4 2014 15.28 15.28 0.50
Q1 2015 19.52 19.52 0.52
Q2 2015 23.17 23.17 0.55
Q3 2015 17.64 17.64 0.42
Q4 2015 18.64 18.64 0.37
Q1 2016 21.02 21.02 0.32
Q2 2016 28.86 28.86 0.39
Q3 2016 19.56 19.56 0.28
Q4 2016 26.52 26.52 0.37
Q1 2017 31.54 31.54 0.36
Q2 2017 41.87 41.87 0.40
Q3 2017 26.00 26.00 0.38
Q4 2017 28.10 28.10 0.83
Q1 2018 15.52 15.52 0.71
Q2 2018 11.74 11.74 0.61
Q3 2018 13.51 13.51 0.58
Q4 2018 19.14 19.14 0.52
Q1 2019 56.82 56.82 0.62
Q2 2019 75.09 75.09 0.68
Q3 2019 48.14 48.14 0.68
Q4 2019 39.00 39.00 0.62
Q1 2020 30.38 30.38 0.47
Q2 2020 33.79 33.79 0.40
Q3 2020 More than 100 More than 100 0.53
Q4 2020 More than 100 More than 100 0.49
Q1 2021 More than 100 More than 100 0.52
Q2 2021 More than 100 More than 100 0.60
Q3 2021 More than 100 More than 100 0.58
Q4 2021 81.99 81.99 0.57
Q1 2022 36.35 25.75 0.61
Q2 2022 29.41 23.78 0.60
Q3 2022 38.21 31.63 0.88
Q4 2022 28.41 23.45 0.64
Q1 2023 51.14 58.07 0.88
Q2 2023 42.24 42.24 0.83
Q3 2023 36.63 36.63 0.85

Business Segments (Million)

Compared With The
Period Real estate development property Leasing Sale of Land Sale of residential properties Others
Q1 2014 - 31.22 892.87 - -
Q2 2014 - 31.02 735.19 8.00 -
Q3 2014 - 29.81 721.20 - -
Q4 2014 - 32.57 574.17 - -
Q1 2015 - 32.85 689.51 - -
Q2 2015 - 33.12 495.57 - -
Q3 2015 - 35.02 505.93 - -
Q4 2015 - 35.09 384.26 - -
Q1 2016 - 36.69 397.92 - -
Q2 2016 - 36.93 370.63 - -
Q3 2016 - 34.51 583.06 - -
Q4 2016 - 37.42 373.08 - -
Q1 2017 - 38.82 321.51 - -
Q2 2017 - 36.23 417.20 - -
Q3 2017 - 36.41 1,445.21 1.13 -
Q4 2017 - 38.40 2,400.90 - -
Q1 2018 2,759.90 34.02 - - -
Q2 2018 1,750.72 34.08 - - -
Q3 2018 955.17 32.29 - - -
Q4 2018 810.70 35.39 - - -
Q1 2019 789.39 34.28 - - -
Q2 2019 891.99 35.86 - - -
Q3 2019 862.30 37.11 - - -
Q4 2019 806.53 34.39 - - -
Q1 2020 555.64 37.38 - - -
Q2 2020 437.84 26.51 - - -
Q3 2020 356.61 34.62 - - -
Q4 2020 462.29 33.97 - - -
Q1 2021 524.66 30.18 - - -
Q2 2021 539.83 27.94 - - -
Q3 2021 568.67 26.75 - - -
Q4 2021 746.30 28.76 - - -
Q1 2022 1,592.24 27.10 - - -
Q2 2022 651.77 26.18 - - -
Q3 2022 712.78 29.76 - - -
Q4 2022 852.82 32.84 - - -
Q1 2023 732.09 32.24 - - -
Q2 2023 795.14 31.09 - - -
Q3 2023 680.64 35.06 - - -

Analysts Estimates (Million)

Item Q3 2023 (e) Q3 2023 (a) Change‬
Average 137.20 151.91 10.72 %

Estimates vs Actual (Million)

Item Q3 2023 (e) Q3 2023 (a) Change
SNB Capital 137.20 151.91 10.7 %

Current
Market Cap (M Riyal) 12,139.20
Enterprise Value (EV) (M) 17,107.91
Shares Outstanding ((M)) 1,080.00
EPS ( Riyal) (TTM) 0.60
Book Value (BV) ( Riyal) 18.92
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 18.77
P/E (TTM) 18.77
Price/book 0.59
Return on Average Assets (%) (TTM) 2.0
Return on Average Equity (%) (TTM) 3.2

Share Price

Dar Alarkan Real Estate Development Co. (DAR ALARKAN)


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