Farm Superstores
Retail Sector
SMARKETI AB - 4006.SE
April 30, 2015
Saudi Marketing Company (SAMCO)
Recommendation
Fair Value (SAR)
Neutral
77.37
Price as of April 30, 2015
75.00
Expected Return
3.2%
Company Data
Tadawul Symbol
4006.SE
52 Week High (SAR)
105.00
52 Week Low (SAR)
58.50
YTD Change
-10.7%
3-Month Average Volume (Thousand Shares)
129.8
Market Cap. (SAR Million)
2,625
Market Cap. (USD Million)
700
Outstanding Shares (Million Shares)
35
Major Shareholders ( > 5% )
Hazem Al Aswad Family
Farm Superstore
%52.2
Retail Sector Index
Saudi Marketing Company (also Farm Superstores or SAMCO) was incorporated in 1978 in the city of Dammam on the eastern province of the Kingdom
of Saudi Arabia. The company operates in multiple activities including wholesale and retail trading in foodstuff, household utensils, toys, fabrics, clothing
and stationery. In addition, SAMCO’s lines of business also includes bakery
activity for its account and management for others. SAMCO was listed in the
market in an IPO at the beginning of 2014 through selling 30% of its shares
(equivalent to 7.5 million shares) for subscription at price of SAR 36 per share.
In Q1 2015, net profit hit SAR 29.1 million, which is lower than our expectation
of SAR 32 million. The first-quarter’s profit grew 5.24% versus the same quarter of 2014 and 25.84% compared to the fourth quarter of 2014. The YoY
growth resulted from the increase in top line by SAR 43.7 million coming in at
SAR 409.5 million due to the increased number of branches. On the other
side, sales grew only SAR 16.3 million compared to the fourth quarter of
2014.
The number of supermarkets totaled 50 branches in 2014 compared to 45
branches by the end of 2013. In addition, the number of the minimarkets increased from 20 to 23 outlets. In Q1 2015, SAMCO augmented the network of
supermarkets to 52 branches; an increase of two branches from December
2014 and an increase of 6 branches versus the first quarter of 2014. The company plans to increase the number of supermarkets and minimarkets to 58
and 25 outlets, respectively in 2015. In addition, the network of Adventures
World is planned to reach 10 branches by the end of 2015 compared to 9
branch by the end of 2014.
Tadawul Index
The company has many strength aspects, in particular; the defensive nature of
the food and consumer goods sector will protect it from being significantly
affected by low oil prices. As SAMCO expanded into different high-margin sectors to offset the low levels of profitability in the retail business. In addition,
the level of existing debt is low compared to the size of the company's assets
with the ratio of debt to assets reaching 22% in 2014, while interest coverage
amounted to 18 times. The company’s operations still concentrate in the eastern region and therefore there are great opportunities in the central and
western regions which are the most densely populated regions in the kingdom. The fundamental challenges facing the company include the low profit
margins in the retail sector, which requires controlling the level of expenses,
building robust relationships with suppliers, supporting margins through importation and private labelling especially in light of the increasing competition
in the sector.
160
150
140
130
120
110
100
90
80
70
For more information you may contact:
Turki Fadaak
Research & Advisory Manager
tfadaak@albilad-capital.com
Or Albilad Capital Head Office:
Tel:
Fax:
P.O. Box:
Riyadh
Initiation of Coverage
+966 11 203 9892
+966 11 479 8453
140
11411
Our website:
www.albilad-capital.com/en/research
We initiate our coverage of the company's fair share with a value of SAR 77.4
through the use of cash flow model and therefore we give a recommendation
to "neutral"
FY - Ending December
EV/EBITDA
EV/Sales
P/E
Dividend Yield
P/BV
P/Revenue
Current ratio
Revenue Growth
2013A
2014A
2015E
2016F
22.52
19.70
17.90
15.16
1.71
1.63
1.42
1.23
27.59
25.13
23.21
19.41
0.0%
2.0%
2.0%
3.3%
6.69
5.29
4.71
4.10
1.80
1.70
1.52
1.36
0.82
0.97
1.03
1.10
8.7%
7.1%
10.9%
12.2%
1
Farm Superstores
Retail Sector
SMARKETI AB - 4006.SE
April 30, 2015
Saudi Marketing Company (SAMCO or Farm Superstores)
Incorporated in 1978 in the city of Dammam, SAMCO operates in various lines of business including wholesale and retail trade in food,
household utensils, toys, fabrics, clothing and stationery. According to the 2014 annual report, SAMCO’s workforce reached 3,355 employees. The company went public in 2014 after the founding family sold 30% of the company's shares in the Saudi Stock Market collecting SAR 270 million.
The company's activities vary among a number of business lines as detailed in the following points:

Farm Superstores (Grocery operations): the company's grocery network in 2014 encompassed 50 supermarkets as well as another
23 small minimarkets located within some residential complexes. The number of items that are sold in the company's outlets more
than 60k stock keeping units. The grocery network is active in the different regions of the kingdom with a remarkable concentration
in the eastern region. The company's policy does not involve the construction of large-scale commercial centers (hypermarkets).

Adventure World: This activity represents a range of leisure cities for children and operates through 9 branches including an external branch in Lebanon. SAMCO seeks to have the leisure outlets close to some grocery branches to maximize synergies.

Wholesale division: The company owns exclusive distribution rights of German EMSA thermos and products of the German Kaiser
Company, specialized in manufacturing high quality cakes molds and bakery tools. The company has three distribution outlets in
Riyadh, Jeddah and Dammam.

Pure Spring Agencies & Trading Company Ltd (Pusatco): Incorporated in 2003, the company operates in the establishment, management and operation of restaurants, lounges and commercial agencies. Pure Springs Company is the exclusive owner of the franchise of the CINNAROL BAKERIES products; the owner of both "Cinnzeo" trademark (bakery and coffee) and WETZEL'S PRETZELS
LLC in the Middle and North Africa. Pure Springs Company has 20 branches in the Kingdom, as well as 30 others branches franchised by internal agents and 8 externally franchised outlets.

Saudi Marketing Company- Lebanon: A wholly-owned subsidiary that owns, operates and managing markets and commercial complexes in Lebanon. The company has an agreement to lease and manage Beirut Mall built on an area of more than 50k square meters and includes a grocery branch, an Adventures World’s outlets as well as shops leased to other parties .
Revenues
Gross Profits
Net Profits
SAR mn
2013
2014
Change
2013
2014
Change
2013
2014
Change
1,428.6
1,561.6
%9.3
254.6
308.2
%21.0
59.4
76.2
%28.1
Wholesale
82.1
87.7
%6.8
35.1
34.7
%1.0-
16.1
13.7
%14.7-
Adventures World
34.6
43.8
%26.5
23.0
29.1
%27.0
15.0
19.6
%30.4
Lebanon Mall
65.1
30.5
%53.2-
29.9
18.3
%38.8-
2.2
)7.5(
%436.8-
PUSATCO
16.0
17.6
%9.7
11.5
12.9
%12.3
2.7
2.8
%3.1
1,626.3
1,741.0
%7.1
354.1
403.3
%13.9
95.4
104.7
%9.8
Grocery Stores
Total
Source: SAMCO & Albilad Research
Supermarkets and Minimarkets branches
By the end of 2014, the number of supermarkets reached 50 branches
up from 45 branches in 2013, while the number of minimarkets surged
from 20 to 23 branches. The total sales area of the outlets amounted to
106.8k square meters rising from 90.1k square meters in 2013. In Q1
2015, two superstores and one minimarket were inaugurated in the
central region of the kingdom.
According to our expectations, and based on our meeting with the management, the number of supermarkets is anticipated to hit 58 branches
at the end of this year, then five new branches are assumed in our model for 2016. As for minimarkets, our expectations are constructed on
increasing the number of minimarkets to 25 branches at the end of the
year 2015 and 27 branches in 2016.
60
50
40
30
20
10
0
2009
2010
2011
2012
2013
2014
Supermarkets
31
35
37
42
45
50
Minimarkets
9
13
16
21
20
23
Source: SAMCO & Albilad Research
2
Farm Superstores
Retail Sector
SMARKETI AB - 4006.SE
April 30, 2015
The company is seeking to expand in the central and western regions of the kingdom given the concentration of operations in the east.
It is noteworthy that the provinces of Riyadh and Makkah together seized about 51% of total population. In the previous year, SAMCO
opened its first grocery store in the city of Riyadh and set up a regional administration to take over expansions in the region.
Geographical Distribution of Grocery Stores.
38
40
35
30
23
25
20
15
10
7
3
5
3
1
1
0
Center
West
South
Supermarkets
North
East
Minimarkets
Adventure World
Source: SAMCO
At the end of 2014, the number of Adventure World outlets stood at 9 up from 7 branches in 2013, and following figure shows the evolution of the world of adventures branches since 2009, the company plans to open a new branch in 2015.
10
9
9
8
7
7
6
5
5
5
2011
2012
4
4
3
3
2
1
0
2009
2010
2013
2014
Source: SAMCO
Wholesale Branches
The first wholesale outlet commenced operations in Dammam in 1980 and two subsequent outlets in Jeddah and Riyadh were rolled
out augmenting the number of outlets to 3 branches.
4
3
3
3
3
3
3
2009
2010
2011
2012
2013
2014
3
2
1
0
Source: SAMCO
3
Farm Superstores
Retail Sector
SMARKETI AB - 4006.SE
April 30, 2015
Retail Food Market
Economic growth in the last decade accompanied a material shift in consumption patterns leading to higher consumption and an increase in various types of retail outlets in parallel with strong cash inflows.
Owing to the nature of the sector and the fact that it includes non-food products such as clothes, household products, electronics …
etc., there are deviations in the estimates related to the size of the sector. US Ministry of Agriculture estimated the size of the Saudi
food retail market food at USD 40 billion (SAR 150.3 billion) in 2013. The figure is expected to reach USD 45 billion (SAR 169 billion) in
2017, with the support of the population growth, the high level of income, increasing distribution outlets, growing urbanization and the
spread of modern methods of shopping.
Outlets Classification
Grocery Sales per Category in Different Countries
The number of retail food outlets reached 40.4k in 2013, an
increase of 15% compared to 2012. These ports are divided into
three categories:



Hypermarkets: This category started to appear in 2004, and
is often spread in the three major cities (Riyadh, Jeddah and
Dammam). Nevertheless, this category has become more
favorable markets by families as they are deemed places of
entertainment for children as well as shopping. This category accounted for about 22% of total retail sales in the kingdom in 2013.
Supermarkets: This is the second category in the ranking in
terms of area (between 500-5000 square meters). The
number of outlets reached 680 and represent 23% of total
retail sales during 2013.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
UAE
Italy
Small Grocery Retails
Spain
Hypermarkets
UK
USA
Supermarkets
Source: Savola
Minimarkets: the smallest outlets in terms of area; mostly
less than 100 square meters, however this category represent the largest number of distribution outlets. In 2013, the number of outlets exceeded 40k. This category accounts for about 55%
of total retail sales, despite selling at higher prices than the other categories which rely on cost reduction.
Some FMCG chains have recently trended to set up small-scale outlets to meet the basic needs of citizens in a short time. For instance,
Panda, the subsidiary of Savola Group, increased the number of minimarkets in 2014 from 23 to 155 outlets. SAMCO had 23 minimarkets at the end of 2013. The trend is expect to appeal to other FMGC chains in the future as these minimarkets contribute to attracting
new segments of consumers at low cost.
According to Nielsen, food and beverage represented 78.2% of total sector sales, while non-food sales seized 21.8%. Nielsen's surveys
indicated that purchasing decisions of 71% of consumers are impacted by price discounts as a first preference, while the first preference of 14% of consumers is free premium (i.e. extra product free ).
Mass Grocery Sales Breakdown
Food Products Sales Breakdown by Type
Beverages
5%
Dairy Products
12%
22%
34%
5%
6%
78%
Bakery
7%
Pastry
10%
Canned & Icecreames
21%
Food & Beverages
Other Products
Source: Nielsen
Daily Needs (Rice, Oils,
Sauces.. Etc)
Chips and other snacks
Others
Source: Nielsen
4
Farm Superstores
Retail Sector
SMARKETI AB - 4006.SE
April 30, 2015
Demographics
Saudi population is estimated at 30.8 million at the end of 2014 according to the Central Department Of Statistics & Information (CDSI).
The figure is expected to reach 35 million in 2020 and 37.6 million by 2025. Regarding the demographic distribution, Makkah province
captures 26% of population occupying the first place and is followed by Riyadh province where 25% of population lives. According to
CDSI, the percentages will not change by 2025.
Import
Saudi Arabia’s food retail market is the largest market in the Gulf region due to the size of the population which is estimated at 30 million; almost double the population of the other GCC countries combined. The kingdom imports about 80% of its food needs. In 2014,
the imports of food, animal and agricultural products reached SAR 83.6 billion, or about 13% of total imports.
Price levels
Inflation indicators showed no significant changes in price levels that could negatively hit consumption. The reason for that is the stability of exchange rates as well as government subsidies driven by strong financial reserves. The chart depicts the pace of the general and
food consumer prices indices for the period from 2007 to the end of 2014.
Inflation Indices
160
150
140
130
120
110
100
90
80
2007
2008
2009
2010
Food & Beverage Price Index
2011
2012
2013
2014
General Price Index
Source: CDSI
In a recent survey, CDSI revealed that food and beverages captured 17.9% of household spending in 2013 (most recent data).
Business Monitor International (BMI) estimates food consumption in Saudi Arabia in 2015 to grow 7.6% and shows a 5 year CAGR of
7.6% during the period 2014-2019. In addition, BMI also per capita food consumption to grow 5.7% in 2015 as well as achieving a 5-year
CAGR of 6.5% in the five years ending 2019. Mass grocery retail sales are also expected to increase 9.6% in 2015 and manifest a 5-year
CAGR of 9.2% by 2019.
5
Farm Superstores
Retail Sector
SMARKETI AB - 4006.SE
April 30, 2015
Financial and Operational Performance
SAMCO’s top line consists of sales, as well as gondola and rental income.
According to SAMCO, the sales figure includes sales of products in supermarkets, minimarkets, wholesale, and sales of services in Adventure World,
and subsidiaries: Pusatco (local) and Lebanon (foreign). Gondola and rental
income includes rebates from suppliers: such as gondola display agreements, rental spaces inside supermarkets, new products listing, promotional program fliers, floor display, shelf display, rental income (from store
spaces adjacent or next to FARMs stores within same building), sales sharing revenue, as well as other miscellaneous operating income, if any.)
The top line figure grew at a CAGR of 14.1% in the period from the end of
2008 to the end of 2014 amounting to SAR 1,741 million in 2014 up from
SAR 899 million in 2008. Compared to 2013, total revenues climbed 7.05%,
with gondola and rental income constituting 12.98% of total revenues in
2014 compared to 11.24% in 2013. The ambitious expansions plan is expected to uplift the company's revenues in 2015 by 10.85% hitting SAR
1,930 million.
Revenues (SAR mn)
2,500
2,000
1,500
1,000
500
2010
2011
2012
2013
2014
2015
2016
Source: SAMCO & Albilad Research
The Distribution of the Company's Revenues by Activity
Despite the diversity of operations, the grocery segment
accounted for 90% of the
company's revenues last
year.
Revenues Breakdown
2.52%
5.04%
1.75%
Revenues Growth per Activity –2014
1.01%
40.0%
26.5%
30.0%
20.0%
10.0%
9.3%
6.8%
9.7%
7.1%
PUSATCO
Total
0.0%
-10.0%
-20.0%
-30.0%
-40.0%
89.69%
Grocery Stores
Lebanon Mall
Wholesale
PUSATCO
Adventures World
Source: SAMCO & Albilad Research
-50.0%
-60.0%
Grocery
Stores
-53.2%
Wholesale Adventures Lebanon
World
Mall
Source: SAMCO & Albilad Research
Geographical Distribution of Revenues
Saudi Marketing Company Lebanon– the arm of the holding company in Lebanon-reported total revenues of SAR 30.5 million in 2014,
representing 1.75% of the company's total revenues. Excluding the contribution of Lebanese operations, the remaining revenues would
amount to SAR 1,710 million divided into two segments:

Saudi Company for Marketing :encompasses sales of grocery outlets, Adventures World and wholesale operations. The total revenues of the company hit SAR 1,693 million in 2014; the eastern region accounted for 71.3% of the figure.

PUSATCO: reported
sales of SAR 17.6 million in 2014 and the
eastern region also
represented the bulk
of revenue seizing
76.5% of the company's sales.
Revenues Breakdown-Saudi Co. for Marketing –2014
North
South 1.70%
3.70%
Center
3.20%
Revenues Breakdown-PUSATCO –2014
South
7.90%
North
3.90%
West
11.70%
West
20.10%
East
71.30%
Source: SAMCO & Albilad Research
East
76.50%
Source: SAMCO & Albilad Research
6
Farm Superstores
Retail Sector
SMARKETI AB - 4006.SE
April 30, 2015
Gross profit hit SAR 403 million in 2014 unveiling a growth rate of 13.9% primarily as the gross profit of retail stores increased by SAR 54
million, an increase of 21%, hitting SAR 308 million, while the gross profit of Adventures World skyrocketed 27 % to SAR 29.1 million.
Although 90% of the company's revenue comes from the grocery outlets, the segment’s contribution to the gross profit of the company
is lower at 76.4% in 2014 ( 71.9% in 2013). The great disparity between the shares of segment in revenue and gross profit is attributed
to the low margins of the segment compared to other sectors.
Gross Profits (SAR mn)
Gross Margin
450
400
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
PUSATCO
350
Lebanon Mall
300
Adventures World
250
200
Wholesale
150
Grocery Stores
100
50
-
2010
2011
2012
2013
Source: SAMCO & Albilad Research
Source: SAMCO & Albilad Research
The company’s earnings in 2014 came in at SAR 104.5 million,
increasing 9.8% from SAR 95.1 million in 2013. The contribution of retail outlets amounted to SAR 76.15 million , thus accounting for 72.7% of SAMCO’s bottom line. We expect net
earnings to escalate 8.2% in 2015 hitting SAR 113 million compared to SAR 104.5 million in 2014, fueled by extensions in the
grocery business in the first place.
2014
Net Quarter Profit (SAR mn)
30
28
26
24
22
20
The Beirut Mall has been the only sector that reported losses
in 2014, terminating the year with losses of SAR 7.46 million
driven by the closure of the Farm Markets’ branch in Beirut,
renting the branch to a local tenant and selling equipment,
fixtures and furniture. This led to reporting capital losses in the
2014 financial statements equating the difference between
the book value and the realizable value of these assets. The
company’s operations in Lebanon has also negatively impacted
by the existing political and economic conditions in this country.
18
16
14
12
10
Source: SAMCO & Albilad Research
EBIT Margin
Net Profit (SAR mn)
7.0%
160.00
6.0%
140.00
5.0%
120.00
4.0%
100.00
3.0%
80.00
60.00
2.0%
40.00
1.0%
20.00
0.0%
2010
2011
2012
2013
2014
2015
2016
Source: SAMCO & Albilad Research
2010
2011
2012
2013
2014
2015
2016
Source: SAMCO & Albilad Research
7
Farm Superstores
Retail Sector
SMARKETI AB - 4006.SE
Income Statement (SAR mn)
Sales
April 30, 2015
2014 Q1
365.8
*2015 Q1
409.5
Change
11.95%
Rent revenues & Gondola
39.2
46.0
17.15%
Total Revenues
405.0
455.5
12.46%
COGS
311.8
350.9
12.54%
SG&A
58.0
63.2
9.02%
EBITDA
35.3
41.4
17.32%
EBITDA Margin
8.7%
9.1%
139.0%
7.2
8.8
22.29%
EBIT
28.1
32.6
16.05%
Net Interest Income
-1.5
-1.3
-14.50%
Others (Net)
2.83
(1.38)
-148.87%
Pre-Tax Income
29.4
30.0
1.74%
1.8
0.8
-58.64%
27.6
29.2
5.71%
0.1
0.1
43.89%
Depreciation and amortization
Tax and Zakat
Net Income
Minority
NAI
27.5
29.1
5.58%
ROS
6.8%
6.4%
-0.42%
2014 Q1
34.6
*2015 Q1
27.1
Change
-21.71%
Balance Sheet (SAR mn)
Cash and Marketable securities
Accounts Receivables
26.2
28.4
8.46%
Inventory
284.3
393.9
38.52%
43.4
46.9
8.12%
Total ST Assets
388.6
496.3
27.73%
Net Fixed Assets
562.3
648.9
15.39%
Intangible assets
3.3
1.6
-51.62%
Others
3.5
6.0
72.82%
Total LT Assets
569.2
656.5
15.35%
Total Assets
957.7
1,152.9
20.37%
Short term debt and CPLTD
104.2
172.8
65.78%
Accrued Expenses
300.0
328.3
9.43%
7.7
9.7
24.78%
412.0
510.8
23.97%
95.6
77.0
-19.51%
Others
Others
Total ST Liabilities
Total Long Term Debt
Other Non-Current Liabilities
30.36
39.37
29.71%
Equity
419.7
525.8
25.26%
Total Liabilities and Equity
957.7
1,152.9
20.38%
2014 Q1
17.7
*2015 Q1
18.5
Change
4.92%
Financing Cash Flow
6.4
10.1
56.77%
Investing Cash Flow
Cash Flow Statement (SAR mn)
Operating Cash Flow
(22.5)
(29.7)
32.17%
Change in Cash
1.6
(1.1)
-169.28%
Ending Cash
26.3
21.0
-20.22%
Presentation of financial statements may differ from the company’s presentation. However, there is no impact on the final results.
8
Farm Superstores
Retail Sector
SMARKETI AB - 4006.SE
Income Statement (SAR mn)
Sales
April 30, 2015
2013A
2014A
2015E
2016F
1,462.0
1,541.0
1,726.8
1,934.1
164.3
200.0
203.2
230.5
Total Revenues
1,626.3
1,741.0
1,930.0
2,164.6
COGS
1,272.3
1,337.7
1,489.2
1,676.4
SG&A
230.4
259.3
287.9
312.3
EBITDA
123.6
144.0
152.9
175.8
EBITDA Margin
7.6%
8.3%
7.9%
8.1%
Depreciation and amortization
29.4
31.8
34.5
38.0
EBIT
94.2
112.1
118.4
137.8
Rent revenues & gondola
Net Interest Income
-4.6
-6.1
-6.7
-3.7
Others (Net)
9.05
2.72
6.16
6.91
Pre-Tax Income
98.7
108.8
117.9
141.0
3.2
4.0
4.6
5.5
95.4
104.7
113.3
135.5
Tax and Zakat
Net Income
Minority
NAI
ROS
Balance Sheet (SAR mn)
Cash and Marketable securities
0.3
0.3
0.2
0.3
95.1
104.5
113.1
135.3
5.9%
6.0%
5.9%
6.2%
2013A
2014A
2015E
2016F
24.7
22.1
56.2
48.4
Accounts Receivables
28.6
26.7
29.6
33.2
Inventory
273.9
365.5
365.2
389.5
40.8
34.8
38.5
43.8
Total ST Assets
368.1
449.0
489.5
514.9
Net Fixed Assets
506.2
545.3
582.1
607.8
Projects Under Implementation
40.7
82.6
46.2
50.2
Intangible assets
3.8
2.0
1.1
0.6
Others
1.8
1.6
1.7
1.8
Total LT Assets
552.5
631.5
631.1
660.4
Total Assets
920.5
1,080.5
1,120.7
1,175.3
Short term debt and CPLTD
144.0
155.8
128.2
82.1
Accrued Expenses
286.2
309.0
342.6
384.2
Others
Others
Total ST Liabilities
28.3
3.9
3.9
3.9
458.5
468.7
474.7
470.2
Total Long Term Debt
49.4
83.9
40.8
5.9
Other Non-Current Liabilities
29.07
37.56
47.90
59.19
Equity
392.2
496.7
557.3
640.0
Total Liabilities and Equity
929.2
1,086.8
1,120.7
1,175.3
2013A
2014A
2015E
2016F
19.9
60.3
185.0
192.9
Financing Cash Flow
33.9
46.2
)123.0(
)133.5(
Investing Cash Flow
)54.3(
)109.1(
)27.8(
)67.3(
Change in Cash
Ending Cash
)0.4(
24.7
)2.6(
22.1
34.2
56.2
)7.9(
48.4
Cash Flow Statement (SAR mn)
Operating Cash Flow
Presentation of financial statements may differ from the company’s presentation. However, there is no impact on the final results.
9
Farm Superstores
Retail Sector
SMARKETI AB - 4006.SE
April 30, 2015
Albilad Capital Rating Methodology
Al-Bilad Capital uses its own evaluation structure, and its recommendations are based on quantitative and qualitative data collected by the analysts.
Moreover, the evaluation system places covered shares under one of the next recommendation areas based on the closing price of the market, the fair
value that we set and the possibility of ascent/descent.
Overweight:
The Target share price exceeds the current share price by ≥ 10%. We expect the share price to reach the Target price over the next
9-12 months
Neutral:
The Target share price is either more or less than the current share price by < 10% We expect the share price to reach the Target
price over the next 9-12 months
Underweight:
The Target share price is less than the current share price by ≥ 10%. We expect the share price to reach the Target price over the
next 9-12 months
To be Revised: No target price had been set for one or more of the following reasons: waiting for more analysis, waiting for detailed financials ,
waiting for more data to be updated, major change in company`s performance, change in market conditions or any other reason
from Albilad Capital Research.
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