Dar Al Arkan profit tumbles 77% in H1 2019

30/07/2019 Argaam Exclusive

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Dar Al Arkan Real Estate Development Co. posted a net profit after zakat and tax of SAR 100.5 million for H1 2019, a plunge of 77.2 percent year-on-year (YoY) due to lower property sales.

 

Meanwhile, an increase in operating expenses and a decline in income from associates were offset by higher lease revenue.



Financials (M)

Item 6m 2018 6m 2019 Change‬
Revenues 4,578.71 1,751.53 (61.7 %)
Gross Income 740.79 361.00 (51.3 %)
Operating Income 655.27 274.89 (58.0 %)
Net Income 439.72 100.47 (77.2 %)
Average Shares 1,080.00 1,080.00 -
EPS (Riyals) 0.41 0.09 (77.2 %)

The second quarter's net profit after zakat and tax declined 31 percent YoY to SAR 74.9 million due to lower property sales. The decline in non-operating income received from Islamic deposits was offset by lower operating expenses, finance costs and higher lease revenue. 

 

When compared to Q1 2019, the real estate developer posted an over two-fold increase in net profit on improved property sales.



Current Quarter Comparison (M)

Compared With The
Item Q2 2018 Q2 2019 Change‬
Revenues 1,784.80 927.85 (48.0 %)
Gross Income 266.17 201.72 (24.2 %)
Operating Income 218.82 157.64 (28.0 %)
Net Income 108.60 74.96 (31.0 %)
Average Shares 1,080.00 1,080.00 -
EPS (Riyals) 0.10 0.07 (31.0 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2010 1,144.94 (7.5 %) 478.42 (6.7 %) 398.65 (6.1 %) 0.37
Q2 2010 1,114.44 (24.8 %) 530.85 (25.5 %) 437.00 (29.3 %) 0.40
Q3 2010 910.21 (40.3 %) 374.90 (47.5 %) 289.63 (53.0 %) 0.27
Q4 2010 972.39 (20.3 %) 380.09 (33.0 %) 330.44 (28.7 %) 0.31
Q1 2011 955.15 (16.6 %) 366.63 (23.4 %) 273.09 (31.5 %) 0.25
Q2 2011 791.24 (29.0 %) 337.74 (36.4 %) 297.77 (31.9 %) 0.28
Q3 2011 755.19 (17.0 %) 320.63 (14.5 %) 227.47 (21.5 %) 0.21
Q4 2011 810.93 (16.6 %) 344.02 (9.5 %) 289.61 (12.4 %) 0.27
Q1 2012 868.19 (9.1 %) 367.46 0.2 % 292.59 7.1 % 0.27
Q2 2012 1,083.51 36.9 % 388.05 14.9 % 331.03 11.2 % 0.31
Q3 2012 728.52 (3.5 %) 329.38 2.7 % 220.89 (2.9 %) 0.20
Q4 2012 876.85 8.1 % 308.83 (10.2 %) 144.04 (50.3 %) 0.13
Q1 2013 835.82 (3.7 %) 375.58 2.2 % 237.61 (18.8 %) 0.22
Q2 2013 680.86 (37.2 %) 208.07 (46.4 %) 103.70 (68.7 %) 0.10
Q3 2013 721.56 (1.0 %) 306.46 (7.0 %) 183.32 (17.0 %) 0.17
Q4 2013 692.93 (21.0 %) 262.97 (14.8 %) 156.83 8.9 % 0.15
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

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2010 46.04 % 43.25 % 39.04 %
Q2 2010 45.78 % 42.93 % 38.29 %
Q3 2010 44.45 % 41.53 % 36.20 %
Q4 2010 42.59 % 40.02 % 35.15 %
Q1 2011 41.81 % 39.46 % 33.66 %
Q2 2011 40.21 % 37.78 % 32.82 %
Q3 2011 40.45 % 37.95 % 32.49 %
Q4 2011 41.33 % 38.76 % 32.84 %
Q1 2012 42.47 % 39.68 % 34.33 %
Q2 2012 40.37 % 37.50 % 32.43 %
Q3 2012 40.93 % 37.66 % 30.86 %
Q4 2012 39.18 % 35.45 % 26.20 %
Q1 2013 39.77 % 35.51 % 24.88 %
Q2 2013 39.14 % 34.94 % 20.80 %
Q3 2013 38.49 % 34.52 % 21.47 %
Q4 2013 39.34 % 35.77 % 23.25 %
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 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2010 1,080.00 1.94 1.94 13.20
Q2 2010 1,080.00 1.77 1.77 12.61
Q3 2010 1,080.00 1.47 1.47 12.87
Q4 2010 1,080.00 1.35 1.35 13.18
Q1 2011 1,080.00 1.23 1.23 13.43
Q2 2011 1,080.00 1.10 1.10 13.71
Q3 2011 1,080.00 1.05 1.05 13.92
Q4 2011 1,080.00 1.01 1.01 14.19
Q1 2012 1,080.00 1.03 1.03 14.46
Q2 2012 1,080.00 1.06 1.06 14.77
Q3 2012 1,080.00 1.05 1.00 14.97
Q4 2012 1,080.00 0.92 0.86 15.10
Q1 2013 1,080.00 0.86 0.81 15.32
Q2 2013 1,080.00 0.65 0.60 15.42
Q3 2013 1,080.00 0.62 0.62 15.59
Q4 2013 1,080.00 0.63 0.63 15.73
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

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2010 7.29 7.29 1.07
Q2 2010 6.65 6.65 0.94
Q3 2010 6.93 6.93 0.79
Q4 2010 6.68 6.68 0.68
Q1 2011 7.84 7.84 0.72
Q2 2011 7.12 7.12 0.57
Q3 2011 5.98 5.98 0.45
Q4 2011 7.20 7.20 0.51
Q1 2012 12.78 12.78 0.91
Q2 2012 8.57 8.57 0.61
Q3 2012 8.52 8.97 0.60
Q4 2012 9.01 9.56 0.55
Q1 2013 9.54 10.16 0.54
Q2 2013 15.90 17.29 0.67
Q3 2013 16.31 16.31 0.65
Q4 2013 15.61 15.61 0.63
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

Business Segments (Million)

Compared With The
Period Real estate development property Leasing Sale of Land Sale of residential properties
Q1 2010 - - 1,026.97 117.97
Q2 2010 - - 980.19 134.24
Q3 2010 - - 831.26 78.95
Q4 2010 - - 926.88 45.51
Q1 2011 - 5.23 938.54 11.39
Q2 2011 - 2.78 757.68 30.77
Q3 2011 - 3.30 729.91 21.98
Q4 2011 - 3.69 794.04 13.20
Q1 2012 - 4.66 850.75 12.79
Q2 2012 - 5.04 1,072.63 5.84
Q3 2012 - 17.35 708.06 3.12
Q4 2012 - 25.74 847.56 3.55
Q1 2013 - 24.92 810.91 -
Q2 2013 - 27.62 652.78 0.46
Q3 2013 - 27.81 693.75 -
Q4 2013 - 28.09 664.84 -
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 - -

Analysts Estimates (Million)

Item Q2 2019 (e) Q2 2019 (a) Change‬
Average 32.00 74.96 134.23 %

Estimates vs Actual (Million)

Item Q2 2019 (e) Q2 2019 (a) Change
SNB Capital 32.00 74.96 134.2 %

Current
Market Cap (M Riyal) 12,787.20
Enterprise Value (EV) (M) 17,644.41
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) 19.77
P/E (TTM) 19.77
Price/book 0.63
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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