Al Rajhi Capital on Wednesday issued its Q4-2016 earnings forecasts for 29 Tadawul-listed companies under its coverage.
Petrochemical producers are expected to see higher profit in the fourth quarter, as most product prices have seen gradual improvement amid higher oil prices.
Saudi International Petrochemical Co. (Sipchem) is projected to post the biggest profit rise year-on-year (YoY) at 151 percent to SAR 65 million.
Saudi Basic Industries Corp’s (SABIC) net profit will likely jump 24 percent YoY to SAR 4.8 billion in the same period.
Cement producers’ earnings will likely continue their downward trend in Q4, dragged by Yamama Cement with a 39 percent fall YoY.
Saudi Cement Co. will likely be the sole gainer in the sector, with a 14 percent YoY profit growth.
Saudi Telecom Co. (STC) is projected to see a 9 percent YoY increase in net profit to SAR 2.1 billion in Q4.
Meanwhile, agri-food firms are forecast to see a stable quarter in Q4, with little to no impact from cuts in allowances and the slowdown in the broader economy.
Almarai’s revenue growth is expected to remain in the high single digits. Its net profit is expected to grow by 12 percent YoY.
Savola Group shows the biggest profit fall at 55 percent YoY. However, the actual profit fall could be deeper. “While our adjusted net income estimate stands at SAR 234 million, Savola reported that SAR 171 million hit is likely due to the flotation of Egyptian pound in Q4 2016. In that case, reported net income may be lower at approximately SAR 75 million,” Al Rajhi Capital added.
In the retail sector, companies would be hurt by the cut in public sector employees’ allowances. “However, the ‘full quarter’ impact will be reflected in Q1 2017 as in the present quarter, the cut in allowances will have an impact for just 2 months and the loan repayments have also been waived for a month,” Al Rajhi Capital added.
Abdullah Al Othaim Markets would be the sole gainer in Q4, with a profit rise of 8 percent YoY.
Healthcare service providers, except for Al Hammadi Company for Development and Investment, will likely see a strong quarter with double digit top line growth. Dallah Healthcare Holding Co. is forecast to post the biggest profit rise of 27 percent YoY.
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Al Rajhi Capital Q4 Estimates (SAR mln) |
||
|
YoY Variation |
Q4-2016 estimates |
Company |
|
Petrochemical Sector |
||
|
24.3% |
4,792 |
SABIC |
|
151% |
65 |
Sipchem |
|
(31%) |
263 |
SAFCO |
|
-- |
117 |
Tasnee |
|
57% |
617 |
Yansab |
|
Cement Sector |
||
|
(27%) |
114 |
Arabian Cement |
|
(39%) |
109 |
Yamama Cement |
|
14% |
204 |
Saudi Cement |
|
(27%) |
102 |
Qassim Cement |
|
(31%) |
145 |
Yanbu Cement |
|
(36%) |
190 |
Southern Province |
|
Telecommunications Sector |
||
|
9% |
2,134 |
STC |
|
-- |
(160) |
Mobily |
|
(41%) |
(171) |
Zain |
|
Agriculture & Food Industries |
||
|
12% |
543 |
Almarai |
|
(55%) |
234 |
Savola* |
|
4% |
47 |
Herfy |
|
(24%) |
145 |
Airlines Catering |
|
Retail Sector |
||
|
(5%) |
199 |
Jarir |
|
(40%) |
55 |
Al Hokair |
|
8% |
96 |
Al Othaim |
|
(29%) |
6 |
eXtra |
|
Healthcare Sector |
||
|
27% |
69 |
Dallah |
|
14% |
61 |
Mouwasat |
|
11% |
39 |
Care |
|
(15%) |
30 |
Hammadi |
|
Other Sectors |
||
|
-- |
84 |
Maaden |
|
(32%) |
385 |
Bahri |
|
27% |
(23) |
Al Hassan Shaker |
|
|
*Unadjusted for forex loss |
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