Red Sea profit soars 56% in 9M 2016 on higher revenue, lower costs

20/10/2016 Argaam Exclusive

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Red Sea Housing Services Co.’s net profit for the first nine months of 2016 jumped 56 percent year-on-year to SAR 76.2 million on higher gross profit margin, which resulted from the increase in building, rental, and paint revenues and lower cost of sales for rental. General and administrative expenses also declined this time around, the company said.



Financials (M)

Item 9m 2015 9m 2016 Change‬
Revenues 740.99 790.35 6.7 %
Gross Income 174.37 205.40 17.8 %
Operating Income 65.07 100.38 54.3 %
Net Income 49.00 73.43 49.9 %
Average Shares 30.23 30.23 -
EPS (Riyals) 1.62 2.43 49.9 %

Q3 profit more than quadrupled at SAR 12.7 million when compared to the same quarter last year, but fell 60 percent quarter-on-quarter. When compared to Q2, this period saw a decrease in profit margin, lower revenues, and higher general and administrative expenses. 



Current Quarter Comparison (M)

Compared With The
Item Q3 2015 Q3 2016 Change‬
Revenues 228.40 251.25 10.0 %
Gross Income 48.40 60.44 24.9 %
Operating Income 7.35 22.29 203.4 %
Net Income 1.95 10.50 439.6 %
Average Shares 30.23 30.23 -
EPS (Riyals) 0.06 0.35 439.6 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2007 145.89 23.3 % 48.09 46.4 % 27.06 19.2 % 0.90
Q2 2007 141.46 9.7 % 29.88 (27.5 %) 23.08 (13.5 %) 0.76
Q3 2007 256.07 105.6 % 55.61 60.8 % 38.26 76.0 % 1.27
Q4 2007 146.80 789.6 % 42.93 55.4 % 28.91 56.0 % 0.96
Q1 2008 279.80 91.8 % 81.82 70.1 % 56.27 107.9 % 1.86
Q2 2008 317.56 124.5 % 95.05 218.1 % 67.30 191.6 % 2.23
Q3 2008 259.69 1.4 % 76.45 37.5 % 49.20 28.6 % 1.63
Q4 2008 281.84 92.0 % 52.32 21.9 % 41.27 42.8 % 1.37
Q1 2009 307.63 9.9 % 81.83 0.0 % 57.95 3.0 % 1.92
Q2 2009 155.53 (51.0 %) 41.50 (56.3 %) 18.61 (72.4 %) 0.62
Q3 2009 169.73 (34.6 %) 35.92 (53.0 %) 24.43 (50.3 %) 0.81
Q4 2009 218.67 (22.4 %) 47.05 (10.1 %) 22.72 (44.9 %) 0.75
Q1 2010 147.00 (52.2 %) 46.64 (43.0 %) 24.15 (58.3 %) 0.80
Q2 2010 162.97 4.8 % 34.84 (16.0 %) 14.52 (22.0 %) 0.48
Q3 2010 173.14 2.0 % 42.15 17.4 % (2.30) (109.4 %) (0.08)
Q4 2010 261.60 19.6 % 65.32 38.8 % 24.67 8.6 % 0.82
Q1 2011 205.27 39.6 % 51.53 10.5 % 32.23 33.5 % 1.07
Q2 2011 188.78 15.8 % 37.52 7.7 % 21.38 47.3 % 0.71
Q3 2011 189.04 9.2 % 24.07 (42.9 %) 12.75 653.4 % 0.42
Q4 2011 192.49 (26.4 %) 35.07 (46.3 %) 11.53 (53.3 %) 0.38
Q1 2012 221.00 7.7 % 51.72 0.4 % 31.56 (2.1 %) 1.04
Q2 2012 196.45 4.1 % 46.11 22.9 % 30.72 43.7 % 1.02
Q3 2012 244.47 29.3 % 62.13 158.1 % 25.28 98.2 % 0.84
Q4 2012 202.92 5.4 % 63.70 81.6 % 33.07 186.8 % 1.09
Q1 2013 205.42 (7.0 %) 53.67 3.8 % 31.72 0.5 % 1.05
Q2 2013 223.45 13.7 % 55.04 19.4 % 33.12 7.8 % 1.10
Q3 2013 271.60 11.1 % 80.29 29.2 % 44.42 75.7 % 1.47
Q4 2013 270.94 33.5 % 87.24 37.0 % 43.52 31.6 % 1.44
Q1 2014 268.97 30.9 % 72.41 34.9 % 43.52 37.2 % 1.44
Q2 2014 267.63 19.8 % 67.50 22.7 % 40.78 23.1 % 1.35
Q3 2014 283.60 4.4 % 75.60 (5.8 %) 43.12 (2.9 %) 1.43
Q4 2014 284.75 5.1 % 79.64 (8.7 %) 29.27 (32.7 %) 0.97
Q1 2015 275.44 2.4 % 67.16 (7.3 %) 30.04 (31.0 %) 0.99
Q2 2015 237.15 (11.4 %) 58.82 (12.9 %) 17.02 (58.3 %) 0.56
Q3 2015 228.40 (19.5 %) 48.40 (36.0 %) 1.95 (95.5 %) 0.06
Q4 2015 286.90 0.8 % 80.13 0.6 % 27.10 (7.4 %) 0.90
Q1 2016 271.78 (1.3 %) 74.95 11.6 % 31.77 5.8 % 1.05
Q2 2016 267.32 12.7 % 70.01 19.0 % 31.16 83.1 % 1.03
Q3 2016 251.25 10.0 % 60.44 24.9 % 10.50 439.6 % 0.35

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2007 36.43 % 27.41 % 22.60 %
Q2 2007 32.72 % 27.15 % 21.10 %
Q3 2007 28.79 % 25.88 % 19.10 %
Q4 2007 25.57 % 22.96 % 17.00 %
Q1 2008 25.51 % 24.52 % 17.78 %
Q2 2008 27.53 % 25.03 % 19.07 %
Q3 2008 29.51 % 26.38 % 20.09 %
Q4 2008 26.84 % 24.48 % 18.79 %
Q1 2009 26.20 % 23.82 % 18.49 %
Q2 2009 25.09 % 22.18 % 16.63 %
Q3 2009 23.13 % 21.26 % 15.55 %
Q4 2009 24.23 % 20.94 % 14.53 %
Q1 2010 24.76 % 20.68 % 13.01 %
Q2 2010 23.55 % 20.77 % 12.29 %
Q3 2010 24.32 % 20.64 % 8.42 %
Q4 2010 25.37 % 20.80 % 13.66 %
Q1 2011 24.14 % 19.95 % 13.68 %
Q2 2011 23.71 % 19.80 % 14.08 %
Q3 2011 21.12 % 18.17 % 15.60 %
Q4 2011 19.11 % 17.38 % 10.04 %
Q1 2012 18.75 % 18.31 % 9.76 %
Q2 2012 19.65 % 20.12 % 10.83 %
Q3 2012 22.83 % 21.20 % 11.60 %
Q4 2012 25.86 % 24.17 % 13.95 %
Q1 2013 26.57 % 24.38 % 14.22 %
Q2 2013 26.77 % 24.06 % 14.06 %
Q3 2013 27.97 % 25.56 % 15.75 %
Q4 2013 28.44 % 25.00 % 15.73 %
Q1 2014 28.50 % 24.75 % 15.90 %
Q2 2014 28.49 % 25.28 % 15.96 %
Q3 2014 27.75 % 26.09 % 15.67 %
Q4 2014 26.71 % 26.19 % 14.18 %
Q1 2015 26.08 % 25.83 % 12.89 %
Q2 2015 26.02 % 24.40 % 11.05 %
Q3 2015 24.76 % 21.56 % 7.63 %
Q4 2015 24.76 % 20.33 % 7.40 %
Q1 2016 25.61 % 20.64 % 7.60 %
Q2 2016 25.94 % 21.75 % 8.72 %
Q3 2016 26.51 % 22.60 % 9.33 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2007 30.23 3.11 3.11 15.99
Q2 2007 30.23 2.99 2.99 15.26
Q3 2007 30.23 3.54 3.54 16.53
Q4 2007 30.23 3.88 3.88 17.48
Q1 2008 30.23 4.85 4.85 19.35
Q2 2008 30.23 6.31 6.31 19.55
Q3 2008 30.23 6.67 6.67 21.19
Q4 2008 30.23 7.08 7.08 22.54
Q1 2009 30.23 7.14 7.14 24.48
Q2 2009 30.23 5.52 5.52 21.63
Q3 2009 30.23 4.71 4.71 22.44
Q4 2009 30.23 4.09 4.09 23.20
Q1 2010 30.23 2.97 2.97 23.99
Q2 2010 30.23 2.84 2.84 22.49
Q3 2010 30.23 1.95 1.95 22.41
Q4 2010 30.23 2.02 3.37 23.21
Q1 2011 30.23 2.29 3.63 24.28
Q2 2011 30.23 2.51 3.86 24.01
Q3 2011 30.23 3.01 4.36 24.33
Q4 2011 30.23 2.58 2.58 24.54
Q1 2012 30.23 2.55 2.55 25.48
Q2 2012 30.23 2.86 2.86 25.13
Q3 2012 30.23 3.28 3.28 25.99
Q4 2012 30.23 3.99 3.99 27.21
Q1 2013 30.23 3.99 3.99 28.30
Q2 2013 30.23 4.07 4.07 27.54
Q3 2013 30.23 4.71 4.71 28.21
Q4 2013 30.23 5.05 5.05 29.59
Q1 2014 30.23 5.44 5.44 31.03
Q2 2014 30.23 5.70 5.70 29.90
Q3 2014 30.23 5.65 5.65 31.25
Q4 2014 30.23 5.18 5.18 32.11
Q1 2015 30.23 4.74 4.74 32.79
Q2 2015 30.23 3.95 3.95 31.31
Q3 2015 30.23 2.59 2.59 31.31
Q4 2015 30.23 2.52 2.52 32.05
Q1 2016 30.23 2.57 2.57 30.61
Q2 2016 30.23 3.04 3.04 30.07
Q3 2016 30.23 3.33 3.33 30.40

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2007 21.22 21.23 4.13
Q2 2007 18.75 18.75 3.67
Q3 2007 16.62 16.62 3.56
Q4 2007 17.58 17.58 3.90
Q1 2008 12.95 12.95 3.24
Q2 2008 15.14 15.14 4.88
Q3 2008 13.31 13.31 4.19
Q4 2008 10.48 10.48 3.29
Q1 2009 8.45 8.45 2.46
Q2 2009 12.03 12.03 3.07
Q3 2009 13.13 13.13 2.75
Q4 2009 14.85 14.85 2.62
Q1 2010 20.19 20.19 2.50
Q2 2010 18.71 18.71 2.36
Q3 2010 20.51 20.51 1.79
Q4 2010 26.67 15.99 2.32
Q1 2011 23.33 14.68 2.20
Q2 2011 20.43 13.30 2.14
Q3 2011 14.46 9.99 1.79
Q4 2011 16.83 16.83 1.77
Q1 2012 20.69 20.69 2.07
Q2 2012 13.03 13.03 1.48
Q3 2012 12.55 12.55 1.58
Q4 2012 10.34 10.34 1.52
Q1 2013 11.72 11.72 1.65
Q2 2013 12.14 12.14 1.80
Q3 2013 12.59 12.59 2.10
Q4 2013 14.33 14.33 2.45
Q1 2014 20.60 20.60 3.61
Q2 2014 20.56 20.56 3.92
Q3 2014 21.22 21.22 3.84
Q4 2014 13.85 13.85 2.24
Q1 2015 16.63 16.63 2.40
Q2 2015 19.69 19.69 2.49
Q3 2015 18.17 18.17 1.50
Q4 2015 19.25 19.25 1.51
Q1 2016 18.59 18.59 1.56
Q2 2016 16.51 16.51 1.67
Q3 2016 13.28 13.28 1.45

Business Segments (Million)

Compared With The
Period Manufacture & sale property Leasing Paints
Q1 2007 136.80 9.09 -
Q2 2007 118.17 23.28 -
Q3 2007 224.35 31.72 -
Q4 2007 110.79 36.01 -
Q1 2008 236.09 43.70 -
Q2 2008 276.44 41.12 -
Q3 2008 211.20 48.50 -
Q4 2008 236.08 45.76 -
Q1 2009 268.12 39.51 -
Q2 2009 125.81 29.72 -
Q3 2009 142.97 26.76 -
Q4 2009 194.03 24.64 -
Q1 2010 123.13 23.86 -
Q2 2010 138.04 24.94 -
Q3 2010 147.60 25.54 -
Q4 2010 232.96 28.64 -
Q1 2011 174.05 31.22 -
Q2 2011 147.47 41.30 -
Q3 2011 137.09 51.95 -
Q4 2011 126.68 65.81 -
Q1 2012 158.87 62.12 -
Q2 2012 124.75 71.70 -
Q3 2012 172.46 72.02 -
Q4 2012 124.61 78.31 -
Q1 2013 133.49 71.86 0.07
Q2 2013 144.10 78.09 1.27
Q3 2013 198.44 70.55 2.61
Q4 2013 187.31 81.05 2.57
Q1 2014 177.96 87.55 3.46
Q2 2014 161.40 101.21 5.02
Q3 2014 190.82 85.23 7.56
Q4 2014 193.96 86.47 4.32
Q1 2015 165.59 101.37 8.48
Q2 2015 125.78 99.86 11.52
Q3 2015 109.04 107.64 11.72
Q4 2015 144.92 129.91 12.08
Q1 2016 144.90 109.31 17.57
Q2 2016 142.61 106.14 18.57
Q3 2016 140.72 99.25 11.29

Current
Market Cap (M Riyal) 863.07
Enterprise Value (EV) (M) 1,366.63
Shares Outstanding ((M)) 30.23
EPS ( Riyal) (TTM) (0.75)
Book Value (BV) ( Riyal) 2.57
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) Neg
P/E (TTM) NEG
Price/book 11.11
Return on Average Assets (%) (TTM) (1.40 )
Return on Average Equity (%) (TTM) (25.47 )

Share Price

28.55
(0.50) (1.72 %)

Red Sea International Company (RED SEA)


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