Zamil posts 25% decline in H1 profit

02/08/2017 Argaam Exclusive

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Zamil Industrial Investment Co. reported a net profit of SAR 78.23 million for the first half of 2017, a 24.9 percent drop year-on-year (YoY) attributed to lower sales and operating margins in the AC, steel and insulation segments, driven by project delays in the Kingdom. Net profit also declined due to higher financial charges and a decrease in income from associate investments.



Financials (M)

Item 6m 2016 6m 2017 Change‬
Revenues 2,631.50 2,123.37 (19.3 %)
Gross Income 579.24 443.61 (23.4 %)
Operating Income 178.19 129.47 (27.3 %)
Net Income 104.12 78.23 (24.9 %)
Average Shares 60.00 60.00 -
EPS (Riyals) 1.74 1.30 (24.9 %)

Second-quarter net profit fell 28.8 percent YoY to SAR 36.5 million, due to lower sales and operating margins in the AC, steel and insulation segments.

 

When compared to the previous quarter, Q2 2017 net profit fell 12.7 percent.



Current Quarter Comparison (M)

Compared With The
Item Q2 2016 Q2 2017 Change‬
Revenues 1,408.33 1,125.43 (20.1 %)
Gross Income 308.91 237.43 (23.1 %)
Operating Income 99.53 65.17 (34.5 %)
Net Income 51.22 36.45 (28.8 %)
Average Shares 60.00 60.00 -
EPS (Riyals) 0.85 0.61 (28.8 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2008 1,007.87 23.6 % 196.12 22.0 % 50.36 12.3 % 0.84
Q2 2008 1,285.95 34.2 % 264.00 31.7 % 73.06 26.4 % 1.22
Q3 2008 1,306.70 29.8 % 269.09 38.3 % 81.69 39.2 % 1.36
Q4 2008 949.08 5.3 % 236.37 31.9 % 20.03 (55.7 %) 0.33
Q1 2009 1,141.18 13.2 % 234.34 19.5 % 52.47 4.2 % 0.87
Q2 2009 1,148.58 (10.7 %) 224.21 (15.1 %) 59.84 (18.1 %) 1.00
Q3 2009 944.65 (27.7 %) 218.84 (18.7 %) 53.83 (34.1 %) 0.90
Q4 2009 970.00 2.2 % 274.38 16.1 % 64.01 219.6 % 1.07
Q1 2010 927.09 (18.8 %) 221.50 (5.5 %) 55.05 4.9 % 0.92
Q2 2010 1,078.27 (6.1 %) 242.72 8.3 % 63.01 5.3 % 1.05
Q3 2010 963.43 2.0 % 212.14 (3.1 %) 31.74 (41.0 %) 0.53
Q4 2010 1,049.63 8.2 % 319.07 16.3 % 61.33 (4.2 %) 1.02
Q1 2011 966.72 4.3 % 220.82 (0.3 %) 36.76 (33.2 %) 0.61
Q2 2011 1,325.21 22.9 % 281.04 15.8 % 47.93 (23.9 %) 0.80
Q3 2011 1,167.19 21.1 % 259.49 22.3 % 33.55 5.7 % 0.56
Q4 2011 1,268.58 20.9 % 289.88 (9.1 %) 35.95 (41.4 %) 0.60
Q1 2012 1,102.10 14.0 % 240.61 9.0 % 37.51 2.1 % 0.63
Q2 2012 1,344.79 1.5 % 283.54 0.9 % 55.77 16.4 % 0.93
Q3 2012 1,281.54 9.8 % 273.15 5.3 % 46.79 39.4 % 0.78
Q4 2012 1,626.45 28.2 % 367.82 26.9 % 61.39 70.7 % 1.02
Q1 2013 1,242.94 12.8 % 299.76 24.6 % 62.69 67.1 % 1.04
Q2 2013 1,431.03 6.4 % 314.89 11.1 % 63.60 14.0 % 1.06
Q3 2013 1,374.40 7.2 % 316.78 16.0 % 48.96 4.6 % 0.82
Q4 2013 1,365.61 (16.0 %) 375.38 2.1 % 60.11 (2.1 %) 1.00
Q1 2014 1,292.86 4.0 % 305.51 1.9 % 66.01 5.3 % 1.10
Q2 2014 1,386.01 (3.1 %) 316.09 0.4 % 73.02 14.8 % 1.22
Q3 2014 1,290.68 (6.1 %) 311.69 (1.6 %) 56.39 15.2 % 0.94
Q4 2014 1,485.87 8.8 % 400.78 6.8 % 64.92 8.0 % 1.08
Q1 2015 1,258.95 (2.6 %) 305.42 0.0 % 73.73 11.7 % 1.23
Q2 2015 1,438.81 3.8 % 317.26 0.4 % 74.36 1.8 % 1.24
Q3 2015 1,338.31 3.7 % 308.04 (1.2 %) 57.46 1.9 % 0.96
Q4 2015 1,452.53 (2.2 %) 374.57 (6.5 %) 57.45 (11.5 %) 0.96
Q1 2016 1,223.17 (2.8 %) 281.32 (7.9 %) 52.90 (28.3 %) 0.88
Q2 2016 1,408.33 (2.1 %) 308.91 (2.6 %) 51.22 (31.1 %) 0.85
Q3 2016 1,099.22 (17.9 %) 241.85 (21.5 %) 41.15 (28.4 %) 0.69
Q4 2016 1,198.51 (17.5 %) 299.84 (19.9 %) 1.11 (98.1 %) 0.02
Q1 2017 997.94 (18.4 %) 209.59 (25.5 %) 41.78 (21.0 %) 0.70
Q2 2017 1,125.43 (20.1 %) 237.43 (23.1 %) 36.45 (28.8 %) 0.61

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2008 19.89 % 9.82 % 5.47 %
Q2 2008 19.85 % 9.68 % 5.41 %
Q3 2008 20.18 % 9.87 % 5.56 %
Q4 2008 21.22 % 9.98 % 4.95 %
Q1 2009 21.44 % 10.06 % 4.85 %
Q2 2009 21.21 % 9.94 % 4.71 %
Q3 2009 21.84 % 10.06 % 4.45 %
Q4 2009 22.64 % 11.43 % 5.47 %
Q1 2010 23.53 % 11.80 % 5.83 %
Q2 2010 24.42 % 11.94 % 6.02 %
Q3 2010 24.14 % 11.15 % 5.43 %
Q4 2010 24.77 % 10.10 % 5.25 %
Q1 2011 24.51 % 9.65 % 4.75 %
Q2 2011 24.00 % 9.48 % 4.13 %
Q3 2011 23.96 % 9.63 % 3.98 %
Q4 2011 22.24 % 8.46 % 3.26 %
Q1 2012 22.02 % 8.53 % 3.19 %
Q2 2012 21.99 % 8.65 % 3.33 %
Q3 2012 21.76 % 8.72 % 3.52 %
Q4 2012 21.76 % 9.60 % 3.76 %
Q1 2013 22.28 % 9.83 % 4.12 %
Q2 2013 22.49 % 9.71 % 4.20 %
Q3 2013 22.90 % 9.63 % 4.17 %
Q4 2013 24.14 % 10.06 % 4.35 %
Q1 2014 24.02 % 9.98 % 4.37 %
Q2 2014 24.24 % 10.24 % 4.58 %
Q3 2014 24.53 % 10.52 % 4.79 %
Q4 2014 24.45 % 10.36 % 4.95 %
Q1 2015 24.61 % 10.47 % 5.13 %
Q2 2015 24.39 % 10.36 % 5.10 %
Q3 2015 24.11 % 10.22 % 5.08 %
Q4 2015 23.78 % 10.38 % 5.99 %
Q1 2016 23.50 % 10.08 % 5.65 %
Q2 2016 23.47 % 10.07 % 5.25 %
Q3 2016 23.28 % 10.27 % 5.18 %
Q4 2016 22.96 % 9.76 % 4.80 %
Q1 2017 22.54 % 9.89 % 4.80 %
Q2 2017 22.36 % 9.67 % 4.77 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2008 60.00 3.53 3.53 14.41
Q2 2008 60.00 3.79 3.79 15.59
Q3 2008 60.00 4.17 4.17 16.77
Q4 2008 60.00 3.75 3.75 17.14
Q1 2009 60.00 3.79 3.79 16.82
Q2 2009 60.00 3.57 3.57 17.93
Q3 2009 60.00 3.10 3.10 18.83
Q4 2009 60.00 3.84 3.84 19.92
Q1 2010 60.00 3.88 3.88 19.82
Q2 2010 60.00 3.93 3.93 20.71
Q3 2010 60.00 3.56 3.56 20.56
Q4 2010 60.00 3.52 3.52 21.48
Q1 2011 60.00 3.21 3.21 22.04
Q2 2011 60.00 2.96 2.96 22.08
Q3 2011 60.00 2.99 2.99 21.72
Q4 2011 60.00 2.57 2.57 22.49
Q1 2012 60.00 2.58 2.58 23.22
Q2 2012 60.00 2.71 2.71 23.14
Q3 2012 60.00 2.93 2.93 23.25
Q4 2012 60.00 3.36 3.36 24.15
Q1 2013 60.00 3.78 3.78 25.12
Q2 2013 60.00 3.91 3.91 25.26
Q3 2013 60.00 3.94 3.94 25.37
Q4 2013 60.00 3.92 3.92 26.81
Q1 2014 60.00 3.98 3.98 27.95
Q2 2014 60.00 4.13 4.13 28.10
Q3 2014 60.00 4.26 4.26 28.01
Q4 2014 60.00 4.34 4.50 29.04
Q1 2015 60.00 4.47 4.63 30.27
Q2 2015 60.00 4.49 4.65 30.44
Q3 2015 60.00 4.51 4.67 30.36
Q4 2015 60.00 4.38 5.48 31.42
Q1 2016 60.00 4.04 5.13 28.75
Q2 2016 60.00 3.65 4.75 32.00
Q3 2016 60.00 3.38 4.48 31.67
Q4 2016 60.00 2.44 3.95 27.97
Q1 2017 60.00 2.25 3.76 28.79
Q2 2017 60.00 2.01 3.51 28.41

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2008 16.38 16.38 4.02
Q2 2008 20.89 20.89 5.08
Q3 2008 17.76 17.76 4.42
Q4 2008 11.42 11.42 2.50
Q1 2009 8.83 8.83 1.99
Q2 2009 12.70 12.70 2.53
Q3 2009 15.45 15.45 2.54
Q4 2009 10.93 10.93 2.10
Q1 2010 12.99 12.99 2.54
Q2 2010 11.09 11.09 2.11
Q3 2010 12.85 12.85 2.23
Q4 2010 9.95 9.95 1.63
Q1 2011 10.64 10.64 1.55
Q2 2011 10.63 10.63 1.43
Q3 2011 9.12 9.12 1.26
Q4 2011 11.36 11.36 1.30
Q1 2012 13.01 13.01 1.45
Q2 2012 10.43 10.43 1.22
Q3 2012 10.06 10.06 1.27
Q4 2012 9.38 9.38 1.30
Q1 2013 8.87 8.87 1.33
Q2 2013 10.47 10.47 1.62
Q3 2013 12.04 12.04 1.87
Q4 2013 11.09 11.09 1.62
Q1 2014 12.88 12.88 1.83
Q2 2014 13.81 13.81 2.03
Q3 2014 15.97 15.97 2.43
Q4 2014 10.83 10.44 1.62
Q1 2015 13.01 12.55 1.92
Q2 2015 12.58 12.14 1.86
Q3 2015 8.87 8.56 1.32
Q4 2015 7.43 5.94 1.04
Q1 2016 7.24 5.69 1.02
Q2 2016 7.70 5.92 0.88
Q3 2016 6.62 5.00 0.71
Q4 2016 12.71 7.86 1.11
Q1 2017 13.20 7.92 1.03
Q2 2017 13.97 7.99 0.99

Business Segments (Million)

Compared With The
Period Air conditioners Manufacture Iron Industry Insulation materials industry Corporate and others Eliminations concrete Headquarters & Others
Q1 2009 345.25 754.86 41.08 - - - -
Q2 2009 485.30 622.54 40.74 - - - -
Q3 2009 399.97 501.99 42.70 - - - -
Q4 2009 345.99 571.96 52.06 - - - -
Q1 2010 337.70 545.52 43.87 - - - -
Q2 2010 460.85 572.51 44.91 - - - -
Q3 2010 397.27 524.28 41.88 - - - -
Q4 2010 440.40 566.99 42.24 - - - -
Q1 2011 348.74 531.70 45.03 - - 41.25 -
Q2 2011 547.89 611.56 125.18 - - 40.58 -
Q3 2011 448.14 606.75 76.96 - - 35.34 -
Q4 2011 491.57 666.96 77.81 - - 32.24 -
Q1 2012 349.88 628.69 95.40 - - 28.13 -
Q2 2012 537.38 681.91 85.93 - - 39.57 -
Q3 2012 508.89 660.32 70.70 - - 41.48 0.15
Q4 2012 788.41 718.44 70.93 - - 47.27 1.39
Q1 2013 474.88 647.71 71.77 - - - 48.58
Q2 2013 648.27 657.97 75.26 - - - 49.53
Q3 2013 602.72 655.39 74.09 - - - 42.20
Q4 2013 502.51 736.22 77.52 - - - 49.36
Q1 2014 502.69 658.11 73.96 - - - 58.11
Q2 2014 610.58 637.54 78.32 - - - 59.58
Q3 2014 601.45 571.21 74.93 - - - 43.08
Q4 2014 749.08 668.66 65.73 - - - 2.40
Q1 2015 547.19 628.68 81.12 - - - 1.96
Q2 2015 698.85 650.62 87.67 - - - 1.67
Q3 2015 569.05 694.71 73.52 - - - 1.03
Q4 2015 661.12 709.80 79.08 - - - 2.53
Q1 2016 496.61 640.12 85.22 6.27 (5.04) - -
Q2 2016 692.41 629.07 85.58 6.85 (5.58) - -
Q3 2016 475.69 544.81 77.21 6.39 (4.88) - -
Q4 2016 576.34 548.25 98.78 8.44 (33.29) - -
Q1 2017 407.19 508.55 84.88 7.27 (9.96) - -
Q2 2017 566.05 485.96 74.75 2.22 (3.56) - -

Analysts Estimates (Million)

Item Q2 2017 (e) Q2 2017 (a) Change‬
Average 57.00 36.45 (36.0 %)

Estimates vs Actual (Million)

Item Q2 2017 (e) Q2 2017 (a) Change
HSBC 57.00 36.45 (36.0) %

Current
Market Cap (M Riyal) 1,430.40
Enterprise Value (EV) (M) 3,265.59
Shares Outstanding ((M)) 60.00
EPS ( Riyal) (TTM) (4.64)
Book Value (BV) ( Riyal) 7.27
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) Neg
P/E (TTM) NEG
Price/book 3.28
Return on Average Assets (%) (TTM) (4.52 )
Return on Average Equity (%) (TTM) (47.02 )

Share Price

23.84
(0.16) (0.67 %)

Zamil Industrial Investment Co. (ZAMIL INDUST)


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