Dar Al-Arkan posts 30% drop in FY16 net profit

19/01/2017 Argaam Exclusive

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Dar Alarkan Real Estate Development Co. (DAR ALARKAN)

Dar Al-Arkan Real Estate Development Co. (Dar Al-Arkan) reported a net profit of SAR 250.8 million for the fiscal year 2016, a fall of 30.2 percent year-on-year (YoY), due to lower property sales revenue.

 

The decline, however, was partially offset by an increase in lease revenue and lower operating and finance charges, the developer said. 



Financials (M)

Item 2015 2016 Change‬
Revenues 2,211.35 1,870.23 (15.4 %)
Gross Income 983.23 791.94 (19.5 %)
Operating Income 775.40 631.92 (18.5 %)
Net Income 359.16 250.83 (30.2 %)
Average Shares 1,080.00 1,080.00 -
EPS (Riyals) 0.33 0.23 (30.2 %)

Net profit for the fourth quarter dropped by 23 percent YoY to SAR 37 million, hurt by lower revenue from property sales and higher operating expenses. On a sequential basis, the net profit plunged 67 percent. 



Current Quarter Comparison (M)

Compared With The
Item Q4 2015 Q4 2016 Change‬
Revenues 419.35 410.49 (2.1 %)
Gross Income 180.79 170.46 (5.7 %)
Operating Income 144.80 129.07 (10.9 %)
Net Income 48.66 37.29 (23.4 %)
Average Shares 1,080.00 1,080.00 -
EPS (Riyals) 0.05 0.03 (23.4 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2007 912.98 7.9 % 452.81 13.4 % 424.60 11.6 % 0.39
Q2 2007 1,041.78 17.3 % 560.20 30.3 % 471.81 16.3 % 0.44
Q3 2007 1,641.14 - 767.13 - 689.80 - 0.64
Q4 2007 1,330.04 - 627.87 - 422.37 - 0.39
Q1 2008 1,234.17 35.2 % 586.70 29.6 % 452.76 6.6 % 0.42
Q2 2008 1,550.36 48.8 % 836.03 49.2 % 687.53 45.7 % 0.64
Q3 2008 1,567.04 (4.5 %) 859.32 12.0 % 719.50 4.3 % 0.67
Q4 2008 1,259.20 (5.3 %) 563.13 (10.3 %) 496.46 17.5 % 0.46
Q1 2009 1,237.72 0.3 % 512.83 (12.6 %) 424.52 (6.2 %) 0.39
Q2 2009 1,482.37 (4.4 %) 712.82 (14.7 %) 618.27 (10.1 %) 0.57
Q3 2009 1,523.47 (2.8 %) 714.19 (16.9 %) 616.15 (14.4 %) 0.57
Q4 2009 1,220.50 (3.1 %) 567.29 0.7 % 463.74 (6.6 %) 0.43
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
2016 1,870.23 (15.4 %) 791.94 (19.5 %) 250.83 (30.2 %) 0.23

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2007 - - -
Q2 2007 - - -
Q3 2007 - - -
Q4 2007 48.88 % 46.95 % 40.78 %
Q1 2008 48.44 % 46.44 % 38.82 %
Q2 2008 48.96 % 46.74 % 39.13 %
Q3 2008 51.22 % 48.61 % 40.17 %
Q4 2008 50.71 % 48.04 % 42.00 %
Q1 2009 49.36 % 46.59 % 41.47 %
Q2 2009 47.75 % 45.03 % 40.72 %
Q3 2009 45.49 % 42.72 % 39.17 %
Q4 2009 45.88 % 43.22 % 38.85 %
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 %
2016 42.34 % 37.93 % 13.41 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2007 1,080.00 - - 10.22
Q2 2007 1,080.00 - - 10.66
Q3 2007 1,080.00 - - 9.79
Q4 2007 1,080.00 1.86 1.86 10.19
Q1 2008 1,080.00 1.89 1.89 10.60
Q2 2008 1,080.00 2.09 2.09 9.74
Q3 2008 1,080.00 2.11 2.11 10.41
Q4 2008 1,080.00 2.18 2.18 10.87
Q1 2009 1,080.00 2.16 2.16 11.26
Q2 2009 1,080.00 2.09 2.09 11.83
Q3 2009 1,080.00 2.00 2.00 12.40
Q4 2009 1,080.00 1.97 1.97 12.83
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

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2007 - - -
Q2 2007 - - -
Q3 2007 - - -
Q4 2007 19.77 19.77 3.61
Q1 2008 16.71 16.71 2.97
Q2 2008 12.71 12.71 2.72
Q3 2008 11.43 11.43 2.32
Q4 2008 6.83 6.83 1.37
Q1 2009 6.08 6.08 1.16
Q2 2009 8.48 8.48 1.50
Q3 2009 7.94 7.94 1.28
Q4 2009 7.15 7.15 1.09
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

Business Segments (Million)

Compared With The
Period property Leasing Sale of Land Sale of residential properties
Q1 2007 - 560.55 352.43
Q2 2007 - 646.65 395.12
Q1 2008 - 916.32 317.85
Q2 2008 - 1,042.34 508.02
Q3 2008 - 1,455.49 111.56
Q4 2008 - 1,206.25 52.96
Q1 2009 - 1,117.60 120.11
Q2 2009 - 1,330.76 151.61
Q3 2009 - 1,400.67 122.80
Q4 2009 - 1,095.70 124.80
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 -

Analysts Estimates (Million)

Item Q4 2016 (e) Q4 2016 (a) Change‬
Average 64.00 37.29 (41.7 %)

Estimates vs Actual (Million)

Item Q4 2016 (e) Q4 2016 (a) Change
SNB Capital 64.00 37.29 (41.7) %

Current
Market Cap (M Riyal) 13,521.60
Enterprise Value (EV) (M) 18,152.07
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) 20.91
P/E (TTM) 20.91
Price/book 0.66
Return on Average Assets (%) (TTM) 2.0
Return on Average Equity (%) (TTM) 3.2

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