MESC swings to loss in 2018

31/03/2019 Argaam Exclusive

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Share Price

Middle East Specialized Cables Co. (MESC)

Middle East Specialized Cables Co. (MESC) posted a net loss after zakat and tax of SAR 80.1 million for fiscal year 2018, compared to a net profit of SAR 12.5 million a year earlier, due to lower sales volumes and profit margins.



Financials (M)

Item 2017 2018 Change‬
Revenues 675.12 591.86 (12.3 %)
Gross Income 89.75 48.13 (46.4 %)
Operating Income 14.24 (62.98) (542.3 %)
Net Income 12.50 (80.11) (740.8 %)
Average Shares 40.00 40.00 -
EPS (Riyals) 0.31 (2.00) (740.8 %)

The loss was also attributed to implementing the IFRS9 and writing back doubtful loan provisions in 2017.



Current Quarter Comparison (M)

Compared With The
Item Q4 2017 Q4 2018 Change‬
Revenues 156.09 134.48 (13.8 %)
Gross Income 14.44 14.32 (0.8 %)
Operating Income (7.35) (32.66) (344.2 %)
Net Income 11.32 (37.07) (427.5 %)
Average Shares 40.00 40.00 -
EPS (Riyals) 0.28 (0.93) (427.5 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2009 237.97 (33.4 %) 49.26 (39.8 %) 25.99 (47.2 %) 0.84
Q2 2009 245.59 (32.0 %) 66.17 (27.2 %) 30.13 (41.0 %) 0.97
Q3 2009 231.19 (37.8 %) 39.08 (48.7 %) 13.23 (38.1 %) 0.43
Q4 2009 319.17 45.9 % 23.31 (44.3 %) (18.03) 45.8 % (0.58)
Q1 2010 288.81 21.4 % 34.67 (29.6 %) 3.12 (88.0 %) 0.10
Q2 2010 272.04 10.8 % 39.88 (39.7 %) 4.70 (84.4 %) 0.15
Q3 2010 232.69 0.6 % 20.90 (46.5 %) (3.51) (126.5 %) (0.11)
Q4 2010 235.71 (26.1 %) 19.41 (16.7 %) (99.26) (450.4 %) (3.20)
Q1 2011 227.36 (21.3 %) 11.24 (67.6 %) (20.97) (771.4 %) (0.68)
Q2 2011 331.40 21.8 % 24.93 (37.5 %) 1.35 (71.3 %) 0.04
Q3 2011 288.33 23.9 % 33.87 62.0 % (6.52) (85.8 %) (0.21)
Q4 2011 292.30 24.0 % 25.59 31.9 % (93.99) 5.3 % (3.03)
Q1 2012 296.38 30.4 % 51.82 361.1 % 10.72 151.1 % 0.35
Q2 2012 270.85 (18.3 %) 37.48 50.4 % 14.33 962.1 % 0.46
Q3 2012 193.87 (32.8 %) 40.37 19.2 % 9.22 241.3 % 0.30
Q4 2012 229.48 (21.5 %) 31.49 23.0 % (3.17) 96.6 % (0.10)
Q1 2013 227.41 (23.3 %) 46.73 (9.8 %) 13.38 24.8 % 0.43
Q2 2013 228.05 (15.8 %) 31.96 (14.7 %) 0.01 (99.9 %) 0.00
Q3 2013 238.76 23.2 % 33.42 (17.2 %) 15.32 66.2 % 0.49
Q4 2013 236.51 3.1 % 33.80 7.3 % 1.69 153.4 % 0.04
Q1 2014 209.55 (7.9 %) 22.30 (52.3 %) (7.83) (158.6 %) (0.20)
Q2 2014 269.78 18.3 % 40.73 27.5 % 10.19 72678.6 % 0.25
Q3 2014 182.59 (23.5 %) 17.70 (47.1 %) (19.83) (229.5 %) (0.50)
Q4 2014 196.55 (16.9 %) 25.73 (23.9 %) (5.60) (430.7 %) (0.14)
Q1 2015 258.29 23.3 % 30.32 36.0 % (2.99) 61.8 % (0.07)
Q2 2015 216.34 (19.8 %) 19.30 (52.6 %) (10.42) (202.2 %) (0.26)
Q3 2015 231.71 26.9 % 31.77 79.5 % (3.17) 84.0 % (0.08)
Q4 2015 181.34 (7.7 %) 9.24 (64.1 %) (57.31) (924.2 %) (1.43)
Q1 2016 224.89 (12.9 %) 26.81 (11.6 %) (5.08) (70.0 %) (0.13)
Q2 2016 233.39 7.9 % 31.37 62.6 % 76.82 837.6 % 1.92
Q3 2016 174.04 (24.9 %) 28.53 (10.2 %) 3.93 223.8 % 0.10
Q4 2016 127.07 (29.9 %) 35.47 283.8 % 10.66 118.6 % 0.27
Q1 2017 188.02 (16.4 %) 31.03 15.7 % 3.86 176.0 % 0.10
Q2 2017 170.92 (26.8 %) 21.89 (30.2 %) 0.44 (99.4 %) 0.01
Q3 2017 160.10 (8.0 %) 22.39 (21.5 %) 0.17 (95.6 %) 0.00
Q4 2017 156.09 22.8 % 14.44 (59.3 %) 11.32 6.1 % 0.28
Q1 2018 163.85 (12.9 %) 14.98 (51.7 %) (9.35) (342.0 %) (0.23)
Q2 2018 149.55 (12.5 %) 3.58 (83.7 %) (25.35) (5847.8 %) (0.63)
Q3 2018 143.97 (10.1 %) 15.26 (31.8 %) (8.35) (4955.8 %) (0.21)
Q4 2018 134.48 (13.8 %) 14.32 (0.8 %) (37.07) (427.5 %) (0.93)
2018 591.86 (12.3 %) 48.13 (46.4 %) (80.11) (740.8 %) (2.00)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2009 21.71 % 17.89 % 5.48 %
Q2 2009 21.74 % 18.58 % 4.12 %
Q3 2009 21.03 % 20.45 % 3.86 %
Q4 2009 17.20 % 14.70 % 4.96 %
Q1 2010 15.05 % 11.90 % 2.62 %
Q2 2010 12.32 % 7.95 % 0.27 %
Q3 2010 10.67 % 5.86 % (1.23 %)
Q4 2010 11.16 % 4.89 % (1.74 %)
Q1 2011 9.45 % 2.90 % (4.34 %)
Q2 2011 7.45 % 1.59 % (4.42 %)
Q3 2011 8.26 % 2.60 % (4.47 %)
Q4 2011 8.39 % 2.69 % (4.35 %)
Q1 2012 11.27 % 5.74 % (1.48 %)
Q2 2012 12.96 % 7.29 % (0.43 %)
Q3 2012 14.74 % 8.34 % 1.03 %
Q4 2012 16.27 % 10.03 % 3.14 %
Q1 2013 16.93 % 10.35 % 3.66 %
Q2 2013 17.13 % 10.00 % 2.21 %
Q3 2013 15.54 % 9.11 % 2.77 %
Q4 2013 15.68 % 10.17 % 1.90 %
Q1 2014 13.31 % 7.84 % (0.39 %)
Q2 2014 13.64 % 8.53 % 0.70 %
Q3 2014 12.75 % 6.14 % (3.17 %)
Q4 2014 12.40 % 5.17 % (2.69 %)
Q1 2015 12.62 % 5.34 % (2.01 %)
Q2 2015 10.90 % 2.81 % (4.55 %)
Q3 2015 11.86 % 4.29 % (2.46 %)
Q4 2015 10.21 % 1.70 % (1.40 %)
Q1 2016 10.20 % 1.60 % (1.70 %)
Q2 2016 11.38 % 2.10 % (0.91 %)
Q3 2016 11.79 % 3.01 % (0.10 %)
Q4 2016 16.09 % 7.35 % 0.75 %
Q1 2017 17.49 % 8.78 % 2.02 %
Q2 2017 17.71 % 10.66 % 2.86 %
Q3 2017 17.15 % 10.61 % 2.34 %
Q4 2017 13.29 % 7.23 % 0.86 %
Q1 2018 11.32 % 4.75 % (1.14 %)
Q2 2018 8.80 % (0.06 %) (5.27 %)
Q3 2018 7.87 % (2.38 %) (6.80 %)
Q4 2018 8.13 % (6.82 %) (13.54 %)
2018 8.13 % (6.82 %) (13.54 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2009 30.99 2.10 2.10 15.58
Q2 2009 30.99 1.43 1.43 16.54
Q3 2009 30.99 1.16 1.16 16.95
Q4 2009 30.99 1.66 1.66 16.27
Q1 2010 30.99 0.92 0.92 15.08
Q2 2010 30.99 0.10 0.10 15.41
Q3 2010 30.99 (0.44) (0.44) 15.03
Q4 2010 30.99 (3.06) (0.58) 11.85
Q1 2011 30.99 (3.84) (1.36) 11.26
Q2 2011 30.99 (3.95) (1.46) 11.44
Q3 2011 30.99 (4.05) (1.56) 10.41
Q4 2011 30.99 (3.88) (1.60) 7.83
Q1 2012 30.99 (2.85) (0.58) 8.43
Q2 2012 30.99 (2.43) (0.16) 8.89
Q3 2012 30.99 (1.93) 0.35 9.19
Q4 2012 30.99 1.00 1.00 9.08
Q1 2013 30.99 1.09 1.09 9.52
Q2 2013 30.99 0.63 0.63 9.52
Q3 2013 30.99 0.82 0.82 10.02
Q4 2013 40.00 0.76 0.44 12.60
Q1 2014 40.00 0.23 (0.09) 12.42
Q2 2014 40.00 0.48 0.17 12.67
Q3 2014 40.00 (0.39) (0.71) 12.17
Q4 2014 40.00 (0.58) (0.58) 12.02
Q1 2015 40.00 (0.46) (0.46) 11.95
Q2 2015 40.00 (0.97) (0.97) 11.68
Q3 2015 40.00 (0.55) (0.55) 11.60
Q4 2015 40.00 (1.85) (0.31) 9.35
Q1 2016 40.00 (1.90) (0.36) 9.22
Q2 2016 40.00 0.28 (0.20) 11.28
Q3 2016 40.00 0.46 (0.02) 11.36
Q4 2016 40.00 2.16 0.14 11.45
Q1 2017 40.00 2.38 0.37 11.52
Q2 2017 40.00 0.47 0.47 11.52
Q3 2017 40.00 0.38 0.38 11.54
Q4 2017 40.00 0.39 0.15 11.63
Q1 2018 40.00 0.06 (0.19) 11.35
Q2 2018 40.00 (0.58) (0.83) 10.72
Q3 2018 40.00 (0.79) (1.04) 10.51
Q4 2018 40.00 (2.00) (2.00) 9.62

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2009 22.10 22.10 2.98
Q2 2009 49.25 49.25 4.25
Q3 2009 More than 50 More than 50 4.23
Q4 2009 35.41 35.41 3.60
Q1 2010 More than 50 More than 50 3.53
Q2 2010 More than 50 More than 50 2.20
Q3 2010 NEG NEG 2.06
Q4 2010 NEG NEG 2.58
Q1 2011 NEG NEG 2.41
Q2 2011 NEG NEG 2.49
Q3 2011 NEG NEG 2.43
Q4 2011 NEG NEG 3.45
Q1 2012 NEG NEG 4.36
Q2 2012 NEG NEG 3.37
Q3 2012 NEG More than 50 4.06
Q4 2012 29.79 29.79 3.29
Q1 2013 28.30 28.30 3.24
Q2 2013 More than 50 More than 50 3.36
Q3 2013 31.71 31.71 2.61
Q4 2013 27.14 46.68 1.64
Q1 2014 More than 50 NEG 1.79
Q2 2014 47.09 More than 50 1.80
Q3 2014 NEG NEG 2.35
Q4 2014 NEG NEG 2.73
Q1 2015 NEG NEG 1.95
Q2 2015 NEG NEG 1.73
Q3 2015 NEG NEG 1.25
Q4 2015 NEG NEG 1.48
Q1 2016 NEG NEG 1.15
Q2 2016 39.30 NEG 0.98
Q3 2016 19.65 NEG 0.79
Q4 2016 5.71 More than 50 1.08
Q1 2017 4.92 32.13 1.02
Q2 2017 20.24 20.24 0.83
Q3 2017 35.17 35.17 1.15
Q4 2017 32.29 More than 50 1.10
Q1 2018 More than 50 NEG 1.09
Q2 2018 NEG NEG 1.10
Q3 2018 NEG NEG 1.01
Q4 2018 NEG NEG 1.28

Current
Market Cap (M Riyal) 1,290.00
Enterprise Value (EV) (M) 1,271.50
Shares Outstanding ((M)) 40.00
EPS ( Riyal) (TTM) 1.56
Book Value (BV) ( Riyal) 10.09
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 20.64
P/E (TTM) 20.64
Price/book 3.20
Return on Average Assets (%) (TTM) 8.2
Return on Average Equity (%) (TTM) 16.8

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