MESC swings to loss in Q1 on lower sales

10/05/2018 Argaam Exclusive

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Share Price

Middle East Specialized Cables Co. (MESC)

Middle East Specialized Cables Co. (MESC) reported a net loss of SAR 9.35 million for the first quarter of 2018, compared to a net profit of SAR 3.86 million in the same period last year, due to a decrease in sales volumes amid weak market demand and tough competition.

 

The company has also started to adopt IFRS9 related to impairment loss of receivables and other financial assets during the current quarter.

MESC turned to a net loss from a profit of SAR 8.03 million the previous quarter, attributed to releasing doubtful debt provision for some customers following the collection of overdue receivables during the last quarter.

 

The Saudi company also cited releasing the provision for investment losses for its subsidiary, MESC for Medium and High Voltage Cables Company, after a decision by the company’s extraordinary general assembly to liquidate it.



Current Quarter Comparison (M)

Compared With The
Item Q1 2017 Q1 2018 Change‬
Revenues 188.02 163.85 (12.9 %)
Gross Income 31.03 14.98 (51.7 %)
Operating Income 11.01 (5.07) (146.0 %)
Net Income 3.86 (9.35) (342.0 %)
Average Shares 40.00 40.00 -
EPS (Riyals) 0.10 (0.23) (342.0 %)


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)

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 %)


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

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 61.67 61.67 4.23
Q4 2009 35.41 35.41 3.60
Q1 2010 58.07 58.07 3.53
Q2 2010 More than 100 More than 100 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 100 4.06
Q4 2012 29.79 29.79 3.29
Q1 2013 28.30 28.30 3.24
Q2 2013 50.98 50.98 3.36
Q3 2013 31.71 31.71 2.61
Q4 2013 27.14 46.68 1.64
Q1 2014 96.95 NEG 1.79
Q2 2014 47.09 More than 100 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 87.14 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 87.78 1.10
Q1 2018 More than 100 NEG 1.09

Current
Market Cap (M Riyal) 1,268.00
Enterprise Value (EV) (M) 1,261.98
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) 20.30
P/E (TTM) 20.30
Price/book 3.14
Return on Average Assets (%) (TTM) 7.9
Return on Average Equity (%) (TTM) 16.8

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