New Risk • Jun 08
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.9% Last year net profit margin: 7.4% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks High level of debt (101% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.3% average weekly change). Profit margins are more than 30% lower than last year (2.9% net profit margin). Announcement • Jun 03
Bawan Company, Annual General Meeting, Jun 23, 2026 Bawan Company, Annual General Meeting, Jun 23, 2026, at 19:15 Arab Standard Time. Location: riyadh Saudi Arabia Reported Earnings • May 14
First quarter 2026 earnings released: EPS: ر.س0.87 (vs ر.س0.61 in 1Q 2025) First quarter 2026 results: EPS: ر.س0.87 (up from ر.س0.61 in 1Q 2025). Revenue: ر.س1.03b (up 13% from 1Q 2025). Net income: ر.س51.9m (up 42% from 1Q 2025). Profit margin: 5.0% (up from 4.0% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 9% per year. New Risk • May 14
New major risk - Revenue and earnings growth Earnings have declined by 2.3% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 2.3% per year over the past 5 years. Minor Risks High level of debt (101% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.6% average weekly change). New Risk • Apr 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 103% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.7x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.9% average weekly change). Large one-off items impacting financial results. Reported Earnings • Apr 07
Full year 2025 earnings released: EPS: ر.س3.64 (vs ر.س1.77 in FY 2024) Full year 2025 results: EPS: ر.س3.64 (up from ر.س1.77 in FY 2024). Revenue: ر.س4.07b (up 35% from FY 2024). Net income: ر.س218.3m (up 106% from FY 2024). Profit margin: 5.4% (up from 3.5% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 15% per year. New Risk • Mar 29
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Saudi stocks, typically moving 6.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Earnings have declined by 0.3% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (107% cash payout ratio). Share price has been volatile over the past 3 months (6.0% average weekly change). Valuation Update With 7 Day Price Move • Mar 29
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ر.س50.90, the stock trades at a trailing P/E ratio of 18x. Average trailing P/E is 16x in the Building industry in Saudi Arabia. Total returns to shareholders of 88% over the past three years. New Risk • Nov 12
New major risk - Revenue and earnings growth Earnings have declined by 0.3% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Earnings have declined by 0.3% per year over the past 5 years. Minor Risk Dividend is not well covered by cash flows (91% cash payout ratio). Board Change • Nov 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Outside Director Naji Fayad was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • Sep 30
Less than half of directors are independent Following the recent departure of a director, there are only 5 independent directors on the board. The company's board is composed of: 5 independent directors. 6 non-independent directors. Director Abdulhamid Al Ouhali was the last director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 19
Second quarter 2025 earnings released: EPS: ر.س0.84 (vs ر.س0.39 in 2Q 2024) Second quarter 2025 results: EPS: ر.س0.84 (up from ر.س0.39 in 2Q 2024). Revenue: ر.س966.1m (up 53% from 2Q 2024). Net income: ر.س58.8m (up 154% from 2Q 2024). Profit margin: 6.1% (up from 3.7% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Reported Earnings • May 21
First quarter 2025 earnings released: EPS: ر.س0.61 (vs ر.س0.49 in 1Q 2024) First quarter 2025 results: EPS: ر.س0.61 (up from ر.س0.49 in 1Q 2024). Revenue: ر.س910.2m (up 3.0% from 1Q 2024). Net income: ر.س36.5m (up 25% from 1Q 2024). Profit margin: 4.0% (up from 3.3% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Announcement • May 07
Bawan Company, Annual General Meeting, May 27, 2025 Bawan Company, Annual General Meeting, May 27, 2025, at 18:30 Arab Standard Time. Location: riyadh Saudi Arabia New Risk • Apr 17
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 15% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Minor Risk Dividend is not well covered by cash flows (195% cash payout ratio). Reported Earnings • Mar 27
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: ر.س1.77 (down from ر.س2.31 in FY 2023). Revenue: ر.س3.02b (down 9.9% from FY 2023). Net income: ر.س106.0m (down 24% from FY 2023). Profit margin: 3.5% (down from 4.1% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 16%. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ر.س45.20, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 15x in the Building industry in Asia. Total returns to shareholders of 51% over the past three years. New Risk • Nov 09
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 42% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (42% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Nov 09
Third quarter 2024 earnings released: EPS: ر.س0.39 (vs ر.س0.62 in 3Q 2023) Third quarter 2024 results: EPS: ر.س0.39 (down from ر.س0.62 in 3Q 2023). Revenue: ر.س682.6m (down 18% from 3Q 2023). Net income: ر.س23.4m (down 37% from 3Q 2023). Profit margin: 3.4% (down from 4.5% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 7.5% p.a. on average during the next 2 years, compared to a 8.0% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ر.س46.15, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 15x in the Building industry in Asia. Total returns to shareholders of 30% over the past three years. Upcoming Dividend • Sep 22
Upcoming dividend of ر.س0.60 per share Eligible shareholders must have bought the stock before 29 September 2024. Payment date: 10 October 2024. Payout ratio is a comfortable 69% and the cash payout ratio is 87%. Trailing yield: 3.5%. Lower than top quartile of Saudi dividend payers (4.6%). In line with average of industry peers (3.3%). Reported Earnings • Aug 09
Second quarter 2024 earnings released: EPS: ر.س0.39 (vs ر.س0.49 in 2Q 2023) Second quarter 2024 results: EPS: ر.س0.39 (down from ر.س0.49 in 2Q 2023). Revenue: ر.س632.6m (down 18% from 2Q 2023). Net income: ر.س23.1m (down 21% from 2Q 2023). Profit margin: 3.7% (down from 3.8% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 4.6% p.a. on average during the next 2 years, compared to a 8.2% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ر.س39.30, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 13x in the Building industry in Asia. Total returns to shareholders of 9.3% over the past three years. Reported Earnings • May 08
First quarter 2024 earnings released: EPS: ر.س0.49 (vs ر.س0.60 in 1Q 2023) First quarter 2024 results: EPS: ر.س0.49 (down from ر.س0.60 in 1Q 2023). Revenue: ر.س883.9m (down 1.0% from 1Q 2023). Net income: ر.س29.2m (down 18% from 1Q 2023). Profit margin: 3.3% (down from 4.0% in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Apr 30
Now 23% overvalued The stock has been flat over the last 90 days, currently trading at ر.س47.40. The fair value is estimated to be ر.س38.51, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years, while earnings per share has been flat. Upcoming Dividend • Mar 31
Upcoming dividend of ر.س0.85 per share Eligible shareholders must have bought the stock before 04 April 2024. Payment date: 29 April 2024. Payout ratio is a comfortable 65% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Saudi dividend payers (4.5%). In line with average of industry peers (3.3%). Buy Or Sell Opportunity • Mar 11
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 16% to ر.س49.30. The fair value is estimated to be ر.س40.88, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years, while earnings per share has been flat. Revenue is forecast to decline by 14% in a year. Earnings are forecast to grow by 5.4% in the next year. Reported Earnings • Mar 09
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: ر.س2.31 (down from ر.س2.71 in FY 2022). Revenue: ر.س3.35b (down 7.7% from FY 2022). Net income: ر.س138.5m (down 15% from FY 2022). Profit margin: 4.1% (down from 4.5% in FY 2022). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 2.5%. Earnings per share (EPS) missed analyst estimates by 5.4%. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 17% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Mar 06
Dividend of ر.س0.85 announced Shareholders will receive a dividend of ر.س0.85. Ex-date: 7th April 2024 Payment date: 29th April 2024 Dividend yield will be 2.9%, which is lower than the industry average of 3.3%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (34% cash payout ratio). The dividend has increased by an average of 4.5% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 3.4% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 09
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: ر.س832.0m (down 5.6% from 3Q 2022). Net income: ر.س37.2m (down 2.4% from 3Q 2022). Profit margin: 4.5% (up from 4.3% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue is expected to decline by 14% p.a. on average during the next 2 years, while revenues in the Building industry in Asia are expected to grow by 9.3%. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 16% per year. Upcoming Dividend • Aug 28
Upcoming dividend of ر.س0.65 per share at 3.7% yield Eligible shareholders must have bought the stock before 04 September 2023. Payment date: 17 August 2023. Payout ratio is a comfortable 60% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of Saudi dividend payers (4.3%). In line with average of industry peers (3.9%). Price Target Changed • Aug 18
Price target decreased by 8.1% to ر.س34.00 Down from ر.س37.00, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of ر.س35.35. Stock is down 4.5% over the past year. The company is forecast to post earnings per share of ر.س2.40 for next year compared to ر.س2.71 last year. New Risk • Aug 12
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.6% Last year net profit margin: 5.3% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (3.6% net profit margin). Reported Earnings • Aug 11
Second quarter 2023 earnings released: EPS: ر.س0.42 (vs ر.س0.74 in 2Q 2022) Second quarter 2023 results: EPS: ر.س0.42 (down from ر.س0.74 in 2Q 2022). Revenue: ر.س768.1m (down 9.5% from 2Q 2022). Net income: ر.س25.0m (down 44% from 2Q 2022). Profit margin: 3.3% (down from 5.2% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 4.3% p.a. on average during the next 2 years, compared to a 9.2% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Mar 15
Price target decreased by 11% to ر.س32.00 Down from ر.س36.00, the current price target is provided by 1 analyst. New target price is 14% above last closing price of ر.س27.95. Stock is down 16% over the past year. The company is forecast to post earnings per share of ر.س2.80 for next year compared to ر.س2.87 last year. Price Target Changed • Nov 16
Price target increased to ر.س42.00 Up from ر.س35.00, the current price target is provided by 1 analyst. New target price is 19% above last closing price of ر.س35.40. Stock is down 1.1% over the past year. The company is forecast to post earnings per share of ر.س2.82 for next year compared to ر.س2.87 last year. Reported Earnings • Nov 02
Third quarter 2022 earnings released: EPS: ر.س0.64 (vs ر.س0.68 in 3Q 2021) Third quarter 2022 results: EPS: ر.س0.64 (down from ر.س0.68 in 3Q 2021). Revenue: ر.س881.8m (up 21% from 3Q 2021). Net income: ر.س38.1m (down 6.6% from 3Q 2021). Profit margin: 4.3% (down from 5.6% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.4% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Building industry in Asia. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 36% per year, which means it is significantly lagging earnings growth. Board Change • Oct 31
High number of new directors Vice Chairman Raed bin Ibrahim Al Mudaiheem was the last director to join the board, commencing their role in 2022. Announcement • Sep 28
Bawan Company Appoints Raed Ibrahim Almudaiheem as Vice Chairman Bawan Company appointed Raed Ibrahim Almudaiheem as the company's Vice Chairman. The official assumed role for a new board term that started on 26 September 2022 and will remain in position until 25 September 2025. Announcement • Sep 20
Bawan Company Approves Board Appointments Bawan Company announced that at its Extraordinary General Assembly Meeting, held on September 19, 2022, elects Mr. Faisal Majid Al-Muhaideb, Mr. Mohammad Abdulaziz Al-Ageel as Board members and elects Mr. Abdullah Saghaier Al-Hussaini (Independent member), Mr. Khenneth Charles Ebrahim (Independent member). as members of the Audit Committee starting from September 26, 2022 until the end of the term on September 25, 2025. Reported Earnings • Aug 17
Second quarter 2022 earnings released: EPS: ر.س0.74 (vs ر.س0.76 in 2Q 2021) Second quarter 2022 results: EPS: ر.س0.74 (down from ر.س0.76 in 2Q 2021). Revenue: ر.س849.1m (up 7.6% from 2Q 2021). Net income: ر.س44.6m (down 1.8% from 2Q 2021). Profit margin: 5.2% (down from 5.8% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 3.4%, compared to a 17% growth forecast for the Building industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 95% per year but the company’s share price has only increased by 35% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 14
Upcoming dividend of ر.س0.85 per share Eligible shareholders must have bought the stock before 21 August 2022. Payment date: 06 September 2022. Payout ratio is a comfortable 50% but the company is paying out more than the cash it is generating. Trailing yield: 4.1%. Lower than top quartile of Saudi dividend payers (4.3%). Higher than average of industry peers (2.3%). Announcement • Jun 15
Bawan Company Appoints Mohammad Bin Ahmed Al-Balawi as Chief Executive Officer, Effective July 1, 2022 Bawan Company announced that its Board of Directors, based on the recommendation of the Nominations and Remunerations Committee, to appoint Mr. Mohammad bin Ahmed Al-Balawi as CEO of the company as of 1st July, 2022 hoping that God will grant him success in his new position. Mr. Mohammad bin Ahmed Al-Balawi received a Bachelors degree in Economics and Administrative Sciences with a specialization in Accounting, a Postgraduate Diploma in Business Administration, and a Masters Degree in Business Administration from City University of London. His practical and administrative experience exceeds twenty years in the fields of investment, business development, strategic planning, team management, financial management, accounting and auditing. Mr. Mohammad Al-Balawi joined Bawan Company in 2011 as the CFO of the Group and worked during that period directly on the company's IPO file in the Saudi capital market and participated in the management of all investment projects of the Group until the present day. Reported Earnings • May 11
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: ر.س0.84 (up from ر.س0.69 in 1Q 2021). Revenue: ر.س950.4m (up 10% from 1Q 2021). Net income: ر.س50.3m (up 21% from 1Q 2021). Profit margin: 5.3% (up from 4.8% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.2%. Earnings per share (EPS) also surpassed analyst estimates by 7.2%. Over the last 3 years on average, earnings per share has increased by 107% per year but the company’s share price has only increased by 41% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. No highly experienced directors. was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Announcement • Apr 19
Bawan Company, Annual General Meeting, May 10, 2022 Bawan Company, Annual General Meeting, May 10, 2022, at 16:30 Coordinated Universal Time. Agenda: To consider voting on the Board of Directors' report for the fiscal year ended on December 31, 2021; to consider voting on the auditor’s report on the Company’s accounts for the fiscal year ended on December 31, 2021; to consider voting on the financial statements for the fiscal year ended on December 31, 2021; to consider voting on release the Board of Directors’ members from liability for the fiscal year ended on December 31, 2021; to consider voting on the Board of Directors’ decision to appoint (Dr. Abdullah bin Saghir Al-Husseini - independent from outside the Board) as a member of the Audit Committee, starting from March 30, 2022 until the end of the current working cycle of the committee on September 25, 2022, as a replacement of the committee member (Mr. Abdul-Muti Wasfi Abdul-Hadi - Independent from outside the Board) provided that the appointment takes effect from the date of the decision issued on March 30, 2022; and to consider other matter. Announcement • Mar 31
Bawan Co. Announces Board Changes Bawan Co. announced that the Board of Directors has issued a resolution during its meeting on March 30, 2022, approving the resignation of Audit Committee member Mr: Abdulmuti Abdulhadi, an independent external member, for personal reasons. At the same meeting, the Board approved the appointment of Dr. Abdullah bin Saghir Al-Hussaini, as a member of the Audit Committee (independent external member) starting from March 30, 2022 until the end of the current committee cycle on September 25, 2022, noting that this appointment shall be presented to the first General Assembly for approval. Abdullah bin Saghir Al-Hussaini is Member of the Board of Directors, Member of the NRC, and Chairman of the Audit Committee at Allianz Insurance Company, Member of the Board of Directors, and Member of the Audit Committee of Deutsche Gulf Finance Company, Member of the Board of Directors, member of the Governance and Social Responsibility Committee, and Chairman of the Audit Committee at Al Khaleej Training and Education Company, Member of the Board of Directors, and Chairman of the Audit Committee at Al-Babtain Power and Telecom Company. Reported Earnings • Mar 08
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: ر.س2.88 (up from ر.س1.64 in FY 2020). Revenue: ر.س3.23b (up 34% from FY 2020). Net income: ر.س172.5m (up 75% from FY 2020). Profit margin: 5.3% (up from 4.1% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 10%. Earnings per share (EPS) also surpassed analyst estimates by 7.2%. Over the next year, revenue is forecast to stay flat compared to a 12% growth forecast for the industry in Saudi Arabia. Over the last 3 years on average, earnings per share has increased by 112% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jan 17
Upcoming dividend of ر.س0.75 per share Eligible shareholders must have bought the stock before 24 January 2022. Payment date: 06 February 2022. Payout ratio is a comfortable 51% and this is well supported by cash flows. Trailing yield: 3.8%. Lower than top quartile of Saudi dividend payers (4.3%). Higher than average of industry peers (1.9%). Reported Earnings • Nov 03
Third quarter 2021 earnings released: EPS ر.س0.68 (vs ر.س0.49 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ر.س727.4m (up 33% from 3Q 2020). Net income: ر.س40.9m (up 38% from 3Q 2020). Profit margin: 5.6% (up from 5.4% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has only increased by 41% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 15
Upcoming dividend of ر.س0.75 per share Eligible shareholders must have bought the stock before 22 August 2021. Payment date: 01 September 2021. Trailing yield: 3.6%. Lower than top quartile of Saudi dividend payers (4.3%). Higher than average of industry peers (1.7%). Reported Earnings • Aug 10
Second quarter 2021 earnings released: EPS ر.س0.76 (vs ر.س0.26 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ر.س788.8m (up 52% from 2Q 2020). Net income: ر.س45.4m (up 193% from 2Q 2020). Profit margin: 5.8% (up from 3.0% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 05
First quarter 2021 earnings released: EPS ر.س0.69 (vs ر.س0.25 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: ر.س862.1m (up 34% from 1Q 2020). Net income: ر.س41.7m (up 174% from 1Q 2020). Profit margin: 4.8% (up from 2.4% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 15
Upcoming Dividend of ر.س0.60 Per Share Will be paid on the 4th of April to those who are registered shareholders by the 22nd of March. The trailing yield of 3.9% is below the top quartile of Saudi dividend payers (4.6%), but it is higher than industry peers (1.5%). Reported Earnings • Mar 12
Full year 2020 earnings released: EPS ر.س1.50 (vs ر.س0.44 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ر.س2.42b (up 8.2% from FY 2019). Net income: ر.س90.2m (up 239% from FY 2019). Profit margin: 3.7% (up from 1.2% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 21% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Feb 24
New 90-day high: ر.س28.55 The company is up 29% from its price of ر.س22.14 on 26 November 2020. The Saudi market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Building industry, which is up 7.0% over the same period. Is New 90 Day High Low • Jan 30
New 90-day high: ر.س27.70 The company is up 36% from its price of ر.س20.30 on 29 October 2020. The Saudi market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Building industry, which is up 14% over the same period. Is New 90 Day High Low • Jan 01
New 90-day high: ر.س24.84 The company is up 31% from its price of ر.س18.90 on 01 October 2020. The Saudi market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Building industry, which is up 16% over the same period. Is New 90 Day High Low • Dec 15
New 90-day high: ر.س24.24 The company is up 36% from its price of ر.س17.80 on 15 September 2020. The Saudi market is flat over the last 90 days, indicating the company outperformed over that time. It also outperformed the Building industry, which is up 11% over the same period. Announcement • Nov 27
Bawan Company's Subsidiary Signs an Agreement to Supply Electrical Distribution Transformers with Saudi Electricity Company Bawan Company announced that one of its subsidiaries signed an agreement to supply electrical distribution transformers with Saudi Electricity Company. Contract value is SAR 82.4 million. Contract duration is until 31 March 2022. Is New 90 Day High Low • Nov 10
New 90-day high: ر.س21.50 The company is up 47% from its price of ر.س14.66 on 12 August 2020. The Saudi market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Building industry, which is up 10.0% over the same period. Upcoming Dividend • Nov 04
Upcoming Dividend of ر.س0.40 Per Share Will be paid on the 25th of November to those who are registered shareholders by the 11th of November. The company last paid an ordinary dividend in March 2018. The average dividend yield among industry peers is 1.6%. Reported Earnings • Nov 03
Third quarter 2020 earnings released: EPS ر.س0.49 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: ر.س548.5m (up 4.4% from 3Q 2019). Net income: ر.س29.6m (up ر.س26.3m from 3Q 2019). Profit margin: 5.4% (up from 0.6% in 3Q 2019). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 01
Market bids up stock over the past week After last week's 18% share price gain to ر.س20.30, the stock is trading at a trailing P/E ratio of 31x, up from the previous P/E ratio of 26.4x. This compares to an average P/E of 15x in the Building industry in Asia. Total returns to shareholders over the past three years are 28%. Valuation Update With 7 Day Price Move • Oct 26
Market pulls back on stock over the past week After last week's 17% share price decline to ر.س17.24, the stock is trading at a trailing P/E ratio of 26.4x, down from the previous P/E ratio of 31.9x. This compares to an average P/E of 16x in the Building industry in Asia. Total returns to shareholders over the past three years are 9.2%. Is New 90 Day High Low • Oct 12
New 90-day high: ر.س19.42 The company is up 43% from its price of ر.س13.60 on 14 July 2020. The Saudi market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Building industry, which is up 7.0% over the same period.