Riyadh – Mubasher: Al Rajhi Capital said that the financial statements of Yanbu National Petrochemicals (Yansab) in the past two quarters registered a weak performance; however, the company is expected to revive in the current time.

The research company believes that Yansab is capable of distributing a higher cash dividend of SAR 4 per share in the coming twelve months, according to a recent report.

Yansab’s revenues came SAR 200 million lower than Al Rajhi’s estimates, resulting in a decrease of SAR 170 million in its net profits, Al Rajhi said.

“We maintain our TP of SAR 58/share based on equal mix of DCF and relative valuation. At 2018 forward EPS of SAR 4.4/share the 2018 PE multiple comes at 12x, which is below historical forward 12 month PE average of 12.5x for Yansab and 12.8x for peers,” Al Rajhi’s report added.

Al Rajhi said that its target price for Yansab’s stock is SAR 58 per share, reflecting a possibility of raising the price of the stock by 9%.=