Mubasher: Al-Rajhi Capital Research set the price target (PT) of Yanbu National Petrochemicals Co. (Yansab) at SAR 54 per share, with “Overweight” rating, according to a report.
Yansab reported net profits of SAR 608 million in the third quarter of 2016, below Al-Rajhi Capital’s estimates of SAR 657 million and consensus of SAR 642 million, according to a recent report.
Sales volumes declined on a quarter-on-quarter basis, while the research firm expected it to remain flat. Revenues fell by 9% quarter-on-quarter, with product prices also declining.
Gross profits declined 11% quarter-on-quarter by more than the decline in revenue despite a sharper fall in key feedstock propane price.
“The lower than expected Q3 numbers does not change our long-term positive view as Yansab continues to be one of the operationally efficient petrochemical companies in the Kingdom and we expect the company to increase its dividends gradually over the years,” the report highlighted.
