Etihad Etisalat Company (Mobily)
ETIHAD ETISALAT COMPANY (MOBILY) Defining a league... July 22, 2008 Recommendation STRONG BUY Target Price SAR 73
Husain Thaker Analyst Snehdeep Fulzele Head of Research +966 1 2118455 snehdeep.fulzele@FALCOM.com.sa FALCOM Financial Services P.O. Box 884 Riyadh 11421 Kingdom of Saudi Arabia
Saudi Arabia
Telecom Sector
Market Performance Current Market Price SAR (July , 008) 5 week High (SAR) 5 week Low (SAR) PER (TTM) PBVR Dividend Yield YTD 008 Year Return 3 Years Return Beta 30 day Avg. Volume Shareholding Pattern Etisalat (UAE) Saudi Private Investors GOSI Public Capital Action (SAR Million) Rights Issue (Expected) Capital Increase Current Capital Total Share Capital CAGR (2005-2007) H’008 ,000 5,000 7,000 76.75 45.50 5.9 4.0 .0% -30.6% -.% -54.% .04 755,0 2008 6.5% .50% .5% 40.00% 5.00 No. of Outstanding Shares (millions) Market Capitalization (SAR millions) Enterprise Value (SAR millions) Tadawul Code TASI PER PBVR Div Yield Valuation Indicators 700 9096. 0.0 3. .% Bloomberg Code Telecom Sector PER PBVR Dividend Yield EEC AB 397.8 3.6 3.3 5.5% 33,70 5,500 500 % to Total Market Capitalization % to Telecom Sector 3.6% .5%
PEG PEG (5 year Ex-Rights Est.) PER 008 PER 009 PER 00
0.35 0.7 4.3 .5 9.5
Price Volume Chart
12 9 80 70 60 50 40 7/21/08
Millions Millions
Sales Net Profit Fixed Assets Shareholders’ Equity CAGR (2008-2012) Est. Sales Net Profit Fixed Assets Shareholders’ Equity (SR ‘000) Sales EBITDA Net Profit EPS (SR) PER ( X ) PBV ( X ) EV/EBITDA (X) Asset turnover Ratio ROE (%) ROA (%)
5% NA 4% 4%
6 3 0 7/21/07
3.3% 9.8% 0.7% 5.4% 2006 5,846,59 ,000,504 700,358 .40 37. 5.7 7.4 0.34 6.7% 6.8%
10/24/07
1/27/08 Volume
4/23/08 Price
2007 8,440,43 ,946,809 ,379,548 .76 6.6 6. 5.3 0.45 6.4% 0.%
2008E 0,596,3 3,755,0 ,785,63 3.57 4.3 3.0 9.4 0.47 4.6% 0.4%
2009E ,685,80 4,553,33 ,5,39 4.43 .5 .5 7.7 0.49 3.7% .0%
Husain Thaker Analyst Snehdeep Fulzele Head of Research +966 1 2118455 snehdeep.fulzele@FALCOM.com.sa FALCOM Financial Services P.O. Box 884 Riyadh 11421 Kingdom of Saudi Arabia
Saudi Arabia
Telecom Sector
Market Performance Current Market Price SAR (July , 008) 5 week High (SAR) 5 week Low (SAR) PER (TTM) PBVR Dividend Yield YTD 008 Year Return 3 Years Return Beta 30 day Avg. Volume Shareholding Pattern Etisalat (UAE) Saudi Private Investors GOSI Public Capital Action (SAR Million) Rights Issue (Expected) Capital Increase Current Capital Total Share Capital CAGR (2005-2007) H’008 ,000 5,000 7,000 76.75 45.50 5.9 4.0 .0% -30.6% -.% -54.% .04 755,0 2008 6.5% .50% .5% 40.00% 5.00 No. of Outstanding Shares (millions) Market Capitalization (SAR millions) Enterprise Value (SAR millions) Tadawul Code TASI PER PBVR Div Yield Valuation Indicators 700 9096. 0.0 3. .% Bloomberg Code Telecom Sector PER PBVR Dividend Yield EEC AB 397.8 3.6 3.3 5.5% 33,70 5,500 500 % to Total Market Capitalization % to Telecom Sector 3.6% .5%
PEG PEG (5 year Ex-Rights Est.) PER 008 PER 009 PER 00
0.35 0.7 4.3 .5 9.5
Price Volume Chart
12 9 80 70 60 50 40 7/21/08
Millions Millions
Sales Net Profit Fixed Assets Shareholders’ Equity CAGR (2008-2012) Est. Sales Net Profit Fixed Assets Shareholders’ Equity (SR ‘000) Sales EBITDA Net Profit EPS (SR) PER ( X ) PBV ( X ) EV/EBITDA (X) Asset turnover Ratio ROE (%) ROA (%)
5% NA 4% 4%
6 3 0 7/21/07
3.3% 9.8% 0.7% 5.4% 2006 5,846,59 ,000,504 700,358 .40 37. 5.7 7.4 0.34 6.7% 6.8%
10/24/07
1/27/08 Volume
4/23/08 Price
2007 8,440,43 ,946,809 ,379,548 .76 6.6 6. 5.3 0.45 6.4% 0.%
2008E 0,596,3 3,755,0 ,785,63 3.57 4.3 3.0 9.4 0.47 4.6% 0.4%
2009E ,685,80 4,553,33 ,5,39 4.43 .5 .5 7.7 0.49 3.7% .0%