Saudi Fransi Capital initiates coverage on Ma’aden with "Hold" rating

Press release

Published September 15th, 2015 - 09:56 GMT

Banque Saudi Fransi

Saudi Fransi Capital launches research coverage on Saudi Arabian Mining Company (Ma’aden) with a "Hold" recommendation and a 12-month target price of SAR 32.50. Weak commodity prices are expected to lower revenues by -18% for second half of 2015, while rising depreciation will hurt earnings by -22% for full-year 2015. SFC sees debt repayment challenges ahead if commodity prices remain subdued for an extended period. An agreement with auto manufacturers to establish parts production and assembly in KSA may be a near-term catalyst for the stock. Wa’ad Al Shammal is expected to commence production in 2017 which can boost revenues by 23% and place Ma’aden among top 5 phosphate producers in the world.

To review the full report, you may visit corporate website www. fransitadawul.com.sa

Background Information

Banque Saudi Fransi

Banque Saudi Fransi (BSF) is a Saudi Arabian Joint Stock Company established by Royal Decree No. M/23 dated June 4, 1977.

The Bank is affiliated with Credit Agricole Corporate and Investment Bank that holds an equity interest of 31.1%. Credit Agricole CIB is a fully-fledged member of the Crédit Agricole Group, the second largest bank in France, and seventh amongst banks of the Euroland by total equity.