Dar Al-Arkan’s profits plunge 50% in 9M 2019

10/11/2019 Argaam Exclusive

View other reports

Share Price

Dar Alarkan Real Estate Development Co. (DAR ALARKAN)

Dar Al-Arkan Real Estate Development Co. posted 50.58 percent in net profits during the first nine months of 2019, to SAR 235.33 million, compared to SAR 476.28 million posted during the same period 2018.



Financials (M)

Item 9m 2018 9m 2019 Change‬
Revenues 5,566.17 2,650.93 (52.4 %)
Gross Income 905.29 611.57 (32.4 %)
Operating Income 779.32 486.27 (37.6 %)
Net Income 476.28 235.34 (50.6 %)
Average Shares 1,080.00 1,080.00 -
EPS (Riyals) 0.44 0.22 (50.6 %)

The company attributed the decrease in net profit during the first 9 months 2019, compared with the same period 2018 mainly to lower property sale. The decrease in income from associates were fully off-set with the increase in lease revenue, lower finance cost, and higher non-operating income received from deposits which positively impacted the net income.

 

Meanwhile, Q/Q, the firm said that the increase in net income is mainly due to higher gross margin, attributed to the product mix of the properties offered for sale. The decrease in non-operating income received from deposits were fully off-set with the decrease in operating expenses, finance cost and the increase in lease revenue which positively impacted the net income.



Current Quarter Comparison (M)

Compared With The
Item Q3 2018 Q3 2019 Change‬
Revenues 987.63 899.41 (8.9 %)
Gross Income 164.67 250.56 52.2 %
Operating Income 124.22 211.39 70.2 %
Net Income 36.73 134.87 267.2 %
Average Shares 1,080.00 1,080.00 -
EPS (Riyals) 0.03 0.12 267.2 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2010 1,144.94 (7.5 %) 478.42 (6.7 %) 398.65 (6.1 %) 0.37
Q2 2010 1,114.44 (24.8 %) 530.85 (25.5 %) 437.00 (29.3 %) 0.40
Q3 2010 910.21 (40.3 %) 374.90 (47.5 %) 289.63 (53.0 %) 0.27
Q4 2010 972.39 (20.3 %) 380.09 (33.0 %) 330.44 (28.7 %) 0.31
Q1 2011 955.15 (16.6 %) 366.63 (23.4 %) 273.09 (31.5 %) 0.25
Q2 2011 791.24 (29.0 %) 337.74 (36.4 %) 297.77 (31.9 %) 0.28
Q3 2011 755.19 (17.0 %) 320.63 (14.5 %) 227.47 (21.5 %) 0.21
Q4 2011 810.93 (16.6 %) 344.02 (9.5 %) 289.61 (12.4 %) 0.27
Q1 2012 868.19 (9.1 %) 367.46 0.2 % 292.59 7.1 % 0.27
Q2 2012 1,083.51 36.9 % 388.05 14.9 % 331.03 11.2 % 0.31
Q3 2012 728.52 (3.5 %) 329.38 2.7 % 220.89 (2.9 %) 0.20
Q4 2012 876.85 8.1 % 308.83 (10.2 %) 144.04 (50.3 %) 0.13
Q1 2013 835.82 (3.7 %) 375.58 2.2 % 237.61 (18.8 %) 0.22
Q2 2013 680.86 (37.2 %) 208.07 (46.4 %) 103.70 (68.7 %) 0.10
Q3 2013 721.56 (1.0 %) 306.46 (7.0 %) 183.32 (17.0 %) 0.17
Q4 2013 692.93 (21.0 %) 262.97 (14.8 %) 156.83 8.9 % 0.15
Q1 2014 924.09 10.6 % 402.77 7.2 % 247.86 4.3 % 0.23
Q2 2014 774.21 13.7 % 294.24 41.4 % 121.34 17.0 % 0.11
Q3 2014 751.01 4.1 % 296.13 (3.4 %) 89.90 (51.0 %) 0.08
Q4 2014 606.75 (12.4 %) 306.11 16.4 % 115.60 (26.3 %) 0.11
Q1 2015 722.36 (21.8 %) 330.92 (17.8 %) 147.29 (40.6 %) 0.14
Q2 2015 528.69 (31.7 %) 229.36 (22.0 %) 70.48 (41.9 %) 0.07
Q3 2015 540.95 (28.0 %) 242.16 (18.2 %) 92.73 3.1 % 0.09
Q4 2015 419.35 (30.9 %) 180.79 (40.9 %) 48.66 (57.9 %) 0.05
Q1 2016 434.61 (39.8 %) 191.60 (42.1 %) 57.85 (60.7 %) 0.05
Q2 2016 407.56 (22.9 %) 184.70 (19.5 %) 43.23 (38.7 %) 0.04
Q3 2016 617.57 14.2 % 245.20 1.3 % 112.47 21.3 % 0.10
Q4 2016 410.49 (2.1 %) 170.46 (5.7 %) 37.29 (23.4 %) 0.03
Q1 2017 360.33 (17.1 %) 135.69 (29.2 %) 12.13 (79.0 %) 0.01
Q2 2017 456.49 12.0 % 160.14 (13.3 %) 10.94 (74.7 %) 0.01
Q3 2017 1,482.74 140.1 % 352.81 43.9 % 209.62 86.4 % 0.19
Q4 2017 2,435.12 493.2 % 465.37 173.0 % 320.68 760.0 % 0.30
Q1 2018 2,793.91 675.4 % 474.61 249.8 % 331.12 2629.1 % 0.31
Q2 2018 1,784.80 291.0 % 266.17 66.2 % 108.60 892.3 % 0.10
Q3 2018 987.63 (33.4 %) 164.67 (53.3 %) 36.73 (82.5 %) 0.03
Q4 2018 846.09 (65.3 %) 151.86 (67.4 %) 32.53 (89.9 %) 0.03
Q1 2019 823.68 (70.5 %) 159.28 (66.4 %) 25.51 (92.3 %) 0.02
Q2 2019 927.85 (48.0 %) 201.72 (24.2 %) 74.96 (31.0 %) 0.07
Q3 2019 899.41 (8.9 %) 250.56 52.2 % 134.87 267.2 % 0.12

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2010 46.04 % 43.25 % 39.04 %
Q2 2010 45.78 % 42.93 % 38.29 %
Q3 2010 44.45 % 41.53 % 36.20 %
Q4 2010 42.59 % 40.02 % 35.15 %
Q1 2011 41.81 % 39.46 % 33.66 %
Q2 2011 40.21 % 37.78 % 32.82 %
Q3 2011 40.45 % 37.95 % 32.49 %
Q4 2011 41.33 % 38.76 % 32.84 %
Q1 2012 42.47 % 39.68 % 34.33 %
Q2 2012 40.37 % 37.50 % 32.43 %
Q3 2012 40.93 % 37.66 % 30.86 %
Q4 2012 39.18 % 35.45 % 26.20 %
Q1 2013 39.77 % 35.51 % 24.88 %
Q2 2013 39.14 % 34.94 % 20.80 %
Q3 2013 38.49 % 34.52 % 21.47 %
Q4 2013 39.34 % 35.77 % 23.25 %
Q1 2014 39.09 % 35.67 % 22.91 %
Q2 2014 40.68 % 36.30 % 22.79 %
Q3 2014 39.97 % 34.70 % 19.60 %
Q4 2014 42.51 % 36.47 % 18.81 %
Q1 2015 43.00 % 36.39 % 16.61 %
Q2 2015 44.56 % 37.60 % 16.22 %
Q3 2015 46.21 % 39.61 % 17.76 %
Q4 2015 44.46 % 38.36 % 16.24 %
Q1 2016 43.87 % 38.20 % 14.02 %
Q2 2016 44.34 % 39.09 % 13.45 %
Q3 2016 42.69 % 38.63 % 13.95 %
Q4 2016 42.34 % 37.93 % 13.41 %
Q1 2017 40.98 % 36.42 % 11.42 %
Q2 2017 38.57 % 34.05 % 9.37 %
Q3 2017 30.22 % 27.00 % 9.96 %
Q4 2017 23.53 % 21.73 % 11.69 %
Q1 2018 20.27 % 19.08 % 12.17 %
Q2 2018 18.35 % 17.34 % 11.42 %
Q3 2018 17.13 % 16.05 % 9.96 %
Q4 2018 16.49 % 15.08 % 7.94 %
Q1 2019 16.70 % 14.45 % 4.58 %
Q2 2019 18.90 % 16.03 % 4.73 %
Q3 2019 21.83 % 18.75 % 7.66 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2010 1,080.00 1.94 1.94 13.20
Q2 2010 1,080.00 1.77 1.77 12.61
Q3 2010 1,080.00 1.47 1.47 12.87
Q4 2010 1,080.00 1.35 1.35 13.18
Q1 2011 1,080.00 1.23 1.23 13.43
Q2 2011 1,080.00 1.10 1.10 13.71
Q3 2011 1,080.00 1.05 1.05 13.92
Q4 2011 1,080.00 1.01 1.01 14.19
Q1 2012 1,080.00 1.03 1.03 14.46
Q2 2012 1,080.00 1.06 1.06 14.77
Q3 2012 1,080.00 1.05 1.00 14.97
Q4 2012 1,080.00 0.92 0.86 15.10
Q1 2013 1,080.00 0.86 0.81 15.32
Q2 2013 1,080.00 0.65 0.60 15.42
Q3 2013 1,080.00 0.62 0.62 15.59
Q4 2013 1,080.00 0.63 0.63 15.73
Q1 2014 1,080.00 0.64 0.64 15.96
Q2 2014 1,080.00 0.66 0.66 16.08
Q3 2014 1,080.00 0.57 0.57 16.16
Q4 2014 1,080.00 0.53 0.53 16.27
Q1 2015 1,080.00 0.44 0.44 16.40
Q2 2015 1,080.00 0.39 0.39 16.47
Q3 2015 1,080.00 0.39 0.39 16.55
Q4 2015 1,080.00 0.33 0.33 16.60
Q1 2016 1,080.00 0.25 0.25 16.65
Q2 2016 1,080.00 0.22 0.22 16.69
Q3 2016 1,080.00 0.24 0.24 16.80
Q4 2016 1,080.00 0.23 0.23 16.83
Q1 2017 1,080.00 0.19 0.19 16.84
Q2 2017 1,080.00 0.16 0.16 16.85
Q3 2017 1,080.00 0.25 0.25 17.05
Q4 2017 1,080.00 0.51 0.51 17.35
Q1 2018 1,080.00 0.81 0.81 17.65
Q2 2018 1,080.00 0.90 0.90 17.25
Q3 2018 1,080.00 0.74 0.74 17.29
Q4 2018 1,080.00 0.47 0.47 17.32
Q1 2019 1,080.00 0.19 0.19 17.34
Q2 2019 1,080.00 0.16 0.16 17.41
Q3 2019 1,080.00 0.25 0.25 17.54

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2010 7.29 7.29 1.07
Q2 2010 6.65 6.65 0.94
Q3 2010 6.93 6.93 0.79
Q4 2010 6.68 6.68 0.68
Q1 2011 7.84 7.84 0.72
Q2 2011 7.12 7.12 0.57
Q3 2011 5.98 5.98 0.45
Q4 2011 7.20 7.20 0.51
Q1 2012 12.78 12.78 0.91
Q2 2012 8.57 8.57 0.61
Q3 2012 8.52 8.97 0.60
Q4 2012 9.01 9.56 0.55
Q1 2013 9.54 10.16 0.54
Q2 2013 15.90 17.29 0.67
Q3 2013 16.31 16.31 0.65
Q4 2013 15.61 15.61 0.63
Q1 2014 19.52 19.52 0.78
Q2 2014 18.80 18.80 0.77
Q3 2014 24.41 24.41 0.86
Q4 2014 15.28 15.28 0.50
Q1 2015 19.52 19.52 0.52
Q2 2015 23.17 23.17 0.55
Q3 2015 17.64 17.64 0.42
Q4 2015 18.64 18.64 0.37
Q1 2016 21.02 21.02 0.32
Q2 2016 28.86 28.86 0.39
Q3 2016 19.56 19.56 0.28
Q4 2016 26.52 26.52 0.37
Q1 2017 31.54 31.54 0.36
Q2 2017 41.87 41.87 0.40
Q3 2017 26.00 26.00 0.38
Q4 2017 28.10 28.10 0.83
Q1 2018 15.52 15.52 0.71
Q2 2018 11.74 11.74 0.61
Q3 2018 13.51 13.51 0.58
Q4 2018 19.14 19.14 0.52
Q1 2019 More than 50 More than 50 0.62
Q2 2019 More than 50 More than 50 0.68
Q3 2019 48.14 48.14 0.68

Business Segments (Million)

Compared With The
Period Real estate development property Leasing Sale of Land Sale of residential properties
Q1 2010 - - 1,026.97 117.97
Q2 2010 - - 980.19 134.24
Q3 2010 - - 831.26 78.95
Q4 2010 - - 926.88 45.51
Q1 2011 - 5.23 938.54 11.39
Q2 2011 - 2.78 757.68 30.77
Q3 2011 - 3.30 729.91 21.98
Q4 2011 - 3.69 794.04 13.20
Q1 2012 - 4.66 850.75 12.79
Q2 2012 - 5.04 1,072.63 5.84
Q3 2012 - 17.35 708.06 3.12
Q4 2012 - 25.74 847.56 3.55
Q1 2013 - 24.92 810.91 -
Q2 2013 - 27.62 652.78 0.46
Q3 2013 - 27.81 693.75 -
Q4 2013 - 28.09 664.84 -
Q1 2014 - 31.22 892.87 -
Q2 2014 - 31.02 735.19 8.00
Q3 2014 - 29.81 721.20 -
Q4 2014 - 32.57 574.17 -
Q1 2015 - 32.85 689.51 -
Q2 2015 - 33.12 495.57 -
Q3 2015 - 35.02 505.93 -
Q4 2015 - 35.09 384.26 -
Q1 2016 - 36.69 397.92 -
Q2 2016 - 36.93 370.63 -
Q3 2016 - 34.51 583.06 -
Q4 2016 - 37.42 373.08 -
Q1 2017 - 38.82 321.51 -
Q2 2017 - 36.23 417.20 -
Q3 2017 - 36.41 1,445.21 1.13
Q4 2017 - 38.40 2,400.90 -
Q1 2018 2,759.90 34.02 - -
Q2 2018 1,750.72 34.08 - -
Q3 2018 955.17 32.29 - -
Q4 2018 810.70 35.39 - -
Q1 2019 789.39 34.28 - -
Q2 2019 891.99 35.86 - -
Q3 2019 862.30 37.11 - -

Analysts Estimates (Million)

Item Q3 2019 (e) Q3 2019 (a) Change‬
Average 73.00 134.87 84.75 %

Estimates vs Actual (Million)

Item Q3 2019 (e) Q3 2019 (a) Change
SNB Capital 73.00 134.87 84.7 %

Current
Market Cap (M Riyal) 13,672.80
Enterprise Value (EV) (M) 18,303.27
Shares Outstanding ((M)) 1,080.00
EPS ( Riyal) (TTM) 0.60
Book Value (BV) ( Riyal) 18.92
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 21.14
P/E (TTM) 21.14
Price/book 0.67
Return on Average Assets (%) (TTM) 2.0
Return on Average Equity (%) (TTM) 3.2

Comments {{getCommentCount()}}

Be the first to comment

{{Comments.indexOf(comment)+1}}
{{comment.FollowersCount}}
{{comment.CommenterComments}}
loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.