Initiate at OW: Market values non-listed subsidiaries at a c37% discount to GCC petchems
Naturally hedged. SIIG has a 50% stake in 3 integrated operations: Saudi Chevron Philips (SCP), Jubail Chevron Philips (JCP) and the publicly traded Petrochem [PETROCH AB | UW | TP SAR30.0]. JCP sources its benzene requirements from SCP, while Saudi Polymers (Petrochem’s operating arm) receives its styrene needs from JCP, so SIIG’s operations are intertwined in such a way that renders the holding level naturally hedged to price changes in benzene and, to a lesser extent, styrene; together 34% of 2015e revenue. Since 2008, c30% of global styrene capacity (high-cost in W. Europe and Asia) has been loss-making after failing to pass on the 3.4x surge in feed benzene prices. We now argue that styrene capacity rationalization is imminent, which should bode well for SIIG; every 10% hike in our styrene price estimates raises our TP by c13%.
Saudi Industrial Investment Group SJSC (SIIG) is a Saudi Arabia-based public shareholding company engaged in industrial investment activities. The Company focuses on the industrial base development in the Kingdom of Saudi Arabia, especially petrochemical industries, and opens its export areas to foreign countries, as well as allowing private sector to access other industries using petrochemical industries. The Company is primarily active in the petrochemicals industry. The Company's subsidiaries include National Petrochemicals Company (PetroChem), Saudi Nylon Company, Saudi Benzene Company, Saudi Parazylene Company and Saudi Cyclohexene Company, and its joint ventures included Saudi Chevron Phillips Company, Jubail Chevron Phillips Company and Petrochemical Manufacturing Company Ltd.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.