RIYADH: Riyad Capital has issued a report on stock coverage of four petrochemical companies in the Kingdom: Yanbu National Petrochemical Company (YANSAB), National Industrialization Co., Rabigh Refining and Petrochemical Co. (PetroRabigh) and Saudi Kayan Petrochemical Company.
It advises investors to purchase shares of YANSAB and National Industrialization for SR52.50 and SR47 respectively for 12 months. For the shares of PetroRabigh and Kayan, it has proposed a price of SR25 and SR18.50 respectively for 12 months.
Riyad Capital also pointed out that YANSAB enjoys profitability for its products, decline in debt cost and stability of feedstock prices until 2014 compared to other petrochemical companies. For National Industrialization, it predicted that its net profit could grow by 21 percent annually until 2015.
PetroRabigh's heavy dependence on the refining sector would pressure on its profit margin like other international refineries, Riyad Capital said. As regards Kayan, it added that the company required more time to prove its capability to ensure continuous profitability and overcome obstacles of the initial stage.
© Arab News 2011
