Buy The National Company for Glass Industries | Tadawul 2150 | 35-38% gain | KSA stock investment idea on 08 Sep 2024

Tadawul 2150 : The National Company for Glass Industries vs TASI - Relative Strength Comparison

Market Capitalization - 1.7 B SAR

Peer Companies

1. OASIS (Tadawul 3007) - 831.38 M SAR
2. ALRASHID INDUSTRIAL (Tadawul 9580) - 332.00 M SAR
3. FIPCO (Tadawul 2180) - 552.00 M SAR
4. TAKWEEN (Tadawul 1201) - 957.34 M SAR

Tadawul 2150 : The National Company for Glass Industries - Technical Analysis

• Analyzing the historical chart reveals that after reaching an all-time high of SAR 133.6 in February 2006, the stock underwent a significant decline, dropped to SAR 30.
• Although it rebounded from this support level to hit SAR 70, but encountered resistance there, caused the price to dip below 30 and eventually settle at SAR 18.5.
• Following this, the stock entered a lengthy consolidation phase, attempting to gain upward momentum.
• Unfortunately, it faced rejection near SAR 49, which pushed the price down to SAR 12.8.
• After another extended period of consolidation, the stock made an effort to break through the SAR 49 resistance in February 2021 but was unsuccessful.
• The price then consolidated once more. However, in September 2024, the stock finally made a successful breakout, achieved a significant milestone after nearly sixteen years.
• If the price can maintain itself above SAR 50, we could anticipate a robust rally in the near future.

Tadawul 2150 : The National Company for Glass Industries - Sales & Profit Analysis

Year-on-year

• In FY23, the company experienced remarkable revenue growth of 37%, reaching 153.9 million SAR, a substantial increase from 112.3 million SAR in FY22.
• Additionally, the gross profit margin surged to an impressive 22.3%, a significant rise from just 2.5% during the same period.
• However, operating income faced a downturn, with FY23 reporting 56.5 million SAR, down from 116.1 million SAR in FY22.
• Furthermore, the basic earnings per share (EPS) fell to 1.46 SAR in FY24, compared to 3.34 SAR in the previous financial year.

Quarter-on-quarter

• In the latest quarter ending June 2024, the company achieved a revenue of 34.3 million SAR, reflecting a nearly 9% rise from the 31.6 million SAR recorded in the March quarter. However, this figure represents a decline of approximately 12% compared to the same quarter last year.
• The operating income has risen to 27.9 million SAR, up from 24.5 million SAR in March. When looking back at the June quarter of the previous year, the operating profit has dramatically increased from a mere 2.3 million SAR.
• Additionally, the basic earnings per share (EPS) has improved, now standing at 0.81 SAR, compared to 0.70 SAR in March 2024.

Tadawul 2150 : The National Company for Glass Industries - Valuation

P/E Ratio

• The present P/E ratio is 18.9x, which is lower than the average P/E of 21.5x among its peers, indicating that the stock is fairly valued.

P/B Ratio

• The current P/B ratio is 2.2x, which is marginally above the peer average of 2.0x, yet it does not suggest that the stock is overvalued.

Tadawul 2150 : The National Company for Glass Industries - Debt Analysis

• The company's total debt to equity ratio is 2.13%, and it now has a debt of just 16.1 million SAR. This debt has decreased from 36.0 million SAR over the past year.

Tadawul 2150 : The National Company for Glass Industries - Cash Flow Analysis

Year-on-year

• Cash flow from operations increased significantly in FY23, reached 40.8 million SAR, up from 6.2 million SAR in FY22.

Quarter-on-quarter

• In the latest quarter, cash flow from operations is at 7.5 million SAR, down from 11.8 million SAR in March.

Tadawul 2150 : The National Company for Glass Industries - Top Shareholder

• Riyadh Mohammed Abdullah Al-Hamidan
• Chairman, National Company for Glass Industries
• Share Held - 18.667%

Conclusion

After looking at all the factors, it seems that Zoujaj is ready for major growth soon.