The Group Securities: Weekly Report on QSE Performance, 29 Jan-02 Feb 2017

Over the last week, six companies released their financial results, namely Vodafone, Doha Insurance, Widam, Water & Electricity Company, and Qatar Industries.  Broadly speaking, the results were weak and dividends were less than the expectations. This fact spurred the share prices to go down for all sectors. Total trading volume dropped by 26.9% to the level of QR 997.9 million. General index declined by 419 points or 3.82% to the level of 10570 points. All sectors indices declined, namely telecommunications, insurance, banks, real estates. Total capitalization dropped by 20.4 million to the level of QR568 billion. Earnings per share ratio fell to 14.38. During this week, 39 companies had their share price down, as against 4 companies whose share price remained up. Foreign portfolios exclusively dominated the net sale transactions, against all other categories of investors. The Group reviews QSE performance in this week with illustrative charts combined with corporate business news, and a list of the affecting economic factors.

Corporate News:

1--Dlala Brokerage and Investment Holding's net profit hit QR 3.8 Million compared to net loss amounting to QR 41.97 million for the same period of the previous year. EPS amounted to QR 0.13 compared to QR 1.48 loss for the same period of the previous year. Dlala's net operational income dropped by 1.3% to QR 27.4 million in 2016, including QR 21.5 million as net brokerage revenues and commissions, and QR 4.3 million as properties revenues.  Public and administrative expenses dropped by 8% to QR 24.2 million. As result, the company posted a net profit worth QR3.8 million, compared to net loss worth 41.97 million in 2015. The company incurred losses as result of a negative change in the fair value of investments available for sales, thus turning the comprehensive income into a total loss worth QR 6.2 million, compared to total loss worth QR 29.2 million in the previous year.

2-- Vodafone Qatar net loss in the nine months amounted to QR 195 million compared to a net loss of QR 285.7 million in the corresponding period last year. Loss per share stood at QR 0.23 versus QR 0.3 in the corresponding period of the previous year. Vodafone Qatar revenue in the nine months fell 3.9% to QR 1541 million and operating expenses amounted to QR 1135.3 million and the net operating income rose 18.3% to QR 405.7 million. After deducting depreciation and amortization expenses worth QR 581.4 million, the company's operating loss reduced by 35.3% to QR 175.8 million. After the addition of other items, the loss rises to QR 195 million, down 31.7% of loss in the corresponding period of the previous year. 

 

3-- Doha Insurance net profit reached QR72.2 million for the fiscal year 2016, compared to QR 111 million in  2015. EPS amounted to QR 1.44 compared to QR 2.22 for the period last year. The Board of Directors has also proposed a cash dividend of QR 0.60 per share. Doha Insurance's net revenues from insurance subscription increased by 2% to QR 86.5 million in 2016. Investments revenues and other sources dropped by 46.2% to QR62.4 million. In contrast, total expenses declined by 11% to QR75.9 million. As result, the company's net profit dropped by 35% to QR72.2 million. The company incurred losses worth QR21.5 million; hence the comprehensive income dropped to QR50.8 million.

 

4-- Widam Food Company net profit in 2016 amounted to about QR 91.29 million compared to QR  69.14 million in the corresponding period last year.  Earnings per share stood at QR 5.07 versus QR 3.84 in the corresponding period in 2015. The Board of Directors proposed a cash dividend of QR 3.5 per share. Widam Food Company operating losses in 2016 decreased 22% to QR 209.8 million and it obtained   Government support of QR 341 million in meat price, down 8.5% from government support provided last year.  General and administrative expenses increased by 14.3% to QR 41.6 million. As a result, net profit for the year rose by 32.1% to QR 91.3 million and the comprehensive income amounted to QR 85.4 million due to currency differences losses.

 

5-- Qatar Electricity and Water Company's net profit is QR 1,542 million compared to QR1,501million for the same period of the previous year. EPS amounted to QR 14 compared to QR 13.64 for the same period of the previous year. The Board recommended the distribution of QR 7.5 cash dividends to shareholders. Qatar Electricity and Water Company's net operational income increased by 7.7% to QR1.4 billion in 2016. Total expenses rose by 15.9% to QR105 million.  Adding the company's share of profit from associate companies, deducting financing cost, then the company’s net profit rises by 2.5% to QR1573.3 million. There was a positive change in the fair value worth QR 246.5 million, thus pushing comprehensive income up to QR 1819.9 million.

 

6-- Industries Qatar net profit amounted to QR2,955.0 million compared to QR4,468.7 million for the same period of the previous year. Earnings per Share(EPS) amounted to QR4.88 for the period ended December 31, 2016 compared to EPS amounted to QR7.39 for the same period of the previous year. The Board of Directors of the company recommended a dividend of QR 4 per share for the period.

 

Economic Developments

1--In December 2016, the foreign merchandise trade balance, which represents the difference between total exports and imports, showed a surplus of QR10.7bn, an increase of about QR1.9bn or 21.7 percent compared to December 2015; and increased by nearly QR1.0bn or 10.7 percent compared to November 2016.

2-- Banks consolidated balance sheet for December was released showing a rise in total assets compared to November by about QR 70 billion to stand at QR 1271 billion.  The total domestic public debt, including bonds, increased by about QR 30 billion to QR 428 billion while the total domestic private sector deposits rose by QR 4.5 billion to the level of QR 438 billion.

3-- Last week, Opec oil prices hovered around $ 52 per barrel until Thursday when it hit $ 52.67.

4—As far as US economy, nonfarm payrolls grew by 227,000 in January2017, while the unemployment rate edged higher to 4.8 percent. Dow Jones index lost 210 points to reach the level of 19885 points. US Dollar exchange rate remained steady at the level of 115.13 yen, and $ 1.08 per Euro. Gold price increased by 25 dollars to the level of $ 1216 per ounce.