Aljazira Capital keeps "neutral" recommendation for "advanced petrochemical" share

Al-Jazirah Capital said that the results of the Advanced Petrochemical Company in the fourth quarter of 2020 came in line with its expectations, and less than the average expectations of analysts.

The research company added, in a recent report, that it continues to recommend the company listed on the Saudi market (Tadawul), on a neutral basis, at a target price of 60.50 riyals.

and indicated that despite the challenges facing the petrochemical sector, due to the emerging corona virus (Covid 19) pandemic, the company has shown good operational performance.

She said that, in general, the performance of the petrochemical sector improved during the previous three months, due to high demand and prices, as expectations were largely positive in the near term before the beginning of the year. 2021, as a result of the news about Coronavirus vaccines.

and she pointed out that it is expected during the coming period that product prices will stabilize around the current level with the recovery in global economic activities. We do not expect a major improvement during the fiscal year 2021, due to energy. Expected new global additional productivity

And she continued: We expect the company to gradually return after the first quarter of 2021 to sales rates before the Corona virus, supported by further expected recovery in global demand and selling prices.

and Al-Jazira Capital indicated that progress in the new expansion plan, in the long term, will be the main support for performance during the coming period.

and the research company expected that the applicant would achieve a net profit for the fiscal year 2021 of about 818.7 million riyals, compared to a net profit in the fiscal year 2020 of 596 million riyals.

She said that the company's stock is trading at a profit multiplier of the last 12 months of 24.3 times, compared to an expected profit multiplier of the profit for the fiscal year 2021 of 17.7 times.

The financial results of the Advanced Petrochemical Company revealed that in 2020, net profits fell about 21.5% to about 596 million riyals compared to 759.31 million riyals achieved profits in 2019.