Qatar Industrial Manufacturing Company Q.P.S.C., together with its subsidiaries, engages in industrial manufacturing and various types of industrial investments in Qatar and internationally. The company produces treated sand for construction and agricultural uses; paving stones and kerb stones; sulphuric acid for local and export markets; and non-colored and colored aluminum profiles, as well as converts facial tissues, toilet rolls, kitchen rolls, and M Tork rolls. It serves chemicals, petrochemicals, construction materials, and food processing industries. The company was incorporated in 1990 and is headquartered in Doha, Qatar.

Qatar

Qatar Industrial Manufacturing Company Q.P.S.C.

Industrials

The company has a track record of regular dividend payments. It has paid dividends in each of the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has been outstanding and can be rated excellent compared to its peers. At the same time, the average five-year yield has been significantly higher and exceeded most of its peers. On average, the company pays dividends annually. 

QIMD.QA reported revenue of QAR 482mn in the last 12 months, down 0% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 3% from FY24 to QAR 0.31.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 7ppts and its growth decelerated by 5ppts in the past month. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months its performance trailed that of this peer group by 1ppts and its growth decelerated by 2ppts in the previous month. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported good EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 29.9% in the last 12 months, up from 27.4% in FY23. 

Historically, QIMD.QA has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 30.9%, down from 33.1% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 4.3%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to 3.8% in the last 12 months, a decrease from 4.5% in FY23. 

Qatar Industrial Manufacturing Company Q.P.S.C. reported a return on equity (RoE) of 7.9% in the last 12 months, down from 9.0% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.3 in the past several years. This ratio implies a average shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

QIMD.QA has very poor trading liquidity. It will take at least a day or two for the average private investor to sell a common position under normal market conditions. Liquidity is relatively stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note robust profitability, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, excessive margin volatility, and weak debt servicing capacity.

In highly turbulent market conditions, QIMD.QA is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, QIMD.QA is not overly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will remain relatively stable. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

Considering past and projected metrics, the stock is neither 'expensive' nor 'cheap' compared to its peers. In particular, the stock is underpriced on P/E, 'expensive' on EV/EBITD. 

Qatar Industrial Manufacturing Company Q.P.S.C.

QAR 2.52

4

Qatar Industrial Manufacturing Company Q.P.S.C.

QAR 2.52

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

QAR 2.52

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