Rating: Neutral 
Target Price: SAR7.28
Closing Price: SAR7.37 
Adjust target price to reflect bonus share; upgrade to Neutral post sell-off  
 
Adjust target price to SAR7.28/share on 1:10 bonus share issue
We adjust our target price (TP) for Al Jouf Cement Co. to SAR7.28/share from SAR8.00/share, following the approval of a 1:10 bonus shares issue by shareholders at the EGM held on 17 July 2017. Al Jouf’s paid-in capital will increase 10% to SAR1.430bn from SAR1.30bn, financed from the retained earnings. The number of shares will increase to 143mn shares, from 130mn. We upgrade our rating to Neutral from Sell post sell-off (-11% YTD and since our last update), as our new target price offers 1% downside potential to yesterday’s share price.
Tarek El-Shawarby

Dina Hicham