Al Othaim’s [4001.SE] Board of Directors (BoD) has proposed the distribution of a SAR3.0/share cash dividend for 2H17 (total of SAR135mn), above our estimate of SAR1/share. The dividend implies an interim pay-out ratio of c43% based on 2H17 net profit. In total, Al Othaim paid out dividends of SAR5/share for FY17, above our estimate of SAR3/share for the year, implying a pay-out ratio of c50% and a dividend yield of 3.1%. The ex-dividend date will be the day after the AGM, the date of which is yet to be announced. The BoD has also proposed at its meeting held on 19 March the distribution of one bonus share for every share held (1:1). This will bring the company’s number of shares to 90mn from 45mn.
 
Al Othaim: SAR161.33 as of 20 Mar. 2018, Rating: Buy, TP: SAR180.00/share, MCap: USD1,935mn, AOTHAIM AB/4001.SE