Client Name

Hilal Invest

Faculty Advisor

Ms. Tahira Marium Jaffery

SBS Thought Leadership Areas

Investment Decision Making

SBS Thought Leadership Area Justification

This ELP falls under the Investment Decision Making section of IBA’s School of Business Studies. It covers all aspects of professional investment analysis, like macroeconomic research, industry screening, financial modelling, valuation, and investment suggestions. We applied these aspects throughout our project.

Aligned SDGs

GOAL 8: Decent Work and Economic Growth

Aligned SDGs Justification

The Saudi Vision 2030 initiative is an economic growth and employment strategy. We analysed equities in healthcare, retail, and shipping which supported capital allocation towards companies that are providing the most opportunity for economic growth.

NDA

No

Abstract

The ELP was conducted in partnership with Hilal Invest. Hilal Invest is a financial advisory company that has clients in both the KSA and Pakistan. The primary goal of this project was to assist Hilal Invest’s advisory team to identify unique investment opportunities in the Tadawul. Through complete industry research, and proper financial forecasting and valuation techniques. Our first task for this project was to develop a thorough understanding of the Kingdom’s macroeconomic structure, its oil dependence, fiscal dynamics and, future projects such as the MASCAR. After developing an understanding of how the Saudi Economy operates, we moved on to our second task which was to conduct a dedicated analysis of the Saudi Mutual Funds Industry. This included, fund managers concentration, and industry allocation patterns of the major fund managers in the Kingdom. Together, these two tasks enabled us to establish a clear framework to approach our main task: which was to develop financial models and valuations of some major Saudi companies. Our supervisor assigned every member of the project with one public company each which was publicly listed on the Saudi stock exchange. The companies we analysed were: Dr Sulaiman Habib Medical Group (the leading healthcare services provider in the KSA), the National Shipping Company of Saudi Arabia (A state-linked maritime logistics operator), eXtra (a consumer electronics and financial services retailer) and Advanced Petrochemical Company (a propylene and polypropylene manufacturer). We built dynamic five-year financial models for each company. These models included, balance sheet forecasts, income statement forecasts and, valuation conducted through discounted cash flow methods, and relative valuation methods by benchmarking the companies to their peers in the respective industry. Key findings include: • Saudi Arabia is the largest economy in the MENA region with a GDP of $1.25 trillion. (Saudi Gazette, 2026) • 60% of the Saudi government’s revenue is oil-based. (Arab News, 2024) • The financials sector dominates portfolio allocations across different fund managers in the country. • Dr Sulaiman Habib Medical Group is expected to achieve significant revenue growth of approximately 55% between 2025 to 2030 due to rising private sector insurance coverage. The implied DCF value ranges between SAR 256-300 per share • The National Shipping Company of Saudi Arabia (BAHRI)’s near-term valuation is elevated due to uncertainty caused by the US- Iran war implying a share price of about SAR 52. • Recent partnerships (Clix agreement) and exponential growth of its high revenue margin subsidiary (Tas’heel) forecast immense growth for eXtra by 2030.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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