TABLE OF CONTENT

1- PROJECT OVERVIEW
2- INTRODUCTION
3- SELLECTED FRAME DESCRIPTION
4- FINANCIAL RATIOS
5- PORTOFOLIO PERFURMANCE
6- CONCLUSION
7- REFERENCES
01. PROJECT OVERVIEW

Through our studying the (Portfolio Structure - FINE 610), the team was required
to write a full report including all the outputs experiences of assuming that we have
a portfolio in Saudi Exchange platform “Tadawul” with 100K Saudi Riyal as a balance
and buying power. The team was required to use the amount as their total wealth.
The team establish the portfolio on 19th September 2022, The Tadawul All Share
Index (TASI) indictor was opened on 11,446 points. Our portfolio consist four stocks
invested in different weights, different industries and sectors and companies in
different sizes of market capitalization. In our report we will conduct and explain
each stock in our portfolio and the reason of investing in these companies. In the
final stage, the report will consider the closing value as of 25th October,2022 to sell
the portfolio stocks. (TASI) indictor was closed on 11,973 points on 25th October
2022.

- * TASI Indicator from 19-09-2022 on 11,446 to 25-10-2022 on 11,973

This Report will conducting an introduction to describe our portfolio and the stocks
and companies in our portfolio with a full brief of each firm. The technical analysis
and evaluation of the portfolio using financial ratios for two years will be a part in
the report. Also, the risk analysis using Beta for our portfolio and each stocks will be
included with total risk as portfolio sigma and other. Moving average, relative
strength and the portfolio performance will be highlighted too.
In conclusion part, the report will summarize the portfolio profit , major points of the
project management and the learned lessons of our project.
02. INTRODUCTION

This investment portfolio was constructed to consist of four stocks from different
sectors, Jabal Omar from the real estate management and development sector,
SABIC from the basic materials sector, Fitness Time from the consumer services
sector, in addition to SADAFCO from the food production sector. Shares in this
portfolio we will provide a clarification of the reason for choosing the stock and
analysis of the financial statements through financial ratios in an addendum to
technical analysis via the moving average and relative strength, also we
measurement and analyse risk for each share separately, and the portfolio as a
whole.

03. FRAME STRUCTURE

Jabal Omar Development Co.

Trading name: JABAL OMAR
Sector: Real Estate | Industry Group: Real Estate Mgmt & Dev't
Main Market
Jabal Omar Development Company is one of the largest real estate development
companies in the Middle East and one of the largest listed companies in the Saudi
stock market. It was established by royal decree on 10/18/2006 AD. The company's
capital upon incorporation amounted to 6,714,000,000 Saudi riyals, and in 2011 the
company's capital was
By offering rights shares worth 2,580,000,000 Saudi riyals, bringing the company's
capital to 9,294,000,000 Saudi riyals. This, on August 25- 2022, the company’s capital
was increased to 11,545,341,620 Saudi riyals, and the percentage of ownership
within the company is 17%, in addition to the number of floating shares until this
moment amounting to 768.22M, which is approximately more than 66% of the
company’s shares.
Jabal Omar Development Company was 44% of our portfolio The main reason is the
company's announcement of a capital increase to offset the accumulated losses in
the month of April, in addition to the fact that the share price has lost approximately
58% of its highest for the current year, which is the same as the loss of the market
index.

Saudi Basic Industries Corp.

Trading name: SABIC
Sector: Materials | Industry Group: Materials
Main Market

SABIC is a diversified chemicals company, manufacturing on a global scale in the

Americas, Europe, Middle East and Asia Pacific, headquartered in Riyadh, Saudi
Arabia, employs more than 31,000 people in around 50 countries, working together
through four businesses – Petrochemicals, Agri-Nutrients, Specialties, and Metals
(Hadeed) – with production at 66 manufacturing/compounding sites, and sales
across more than 100 countries.
In 1984 (corresponding to 1404H), 30% of the company shares were offered for
public subscription. Today, the number of floating shares is estimated at 899.58
million shares out of a billion, and Aramco is the largest investor in the company,
with an ownership rate of 70%.
 SABIC was 25% of our portfolio, the main reasons to choosing the company are
due to several reasons, the most prominent of which is that it is one of the
companies with high returns after looking at the profitability ratio, in addition to
that, it lost from its highest peak during the year by approximately 60% after erasing
all the gains of the current year.

Leejam Sports Co.

Trading name: FITNESS TIME
Sector: Consumer Discretionary | Industry Group: Consumer Services
Main Market

Fitness Time is sports club offering a range of integrated services designed for clients
who are interested in a wide range of fitness facilities and options. Fitness Time
centres were established in 2008, Fitness Time has continued to expand its fitness
centres and the number of its sports centres is 156 sports centres, where 30% of the
company's shares were put up for IPO at 52 riyals and was listed on the Saudi market
on 10 to 20 September its subsidiary fitness time commercial company owns an
ownership percentage of 95%. The table below shows the subsidiaries.

PERCENTAG
NAME OB (OF)
E OF MAIN BUSINESS OPERATION
SUBSIDIARY
PROPERTY

Retail and wholesale trading

Fitness Time of sports equipment goods
Company for 95.00% and sportswear and
Trading managing and operating
fitness centres
Saudia Dairy and Foodstuff Co.
Trading name: SADAFCO
Sector: Consumer Staples | Industry Group: Food & Beverages
Main Market

Saudia Dairy and Foodstuff Company (SADAFCO) was 15% of our portfolio
Established in 1976, SADAFCO is a leading, world-class, Saudi Arabia-based company
whose activities include local production, importation, distribution and marketing of
a wide range of food and beverage products. The portfolio includes dairy products,
ice cream, tomato paste, snacks, drinks and other foodstuff items. An initial public
offering (IPO) on 23rd May 2005 led to the Company’s listing on the Saudi Arabian
Stock Exchange. The table below shows the subsidiaries

NAME OB (OF) PERCENTAGE MAIN BUSINESS OPERATION

SUBSIDIARY OF
PROPERTY
SADAFCO Qatar 75 % Sale and Distribution of Dairy products and
Company (LLC) Goods
SADAFCO Bahrain 100 % Import and Export and Sale and Distribution
Company (SPC) of Dairy Goods and Ice Cream and Goods.
SADAFCO Jordan Food 100 % Import and Sale and Distribution and
Stuff Company ( LLC) Marketing of Dairy Ice Cream and other
foodstuffs.
SADAFCO Poland sp.o.o 100 % own shares in other companies and other
activities
 4- Financial Ratios , Analysis & evaluation
FITNESS TIME FITNESS TIME SABIC SABIC SADAFCO SADAFCO

2020 2021 2020 2021 2020 2021

Price – to – Earnings
77.30 109 101.40 116 175 165
Ratio (P/E)
(1.12) 3.93 0.02 7.69 8.32 8.14
Share’s market value 
= 27.73 = = 15.08 = 21.03 = 0.20.27
Earnings per share   = (69.01)
Price – to – Book Ratio
(P/B)
77.30 109 101.40 116 175 165
27.6 28.82 45.39 43.67 24.53 26.48
Market price per share
= 2.8 = 3.78 = 2.23 = 2.65 = 7.13 = 6.23
Book value per share
Rate of Return on
Shareholders’ Equity Rate (58,723,592) 206,020,219 1,256,229,000 30,501,771,000 265,112,000 260,893,000
(ROE) 664,484,064 804,569,669 194,237,125,000 211,833,298,000 1,476,466,000 1,554,819,000
Net income   = (0.0883) =0.256 = 0.0064 = 0.1439 = 0.1795 = 0.1677
Shareholders ’ equity   
 JABAL OMAR JABAL OMAR

2020 2021

Price – to – Earnings Ratio (P/E) 29.1 25.4

Share’s market value  (1.44) 1.02
Earnings per share   = (20.2) = 24.9

Price – to – Book Ratio (P/B) 29.1 25.4

Market price per share 15.48 16.77
Book value per share = 1.87 = 1.51

Rate of Return on Shareholders’ Equity Rate (ROE) (1,339,216,000) 945,990,000

Net income   6,988,742,000 8,628,226,000
Shareholders ’ equity    = (0.1916) = 0.1096

FITNESS TIME FITNESS TIME SABIC SABIC

2020 2021 2020 2021

Rate of return on assets (58,723,592) 206,020,219 1,256,229,000 30,501,771,000

Net income   2,567,317,237 2,593,818,096 295,468,550,000 318,438,777,000
Total assets = (0.0228) =0.0794 = 0.0042 = 0.0957

Current Ratio 325,206,571 250,195,299 81,392,652,000 107,398,080,000

Current assets 664,162,755 648,203,797 37,492,910,000 49,405,025,000
Current Liabilities =0.4896 =0.3859 = 2.17 = 2.17

Quick Ratio 325,206,571−10,559,104

250,195,299−10,222,768
81,392,652,000−19,311,198,000
107,398,080,000−28,621,
Current assets−Inventory 664,162,755 648,203,797 37,492,910,000 49,405,025,000
Current Liabilities
=0.4734 =0.3702 = 1.65 = 1.59
 SADAFCO SADAFCO JABAL OMAR JABAL OMAR

2020 2021 2020 2021

Rate of return on assets 265,112,000 260,893,000 (1,339,216,000) 945,990,000

Net income   2,174,469,000 2,229,435,000 25,736,882,000 26,822,578,000
Total assets = 0.1219 = 0.1170 = (0.0520) = 0.0352

Current Ratio 1,273,001,000 1,278,039,000 2,135,995,000 1,737,518,000

Current assets 498,458,000 474,220,000 4,561,625,000 4,017,165,000
Current Liabilities = 2.55 = 2.69 = 0.4682 = 0.4325

Quick Ratio 1,273,001,000−357,627,000

1,278,039,000−302,223,000
2,135,995,000−1,419,044
1,737,518,000−24,806,000
Current assets−Inventory 498,458,000 474,220,000 4,561,625,000 4,017,165,000
Current Liabilities
= 1.83 = 2.05 = 0.1571 = 0.4263

05. PORTFOLIO PERFURMANCE

The team studied and they were monitoring and observing the portfolio
performance continuously between the period between 19th September to 25
October 2022. We used the Microsoft Excel program to deal with the portfolio and
our stocks data. Using the Microsoft Excel, we analyzed the risk and estimated Beta
for our portfolio and our each stocks the total risk i.e. Portfolio sigma. Also, we
calculated and the moving average, relative strength and portfolio performance
using Microsoft Excel Program.
In our report, we will conduct the securities decline price and securities increased in
price with reasons. Our Microsoft Excel file for our portfolio data will be attached in
the platform with this report submission and it is available upon request from the
team leader or any member of the team. In addition, some snapshots for the
portfolio and stocks also will be shown in the following parts from our report.
 As we learned during the classes, we were able to calculate the regression and
data analysis automatically using the Microsoft Excel’s tools using our portfolio’s
stocks data. The snapshots for our portfolio stocks regression will be listed as the
follows;

1. SADAFCO Summary Output :

Regression Statistics
Multiple R 0.917045495
R Square 0.840972441
Adjusted R Square 0.840759552
Standard Error 0.015874217
Observations 749

- ANOVA

  df SS MS F Significanc
eF
Regression 1 0.9954 0.995 3950.29 1.788
Residual 747 0.1882 0.0002
Total 748 1.1836      
  Coefficient Standar t Stat P-value Lower Upper Lower Upper
s d Error 95% 95% 95.0% 95.0%
Intercep 0.000 0.0005 0.308 0.7 -0.0009 0.001 -0.0009 0.001
t
Return 0.953 0.015 62.85 1.7 0.9232 0.98 0.923 0.98
Index

2- Fitness Time Stock :

Regression Statistics
Multiple R 0.8969
R Square 0.8044
Adjusted R 0.8041
Square
Standard Error 0.0189
Observations 749

- ANOVA

  df SS MS F Significanc
eF
Regressio 1 1.09893523 1.09893523 3072.95 6.288
n 7 7
Residual 747 0.26713818 0.00035761
6 5
Total 748 1.36607342      
3

  Coefficien Standar t Stat P- Lower Upper Lower Upper

ts d Error value 95% 95% 95.0% 95.0%
Interce -0.00031 0.00069 - 0.645 - 0.0010 -0.001 0.0010
pt 1 0.460 6 0.0016
7
Return 1.001347 0.01806 55.43 6.288 0.9658 1.0368 0.9658 1.0368
Index 3 4 9 8
 3. Sabic Stock :

Regression Statistics
Multiple R 0.965709611
R Square 0.932595052
Adjusted R 0.932504818
Square
Standard Error 0.010365521
Observations 749

- ANOVA

  df SS MS F Significan
ce F
Regression 1 1.1104632 1.1104632 10335.272 0
81 81 45
Residual 747 0.0802606 0.0001074
87 44
Total 748 1.1907239      
69

  Coefficient Standard t Stat P- Lower Upper Lower Upper

s Error value 95% 95% 95.0% 95.0%
Intercept -0.0002 0.0003 -0.68 0.495 -0.001 0.0004 -0.001 0.0004
8
Return 1.00658 0.0099 101.66 0 0.9871 1.0260 0.987 1.0260
Index 2

4. Jabal Omar Stock :

Regression Statistics
Multiple R 0.912821506
R Square 0.833243103
Adjusted R 0.833019867
Square
Standard Error 0.017139387
Observations 749
 - ANOVA

  Df SS MS F Significan
ce F
Regression 1 1.09647591 1.09647591 3732.5748 8.9729E-
6 6 31 293
Residual 747 0.21943766 0.00029375
6 9
Total 748 1.31591358      
2

  Coefficient Standard t Stat P- Lower Upper Lower Upper

s Error value 95% 95% 95.0% 95.0%
Intercept -0.00067 0.0006 -1.08 0.279 - 0.0005 -0.001 0.000
0.0019
Return 1.000226 0.016 61.09 8.972 0.9680 1.032 0.968 1.032
Index

- Portfolio Var-Cov. and Risk Analysis :

Portfolio Weight W w^2

Sadafco Ret 0.15 0.0225
Fitness time Ret 0.2 0.04
Jabal omar Ret 0.4 0.16
Sabic Ret 0.25 0.0625

Portfolio Beta w beta

Sadafco 0.15 0.953028885 0.142954333
Fitness time 0.2 1.001347487 0.200269497
Jabal omar 0.4 1.000226396 0.400090558
Sabic 0.25 1.00658595 0.251646487 0.99496087
6

  Return Return Fitness Return Jabal Return

SADAFCO Time Omar Sabic
Return SADAFCO 1
 Return Fitness 0.826188122 1
time
Return Jabal 0.843544038 0.842630414 1
Omar
Return Sabic 0.88714404 0.868320963 0.882151992 1

  Return Return Fitness Return Jabal Return Sabic

Sadafco time omar
Return Sadafco 0.00158034
2
Return Fitness 0.00140265 0.001823863
time 4
Return Jabal 0.00140558 0.001508364 0.001756894
omar 2
Return Sabic 0.00140615 0.001478567 0.001474283 0.00158975
9 2

Portfolio
Variance 0.001531317
Portfolio Risk 0.039132047

3- Relative Strength Analysis :

 SADAFCO RSI
250
200
150
100
50
0
ay un un ul ul ug ug ug ep ep ep ct
- M 2-J 2-J 4-J 20-J 1-A 1-A 3-A 4-S 4-S 7-S 9-O
31 1 2 1 2 1 2

Adj Close SADAFCO

Relative Strength (RSI)

Fitness Time RSI

120
80
40
0
ay un un un ul ul ug ug ug ep ep ep ct ct
- M 9-J 0-J 9-J 14-J 25-J 3-A 4-A 3-A 1-S 2-S 1-S 3-O 2-O
31 2 2 1 2 1 2 1

Adj Close Fitness time

Relative Strength (RSI)

RSI :

10/19/202 92.19 40.9

198.60 65.58 77 62.633 22.540 61.11
2 9 8

10/20/202 54.3
197.60 57.99 77.5 64.912 22.799 65.38 92.5
2 4

10/23/202 93.69 45.2

201 0 77.59 62.211 22.700 39.99
2 9 0
 Portfolio performance during:
• September19 to October 6:
Since the 4 stocks included in our portfolio have almost an identical market's beta,
their movements and fluctuation will be like the index. The stocks prices during the
first period have slightly increased following the market index increase by almost 300
points.
• October 9 to October 25:
The market index increased almost 400 points in the second period, this explains the
additional increase in our portfolio reaching a total gain of almost 4% before selling
the stocks.

6- Conclusion :
In 25 October 2022, we sold all our stock to study this project and to analysis all
the data for our portfolio and our stocks.
We started to invest in our portfolio in the simulator of Saudi Exchange platform
(Tadawol) with 100K SAR. During our project we discussed the stock market and
analysis the famous stocks and other stocks to choose the best options to start to
invest to apply and to study this project.

We were dealing with this amount of money as it was our real money. That’s why we
were discussing and negotiating about the right stocks and right markets to invest.
Before this project, some of the member team did not try before the investment in
the stock market, the other part they tried before and they’re already investing in
the stock market but they have a limited experience. After this project, the team
members being familiar with the stock market and they are able to analysis and to
apply the technical evaluation using the Microsoft Excel program, financial ratios and
they knew how to calculate and review the risk in a live experience. In fact, the
benefit of this experience including all the techniques, technologies and soft skills
and more are exceeding all that advantages and it will reflect positively in our
personal life and our personal investments.
On 25th October 2022, after the orders of selling our stocks in the portfolio is
applied, we gain 4K SR in our simulator portfolio (4%) gain recorded as net profit. We
think we could record more profit but the period of this project was limited time and
due to the specific objective of this project.
In the following part, some of snapshots of our simulator portfolio by the end of this
project.

7- References :

 Exchange, S. (2022). Tadawul. Market watch today.

 Investing, (2022). Stock market quotes & financial news. Investing.com.
 Finance, Y. (2022). Stock Market Live, quotes, Business & Finance News.
Yahoo! Finance.