AYYAN
AYYAN Investment Co.
As of: May 28, 2026
Company Profile
Ayyan Investment Company is a Saudi listed Joint Stock Company. The main activity of the Company is general construction of non-residential buildings including schools, hospitals, hotels etc. The new activities include investing its funds in stocks and other securities. The Group also operates in the manufacturing sector through Al-Ahsa Food Industries Company, which is involved in drying and packing of dates and production of its products, production of black honey, wholesale and retail of dates, and storage of refrigerated food.
The Story
Ayyan Investment Company is undergoing a profound structural transformation, shifting from operating healthcare and construction assets to managing a diversified investment portfolio, marked by volatile historical earnings but a highly profitable TTM period driven by investment gains.
Source: Q1 2026 (2026-05-11)
Performance & Distributions
Market Pricing Multiples
Growth Story
Ayyan's growth trajectory is characterized by a dramatic structural pivot rather than traditional organic expansion. Historically, revenues were tied to operating businesses, with net revenues of SR 20.09 million in FY 2023 and SR 23.15 million in FY 2024. However, following the amendment of its bylaws in 2025 to focus on stock and securities investment, and the subsequent disposal of its medical subsidiaries, the company's revenue profile has been completely redefined. TTM revenue stands at SR 55.28 million, heavily driven by investment income, including mark-to-market gains of SR 39.35 million and dividend income of SR 2.79 million for the three months ended March 31, 2026. This transition is reflected in a highly volatile historical reinvestment rate with a five-year average of 287.24% and a negative sustainable growth rate of -19.41%, illustrating that the company is actively recycling capital out of legacy operations and into financial assets rather than growing through traditional capital expenditure.
Profitability Dynamics
The profitability narrative of Ayyan is a tale of two eras: historical operational struggles followed by a massive investment-driven windfall. Historically, the company generated deep net losses of SR 216.07 million in FY 2023 and SR 164.41 million in FY 2024. The disposal of Al-Salam and Al-Ahsa Medical Services in early 2025 generated a massive non-cash gain of SR 418.06 million, driving FY 2025 net income to SR 359.73 million. On a TTM basis, Ayyan boasts an operating margin of 78.04% and a profit margin of 45.64%, with NOPAT reaching SR 34.51 million. However, this current profitability is highly dependent on market fluctuations of its equity portfolio, which stood at SR 833.05 million as of March 31, 2026. The company's five-year average ROIC remains negative at -6.76%, falling well short of its WACC of 6.80% (a negative gap of -13.55%), indicating that while recent investment gains are substantial, the company has historically struggled to generate returns above its cost of capital on its legacy asset base.
Risk & Capital Structure
Risk Factors
Ayyan's risk profile has shifted from operational execution risks to market volatility and leverage risks. With a relevered beta of 0.96, the company's equity risk closely mirrors the broader Saudi market. However, its balance sheet has seen a significant increase in leverage to fund its new investment mandate. Total debt escalated to SR 296.87 million as of the latest period, comprising SR 93.90 million in short-term loans and SR 200.48 million in long-term loans. Crucially, these loans are secured by pledging a substantial portion of its equity portfolio—SR 169.72 million of equity investments are pledged against short-term debt, and SR 400.50 million are pledged against long-term debt. This creates a feedback loop where market downturns could trigger margin pressures. Additionally, legacy risks persist; its wholly-owned subsidiary, Al-Ahsa Food Industries, has accumulated losses exceeding its capital, requiring ongoing financial support from the parent company.
Governance Disclosures
We track 14 key governance and oversight matters for this company in our database.
Related-Party Transactions and Balances with Al Othman Group
The Group engages in transactions with Al Othman Agricultural Production and Processing Company, a subsidiary of a shareholder, resulting in revenue of SR 150,000 for the three-month period ended March 31, 2026, and an outstanding due from balance of SR 162,281. Additionally, discontinued operations carried a due to related party balance of SR 126,450,923 to Al Othman Holding Group of Companies at the date of disposal.
Board Resolution to Support Financially Distressed Subsidiary
The Group's subsidiary, Al-Ahsa Food Industries Company, has accumulated losses exceeding its capital. Under Saudi Companies Law, the shareholders must resolve to continue or liquidate the business. The Board of Directors resolved to continue supporting the subsidiary and provide it with the necessary funding.
Research Report
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