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2170

Governance: D

ALUJAIN

Alujain Corp.

28.88 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

0.8x P/B Ratio Price to Book Value

10.4% Dividend Yield Annual Dividend / Share

2.00B SAR Market Cap Total Valuation

1.24 Beta Systematic Risk Index

-90.4% Net Margin Net Profit / Revenue

The Story

Alujain Corporation is a Saudi petrochemical producer navigating a period of severe operational losses and heavy capital reinvestment as it constructs a major new production facility in Yanbu.

Source: Q1 2026 (2026-05-10)

Value Creation -19.1% Excess Return on Capital (Spread between ROIC/ROE and Cost of Capital)

Cash Flow Payback — Estimated years of operating cash flows required to cover Enterprise Value

Performance & Distributions

Dividend Yield Trailing annual dividends paid relative to share price

10.4%

Sustainable Growth Rate Rate at which company can grow internally using reinvested profits

-58.9%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-90.4%

ROIC Return on Invested Capital

-9.9%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

0.8x

EV / EBITDA Operating multiple reflecting core operational leverage

—

EV / SALES Asset pricing multiple relative to total topline revenue

1.3x

Growth Story

Grounded in a volatile revenue trajectory, Alujain's top-line performance has fluctuated, moving from 1.40 billion SAR in FY 2023 to 1.56 billion SAR in FY 2024, before contracting to 1.30 billion SAR in FY 2025, with TTM revenue standing at 1.40 billion SAR. The company's long-term growth capacity is currently constrained by a negative 5-year average ROIC of -9.94%, which, when combined with a high 5-year average reinvestment rate of 592.73%, yields a negative sustainable growth rate of -58.94%. However, Alujain is actively building for the future, as evidenced by its massive project under construction in Yanbu Industrial City. This project, designed to produce over 600,000 tons of polypropylene and 25,000 tons of hydrogen annually, represents a major capital commitment with 597 million SAR in contracted capital expenditure yet to be incurred as of March 31, 2026.

Profitability Dynamics

Alujain's profitability has faced severe headwinds, characterized by a TTM operating margin of -92.14% and a TTM profit margin of -90.39%, leading to a TTM EBIT of -1.29 billion SAR and a NOPAT of -1.30 billion SAR. This operational deficit is reflected in a stark value destruction profile, where the company's 5-year average ROIC of -9.94% falls far short of its WACC of 9.11%, resulting in a negative ROIC-to-WACC gap of -19.05%. Despite these historical and TTM losses, the company experienced a brief operational turnaround in Q1 2026, recording a net profit attributable to shareholders of 12.17 million SAR compared to a loss of 17.23 million SAR in Q1 2025, partially aided by a revision in the useful lives of its plant and machinery which reduced depreciation by 9.8 million SAR.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.24

Cost of Equity Minimum required rate of return demanded by shareholders

9.8%

WACC Weighted average cost of total debt and equity funding

9.1%

Debt-to-Equity Ratio Proportion of corporate funding financed by debt creditors

13.4%

Risk Factors

Alujain's risk profile is shaped by both its capital structure and external operational vulnerabilities. The company maintains a latest total debt of 267.71 million SAR against a cash balance of 402.45 million SAR, supported by a newly obtained 250 million SAR short-term Murabaha loan in Q1 2026 and 1.31 billion SAR in unutilised credit facilities. However, its systematic risk is elevated, with a relevered beta of 1.24 reflecting high sensitivity to market movements. Beyond financial leverage, Alujain faces significant business-specific risks, including geopolitical volatility in the Middle East that threatens the Strait of Hormuz and feedstock supply stability, alongside ongoing Zakat disputes with ZATCA involving NATPET's additional liabilities of 4.6 million SAR.

Governance Disclosures

Rating: D

We track 9 key governance and oversight matters for this company in our database.

Significance: 3/10 Tunneling

Board and Key Management Compensation

The Group paid short-term employee salaries and benefits of SAR 4,182 thousand, termination benefits of SAR 179 thousand, and Board of Directors' compensation of SAR 1,235 thousand during the three-month period ended March 31, 2026.

Significance: 4/10 Info Asymmetry

Transactions with Joint Venture (Natpet Schulman)

The Group engaged in transactions with its joint venture, Natpet Schulman Specialty Plastic Compounding L.L.C, including sales of SAR 16,694 thousand, re-charged expenses of SAR 1,159 thousand, management support services of SAR 672 thousand, and zakat expense reimbursement of SAR 300 thousand.

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In-Depth Analysis