Top Gulf Stock Picks By United Securities

whsaito /Foter

Muscat-based United Securities has turned cautiously optimistic on the recent developments by global markets to contain the debt crises and on the back of better than expectation Q3 results in some market sectors.

“We advise our investors cautiously watch the markets and gradually deploy their cash over the next couple of months,” said United Securities in a note to client.

Here are their top Gulf stock picks:

Qatar National Bank

Qatar National Bank, the country’s largest bank

achieved by the end of the third quarter 1.9 billion

riyals with growth 26.7% , this bring the total profit

for the first nine months of 2011 around 5.4 billion

riyals (8.96 riyals / share), with a growth rate of 30%

compared to the same period in the last year. QNB

is trading at PE 12.75 and PB of 2.52.

Qatar Electricity and Water Company

Qatar Electricity and Water Company is the main

provider of the electricity and water in Qatar, the

company profits was increased to 1047 million riyals

(10.47 riyals / share), by the end of the first nine

months of 2011, to achieve a growth of 25%

compared to the same period in the 2010. Moody’s

credit rating gave the company rate “A 1″ for the

long-term issues with local and foreign currencies

with a stable future vision in the first classification

of the agency for the company. The stock is trading

at 10.06 it’s earning while the P/BV is 4.02.

National Industrialization

The company operates in many industrial fields,

particularly in the petrochemical sector through the

National Industrialization Company for

Petrochemical Industries Company (polypropylene)

in Kingdom of Saudi Arabia. National Industry had

achieved a net profit of SAR 1899 million during the

first nine months of 2011, a growth of 74%

compared to the same period in 2010, this growth

was due to improve on sales and increased in their

products prices. National Industry is trading at a P/E

of 8.76 and P/B of 2.13.

Jarir Marketing Company

Jarir Marketing Company is a Saudi Arabia-based

joint stock company that acts as a wholesaler and

retailer of office products. The Company’s activities

include retail and wholesale trading in office and

school supplies, children toys, educational aids,

office furniture, engineering equipment, computer

and computer systems, sport and scout equipment,

and paper. The Company achieved a profit of 152.3

million riyals (5.88 riyals / share) by the end of the

third quarter of 2011, up by 47.6% comparing to

last year profit. Jarir is trading at P/E of 14.01, and

P/B of 8.52

Mouwasat Medical Services

Mouwasat which is manages and operates in the

medical sector. They manage 5 hospitals across KSA

and planning to add one more in Al Khobar. The

company had posted a net profit for the first nine

months of (2011) 113.3 million riyals (4.53 riyals /

share) achieving a growth of 25% compared to the

same period in the 2010. Their increase in revenues

derived from the vertical expansion in the number

of outpatient clinics operated and operating

efficiency of the assets available. We are positive on

the industry and with stable margins, limited

downside and decent financial performance one

can accumulate on the stock. The stock is trading at

a PE of 13.49 and P/B of 3.20.

Etihad Etisalat

Mobily posted a solid 23% increase in first nine

months to SAR 3386 million comparing to the

same period last year, the company attributed

the growth in revenues to the increase in the

number of minutes and internet data consumed,

add for that the sales of smart phones. The stock

Dividend Yield is 4.39% and it is trading at a PE of

7.92 and P/B of 2.14.

Qatar Fuel

Qatar Fuel (Woqod), works mainly in the sale and

distribution of refined petroleum products

manufactured by Qatar Petroleum, beside that

the company also provide Liquefied Petroleum

Gas provision, supply of aviation fuel for

commercial and private aircraft. The Company is

active domestically and operates through five

subsidiaries one of them Woqod kingdom

Company, which is a Saudi Arabia-based

company. The Company achieved a net profit of

QAR 887.7 million for the first nine months of

2011, up by 4% comparing to the same period

last year. The stock Dividend Yield is 4.1% and it

is trading at a PE of 8.59 and P/B of 2.23.

Bank Muscat

Bank Muscat, the largest banking entity in Oman in

terms of assets, posted a net profit of OMR 87.1

million riyals by the end of First nine months 2011,

recording an increase of 21% over the same period

of 2010. The bank is planning to provide its services

compliant with Islamic law, as appropriate and in

conformity with the laws and regulations issued by

the Central Bank of Oman in this regard.

AL Anwar Ceramic Tiles

Al Anwar Ceramic is engaged in manufacturing tile

walls and floors burnished; it has a very well-known

brand in the market A’ Sham tiles. The company’s

total production capacity is 10 million square

meters of ceramic tiles per year. The net profits

increased to OMR 4.43 (23 Bz per share) during the

third quarter of 2011, registered a growth rate of 6

percent over the same period of 2010. The Stock is

trading at a PE 10.23 and P/B of 2.19.