Al Anwar Ceramic Tiles: Overview, Key Catalysts, Investment Rationale, Valuation

Running Head: AL ANWAR CERAMIC TILES
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AL ANWAR CERAMIC TILES

AL ANWAR CERAMIC TILES 2
Table of Contents
Overview..........................................................................................................................................3
Key Catalysts...................................................................................................................................3
Investment Rationale.......................................................................................................................3
Valuation..........................................................................................................................................4
Whether the investors shall buy or sell from the company.............................................................4
Financial Statements........................................................................................................................4
References......................................................................................................................................10

AL ANWAR CERAMIC TILES 3
Overview
The company has been set up in the year 1997; Al Anwar Ceramic Tiles was the first
Ceramic Tile manufacturer in Oman. The plant of the company was set up in the small town
called Nizwa with the association of the technical collaboration with the Italian manufacturers.
The robust expansion from the company was observed in the year 2004 and the year 2008. The
company offers the wide range of the products under the brand names like Al-Shams brand
inclusive of wall, floor, boarder, highlighters with wide range of colorful options. The plant
makes use of the locally available raw materials, with glazes, frits and pigments imported from
leading manufacturers in Italy and Spain. Currently the income of the company is 0.62 whereas
the same was 0.18 in the financial year 2018. This is due to the benefit of the low cost producers
and less cost competition (Al Anwar Ceramic Tiles, AU 2018).
Key Catalysts
 For the three months finished 31 March 2019, Al Anwar Ceramic Tiles Company SAOG
incomes stayed level at OMR5.4M. The overall profits of the company have been
declined in comparison to the previous years. The net profit of the company keeps on
deteriorating.

AL ANWAR CERAMIC TILES 4
2014 2015 2016 2017 2018
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
Al Anwar Ceramics Company
Net profit for the year
Sales
 The financial costs have seen a low range from $34711 to $12225. The earnings per share
also fluctuated to an unacceptably low level from 0.396 to 0.025 over the period of the
five years. Due to the high competition in the Gulf Areas, and the Saudi’s Arabia’s new
impetus on the sector of the Social Housing and Qatar’s successful bid for the World cup
for the year 2018 will create more opportunities for AACT (Al Anwar Ceramic Tiles, FS
2018).
 Recently AACT has planned to enhance the production line with a capacity of 18 million
sq. meters per annum which would help creating a major jump for the Ceramics tiles.
This would increase the production capacity of the company by 112% in comparison to
the previous year being at 107%.