Amianteet Tadawul: Comprehensive Guide to Amianteet Stock

Amianteet Saudi Company was established as a public joint-stock company specializing in the manufacturing of pipes and hydraulic systems from composite materials, reinforced fiberglass, plastics, and metals. Since its inception, it has played a pivotal role in supporting national infrastructure projects such as water, sewage, oil, and gas, in line with the Kingdom's efforts to enhance local industrial content. Amianteet's stock is listed on the Saudi financial market (Tadawul) under the symbol 2160 and is classified within the capital goods sector. This sector is a key contributor to the Kingdom's mega projects, especially under Saudi Vision 2030, which focuses on modernizing and expanding infrastructure, granting Amianteet a strategic position and strong expansion opportunities. The company is also a partner in massive government projects, such as the sewage treatment plant in Buraidah, solidifying its presence in development projects. Additionally, the company's activities have expanded beyond Saudi borders through international agreements, reflecting its ambition to form a regional and international network in the advanced piping sector.

Amianteet has experienced significant transformations in its financial results during 2024 and 2025, recording net profits of 439.8 million Saudi Riyals in 2024, compared to continuous losses in previous years. This positive shift is attributed to the increased demand for the company's products accompanying major infrastructure projects, as well as improved profit margins and effective cost management. In the first quarter of 2025, the positive performance continued with net profits of 10.7 million Riyals. Reports indicate that the company achieved cumulative profitability of 492.3 million Riyals in the first nine months of 2024, and 479.6 million in the first half of the same year. However, the fourth quarter of 2024 witnessed an exceptional loss of 52.5 million Riyals due to seasonal or non-recurring costs. Today, Amianteet stands out as a remarkable case in the Saudi market, having transitioned from a loss-making company to achieving one of the highest profitability levels in its sector, enhancing market confidence in the sustainability of its positive performance, while being mindful of the cyclical nature of profits and the potential for fluctuations in the future.

Amianteet's stock is currently trading at approximately 20.70 Saudi Riyals per share, according to market data (2025). The company's market capitalization is around 923.08 million Saudi Riyals, classifying it as a small to medium-sized company in the Saudi market. The price-to-earnings (P/E) ratio is in the range of 2 to 3, one of the lowest rates in the capital goods sector. This figure reflects the sharp turnaround in the company's results after years of losses, as the exceptional profitability in 2024 significantly reduced the P/E ratio. Followers should note that this ratio is based on the profitability of a single year and may not reflect future performance if operational or financial conditions change. In terms of liquidity, the stock has seen moderate trading with an average daily trading volume exceeding 80,000 shares, with an increase in liquidity noted upon the announcement of 'Morgan Stanley' as a market maker, which may enhance the stock's appeal to institutional investors.

In March 2025, Amianteet's Board of Directors adopted a policy to freeze cash dividends for the year 2024, despite the company achieving relatively high profits. The board clarified that this decision aims to support financial liquidity and enhance the company's investments in future growth projects, a common approach among companies undergoing strategic transformations or seeking to finance expansions without excessive reliance on loans. In previous years, Amianteet distributed cash dividends ranging from 5% to 10% of capital, but profit fluctuations in recent years have led to a more conservative approach. Monitoring the dividend policy in the future remains a point of interest for shareholders, especially with the improvement in financial conditions and the possibility of the company returning to dividend distribution if annual profits stabilize.

The capital goods sector in the Saudi market includes industrial companies that provide equipment and spare parts for major projects in water, electricity, oil, gas, and infrastructure. Amianteet stands out in this sector with its focus on producing advanced fiberglass and composite pipes, giving it a competitive advantage due to the corrosion resistance of its products and their suitability for the desert environment. Demand for the company's products is increasing in the context of Vision 2030 projects, which include expanding water and sewage networks, desalination, and expanding oil and gas transportation facilities. Thanks to its investments in massive government projects, Amianteet enjoys confidence in the sustainability of demand for its products, enhancing its ability to withstand market fluctuations and achieve sustainable growth.

There is no direct competitor listed in the Saudi market offering the same range of products as Amianteet in fiberglass and composite pipes. However, other companies operate in intersecting fields within infrastructure and heavy industries, such as the National Company for Iron Industries and the Saudi Ceramic Pipes Company (SVCP), which specializes in ceramic sewage pipes. Regionally, Amianteet competes with global companies such as Finland's Flowtite, Egypt's Amiantit, and Saudi Steel Pipe, which focuses on oil and gas pipes. Amianteet stands out for its ability to meet the requirements of major Saudi projects with high technical specifications, giving it an advantage in government tenders. On the other hand, the company faces challenges from foreign pipe imports, as seen with Indian pipe imports, prompting it to investigate the quality of these products and protect its market share.

Amianteet has participated in the implementation and management of massive infrastructure projects within the Kingdom, most notably the sewage treatment plant in Buraidah, in which it holds an indirect investment stake. The company is also working to expand its project base in gas and water through partnerships with local and international companies. Outside Saudi Arabia, Amianteet signed a memorandum of understanding with the Libyan Development Fund in 2025 to explore opportunities for participation in water and sewage infrastructure reconstruction projects. These alliances aim to diversify income sources and reduce reliance on the local market, in addition to enhancing the company's position as a provider of integrated infrastructure solutions in the Middle East and North Africa.

The years 2024-2025 witnessed several administrative and regulatory developments at Amianteet. The most notable was the proposal to freeze cash dividends and the appointment of Morgan Stanley as a market maker for the company's shares, enhancing the stock's liquidity and increasing its attractiveness to investors. The company also launched an internal investigation into pipe imports from India, as a step to protect its local products from foreign competition. Continuous monitoring of governance and adopting regulatory measures reflect the company's commitment to transparency and financial sustainability, qualifying it to respond swiftly to changes in the local and international regulatory environment.

Amianteet's results are indirectly affected by the movement of the Saudi economy and global oil prices. Rising oil prices support government spending on infrastructure projects, increasing demand for the company's products. Conversely, falling prices may lead to delays in some projects or reductions in spending allocations, adjusting the company's growth pace. Nevertheless, the Saudi government focuses on developing non-oil infrastructure (such as water and renewable energy projects) under Vision 2030, providing an opportunity for Amianteet to mitigate the impact of oil price fluctuations on its performance. Geographic diversification of activities and international alliances are supportive factors for the stability of the company's financial and operational performance.

Among the most prominent risks facing Amianteet are fluctuations in raw material prices (especially fiberglass and plastics), delays or cancellations of some government projects due to economic conditions or changing spending priorities. Competition from imported foreign products may exert pressure on market share and profit margins, as recently occurred with Indian pipe imports. Regulatory changes, such as quality and environmental requirements, may increase operational burdens. Additionally, heavy reliance on government projects makes the company vulnerable to fluctuations in the construction business cycle in the Kingdom. Amianteet seeks to mitigate these risks through geographic diversification, developing new products, and improving operational efficiency.

In July 2025, the appointment of Morgan Stanley as a market maker for Amianteet's stock was announced, as part of a selected list of stocks in the main and growth markets. This step aims to enhance the stock's liquidity, facilitate trading for investors, and reduce gaps between supply and demand prices. The presence of a professional market maker contributes to stabilizing the stock price and attracting more individual and institutional investors, especially those looking to trade in highly liquid stocks. A market maker can also help reduce the severity of price fluctuations resulting from large buy or sell transactions, supporting the stock's stability in the medium term.

As the Kingdom continues to implement massive infrastructure projects, Amianteet's growth prospects remain promising, especially with the close linkage of its projects to Vision 2030 plans. Signing international memorandums of understanding, such as the partnership with the Libyan Development Fund, reflects the company's direction towards regional expansion and reducing reliance on the local market. Additionally, developing new products and targeting sectors such as water desalination and renewable energy enhances future growth opportunities. Despite challenges associated with market fluctuations and operational risks, the diversity and scale of projects, along with the strength of the brand, position Amianteet as a key player in the capital goods sector in the Kingdom and the region.

Amianteet's stock (2160) on the Saudi financial market shows positive indicators, reflecting a strong financial turnaround in 2024, a significant decrease in the P/E ratio, and improved liquidity due to the entry of a new market maker. However, followers should consider that a large part of the profit jump is due to exceptional conditions in 2024, and future performance may be affected by factors such as the financial stability of government projects, competitive developments, and changes in raw material prices. Currently, there are no announced recommendations from major local research houses regarding the stock, and the investment assessment in Amianteet remains contingent upon personal analysis of profitability factors, risks, and distribution policy. It is always advisable to consult a licensed financial advisor before making investment decisions in industrial company stocks like Amianteet.