Batak: Everything You Need to Know About the Company and Its Performance in the

Batak Investment and Logistics was established in 1984 as a Saudi joint-stock company, starting its operations in the transportation and logistics sector. Over the decades, Batak has evolved into a multi-activity entity comprising subsidiaries in six main sectors. Its motto emphasizes service diversification and responsiveness to the changing demands of the Saudi market, especially amid economic transformations and the Vision 2030 program. Since its inception, the company has relied on developing its operational capabilities and gradual expansion through investments in transportation, security, real estate, and smart solutions. Batak's listing on the Saudi financial market (Tadawul) has enabled it to enhance its transparency and attract a wide range of local and international investors. The company's strategy is based on aligning its operations with local market needs and major national projects, focusing on innovation and adopting the latest technologies to ensure sustainable growth.

Batak's capital is valued at 600 million SAR, distributed over 600 million ordinary shares. This large number of shares reflects stability in ownership structure and allows for good liquidity when trading in the financial market. Each share represents an equal stake in the company, and shareholders have the right to participate in profits (if any) and vote in general assemblies. The company's ownership varies between the private and public sectors, with the presence of strategic and institutional investors. There has been no significant change in capital in recent years, indicating stability in financial management and a focus on reinvesting profits to expand operations rather than distributing them regularly. This approach aligns with the nature of growing companies in the service and logistics sectors that require continuous capital investment to keep up with developments in the Saudi market.

Batak distributes its activities across six core sectors, providing it with significant flexibility in managing risks and capitalizing on diverse market opportunities:
1. Transportation and Logistics: Includes freight transport, supply chain management, land and sea transport, and storage services.
2. Real Estate Investment: Involves the development and management of real estate assets, such as shopping complexes and office buildings.
3. Security and Cash Solutions: Provides cash transport and insurance solutions, treasury management, and facility protection services.
4. Smart Parking and Smart City Solutions: Operates smart parking systems, manages vehicle traffic, and develops smart city infrastructure.
5. Facility Management: Maintenance and operation of buildings and facilities, energy management, and cleaning and engineering maintenance services.
6. Investment in Technology: Focuses on applying digital solutions and innovations in the services provided.
This diverse sectoral distribution grants the company the ability to adapt to economic changes and target strategic government and private projects.

In recent years, Batak has sought to enhance its financial performance by expanding its customer base and increasing projects in promising sectors. Financial data for 2023 shows continuous revenue growth, benefiting from the economic boom and increased government spending on infrastructure projects. Preliminary results for 2024 indicate continued stable operating profits, reflecting the success of the expansion strategy and reliance on operational efficiencies. On the other hand, Batak has maintained a conservative financial policy, preferring to reinvest profits to support future projects rather than distributing high cash dividends. Profitability indicators and liquidity levels are within sector averages, with room for improvement in light of the ongoing growth in demand for logistics and security services in the Kingdom.

Batak's stock trades in the Saudi financial market within a range of 2 to 3 SAR per share during 2024 and 2025. Based on the average price and number of shares, the market capitalization ranges between 1.2 to 1.8 billion SAR. The trading volume and cash liquidity for the stock are acceptable, reflecting investor interest in the sector. As for the price-to-earnings (P/E) ratio, it is estimated to be within sector averages, reflecting market expectations for the sustainability of the company's profits. The cash dividend yield remains relatively low due to management's focus on internal growth and financing new projects. It should be noted that stock prices and financial indicators are subject to continuous change, so it is essential to monitor quarterly reports and official news via the Tadawul platform.

Batak plays an important role in achieving the goals of Saudi Vision 2030 through its contribution to the development of the logistics sector, supporting infrastructure projects, and adopting smart solutions. Batak's investments align with the Saudi government's direction to diversify the economy and reduce dependence on oil, as it participates in smart city projects and the development of smart transport and parking systems. It also collaborates with government and private entities in implementing strategic projects, making it a reliable partner in achieving national development. The expansion in applying modern technologies, such as the Internet of Things and smart asset management, contributes to enhancing operational efficiency and strengthens the company's position in the local and regional market.

Batak faces strong competition in most sectors in which it operates, especially in logistics, security, and real estate services. Notable competitors include the National Shipping Company of Saudi Arabia (Bahri), Cisco Logistics, and private companies like Aramex. It also competes with global and local security companies in the cash solutions sector. In the smart cities sector, it shares the market with local and international technology companies. Batak's diverse activities are a competitive advantage, allowing it to offer a comprehensive package of services to government and private clients, especially in major projects that require integrated solutions.

As of mid-2025, no dramatic or surprising announcements have been made about Batak, indicating a state of stable growth. Key developments include:
- Continued participation in major government projects in transportation and infrastructure.
- Focus on smart solutions and digitization, especially in smart parking and smart city systems.
- Strengthening partnerships with government and private entities, and signing new agreements to support national projects.
- Maintaining stable financial performance, with relatively positive annual and quarterly results.
These developments enhance Batak's position as a strategic partner in the Saudi economy and support the sustainability of its operations in the long term.

Like other active companies in the Saudi market, Batak faces a range of risks and opportunities. Key risks include intense competition, market price fluctuations, changes in government spending policies, and challenges associated with smart city technologies. Conversely, significant growth opportunities are available, including increased demand for logistics services with the acceleration of e-commerce, expansion in infrastructure projects, and government support for smart initiatives. Investment in technology and the development of human competencies are critical factors for the company's sustainable growth and enhancing its competitive advantage in the local and regional market.

Batak adopts a conservative financial policy regarding cash dividends to shareholders. The company often prefers to reinvest profits to support expansion plans and implement new projects rather than distributing them directly. This policy is common among companies operating in sectors that require continuous capital investments, such as transportation and logistics. Although cash dividends are relatively low or irregular, this approach may contribute to enhancing the company's market value in the long term through business growth and increased operational assets.

You can monitor Batak's stock performance directly through the Saudi financial market platform (Tadawul) using the company's name or its stock symbol. The platform provides real-time data on the stock price, trading volumes, official disclosures, and quarterly and annual reports. Local brokerage firms also offer analytical services and periodic reports for investors regarding stock performance and company developments. It is important to review official financial reports and local economic news to ensure an accurate and realistic picture of stock development in light of general and sectoral economic indicators.

The Saudi logistics sector is witnessing accelerated growth thanks to Vision 2030, which aims to make the Kingdom a regional logistics hub. The government supports the development of transportation infrastructure, ports, and smart warehouses. The real estate investment sector is also experiencing significant expansion with increased demand for shopping complexes and smart buildings. There are substantial opportunities for companies that keep pace with this growth by investing in modern technologies, improving operational efficiency, and forming strategic partnerships. Batak, through its diverse strategy, is well-positioned to benefit from these trends, with a focus on developing internal capabilities and keeping up with regulatory and technological changes.

Innovation is a key pillar of Batak's sustainable growth strategy. The company focuses on applying smart city technologies, Internet of Things solutions, and automating operational processes in transportation and facility management sectors. Batak aims to develop smart vehicle traffic management solutions, electronic parking systems, and data analysis to improve services provided to customers. Continuous investment in technology enhances the company's competitiveness and responsiveness to the demands of modern infrastructure projects, increasing operational efficiency and reducing costs in the long term.