Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
In September 2019, local cement sales increased +17.6% yoy (+21.4% mom) to 3.6mn tons. This reduced ytd declines to -2.9% yoy. Domestic sales grew by +10.0% yoy in Q3 19. This is the first positive yoy growth recorded since Q1 16. We believe this is a key positive, indicating early signs of demand from Mega projects. Sales are expected to pick up further going forward as further Mega projects commence construction.
Saudi Cement reported a lower than expected set of Q2 19 earnings. Though net income increased +59.0% yoy to SAR92mn, it was lower than our estimates of SAR101mn. We believe the variance in earnings is mainly due to a higher than expected cost/ton, despite sales exceeding estimates due to a change in product mix towards higher priced oil-well cement.
In June 2019, local cement sales increased 17.9% yoy to 2.4mn tons. However when adjusting for the Ramadan effect, combined sales of May and June declined by 7.7% yoy. This is in line with the ytd declines of 8.4% yoy. We believe this trend will continue through H2 19, as we believe demand from mega projects will remain limited. However, we believe growth in export sales of clinker will support overall sales in 2019.
In May 2019, local cement sales continued its negative trend, declining -23.5% yoy to 2.5mn tons, taking ytd declines to -11.2% yoy. Overall cement and clinker sales declined -12.7% yoy (3.3mn tons), partially offset by 62.1% yoy growth in export sales. Despite the muted demand, as demand from mega projects remains limited, we believe the weakness was also due to the Ramadan effect. Ramadan began on 6th May in 2019 vs 17th May in 2018.
We believe the long-term outlook for the Saudi cement sector is positive, due to the mega projects and higher capital expenditure by the government. Given the geographic location of the mega projects, we believe companies in the West and North West areas of Saudi will benefit. Overall sales of cement and clinker are expected to increase 9-13% in 2019f, supported by higher exports. However, we expect domestic cement sales to decline 5-10% in 2019f. We expect growth in domestic sales as of 2020f, ...
Saudi Cement reported a mixed set of Q1 19 results with net income declining 6.9% yoy to SAR132mn. This is in line with NCBC and consensus estimates of SAR130mn and SAR127mn, respectively. The strong sales growth, which we believe was led by higher prices of oil-well cement, was offset by the overall increase in cost/ton and higher opex.
In January 2019, local cement and clinker sales continued its negative trend, declining -12.7% yoy to 3.6mn tons. We believe the ongoing decline in sales reflects demand weakness. We believe demand from mega projects remains limited. Growth in export sales supported overall cement and clinker sales, which grew +3.6% yoy (4.2mn tons) in January 2019.
In November 2018, local cement and clinker sales declined -13.9% yoy to 3.3mn tons, taking ytd declines to -13.3% yoy. We believe the ongoing decline in sales reflects demand weakness with limited signs of demand bottoming out. However, the growth of export sales of cement and clinker reduced the overall sales declines to -4.2% yoy (3.6mn tons) in November 2018.
Saudi Cement's figures confirm the difficulties of the recent months. Indeed, the company's H1 2015 sales fell, and its (H1 2015) sales volumes reached 4.180 MT, i.e. a slight 1.7% decrease compared to last year. Local sales showed a more significant decline (-3.1% to 3.912 MT) resulting in a market share decline (-110 bps to 12.1%). H1 2015 Revenues have decreased by 2.1% to SAR1.050bn, and the margins have also suffered during this H1 2015 with an EBITDA margin dwindling by 70 bps to 64.5% (th...
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