reports
- Talha Nazr
Saudi Cement Sector: Q4 Update | Mega/Giga projects to support demand
We maintain our long-term positive outlook on the Saudi Cement sector. The acceleration of the Mega/Giga project will support long-term demand, whereas housing demand seems to have normalized as indicated by the slowdown in mortgage growth and low prices remain the main concern. In our view, the sector is going through a consolidation phase, as indicated by the ongoing M&A deals. We believe this may result in lower competition and better pricing mechanisms for the sector. We expect selling vo...
- Talha Nazr
Saudi Cement Company: Q3 22 Results Analysis | Higher prices support l...
Saudi Cement reported broadly in-line set of Q3 22 results, with a net income increasing 37.4% yoy (-21.3% qoq) to SAR80.7mn. This compared to the SNB Capital estimates of SAR86.5mn, and significantly lower than the consensus estimates of SAR96.7mn, respectively. Revenues grew 7.6% yoy (-6.0% qoq) to SAR328mn in-line with our estimate of SAR333mn. We believe the variance in earnings is mainly driven by 1) lower gross margins which stood at 37.9% vs our estimate of 39.1% due to an increase in ...
- Talha Nazr
Saudi Cement Company: Growth in prices and lower opex support earnings
Saudi Cement reported a strong set of Q2 22 results, with a net income increasing 18.6% yoy (+67.7% qoq) to SAR103mn. This is higher than the SNB Capital and consensus estimates of SAR59.7mn and SAR64.8mn, respectively. We believe the positive variance in earnings is mainly driven by 1) higher than expected average selling prices which stood at SAR199/ton (+9.9% yoy, +19.4% qoq) vs SAR181/ton in Q2 21 and our estimate of SAR172/ton. 2) improvement in gross margins which stood at 41.8% vs 39.8...
SAUDI CEMENT reduced its risk exposure resulting in an upgrade to Slig...
SAUDI CEMENT (SA), a company active in the Building Materials & Fixtures industry, reduced its market risk and raised its general evaluation. The independent financial analyst theScreener awarded an improved star rating to the company, which now shows 2 out of 4 possible stars; its market behaviour has improved and can be considered as defensive. theScreener believes that this new assessment merits an overall rating upgrade to Slightly Positive. As of the analysis date March 11, 2022, the closin...
- Iyad KhalidÊGhulam
Saudi Cement Company: Q1 21 earnings decline yoy on lower selling pric...
Saudi Cement reported an in-line set of Q1 21 earnings, with net income declining by 19.6% yoy (-3.8% qoq) to SAR119mn. This is in-line with the NCBC and consensus estimates of SAR115mn and SAR114mn, respectively. Sales declined 4.7% yoy SAR429mn, coming in-line with our estimates. The 4.4% yoy growth in sales volume was offset by an 8.7% yoy decline in average selling prices to SAR180/ton (+3.5% qoq). * Total cement and clinker selling quantities stood at 2.39mn tons (+4.4% yoy) in Q1 21 an...
- Iyad KhalidÊGhulam
Saudi Cement Monthly: February – Strong sales continue into 2021
Total monthly sales stood at 5.96mn tons in January 2021, the second highest monthly sales on record. Local cement sales remain relatively stable mom at 4.95mn tons (+8.1% yoy). We believe the Ministry of Housing’s programs continue to be the key driver behind the strong demand. Clinker inventory declined for the ninth consecutive month, standing at 35.7mn tons (-3.6% mom). Local sales: Local cement sales increased +8.1% yoy (-1.1% mom) to 4.95mn tons in January 2021, recording the third high...
- Iyad KhalidÊGhulam
Saudi Cement Company: Higher-than-expected margins support earnings
Saudi Cement reported a higher than expected set of Q3 20 results, with net income increasing +28.2% yoy and +42.8% qoq to SAR106mn. This is higher than our estimates of SAR97mn, but in-line with consensus estimates of SAR108mn. We believe the variance was mainly due to slightly higher than expected selling quantities and margin expansion. We are Neutral on Saudi Cement, with a PT of SAR51.1. The stock is trading at a 2021f P/E and EV/EVITDA of 21.9x and 14.0x, respectively.
- Iyad KhalidÊGhulam
Saudi Cement Company: Q2 20 results - Strong recovery in June sales su...
Saudi Cement reported a net income of SAR75mn (-19.3% yoy), but came higher than our estimates of SAR58mn. Average selling prices and cost/ton were in-line with our estimates, we believe the variance was mainly due to higher than expected sales quantities, driven by a strong recovery in June following the easing of COVID-19 related restrictions. Saudi Cement reported better than expected set of Q2 20 results. Although net income declined -19.3% yoy (-49.5% qoq) to SAR75mn, it was higher than ...
- Fatma CHARFI
The struggle is real
Saudi cement makers’ figures have been diminishing lately. SCC’s Q3 2017 results fell by 33.3% to SAR250m compared to Q3 2016. Thus, the gross profit halved from SAR232m, in Q3 2017, to SAR115m in the same quarter of last year. However, the cement maker has seen its net income shrink by 56.8% to stand at SAR87m in Q3 2017 vs. SAR202m in Q3 2016. Q3 2017 EPS has witnessed a tremendous decrease of 56.8% from SAR1.32 to SAR0.57.
- Kais KRIAA
Challenging environment
Saudi cement makers are witnessing tough times due to the difficult context in the Saudi market lately. Q2 2017 sales have fallen by 45.9% to SAR269m vs. SAR499m in Q2 2016. Thus, the cement maker has seen its gross profit shrink by 57% compared to the same period one year earlier. The net income has also witnessed a tremendous decrease of 62.3% to stand at SAR94m vs. SAR249m. H1 2017 EPS dropped from SAR3.35 to SAR1.69 in H1 2017, a decrease of 49.5%.
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As Expected !
Saudi Cement is challenging the hard conditions of the market over this period. The company’s Q1 2017 revenues have shrunk by 31.8%, comparing to the same period a year earlier (SAR507m in Q1 2016 vs. SAR346m in Q1 2017). Moreover, the cement maker’s Q1 2017 gross income has witnessed a sharp decrease by 35.3% to SAR191m. Saudi Cement’s Q1 2017 net income dropped by 37.3% to SAR165m. Thus, the EPS decreased from SAR1.72 to SAR1.08 in 2017.
- Kais KRIAA
The Slowdown Persists
Like the economy of Saudi Arabia, Saudi Cement faced some difficulties over the previous year. The company has seen its Q4 2015 revenues shrink by 17.9% compared to the same period a year earlier (SAR484m in Q4 2015 to SAR397m in Q4 2016). Moreover, FY 2016 revenues narrowed by 7.97% compared to 2015 (SAR1,932m in 2015 vs. SAR1,778m in FY 2016). The cement producer’s gross income has witnessed a tremendous decrease of 21.07% compared to the same period a year earlier (SAR280m in Q4 2015 vs.
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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