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
Yamama Cement: Q3 22 results – Strong results on higher margins
Yamama Cement reported strong set of Q3 22 results with net income increasing 154% yoy to SAR101mn. This is higher than the SNB Capital and consensus estimates of SAR66.2mn and SAR95.8mn. The positive variance in earnings is mainly driven by 1) higher than expected selling prices which stood at SAR141/ton vs our estimate of SAR136/ton, 2) decline in production costs to SAR76.1/ton vs SAR98.4/ton in Q3 21 and our estimates of SAR86.6/ton. As a result, gross margins improved to 46.0% vs 31.9% i...
- Talha Nazr
Yamama Cement: Strong results on higher prices and other income
Yamama Cement reported strong set of Q2 22 results with a net income increasing 16.8% yoy to SAR90.7mn. This is higher than the SNBC and consensus estimates of SAR37.2mn and SAR47.4mn. The positive variance in earnings is mainly driven by higher than expected selling prices which stood at SAR158/ton vs our estimate of SAR135/ton, while selling quantities increased by 55.9% yoy (-36.2% qoq) to 1.32mn tons and came in-line with our estimates. This resulted in a revenue of SAR209mn (+3.3% yoy, -...
- Iyad KhalidÊGhulam
Yamama Cement: Discounted prices lead to first losses since Q3 18
Yamama Cement reported a weak set of Q4 21 results, with a net loss of SAR11.9mn compared to a net income of SAR135mn in Q4 20 (SAR40mn in Q3 21). This is significantly lower than SNB Capital and consensus estimates of SAR59.3mn and SAR48.1mn, respectively. We believe the negative variance is due to lower than expected average selling prices, which declined 52.9% yoy to SAR96/ton, its lowest on record. We believe the heavily discounted prices represent a key concern for the sector, especially...
- Iyad KhalidÊGhulam
Yamama Cement: Q2 21 review – Strong results on one-off sale
Yamama Cement reported a strong set of Q2 21 results, with net income increasing 52.8% yoy (+41.6% qoq) to SAR77.7mn. This is significantly higher than the SNB Capital and consensus estimates of SAR46.1mn and SAR48.1mn, respectively. The positive variance was mainly due to higher than expected revenue of SAR203mn (+21.2% yoy, +12.4% qoq) vs our estimates of SAR160mn, which we attribute to the one-off sale of products during the trial test of the new facility. Excluding trial production volume...
- Iyad KhalidÊGhulam
Yamama Cement: Q1 21 results in line, but prices remain weak
Yamama Cement reported an in-line set of Q1 21 earnings, with a net income of SAR55mn (-55.7% yoy, -51,8% qoq). This is compared to the NCBC and consensus estimates of SAR56mn and SAR54.5mn, respectively. Sales declined 37.8% yoy to SAR180mn, in line with our estimates of SAR175mn. We highlight that sales volumes declined 26.3% yoy which we believe is due to the relocation to the new plant. Moreover, we believe cement selling prices stood at SAR172/ton (flat qoq), lower than our estimates of ...
- Iyad KhalidÊGhulam
Saudi Cement Sector Q1 21 Update – Strong demand to support outlook
We maintain our positive outlook for the Saudi Cement sector. The ongoing housing programs, pick-up in the Giga projects and PIF’s 2021-2025 strategy are expected to be the key growth drivers. We estimate local cement sales to grow by +3.5% yoy in 2021f to 52.8mn tons, following strong growth of +20.7% yoy in 2020 to 51.1mn tons. This is expected to result in an attractive 2021f dividend yield of 5.1%, which is the sector’s major attractiveness. However, cement price volatility is a key conce...
- 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 Monthly: Strong sales growth continues
Local cement sales stood at 4.72mn tons in October 2020, increasing +14.2% yoy (+7.3% mom) and recording the second highest monthly sales since January 2017. We believe the Ministry of Housing’s programs are the main drivers behind the on-going strong demand. Clinker exports increased +37.6% yoy (+44.2% mom) to 476,000 tons, while clinker inventory declined 8.6% yoy (-2.1% mom) to 39.3mn tons (the lowest level since June 2018). * Local sales: Local cement sales increased +7.3% mom (+14.2% yo...
- Iyad KhalidÊGhulam
Yamama Cement: Strong Q2 results on higher quantities and lower costs
Yamama Cement reported a better than expected set of Q2 20 results, with a net income of SAR48mn. Although earnings declined -10.0% yoy (-61.4% qoq), they came higher than our estimates of SAR30mn. Selling prices came broadly in-line with our estimates, we believe the variance was mainly due to higher than expected sales volume and a lower than expected cost/ton. Yamama Cement reported a net income of SAR48mn, decreasing -10.0% yoy (-61.4% qoq) in Q2 20. This came higher than our estimates of...
- Iyad KhalidÊGhulam
Yamama Cement: Q1 20 review – Highest earnings since Q1 16
Yamama Cement reported a strong set of Q1 20 results with a net income of SAR124mn, increasing 75.5% yoy and 59.3% qoq. This is the highest earnings since Q1 16 and compares with the NCBC and consensus estimates of SAR84mn and SAR92mn, respectively. We believe the variance was mainly due to higher-than-expected selling quantities and lower-than-expected costs. We are Neutral on Yamama Cement with a PT of SAR28.8.We believe the growth in volumes and margins are the key positives. However, dema...
YAMAMA CMT.CO.SJSC sees a downgrade to Neutral on account of less fund...
The independent financial analyst theScreener just lowered the general evaluation of YAMAMA CMT.CO.SJSC (SA), active in the Building Materials & Fixtures industry. As regards its fundamental valuation, the title now shows 1 out of 4 stars while market behaviour can be considered defensive. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Neutral. As of the analysis date February 14, 2020, the closing price was SAR 26...
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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