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
Yanbu Cement Co: Strong results on higher prices and margins
Yanbu Cement reported a strong set of Q3 22 results with a net income increasing by 90.3% yoy (+44.2% qoq) to SAR69.3mn. This is higher than the SNB Capital and consensus estimates of SAR45.3mn and SAR50.0mn, respectively. We believe the positive variance in earnings is mainly due higher than expected selling prices which stood at SAR151/ton higher by 0.8% yoy (+13.2 qoq). Production cost stood at SAR100/ton in line of our estimate. As a result, gross margins improved by 972bps to 34.1% vs 24...
- Talha Nazr
Yanbu Cement Co: Q2 22 – Higher prices and lower costs
Yanbu Cement reported a strong set of Q2 22 results with net income increasing by 14.8% yoy (+23.4% qoq) to SAR48.0mn. This is higher than the SNB Capital and consensus estimates of SAR15.5mn and SAR30.0mn, respectively. We believe the positive variance in earnings is mainly due to 1) higher than expected selling prices which stood at SAR134 vs our estimates of SAR128 and 2) lower production costs as cost/ton stood at SAR98, compared to our estimates of SAR112. As a result, gross margins impr...
- Iyad KhalidÊGhulam
Yanbu Cement Co: Higher exports support earnings
Yanbu Cement reported a net income of SAR38.9mn in Q1 22, declining 47.0% yoy (+284%). However, this is higher than the SNB Capital and consensus estimates of SAR30.7mn and SAR34.6mn, respectively. We believe the positive variance in earnings was mainly due to higher than expected volumes which stood at 1.70mn tons vs our estimates of 1.57mn tons, as selling prices (SAR142/ton vs SAR141/ton) was in-line with our estimates.Total sales quantities during Q1 22 stood at 1.70mn tons (-10.5% yoy, +...
- Iyad KhalidÊGhulam
Yanbu Cement Co: Weak results on lower prices and one-off expense
Yanbu Cement reported a net income of SAR8.6mn in Q4 21, decreasing 87.8% yoy (-75.7% qoq). This is significantly lower than the SNB Capital and consensus estimates of SAR59.5mn and SAR50.2mn, respectively. We believe the variance in earnings was mainly driven by 1) a decline in average selling prices, which stood at SAR144/ton, compared to our estimates of SAR167/ton and 2) an increase in non-operating expenses, which stood at SAR18mn compared to our estimates of SAR3mn. * Total selling qua...
YANBU CEMENT sees an upgrade to Slightly Positive due to a better fund...
The general evaluation of YANBU CEMENT (SA), a company active in the Building Materials & Fixtures industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 2 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 11, 2022, the closi...
- Iyad KhalidÊGhulam
Yanbu Cement Co: Local prices decline to lowest levels since Q3 18
Yanbu Cement reported a net income of SAR36.4mn, declining 55.9% yoy (-13.0% qoq). This is higher than the SNB Capital estimates of SAR26.4mn but in-line with the consensus estimates of SAR35.6mn. We believe the variance was mainly due to 1) higher than expected average selling prices of SAR150/ton (versus our estimates at SAR137/ton) and 2) lower than expected clinker exports of 0.37mn tons (versus our estimates of 0.48mn tons). * Revenues decreased 13.6% yoy to SAR208mn (-14.4% qoq), in-li...
- Iyad KhalidÊGhulam
Yanbu Cement Co: Q2 21: Weak results on lower margins
Yanbu Cement reported a weaker than expected set of Q2 21 earnings with a net income of SAR42mn (+12.0% yoy, -43.0% qoq). This is lower than the SNB Capital and consensus estimates of SAR53mn and SAR54mn, respectively. We believe the variance was mainly due to 1) lower than expected cement prices and volumes (1.08mn tons vs our estimates of 1.14mn tons) and 2) higher than expected production costs (SAR111/ton vs our estimates of SAR108/ton). This variance resulted in gross margins of 21.9% vs...
- Iyad KhalidÊGhulam
Yanbu Cement Co: Weak selling prices impact profitability
Yanbu Cement reported a weaker than expected set of Q4 20 results with net income decreasing -15.0% yoy (-13.4% qoq) to SAR70mn, coming lower than the NCBC and consensus estimates of SAR95mn. Although volumes were higher than expected, the negative variance is mainly due to 1) lower price/ton of SAR171 (vs our estimates of SAR194) and 2) higher cost per/ton of SAR116/ton (vs our estimates of SAR112). In Q4 20, Yanbu Cement total selling quantities stood at 1.55mn tons (-2.9% yoy), higher than...
- 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
Yanbu Cement Company: Q2 sales boosted by strong demand recovery
Yanbu Cement reported a net income of SAR37mn in Q2 20, down -7.7% yoy. This is higher than the NCBC estimates of SAR27mn, but broadly in-line with the consensus estimates. We believe the variance is one account of higher than expected net sales. Selling quantities recovered strongly following to the end of the lockdown period along with better prices. We await the full results to update our PT and estimates. Yanbu Cement reported a net profit of SAR37.3mn decreasing 7.7% yoy (- 43.4% qoq). R...
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...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.