reports
- Talha Nazr
Qassim Cement Co.: Q4 22 results analysis – Selling prices recovery dr...
Qassim Cement reported a strong set of Q4 22 results, with net income increasing by 74.3% yoy (+126% qoq) to SAR53.0mn. This is higher than the SNB Capital and consensus estimates of SAR31.0mn and SAR41mn, respectively. Revenues increased by 65.3% yoy (+30.1% qoq) to SAR217mn vs our estimates of SAR178mn. We believe the variance in earnings is primarily driven by 1) higher selling prices which stood at SAR180/ton vs SAR114/ton in Q4 21 and our estimates of SAR151/ton and 2) higher gross margi...
- 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
Qassim Cement Co.: Qassim Cement Q3 Results Analysis | Weak results on...
Qassim Cement reported a weak set of Q3 22 results with net income declining by 61.2% yoy (-19.1% qoq) to SAR23.4mn. This is lower than the SNB Capital and consensus estimates of SAR46.6mn and SAR44.7mn, respectively. We believe the variance in earnings is primarily driven by 1) lower revenues which stood at SAR167mn (-2.1% yoy, +9.6% qoq) vs our estimate of SAR182mn, due to lower in selling prices. 2) lower than expected gross margins which stood at 22.8% vs our estimate of 33.4% driven by h...
- Talha Nazr
Qassim Cement Co.: Higher prices mitigated by non-opex
Qassim Cement reported a mixed set of Q2 22 results with net income declining by 71.1% yoy (+15.4% qoq) to SAR29.0mn. This is lower than the SNB Capital and consensus estimates of SAR36.3mn and SAR39.8mn, respectively. Although revenue and margins came ahead of our estimates, we believe the variance in earnings is primarily led by higher non-opex which stood at SAR8.1mn vs our estimate of non-operating income of SAR8.0mn. * Total selling quantities (composed entirely of local cement sales) i...
QASSIM CEMENT CO sees an upgrade to Positive due to a better fundament...
The general evaluation of QASSIM CEMENT CO (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 defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date November 16, 2021, the closing price wa...
- Iyad KhalidÊGhulam
Qassim Cement Co.: In-line results, prices improved qoq
Qassim Cement reported an in-line set of Q1 21 results, with a net income of SAR101mn (-9.3% yoy, -10.8% qoq). This is in-line with the NCBC estimates of SAR101mn and compares with the consensus estimates of SAR95mn. Revenues declined 14.7% yoy to SAR223mn, coming in-line with our estimates. The yoy decline is mainly attributed to lower average selling prices of SAR184/ton (-16.5% yoy, +5.3% qoq). Gross margins contracted by 807bps yoy to 50.3%, as cost/ton was broadly flat yoy. · Total selli...
- 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
Qassim Cement Co.: Q2 20 review – Record-high sales in June drive st...
Qassim Cement reported a stronger than expected set of Q2 20 results, with net income increasing +21.3% yoy to SAR85mn vs our estimates of SAR56mn. We believe the variance is mainly due to 1) higher than expected domestic sales volume and 2) lower than expected cost/ton. Qassim Cement reported a strong set of Q2 20 results, with net income increasing +21.3% yoy (-23.3% qoq) to SAR85mn. This is significantly higher than our estimates of SAR56mn and consensus estimates of SAR65mn. We believe th...
- Iyad KhalidÊGhulam
Qassim Cement Co.: Strong results on higher sales and margins
Qassim Cement reported a stronger than expected set of Q1 20 results, with net income increasing +98.5% yoy to SAR111mn vs our estimates of SAR98mn. We believe the variance is mainly due to higher selling prices and lower cost/ton. Selling prices stood at SAR221/ton in Q1 20 vs our estimates of SAR202/ton. We are Neutral on Qassim Cement, with a PT of SAR73.7. While the strong growth in sales and margins are key positives for Qassim Cement, we believe that the demand outlook for 2020f will li...
Ford Equity International Rating and Forecast Report
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