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
Eastern Cement: Weak margins on lower prices and higher cost
Eastern Cement reported a net income of SAR19.0mn in Q3 22, decreasing by 49.6% yoy (-55.8% qoq). This is lower than the SNB Capital and consensus estimates of SAR38.2mn and SAR35.1mn, respectively. We believe the negative variance in earnings is mainly driven by decreased margins from higher cost and lower realized prices. The average selling price stood at SAR364/ton (+9.6% yoy, -11.4% qoq) vs our estimates of SAR382/ton. Sales volume stood at 0.48mn tons in Q3 compared to our estimates of ...
- Talha Nazr
Eastern Cement: Highest average selling prices on record
Eastern Cement reported a net income of SAR43.0mn in Q2 22, decreasing by 30.5% yoy (+48.3% qoq). This is higher than the SNB Capital and consensus estimates of SAR32.2mn and SAR28.9mn, respectively. We believe the positive variance in earnings is mainly driven by the strong growth in average selling prices which stood at SAR411/ton (+30.6% yoy, +41.9% qoq) vs our estimates of SAR294/ton. We highlight this is the highest average selling prices on record. Although the decline in selling volume...
- Iyad KhalidÊGhulam
Eastern Cement: Lowest average selling prices since Q3 18
Eastern Cement reported a net income of SAR41.5mn in Q4 21, decreasing 29.2% yoy (+9.3% qoq). This is lower than SNB Capital and consensus estimates of SAR53.3mn and SAR44.2mn, respectively. We believe the variance in earnings was driven by 1) a decline in average selling prices, which stood at SAR277/ton, compared to our estimates and Q3 21 levels of SAR314/ton and SAR331/ton, respectively and 2) higher than expected non-operating expenses, which stood at a SAR5.0mn compared to our estimates...
- Iyad KhalidÊGhulam
Eastern Cement: Strong results on higher volume and lower opex
Eastern Cement reported a net income of SAR38.0mn in Q3 21, declining 11.6% yoy (-38.7% qoq). This is in-line with SNB Capital estimates of SAR38.5mn, but lower than the consensus estimates of SAR49.2mn. Revenues stood at SAR169mn (+6.3% yoy, -20.3% qoq), slightly higher than estimates of SAR156mn. Sales volumes stood at 0.51mn tons (7.3% yoy, 24.4% qoq), reflecting an average selling price of SAR331/ton (+14.6% yoy, +5.5% qoq). Although the decline in selling volumes is a concern, we believe...
- 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
Eastern Cement: Strong results on higher-than-expected margins
Eastern Cement reported abetter-than-expected set of Q3 20 results, with a net income of SAR43mn (+19.4% yoy). This is higher than the NCBC and consensus estimates of SAR33mn and SAR40mn, respectively. We believe the variance is mainly due to higher margins and higher income from investments. We remain Neutral on Eastern Cement, with a PT of SAR38.0. We expect MoH initiatives and Mega projects to have a limited benefit on Eastern Cement given its geographical location away from most of these ...
- Iyad KhalidÊGhulam
Eastern Cement: Top line growth offset by lower other income
Eastern Cement reported net income of SAR30mn in Q2 20, decreasing 6.3% yoy (-64.7% qoq). This is lower than our estimates of SAR34mn. All profit lines (selling quantities, gross profit and EBIT) were in line with our estimates, the negative variance and yoy decline in earnings was due to lower other income. Eastern Cement reported a weaker-than-expected set of Q2 20 results, with net income declining by 6.3% yoy to SAR30mn. This compares to the NCBC and consensus estimates of SAR34mn and SAR...
EASTERN PROVINCE CMT.CO. sees an upgrade to Slightly Positive due to a...
The general evaluation of EASTERN PROVINCE CMT.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 3 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 December 19, 20...
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.