Southern Cement Q4 2020 profits 'below estimates': AlJazira Cap

10/03/2021 Argaam

Southern Cement logo

Southern Cement Co.’s Q4 2020 net profit of SAR 140.9 million came below AlJazira Capital and consensus estimates of SAR 184.5 million and SAR 166.1 million, respectively.

 

The brokerage firm said in an earnings review that it expects the cement sector to show a short-term decline in net income due to selling price discount.

 

"However, we are optimistic on the sector for the long-term with the increase in mortgage loans by 83.2% year-on-year (YoY) in FY2020, and the future demand from giga projects," the report added.

 

AlJazira Capital expects Southern Cement to post SAR 647.7 million in net income for 2021, an increase of 6.4% YoY.

 

The firm lowered its recommendation on the stock to ‘Neutral’ from ‘Overweight’, setting its target price at SAR 78 per share.

Southern Cement - AlJazira Capital

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