Arabian Cement logo
Arabian Cement Co.'s net profit in 2020 came below AlJazira Capital and consensus estimates of SAR 95 million and SAR 88.5 million, respectively, the research firm said in an earnings review.
The company's selling prices declined by 21.9% year-on-year (YoY). The decline has continued for two quarters, which is due to the impact of value-added tax (VAT) and the increase of export sales. Meanwhile, dispatches increased by 76.6% YoY due to higher local demand and the increase in its market share, the report said.
The cement producer is expected to post SAR 241.5 million net profit in 2021, supported by the increase of its market share.
Aljazira Capital also said it expects the company to generate a strong free cash flow of SAR 348.9 million, which increases the possibility of distributing dividend at SAR 2.20 per share in 2021, thus resulting in a dividend yield of 5.4%.
The brokerage maintained its "Overweight" recommendation on the stock, raising its target price to SAR 47 from SAR 34.70 per share.
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}