Riyad Capital maintains ‘buy’ on Southern Cement, sets TP at SAR 115.40

Riyad Capital said it has maintained its “buy” position on Southern Province Cement Co. (Southern Cement) and set its target price at SAR 115.40.

The investment arm of Riyad Bank said Southern Cement is one of its top picks, as it offers a strong return on share price.

The brokerage firm was also bullish on the company’s strategy aimed at liquidating accumulated inventory. The firm sells cement at SAR 241 per ton in average, higher than the sector average of SAR 234 per ton.

Saudi Arabia’s second-largest cement company also has an income margin of 62 percent before banking charges, Zakat, depreciation and amortization for 2015-2018, which outperforms the sector average of 56 percent.