In this report, Argaam highlights the expected financial results of Riyadh Cement Co. for the fourth quarter of 2024, in addition to its key events, quarterly revenue and profit, as well as performance, and profit indicators.
The fourth-quarter revenue is projected to jump 24.10% year-on-year (YoY) to SAR 212.80 million.
| Item | Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
Q4 2024 (Average Estimate) |
|---|---|---|---|---|---|
| Sales | 171.48 | 188.89 | 163.65 | 203.01 | 212.80 |
| Change % | NA | (0.59%) | 5.76% | 59.66% | 24.10% |
| Item | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 (Average Estimate) |
|---|---|---|---|---|---|
| Net Income | 43.42 | 70.10 | 64.42 | 94.58 | 72.34 |
| Extraordinary income/expense | 0.00 | 0.00 | 0.00 | 25.05 | - |
| Net Profit Before Unusual Items | 43.42 | 70.10 | 64.42 | 69.53 | - |
| EPS Before Unusual Items (Riyal/Share) | 0.36 | 0.58 | 0.54 | 0.58 | 0.60 |
Key Events in Q4 2024
The company’s CEO, Shoeil Al Ayed, expected cement demand to improve in Q4 2024. He added that Riyadh Cement’s Q4 2024 results may get a boost if the cement market witnesses relative stability.
The cement producer signed an agreement with National Grid SA, a subsidiary of Saudi Electricity Co., to build a power transmission substation. The new utility will supply electricity to its plant in Nisah, Riyadh, with a power load capacity of 92.2 MVA.
A report from the General Authority for Statistics (GASTAT) showed an almost 2% rise in the price of a 50-kg cement bag in Q4 2024, reaching SAR 14.2 apiece, compared to SAR 13.9 in Q4 2023. On a quarterly basis, the price of a 50-kg cement bag fell 1.4% from Q3 2024.
Monthly data indicated a nearly 7.3% increase in the company’s sales volumes during Q4 2024 to 941,000 tons from 877,000 tons a year earlier. Sales volumes also rose 10.5% quarter-on-quarter (QoQ), as shown in the table below:
| Q4 - 2024 | Q4 - 2023 | Change (%) | Q3 - 2024 | Change (%) | |
|---|---|---|---|---|---|
| Cement Sales | 941.00 | 877.00 | 7.30 % | 852.00 | 10.45 % |
Average forecasts
Riyadh Cement’s Q4 net profit is estimated to reach SAR 72.3 million, up from SAR 43.4 million in Q4 2023, according to average estimates issued by five research houses.
| Analyst | Million Riyals |
|---|---|
| AlJazira Capital Company | 76.90 |
| Riyad Capital | 76.00 |
| SNB Capital Company | 75.80 |
| Al Rajhi Capital Company | 74.00 |
| United Securities Company | 59.00 |
| Average | 72.34 |
| Net Profit Before Unusual Items (2023 - Q4) | 43.42 |
| Change % | 66.62% |
Performance & profitability indicators
The following table shows the stock’s performance trailing 12 months (TTM) and year to date, as well as its P/E and earnings per share:
| Item | The Company | TASI |
|---|---|---|
| YTD | 12.25 % | 2.55 % |
| Change(12M) | 26.57 % | 0.73 % |
| Previous Close | 35.55 | 12,385.70 |
| P/E adjusted (x) | 17.24 | 24.93 |
| EPS (TTM) before unusual items (SAR/Share) | 2.06 | - |
| P/E (TTM) | 15.94 |
| P/E Before Unusual Items (TTM) | 17.55 |
| P/BV | 2.56 |
| Dividend Yield | 4.53 % |
| Market Cap. (M) | 4,344.00 |
| Return on Average Assets | - |
| Return on Average Equity | 16.35 % |
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