Monday , August 2 2021

Expectations of cement sector improvement in the last quarter of 2018

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The fourth quarter performance of the cement sector is expected to improve slightly due to an increase of 9.2% in average selling prices, which currently approximates LE 938 per tonne, but weak performance is expected to continue for the next three or four quarters, The gap between supply and demand of 31 million tonnes.

He added that the yield margins of cement producers were generally reduced due to the increase in the cost of money from 50 to 70 pounds per tonne in the third quarter, after the step of raising the last support, while average sales prices decrease by 2.8% quarterly, despite the 10.9% increase year on year.

The report added that Arab Cement revenue in the third quarter reaches LE 808 million, a 20% increase year on year and a 11% quarter on the back of volume recovery, while the gross edge decreased to 7.3% in the third quarter of 2018 of & # 39; compared to 15.3% in the third quarter of 2017, And 16.2% in the second quarter of 2018. Net income has decreased by 98% annually and 96% from quarter to 2 million pounds. It is expected that the impact of the company's export movement will fall. The cost of money per tonne exceeds export prices (32-34 dollars per tonne) Stock Stocks for 2019 are 4.2 times as a multiplier profit and 3.4 times as the value of the venture to profit before interest , tax and depreciation. Loss, and $ 34 as a value set for each tonne.

Benrmark Suef Cement earned 385 million EGP revenue, an increase of 8% year on year and 14% lower year on year, due to lower volumes. Total profit profits to 0.8% compared to 19.3% in the second quarter of 2018 and 1.6% in the third quarter. Although the net interest income saves the company's net income after reaching LE 22 million, up to 128% year on year and 75% down quarterly. Net cash reached LE 1.053 million (EGP 14.0 / share) The proportion of 2019 is 6.0 times as a multiplier profit, 0.8 times as established value for profit before interest, tax, depreciation and amortization, and 7 dollars as the EV N.

The report added that Misr Cement Qena recorded revenue from LE 811 million in the third quarter, an increase of 21% annually and 26% quarterly due to volume recovery. The total yield fell to 17.2% compared to 17.6% in the third quarter of 2017. A 24.0% in the third quarter of 2018. The net income of the company shareholders still reaches LE 2 million, compared with a net loss of 12 million in the third quarter and a net income of 28 million in the second quarter. The report envisages that the debt service will emphasize the future performance of the company and that the shares for the company for 2019 will be traded 3.5 times as a multiplier profit, 2.5 times as the value of the facility before EBITDA, at $ 29 and a plant.

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