City Cement’s Q3 profit tops forecasts, says Aljazira Cap

City Cement posted net income of SAR 50.5 million in Q3 2019 versus SAR 2.4 million losses in Q3 2018, well above Aljazira Capital’s estimates of SAR 38.6 million, the brokerage said in a note.

Revenue came at SAR 128 million, 5.1 percent above Aljazira Capital’s estimates.

“We upgrade our recommendation to “Overweight” on the stock with a target price at SAR 17.30. We believe, cement sector is continuing the recovery from its downtrend due to producer’s concentration on selling prices and an increase in both local & export sales,” the brokerage added.

City cement is expected to post SAR 170.4 million in net income for FY 2019, recording an increase of 53.5 percent year-on-year supported by an increase in selling prices.