Al-Rajhi Capital has stated that Saudi Ceramic reported a net profit of SAR 78.9 million in Q3 (+9.9% year-on-year), which was ahead of its expectation of SAR 67.2 million, driven by an increase in other income and a decrease in Zakat.
However, the company’s operating profit was significantly lower at SAR 56 million as compared to Al-Rajhi’s estimate of SAR 70.9 million.
The company stated that sales declined quarter-on-quarter due to Ramadan and Eid holidays, which is traditionally a lull period for construction activities.
For now, Al-Rajhi Capital reiterated its ‘Neutral’ rating on the stock, with a target price of SAR 157.2 per share.