Riyadh-Mubasher: Yanbu Cement posted a 2.1% rise year-on-year in the second-quarter net profits to SAR 246 million, above Al-Rajhi Capital and consensus forecasts reaching SAR 230 million and SAR 238 million, respectively.

The cement producer attributed the marginal improvement in its net profits to reduced expenses and zakat provisions.

The company sold 1.35 million tonnes of cement in the first two months of Q2, registering a y-o-y increase of 10.5%.

Al-Rajhi Capital believes the company’s sale prices improved, resulting in higher gross and operating profits.

Yanbu Cement remains the research firm’s favorite stock in the cement sector since it is located in the strategic western region, which is a hub for construction activities.

Al-Rajhi Capital continues with its ‘Overweight’ rating on Yanbu Cement, with a target price of SAR 83.3.