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Yamama Cement posts lower-than-expected Q4 profit - NCB Capital

Yamama Cement posts lower-than-expected Q4 profit - NCB Capital
YSCC
3020
3.79% 30.10 1.10
NCB Capital (NCBC) has stated that Yamama Cement reported a weak set of results, with net profit declining 14.5% y/y to SAR 152 million.
Net income was 8-12% below NCBC and consensus estimates. However, gross and operating profits increased 12% y/y, and were above NCBC’s estimates by 5-6%.
The research firm believes the variance came from lower other income and higher Zakat provisions.
Yamama Cement sales declined 13.7% y/y in 2014, the highest decline between all cement companies. NCBC believes this was due to competitors offering discounts.
The company is trading at a trailing P/E of 14.3x vs. the sector at 15.7x.
NCBC set the stock’s price target at SAR 57.2 compared with the current price of SAR 49, recommending ‘Neutral’.
Photo Credit: Arabianeye-Reuters