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3040.SE (Reuters)
QACCO AB Equity (Bloomberg)
Qassim Cement Company
CMP: SR80.0
» Qassim Cement Company’s current annual clinker capacity of the company stands at 3.0mtpa, while the cement
capacity is 3.7mtpa.
» The company is expected to report a CAGR of 9% in its net profits during 2007-11.
» The company enjoys better gross margins as compared to other players in the country.
SR’000’ 2005 2006 2007 2008E 2009E 2010E 2011E
Sales Revenue 493,728 543,079 847,004 868,892 840,569 925,615 1,025,889
Gross Profit 298,169 334,786 557,386 555,796 514,239 565,428 633,501
Net Profit 281,522 315,585 540,548 527,607 491,520 538,165 603,735
Equity 1,187,751 1,294,736 1,523,384 1,689,191 1,773,911 1,860,276 2,012,211
Assets 1,631,131 1,755,258 2,059,235 2,146,020 2,048,552 2,148,753 2,226,913
Investments 11,639 8,479 56,091 249,455 324,590 407,761 560,879
Ratios
EPS (SR) 6.26 7.01 12.01 11.72 10.92 11.96 13.42
Gross Margins (%) 60.4 61.6 65.8 64 61.2 61.1 61.8
Operating Margins (%) 58 58.8 63.5 61.3 58.6 58.6 59.3
Net Margins (%) 57 58.1 63.8 60.7 58.5 58.1 58.8
ROAA (%) 19.4 18.6 28.3 25.1 23.4 25.6 27.6
ROAE (%) 24.5 25.4 38.4 32.8 28.4 29.6 31.2
Market Capitalization (SR mn) 10,654 6,975 8,145 3,600 3,600 3,600 3,600
EV/Ton (US$) 1,238 808 567 248 247 247 256
P/E (x) 37.8 22.1 15.1 6.8 7.3 6.7 6
P/Bv (x) 9 5.4 5.3 2.1 2 1.9 1.8
Dividend Yield (%) 1.9 3 3.8 10 11.3 12.5 12.5
Historical P / E & P / BV multiples pertain to respecitve year -end prices, while those for future years are based on closing prices on the TASI as of Dec 29, 2008
(Source: Company Reports & Global Research)
Global Investment House
101 Saudi Arabia Economic Overview - January 2009