Riyadh – Mubasher: Al-Rajhi Capital Research kept its ‘Overweight’ recommendation on Southern Cement, with a target price (TP) of SAR 73 per share.
Southern Cement’s net profit for the third quarter of 2016 fell14.4% year-on-year to 173.3 million, below Al-Rajhi Capital’s estimates of SAR 193 million and consensus estimate of SAR 200 million, according to a report released on Thursday.
The research firm said that Southern Cement’s net profit for Q3-16 was pressured by a 8.4% y-o-y fall in sales volume, as well as higher depreciation expenses as a result of adding the third production line, Tuhama plant.
The company has started trial operations of the second production line at its Bisha plant on 25 August 2016, which is designed to have a capacity of 1.5 million tons of clinker per year.
