Riyadh-Mubasher: Saudi Fransi Capital (SFC) has lowered its estimates for Najran Cement’s FY16-17 earnings by nearly 38%.
The research firm recommended ‘Hold’ on the stock, setting the price target at SAR 11.
The cement producer’s Q4-15 earnings missed SFC and consensus estimates by 15%.
Operational performance was also weaker than expected, with gross profits reaching of SAR 119 million (-4% year-on-year and +31% quarter-on-quarter) and EBIT of SAR 68 million (-9% y/y, +49% q/q), missing SFC’s estimate by 5% and 8%, respectively.
The company posted a 16% decline in Q4 net profit to SAR 54 million, from SAR 64 million in the prior-year period.
