Yanbu Cement’s net profit falls 78% in H1

22/07/2018 Argaam Exclusive

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Share Price

29.50
0.25 0.85 %

Yanbu Cement Co. (YCC)

Yanbu Cement Co. net profit for the first six months of 2018 dropped 78.5 percent year-on-year (YoY) to SAR 44 million on lower sales volumes as a result of weak demand, lower selling prices and higher cost of cement produced.



Financials (M)

Item 6m 2017 6m 2018 Change‬
Revenues 521.47 412.89 (20.8 %)
Gross Income 214.81 61.75 (71.3 %)
Operating Income 194.12 37.78 (80.5 %)
Net Income 204.75 43.66 (78.7 %)
Average Shares 157.50 157.50 -
EPS (Riyals) 1.30 0.28 (78.7 %)

The firm’s net profit in Q2 fell by 95 percent YoY to SAR 4 million due to lower sales, lower selling prices and higher cost of cement produced, as well as higher Islamic financing costs.

 

On a sequential basis, net profit decreased 90 percent compared to the previous quarter on lower sales, lower selling prices and lower other income.



Current Quarter Comparison (M)

Compared With The
Item Q2 2017 Q2 2018 Change‬
Revenues 214.25 197.37 (7.9 %)
Gross Income 82.86 20.44 (75.3 %)
Operating Income 71.50 7.52 (89.5 %)
Net Income 80.48 4.04 (95.0 %)
Average Shares 157.50 157.50 -
EPS (Riyals) 0.51 0.03 (95.0 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2009 277.40 (14.1 %) 159.88 (8.0 %) 151.78 (9.9 %) 0.96
Q2 2009 275.23 0.6 % 157.25 (0.1 %) 151.07 1.1 % 0.96
Q3 2009 200.40 (17.9 %) 108.46 (18.0 %) 97.63 (19.8 %) 0.62
Q4 2009 190.19 (24.8 %) 83.95 (30.9 %) 81.59 (32.2 %) 0.52
Q1 2010 239.53 (13.7 %) 127.65 (20.2 %) 123.18 (18.8 %) 0.78
Q2 2010 252.03 (8.4 %) 122.10 (22.4 %) 113.42 (24.9 %) 0.72
Q3 2010 191.51 (4.4 %) 103.64 (4.4 %) 94.24 (3.5 %) 0.60
Q4 2010 212.43 11.7 % 111.38 32.7 % 99.53 22.0 % 0.63
Q1 2011 229.05 (4.4 %) 110.85 (13.2 %) 101.10 (17.9 %) 0.64
Q2 2011 311.37 23.5 % 158.57 29.9 % 149.90 32.2 % 0.95
Q3 2011 272.50 42.3 % 134.68 30.0 % 124.88 32.5 % 0.79
Q4 2011 319.35 50.3 % 151.41 35.9 % 153.40 54.1 % 0.97
Q1 2012 309.34 35.1 % 157.75 42.3 % 144.76 43.2 % 0.92
Q2 2012 431.73 38.7 % 234.87 48.1 % 215.59 43.8 % 1.37
Q3 2012 338.95 24.4 % 174.32 29.4 % 156.71 25.5 % 0.99
Q4 2012 416.48 30.4 % 225.10 48.7 % 203.43 32.6 % 1.29
Q1 2013 455.76 47.3 % 263.22 66.9 % 247.02 70.6 % 1.57
Q2 2013 479.95 11.2 % 293.97 25.2 % 274.41 27.3 % 1.74
Q3 2013 325.42 (4.0 %) 156.71 (10.1 %) 139.64 (10.9 %) 0.89
Q4 2013 359.13 (13.8 %) 171.22 (23.9 %) 160.22 (21.2 %) 1.02
Q1 2014 439.50 (3.6 %) 223.25 (15.2 %) 205.22 (16.9 %) 1.30
Q2 2014 445.90 (7.1 %) 238.28 (18.9 %) 240.56 (12.3 %) 1.53
Q3 2014 295.77 (9.1 %) 181.40 15.8 % 162.84 16.6 % 1.03
Q4 2014 378.22 5.3 % 210.28 22.8 % 193.31 20.7 % 1.23
Q1 2015 437.10 (0.5 %) 224.25 0.4 % 207.17 0.9 % 1.32
Q2 2015 438.79 (1.6 %) 261.79 9.9 % 245.50 2.1 % 1.56
Q3 2015 310.72 5.1 % 161.63 (10.9 %) 144.67 (11.2 %) 0.92
Q4 2015 426.36 12.7 % 223.80 6.4 % 208.75 8.0 % 1.33
Q1 2016 399.62 (8.6 %) 199.87 (10.9 %) 170.69 (17.6 %) 1.08
Q2 2016 348.28 (20.6 %) 169.34 (35.3 %) 159.23 (35.1 %) 1.01
Q3 2016 235.52 (24.2 %) 107.30 (33.6 %) 92.06 (36.4 %) 0.58
Q4 2016 302.88 (29.0 %) 136.21 (39.1 %) 103.78 (50.3 %) 0.66
Q1 2017 307.22 (23.1 %) 131.95 (34.0 %) 124.27 (27.2 %) 0.79
Q2 2017 214.25 (38.5 %) 82.86 (51.1 %) 80.48 (49.5 %) 0.51
Q3 2017 172.71 (26.7 %) 27.22 (74.6 %) 17.97 (80.5 %) 0.11
Q4 2017 222.44 (26.6 %) 115.73 (15.0 %) 96.15 (7.4 %) 0.61
Q1 2018 215.53 (29.8 %) 41.31 (68.7 %) 39.63 (68.1 %) 0.25
Q2 2018 197.37 (7.9 %) 20.44 (75.3 %) 4.04 (95.0 %) 0.03

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2009 54.50 % 61.64 % 51.84 %
Q2 2009 54.39 % 61.46 % 51.91 %
Q3 2009 54.39 % 61.69 % 51.77 %
Q4 2009 54.02 % 61.86 % 51.11 %
Q1 2010 52.72 % 60.95 % 50.09 %
Q2 2010 50.12 % 58.58 % 47.14 %
Q3 2010 50.08 % 58.60 % 47.23 %
Q4 2010 51.90 % 60.21 % 48.06 %
Q1 2011 50.62 % 59.02 % 46.13 %
Q2 2011 51.30 % 59.13 % 47.10 %
Q3 2011 50.27 % 57.87 % 46.37 %
Q4 2011 49.06 % 56.71 % 46.74 %
Q1 2012 49.68 % 57.26 % 47.25 %
Q2 2012 50.92 % 59.65 % 47.91 %
Q3 2012 51.33 % 61.22 % 47.91 %
Q4 2012 52.93 % 63.15 % 48.14 %
Q1 2013 54.63 % 65.08 % 50.08 %
Q2 2013 56.57 % 66.79 % 52.13 %
Q3 2013 55.97 % 66.15 % 51.53 %
Q4 2013 54.63 % 65.00 % 50.69 %
Q1 2014 52.69 % - 48.60 %
Q2 2014 50.29 % - 46.24 %
Q3 2014 52.86 % - 48.63 %
Q4 2014 54.71 % - 50.16 %
Q1 2015 54.86 % 55.60 % 50.36 %
Q2 2015 56.63 % 60.70 % 52.19 %
Q3 2015 54.83 % 62.25 % 50.53 %
Q4 2015 54.03 % 64.33 % 49.97 %
Q1 2016 53.77 % 64.52 % 48.85 %
Q2 2016 50.82 % 62.28 % 46.02 %
Q3 2016 49.68 % 61.97 % 44.74 %
Q4 2016 47.63 % 59.82 % 40.87 %
Q1 2017 45.63 % 58.93 % 40.15 %
Q2 2017 43.24 % 58.50 % 36.65 %
Q3 2017 37.94 % 54.41 % 31.53 %
Q4 2017 39.03 % 59.13 % 33.47 %
Q1 2018 32.38 % 53.63 % 25.62 %
Q2 2018 25.33 % 45.66 % 18.19 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2009 157.50 3.45 3.45 13.24
Q2 2009 157.50 3.46 3.46 14.20
Q3 2009 157.50 3.31 3.31 14.82
Q4 2009 157.50 3.06 3.06 15.34
Q1 2010 157.50 2.88 2.88 14.11
Q2 2010 157.50 2.64 2.64 14.83
Q3 2010 157.50 2.62 2.62 15.43
Q4 2010 157.50 2.73 2.73 16.06
Q1 2011 157.50 2.59 2.59 15.35
Q2 2011 157.50 2.82 2.82 16.30
Q3 2011 157.50 3.02 3.02 17.10
Q4 2011 157.50 3.36 3.36 18.07
Q1 2012 157.50 3.64 3.64 17.31
Q2 2012 157.50 4.05 4.05 18.68
Q3 2012 157.50 4.26 4.26 19.67
Q4 2012 157.50 4.57 4.57 20.96
Q1 2013 157.50 5.22 5.22 19.19
Q2 2013 157.50 5.60 5.60 20.93
Q3 2013 157.50 5.49 5.49 19.81
Q4 2013 157.50 5.21 5.21 20.83
Q1 2014 157.50 4.95 4.95 20.12
Q2 2014 157.50 4.73 4.61 21.65
Q3 2014 157.50 4.88 4.76 21.18
Q4 2014 157.50 5.09 4.97 22.41
Q1 2015 157.50 5.10 4.98 23.72
Q2 2015 157.50 5.14 5.14 22.77
Q3 2015 157.50 5.02 5.02 22.19
Q4 2015 157.50 5.12 5.12 23.51
Q1 2016 157.50 4.89 4.89 24.56
Q2 2016 157.50 4.34 4.34 21.17
Q3 2016 157.50 4.00 4.00 21.77
Q4 2016 157.50 3.34 3.34 22.27
Q1 2017 157.50 3.04 3.04 21.10
Q2 2017 157.50 2.54 2.47 20.86
Q3 2017 157.50 2.07 2.00 20.98
Q4 2017 157.50 2.02 1.95 21.54
Q1 2018 157.50 1.49 1.34 21.79
Q2 2018 157.50 1.00 0.93 20.57

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2009 8.20 8.20 2.13
Q2 2009 9.27 9.27 2.26
Q3 2009 11.45 11.45 2.55
Q4 2009 10.57 10.57 2.11
Q1 2010 10.84 10.84 2.21
Q2 2010 10.86 10.86 1.93
Q3 2010 10.62 10.62 1.80
Q4 2010 10.44 10.44 1.78
Q1 2011 11.65 11.65 1.97
Q2 2011 12.99 12.99 2.25
Q3 2011 12.65 12.65 2.23
Q4 2011 13.59 13.59 2.53
Q1 2012 14.29 14.29 3.00
Q2 2012 13.03 13.03 2.83
Q3 2012 11.67 11.67 2.52
Q4 2012 11.44 11.44 2.50
Q1 2013 11.15 11.15 3.04
Q2 2013 12.01 12.01 3.21
Q3 2013 13.44 13.44 3.72
Q4 2013 12.80 12.80 3.20
Q1 2014 14.19 14.19 3.49
Q2 2014 15.42 15.84 3.37
Q3 2014 15.87 16.29 3.66
Q4 2014 12.11 12.41 2.75
Q1 2015 13.56 13.90 2.92
Q2 2015 12.35 12.35 2.78
Q3 2015 10.69 10.69 2.42
Q4 2015 8.52 8.52 1.86
Q1 2016 10.06 10.06 2.00
Q2 2016 9.98 9.98 2.05
Q3 2016 8.41 8.41 1.55
Q4 2016 12.13 12.13 1.82
Q1 2017 12.06 12.06 1.74
Q2 2017 12.55 12.94 1.53
Q3 2017 13.74 14.27 1.36
Q4 2017 16.70 17.36 1.57
Q1 2018 22.28 24.70 1.52
Q2 2018 27.00 28.98 1.32

Analysts Estimates (Million)

Item Q2 2018 (e) Q2 2018 (a) Change‬
Average 36.90 4.04 (89.1 %)

Estimates vs Actual (Million)

Item Q2 2018 (e) Q2 2018 (a) Change
AlJazira Capital 26.60 4.04 (84.8) %
SNB Capital 31.00 4.04 (87.0) %
U-Capital 32.57 4.04 (87.6) %
OSOOL AND BAKHEET 35.00 4.04 (88.5) %
Al Rajhi Capital 39.00 4.04 (89.7) %
Sico 41.00 4.04 (90.2) %
Albilad Capital 45.00 4.04 (91.0) %
Riyad Capital 45.00 4.04 (91.0) %

Current
Market Cap (M Riyal) 4,646.25
Enterprise Value (EV) (M) 4,896.95
Shares Outstanding ((M)) 157.50
EPS ( Riyal) (TTM) 0.81
Book Value (BV) ( Riyal) 17.21
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 36.52
P/E (TTM) 36.52
Price/book 1.71
Return on Average Assets (%) (TTM) 3.8
Return on Average Equity (%) (TTM) 4.6

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