Southern Cement Q3 2020 revenue beats estimates, says Al Rajhi Cap

Southern Province Cement Co.’s Q3 2020 revenue of SAR 426 million exceeded expectations, Al Rajhi Capital stated in a recent report.

The research firm attributed the revenue growth to a 38.2% rise in sales volume as well as the strong increase in the local real estate activities.

Al Rajhi Capital expects the cement producer to post a net profit of SAR 619 million and SAR 665 million in 2020 and 2021, respectively.

The firm maintained its “Overweight” recommendation for Southern Cement, raising the target price from SAR 77 per share to SAR 82 per share.

According to Al Rajhi Capital, the “Overweight” recommendation means that the price target is 10% above the stock’s current price, and is expected to reach the price target in almost 12 months.