Qassim Cement’s Q2 net profit in line with forecasts: Saudi Fransi Capital

Qassim Cement’s second-quarter net profit was largely in line with an estimates set by Saudi Fransi Capital, the brokerage firm said in a report.

However, the cement producer’s operating profit missed projections partly due to lower-than-expected sales volumes seen in Ramadan.

The investment arm of Banque Saudi Fransi (BSF) has maintained a “buy” rating on the stock at a target price of SAR 110.

The report also described the company’s balance sheet as “strong,” and its portfolio as “low-risk.” At the same time, its lack of growth potential has raised some concerns for future performance.

Qassim Cement last week reported a net profit of SAR 168 million for Q2-2015, marking a quarter-on-quarter rise of 3.3 percent lifted by lower sales costs and higher revenue.