Najran Cement’s Q2 net profit falls below estimate: Saudi Fransi Capital

Najran Cement Co.’s second-quarter net profit (SAR 77.8 million) fell short of Saudi Fransi Capital’s forecast by 16 percent and a consensus estimate by 15 percent, the brokerage firm said in a report.

The lower profit was mainly attributed to rising sales costs as well as higher general and administrative expenses.

The investment arm of Banque Saudi Fransi maintained a ‘buy’ rating on the stock and left its price target unchanged at SAR 33.

Najran’s stock may also see some growth if it works out a deal to supply its third production line.