Riyadh-Mubasher: The total cement sales volumes in Saudi Arabia rose by 14% year-on-year to 5.3 million tons in February but declined 3% month-on-month, Al-Rajhi Capital said quoting the data released by Yamama Cement.
The cement production stood at 5.2 million tons during the same period, up 8% y/y but down 6% m/m.
The total inventory at the end of February came in at 21.8 million tons, representing 37% of the last 12-month sales. The inventory grew 32% y/y but declined 2% m/m.
Al-Rajhi Capital said Yamama and Saudi Cement’s market shares slipped 2% each from the previous year to 9% and 13%, respectively.
On the other hand, Southern Province Cement and Yanbu Cement maintained their market shares at 14% and 12%, respectively.
The research firm believes the construction activities will continue to revive in the kingdom, supported by improving labor market conditions and high government spending.
Al-Rajhi Capital assigned Yamama Cement and Yanbu Cement an ‘Overweight’ rating, setting their price targets at SAR 60.6 and SAR 117.3, respectively. Saudi Cement was also assigned an “Overweight’ rating, and its price target was set at SAR 83.3.
The research firm recommended ‘Neutral’ on Arabian Cement and Qassim Cement, defining their price targets at SAR 81 and SAR 97.9, respectively. In addition, Al-Rajhi Capital placed a ‘Neutral’ recommendation on Southern Cement, with a price target of SAR 120.
