EPCCO net profit more than doubled in H1 2019

30/07/2019 Argaam Exclusive

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Share Price

33.85
(0.35) (1.02 %)

Eastern Province Cement Co. (EPCCO)

Eastern Province Cement Co. (EPCCO) reported a net profit after zakat and tax of SAR 78 million for the first half of 2019, more than double its profit than year earlier on higher sales revenue driven by improved average selling prices.

 

The earnings are also due to lower average cost of cement sold, lower general and administrative (G&A) expenses, higher income from investments, lower other expenses, and decrease in zakat provisions.



Financials (M)

Item 6m 2018 6m 2019 Change‬
Revenues 290.27 339.95 17.1 %
Gross Income 70.18 97.29 38.6 %
Operating Income 37.84 64.73 71.1 %
Net Income 35.32 77.76 120.2 %
Average Shares 86.00 86.00 -
EPS (Riyals) 0.41 0.90 120.2 %

The company’s Q2 net profit surged 68.4 percent YoY to SAR 32 million, attributed to higher sales revenue, lower G&A expenses, higher income from investments and lower zakat provision

Meanwhile, Q2 net profit fell 30.4 percent from the previous quarter on lower sales volumes and revenue, higher cost of cement sold, lower profit share from affiliates, lower other revenues and higher other expenses.



Current Quarter Comparison (M)

Compared With The
Item Q2 2018 Q2 2019 Change‬
Revenues 151.62 158.76 4.7 %
Gross Income 37.73 39.50 4.7 %
Operating Income 20.69 23.59 14.0 %
Net Income 18.80 31.79 69.1 %
Average Shares 86.00 86.00 -
EPS (Riyals) 0.22 0.37 69.1 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2010 210.23 8.8 % 105.93 (0.8 %) 92.20 (4.9 %) 1.07
Q2 2010 231.56 12.1 % 106.39 (7.9 %) 104.28 1.2 % 1.21
Q3 2010 171.41 (8.0 %) 80.43 (25.5 %) 63.59 (36.8 %) 0.74
Q4 2010 206.26 7.2 % 94.92 32.1 % 82.91 65.6 % 0.96
Q1 2011 210.50 0.1 % 98.33 (7.2 %) 82.55 (10.5 %) 0.96
Q2 2011 214.92 (7.2 %) 109.21 2.6 % 101.05 (3.1 %) 1.17
Q3 2011 170.72 (0.4 %) 93.80 16.6 % 74.71 17.5 % 0.87
Q4 2011 216.43 4.9 % 117.35 23.6 % 105.64 27.4 % 1.23
Q1 2012 238.21 13.2 % 123.60 25.7 % 104.06 26.1 % 1.21
Q2 2012 212.79 (1.0 %) 108.86 (0.3 %) 103.18 2.1 % 1.20
Q3 2012 175.09 2.6 % 89.50 (4.6 %) 83.78 12.1 % 0.97
Q4 2012 228.79 5.7 % 98.73 (15.9 %) 95.64 (9.5 %) 1.11
Q1 2013 237.85 (0.2 %) 114.81 (7.1 %) 109.45 5.2 % 1.27
Q2 2013 203.39 (4.4 %) 80.49 (26.1 %) 77.42 (25.0 %) 0.90
Q3 2013 174.92 (0.1 %) 79.00 (11.7 %) 67.65 (19.2 %) 0.79
Q4 2013 212.57 (7.1 %) 74.04 (25.0 %) 54.63 (42.9 %) 0.64
Q1 2014 214.60 (9.8 %) 92.28 (19.6 %) 156.73 43.2 % 1.82
Q2 2014 217.73 7.1 % 94.15 17.0 % 81.64 5.4 % 0.95
Q3 2014 193.08 10.4 % 73.56 (6.9 %) 55.94 (17.3 %) 0.65
Q4 2014 219.70 3.4 % 92.72 25.2 % 79.25 45.0 % 0.92
Q1 2015 254.48 18.6 % 108.33 17.4 % 84.94 (45.8 %) 0.99
Q2 2015 254.15 16.7 % 108.12 14.8 % 92.77 13.6 % 1.08
Q3 2015 192.12 (0.5 %) 82.94 12.8 % 66.73 19.3 % 0.78
Q4 2015 239.22 8.9 % 94.51 1.9 % 87.86 10.9 % 1.02
Q1 2016 245.29 (3.6 %) 95.34 (12.0 %) 86.18 1.5 % 1.00
Q2 2016 207.53 (18.3 %) 66.52 (38.5 %) 47.33 (49.0 %) 0.55
Q3 2016 172.19 (10.4 %) 60.22 (27.4 %) 42.03 (37.0 %) 0.49
Q4 2016 231.59 (3.2 %) 68.47 (27.6 %) 51.66 (41.2 %) 0.60
Q1 2017 202.27 (17.5 %) 60.26 (36.8 %) 50.40 (41.5 %) 0.59
Q2 2017 159.38 (23.2 %) 41.24 (38.0 %) 35.11 (25.8 %) 0.41
Q3 2017 122.10 (29.1 %) 32.73 (45.7 %) 13.88 (67.0 %) 0.16
Q4 2017 156.87 (32.3 %) 31.06 (54.6 %) 7.75 (85.0 %) 0.09
Q1 2018 138.65 (31.5 %) 32.45 (46.2 %) 16.51 (67.2 %) 0.19
Q2 2018 151.62 (4.9 %) 37.73 (8.5 %) 18.80 (46.5 %) 0.22
Q3 2018 122.03 (0.1 %) 21.27 (35.0 %) 8.87 (36.1 %) 0.10
Q4 2018 153.44 (2.2 %) 39.71 27.8 % 25.56 229.7 % 0.30
Q1 2019 181.19 30.7 % 57.79 78.1 % 45.97 178.4 % 0.53
Q2 2019 158.76 4.7 % 39.50 4.7 % 31.79 69.1 % 0.37

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2010 50.44 % 57.67 % 43.48 %
Q2 2010 47.79 % 54.40 % 42.31 %
Q3 2010 45.26 % 52.03 % 38.50 %
Q4 2010 47.31 % 54.30 % 41.85 %
Q1 2011 46.36 % 53.20 % 40.66 %
Q2 2011 47.68 % 55.18 % 41.10 %
Q3 2011 49.38 % 57.07 % 42.53 %
Q4 2011 51.53 % 58.79 % 44.79 %
Q1 2012 52.83 % 59.64 % 45.87 %
Q2 2012 52.93 % 59.02 % 46.25 %
Q3 2012 52.14 % 57.68 % 47.08 %
Q4 2012 49.21 % 54.65 % 45.69 %
Q1 2013 48.20 % 53.88 % 46.34 %
Q2 2013 45.38 % 50.46 % 43.81 %
Q3 2013 44.15 % 49.61 % 41.91 %
Q4 2013 42.03 % 47.15 % 37.31 %
Q1 2014 40.45 % 45.79 % 34.23 %
Q2 2014 41.41 % 48.07 % 34.15 %
Q3 2014 39.86 % 46.57 % 32.01 %
Q4 2014 41.73 % 50.17 % 34.65 %
Q1 2015 41.67 % 49.66 % 34.10 %
Q2 2015 41.54 % 48.96 % 33.96 %
Q3 2015 42.60 % 49.96 % 35.17 %
Q4 2015 41.91 % 48.80 % 35.16 %
Q1 2016 40.92 % 47.21 % 35.64 %
Q2 2016 38.38 % 45.38 % 32.38 %
Q3 2016 36.63 % 43.53 % 30.27 %
Q4 2016 33.92 % 41.10 % 26.52 %
Q1 2017 31.40 % 38.80 % 23.53 %
Q2 2017 30.07 % 37.43 % 23.41 %
Q3 2017 28.33 % 35.83 % 21.12 %
Q4 2017 25.80 % 32.36 % 16.73 %
Q1 2018 23.83 % 31.92 % 12.70 %
Q2 2018 23.53 % 31.07 % 10.00 %
Q3 2018 21.52 % 28.97 % 9.13 %
Q4 2018 23.18 % 30.71 % 12.33 %
Q1 2019 25.73 % 32.37 % 16.31 %
Q2 2019 25.72 % 32.31 % 18.23 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2010 86.00 4.02 4.02 21.66
Q2 2010 86.00 4.04 4.04 22.59
Q3 2010 86.00 3.61 3.61 23.40
Q4 2010 86.00 3.99 3.99 24.55
Q1 2011 86.00 3.88 3.88 22.10
Q2 2011 86.00 3.84 3.84 23.27
Q3 2011 86.00 3.97 3.97 23.91
Q4 2011 86.00 4.23 4.23 25.09
Q1 2012 86.00 4.48 4.48 23.16
Q2 2012 86.00 4.51 4.51 24.09
Q3 2012 86.00 4.61 4.61 25.22
Q4 2012 86.00 4.50 4.54 26.35
Q1 2013 86.00 4.56 4.60 23.66
Q2 2013 86.00 4.26 4.30 24.74
Q3 2013 86.00 4.07 4.12 25.56
Q4 2013 86.00 3.59 3.59 26.55
Q1 2014 86.00 4.14 3.21 24.03
Q2 2014 86.00 4.19 3.26 25.04
Q3 2014 86.00 4.06 3.12 25.79
Q4 2014 86.00 4.34 3.41 26.29
Q1 2015 86.00 3.51 3.51 24.72
Q2 2015 86.00 3.64 3.64 25.89
Q3 2015 86.00 3.76 3.76 26.43
Q4 2015 86.00 3.86 3.84 27.35
Q1 2016 86.00 3.88 3.86 25.81
Q2 2016 86.00 3.35 3.33 26.42
Q3 2016 86.00 3.06 3.04 26.90
Q4 2016 86.00 2.64 2.64 26.01
Q1 2017 86.00 2.23 2.23 25.13
Q2 2017 86.00 2.08 2.08 25.52
Q3 2017 86.00 1.76 1.76 25.69
Q4 2017 86.00 1.25 1.25 25.75
Q1 2018 86.00 0.85 0.85 26.07
Q2 2018 86.00 0.66 0.66 25.48
Q3 2018 86.00 0.60 0.60 25.43
Q4 2018 86.00 0.81 0.81 25.60
Q1 2019 86.00 1.15 1.15 26.16
Q2 2019 86.00 1.30 1.30 25.67

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2010 12.43 12.43 2.31
Q2 2010 10.70 10.70 1.91
Q3 2010 12.45 12.45 1.92
Q4 2010 11.36 11.36 1.85
Q1 2011 12.05 12.05 2.11
Q2 2011 12.90 12.90 2.13
Q3 2011 12.07 12.07 2.00
Q4 2011 13.11 13.11 2.21
Q1 2012 13.16 13.16 2.55
Q2 2012 11.76 11.76 2.20
Q3 2012 11.27 11.27 2.06
Q4 2012 12.79 12.66 2.18
Q1 2013 12.34 12.22 2.38
Q2 2013 13.79 13.65 2.37
Q3 2013 14.12 13.97 2.25
Q4 2013 16.55 16.55 2.24
Q1 2014 13.87 17.93 2.39
Q2 2014 14.37 18.51 2.41
Q3 2014 15.63 20.33 2.46
Q4 2014 12.74 16.25 2.10
Q1 2015 15.71 15.71 2.23
Q2 2015 12.66 12.66 1.78
Q3 2015 9.94 9.94 1.42
Q4 2015 8.21 8.25 1.16
Q1 2016 8.00 8.05 1.20
Q2 2016 8.97 9.02 1.14
Q3 2016 8.29 8.35 0.94
Q4 2016 13.06 13.06 1.33
Q1 2017 13.12 13.12 1.16
Q2 2017 11.59 11.59 0.95
Q3 2017 13.71 13.71 0.94
Q4 2017 21.18 21.18 1.02
Q1 2018 29.65 29.65 0.97
Q2 2018 37.30 37.30 0.97
Q3 2018 33.68 33.68 0.80
Q4 2018 25.55 25.55 0.81
Q1 2019 21.00 21.00 0.93
Q2 2019 23.15 23.15 1.18

Business Segments (Million)

Compared With The
Period Cement Ready-mixed Concrete Construction support business
Q3 2012 175.08 - -
Q4 2012 152.98 33.66 42.16
Q1 2013 216.34 16.81 4.70
Q2 2013 186.01 12.24 5.14
Q3 2013 155.15 18.27 1.49
Q4 2013 192.22 19.89 0.46
Q1 2014 195.12 2.88 16.61
Q2 2014 196.02 30.34 -
Q3 2014 145.32 43.77 3.99
Q4 2014 188.96 41.70 -
Q1 2015 204.72 48.51 1.25
Q2 2015 195.96 57.46 0.73
Q3 2015 141.41 49.49 1.22
Q4 2015 195.22 41.42 2.58
Q1 2016 191.97 53.32 -
Q2 2016 153.40 54.13 -
Q3 2016 103.72 68.46 -
Q4 2016 147.17 84.42 -
Q1 2017 130.20 72.08 -
Q2 2017 95.77 63.61 -
Q3 2017 80.20 41.89 -
Q4 2017 118.87 38.00 -
Q1 2018 102.98 35.67 -
Q2 2018 100.85 50.77 -
Q3 2018 80.01 42.02 -
Q4 2018 119.43 34.01 -
Q1 2019 150.03 31.16 -
Q2 2019 119.55 39.21 -

Analysts Estimates (Million)

Item Q2 2019 (e) Q2 2019 (a) Change‬
Average 36.70 31.79 (13.4 %)

Estimates vs Actual (Million)

Item Q2 2019 (e) Q2 2019 (a) Change
SNB Capital 33.00 31.79 (3.7) %
OSOOL AND BAKHEET 37.60 31.79 (15.5) %
AlJazira Capital 39.50 31.79 (19.5) %

Current
Market Cap (M Riyal) 2,911.10
Enterprise Value (EV) (M) 2,715.70
Shares Outstanding ((M)) 86.00
EPS ( Riyal) (TTM) 2.44
Book Value (BV) ( Riyal) 27.58
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 12.75
P/E (TTM) 13.87
Price/book 1.23
Return on Average Assets (%) (TTM) 7.2
Return on Average Equity (%) (TTM) 8.9

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