Qassim Cement Co. reported a net profit of SAR 56 million for Q1 2019, surpassing NCB Capital’s and consensus estimates of SAR 45 million and SAR 53 million, respectively, the brokerage said in an earnings review.
This earnings’ beat was driven by higher-than-expected selling prices, NCB Cap said, expecting improved selling prices to reflect positively on the whole industry.
“However, sales volumes will remain weak in H1 2019, which may pressure selling prices. Clear deadlines of domestic mega projects will represent a main catalyst for improved demand in the Kingdom,” the brokerage added.
NCB Capital recommended a “Neutral” on the stock and set a target price of SAR 46.