Reported Earnings • May 23
First quarter 2024 earnings released: EPS: ر.س0.16 (vs ر.س0.19 in 1Q 2023) First quarter 2024 results: EPS: ر.س0.16 (down from ر.س0.19 in 1Q 2023). Revenue: ر.س73.8m (up 19% from 1Q 2023). Net income: ر.س15.0m (down 19% from 1Q 2023). Profit margin: 20% (down from 30% in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. New Risk • Mar 12
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 43% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 380% Dividend per share is over 6x cash flows per share. Minor Risk Large one-off items impacting financial results. Reported Earnings • Nov 09
Third quarter 2023 earnings released: ر.س0.03 loss per share (vs ر.س0.08 profit in 3Q 2022) Third quarter 2023 results: ر.س0.03 loss per share (down from ر.س0.08 profit in 3Q 2022). Revenue: ر.س51.5m (down 50% from 3Q 2022). Net loss: ر.س3.11m (down 140% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Aug 31
Upcoming dividend of ر.س0.37 per share at 6.8% yield Eligible shareholders must have bought the stock before 07 September 2023. Payment date: 26 September 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 6.8%. Within top quartile of Saudi dividend payers (4.4%). Higher than average of industry peers (4.1%). Reported Earnings • Aug 12
Second quarter 2023 earnings released: EPS: ر.س0.062 (vs ر.س0.07 loss in 2Q 2022) Second quarter 2023 results: EPS: ر.س0.062 (up from ر.س0.07 loss in 2Q 2022). Revenue: ر.س59.8m (down 38% from 2Q 2022). Net income: ر.س5.98m (up ر.س12.8m from 2Q 2022). Profit margin: 10.0% (up from net loss in 2Q 2022). The move to profitability was driven by lower expenses. Revenue is forecast to grow 3.7% p.a. on average during the next 2 years, compared to a 9.4% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Upcoming Dividend • May 31
Upcoming dividend of ر.س0.25 per share at 5.9% yield Eligible shareholders must have bought the stock before 07 June 2023. Payment date: 22 June 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 5.9%. Within top quartile of Saudi dividend payers (4.5%). Higher than average of industry peers (3.8%). Reported Earnings • May 20
First quarter 2023 earnings released: EPS: ر.س0.19 (vs ر.س0.07 loss in 1Q 2022) First quarter 2023 results: EPS: ر.س0.19 (up from ر.س0.07 loss in 1Q 2022). Revenue: ر.س61.9m (down 9.9% from 1Q 2022). Net income: ر.س18.5m (up ر.س25.4m from 1Q 2022). Profit margin: 30% (up from net loss in 1Q 2022). The move to profitability was driven by lower expenses. Revenue is expected to decline by 5.7% p.a. on average during the next 3 years, while revenues in the Basic Materials industry in Saudi Arabia are expected to grow by 10.0%. Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Announcement • Dec 14
Hail Cement Company Announces Distribution of Cash Dividends for the Second Half of the Year 2022, Payable on December 26, 2022 Hail Cement Company announced the decision of the Board of Directors on December 13, 2022, the distribution of cash dividend of SAR 0.25 to the company's shareholders for the second half of the year 2022. The Total amount distributed is SAR 24,101,630.5. Eligibility date is December 15, 2022, provided that the eligibility is for the shareholders who own shares and registered in the company’s shareholders register at the Depository Center at the end of the second trading day following the due date. Distribution Date is December 26, 2022. Price Target Changed • Nov 16
Price target decreased to ر.س16.05 Down from ر.س17.45, the current price target is an average from 2 analysts. New target price is 32% above last closing price of ر.س12.12. The company posted earnings per share of ر.س0.43 last year. Reported Earnings • Nov 08
Third quarter 2022 earnings released: EPS: ر.س0.08 (vs ر.س0.061 in 3Q 2021) Third quarter 2022 results: EPS: ر.س0.08 (up from ر.س0.061 in 3Q 2021). Revenue: ر.س103.3m (up 84% from 3Q 2021). Net income: ر.س7.82m (up 31% from 3Q 2021). Profit margin: 7.6% (down from 11% in 3Q 2021). Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Announcement • Sep 27
Qassim Cement Company (SASE:3040) signed a non-binding memorandum of understanding to acquire Hail Cement Company (SASE:3001) for SAR 1.42 billion. Qassim Cement Company (SASE:3040) signed a non-binding memorandum of understanding to acquire Hail Cement Company (SASE:3001) for SAR 1.42 billion on September 25, 2022. Upon completing the proposed transaction, Qassim Cement will issue about 18.92 million shares in favour of Hail Cement's shareholders at a price of SAR 75 per share. Hail Cement's shareholders will receive 0.1933 newly issued shares in Qassim Cement for every share they own in the Hail Cement. The final exchange ratio will be set out in the definitive agreements of the Proposed Transaction. The Proposed Transaction is subject to the regulatory approvals, including approvals from the competent authorities and the approval of the extraordinary general assembly of each company and Subject to the satisfactory completion of financial evaluation of the Proposed Transaction and the results of the relevant due diligence exercise. Reported Earnings • Aug 30
Second quarter 2022 earnings released: ر.س0.07 loss per share (vs ر.س0.16 profit in 2Q 2021) Second quarter 2022 results: ر.س0.07 loss per share (down from ر.س0.16 profit in 2Q 2021). Revenue: ر.س96.3m (up 46% from 2Q 2021). Net loss: ر.س6.83m (down 145% from profit in 2Q 2021). Over the next year, revenue is forecast to grow 3.0%, compared to a 12% growth forecast for the Basic Materials industry in Saudi Arabia. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Announcement • Aug 26
Hail Cement Co. Announces the Distribution of Cash Dividend for the Financial Period Ended 30 June 2022, Payable on 14 September 2022 Hail Cement Company announced the decision of the Board of Directors in circular corresponding to August 25, 2022, the distribution of cash dividends of SAR 0.25 per share to the company's shareholders for the financial period ending 30 June 2022. Distribution Date is 14 September 2022. Buying Opportunity • Aug 24
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 1.8%. The fair value is estimated to be ر.س16.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.3% over the last 3 years. Meanwhile, the company has become profitable. Buying Opportunity • Jun 19
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 2.4%. The fair value is estimated to be ر.س16.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.3% over the last 3 years. Meanwhile, the company has become profitable. Buying Opportunity • May 22
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 1.5%. The fair value is estimated to be ر.س16.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.8% over the last 3 years. Meanwhile, the company has become profitable. Price Target Changed • Apr 27
Price target decreased to ر.س16.90 Down from ر.س21.90, the current price target is provided by 1 analyst. New target price is 17% above last closing price of ر.س14.48. Stock is down 25% over the past year. The company posted earnings per share of ر.س0.43 last year. Reported Earnings • Mar 08
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: ر.س0.43 (down from ر.س1.10 in FY 2020). Revenue: ر.س253.3m (down 25% from FY 2020). Net income: ر.س42.4m (down 61% from FY 2020). Profit margin: 17% (down from 32% in FY 2020). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 23%. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 09
Third quarter 2021 earnings released: EPS ر.س0.061 (vs ر.س0.23 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ر.س56.1m (down 22% from 3Q 2020). Net income: ر.س5.96m (down 74% from 3Q 2020). Profit margin: 11% (down from 32% in 3Q 2020). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 24
Second quarter 2021 earnings released: EPS ر.س0.16 (vs ر.س0.22 in 2Q 2020) The company reported a poor second quarter result with weaker earnings and profit margins, although revenues were flat. Second quarter 2021 results: Revenue: ر.س65.9m (flat on 2Q 2020). Net income: ر.س15.3m (down 29% from 2Q 2020). Profit margin: 23% (down from 33% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 89% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 05
First quarter 2021 earnings released: EPS ر.س0.26 (vs ر.س0.41 in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2021 results: Revenue: ر.س81.9m (down 32% from 1Q 2020). Net income: ر.س25.9m (down 36% from 1Q 2020). Profit margin: 32% (down from 34% in 1Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Mar 08
New 90-day high: ر.س17.78 The company is up 5.0% from its price of ر.س16.92 on 08 December 2020. The Saudi market is up 1.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Basic Materials industry, which is up 14% over the same period. Announcement • Mar 03
Hail Cement Company, Annual General Meeting, Mar 22, 2021 Hail Cement Company, Annual General Meeting, Mar 22, 2021, at 15:30 Coordinated Universal Time. Reported Earnings • Jan 29
Full year 2020 earnings released: EPS ر.س1.10 (vs ر.س0.61 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ر.س336.3m (up 23% from FY 2019). Net income: ر.س107.5m (up 80% from FY 2019). Profit margin: 32% (up from 22% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Analyst Estimate Surprise Post Earnings • Jan 29
Revenue misses expectations Revenue missed analyst estimates by 2.8%. Over the next year, revenue is forecast to grow 9.1% while theBasic Materials industry in Saudi Arabia is not expected to grow. Announcement • Jan 26
Hail Cement Company to Report Q4, 2020 Results on Jan 25, 2021 Hail Cement Company announced that they will report Q4, 2020 results on Jan 25, 2021 Is New 90 Day High Low • Jan 18
New 90-day high: ر.س17.38 The company is up 5.0% from its price of ر.س16.50 on 20 October 2020. The Saudi market is flat over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Basic Materials industry, which is up 12% over the same period. Is New 90 Day High Low • Dec 07
New 90-day high: ر.س16.72 The company is up 20% from its price of ر.س13.96 on 08 September 2020. The Saudi market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Basic Materials industry, which is up 10.0% over the same period. Reported Earnings • Nov 26
Third quarter 2020 earnings released: EPS ر.س0.23 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: ر.س71.7m (up 15% from 3Q 2019). Net income: ر.س22.8m (up 201% from 3Q 2019). Profit margin: 32% (up from 12% in 3Q 2019). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Announcement • Nov 24
An unknown buyer acquired 6.13% stake in Hail Cement Company (SASE:3001) from Saudi Real Estate Company (SASE:4020) for SAR 96.9 million. An unknown buyer acquired 6.13% stake in Hail Cement Company (SASE:3001) from Saudi Real Estate Company (SASE:4020) for SAR 96.9 million on November 22, 2020. Under the terms of the deal, Saudi Real Estate sold 6 million shares.
An unknown buyer completed the acquisition of 6.13% stake in Hail Cement Company (SASE:3001) from Saudi Real Estate Company (SASE:4020) on November 22, 2020. Is New 90 Day High Low • Oct 07
New 90-day high: ر.س16.68 The company is up 29% from its price of ر.س12.94 on 09 July 2020. The Saudi market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Basic Materials industry, which is up 19% over the same period. Is New 90 Day High Low • Sep 21
New 90-day high: ر.س14.40 The company is up 26% from its price of ر.س11.40 on 23 June 2020. The Saudi market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Basic Materials industry, which is up 23% over the same period.