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ARM Cement FY2013 PBT up 12%
muganda
#1 Posted : Monday, March 31, 2014 9:11:55 PM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905


Oh interesting to see Market Capitalization of ARM is at 44bn with debt now at 14.5bn. I need to glance at that balance sheet.

And there was an erosion of 189 basis points on the EBITDA margin. In Jun 2013, the first half revenue growth of 28% translated to +28% profit after tax.

At current P/E of 33, the most expensive blue chip in the NSE may face some drag.
mwekez@ji
#2 Posted : Tuesday, April 01, 2014 10:05:33 AM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
Below Expectations - ARM Cement released FY13 results marking 8.7%y/y growth in EPS to KES 2.72 – 15.5% below forecast. Despite FY13 being the first full year of production at Dar es Salaam’s 0.75mtpa grinding plant, group revenue growth slowed to 24.4%y/y vs. 39.4%y/y in FY12, as cement sales growth slipped to 31%y/y vs. 64%y/y - missing our forecast 35.6%y/y. Cement sales now represent 86% of group revenue up from 80.5% in FY12. Management expects the 0.75mtpa grinding and 1.5mtpa clinker Tanga plant to be operational in 2H14 (this is a revision from earlier guidance of 1Q14). EBITDA margin dipped further (-180bp y/y) to an all time low of 21.5%. Management attributed continued margin pressure to increased use of imported clinker to meet production demands of expanded grinding capacity (management expects quick margin improvement following commissioning of the Tanga clinker line). PBT increased 13.1% to KES 2.0bn -12.3% below forecast while effective tax increased to 32.6% (management expects to book investment tax credits upon completion of the Tanga project). Total CAPEX increased from KES 2.72bn to just over KES 4.0bn (forecast 3.50bn). Total net debt increased to KES 14.26bn from KES 12.4bn in FY12.

Upon completion of the Tanga project, management will be eyeing to set up a new green-field clinker plant in Kenya. As from 2015 to 2020, management will be looking to double grinding capacity to 5.0mtpa. ARM currently trades as 33x PE and 19.3x EV/EBITDA. (Company filing, Standard Investment Bank)
madebe
#3 Posted : Tuesday, April 01, 2014 3:29:36 PM
Rank: Member


Joined: 10/7/2010
Posts: 251
Location: nairobi
can anybody educate me about this stock. EPS 2.74, DPS 0.6

price 86/=
dunkang
#4 Posted : Tuesday, April 01, 2014 3:42:33 PM
Rank: Elder


Joined: 6/2/2011
Posts: 4,818
Location: -1.2107, 36.8831
madebe wrote:
can anybody educate me about this stock. EPS 2.74, DPS 0.6

price 86/=

PER of 32.85 and Div Yield of 0.67% (current price is 90/-), in the Cement and mining industry. The directors seem also to be very mean and the stock price is unreasonably high to me. AM IGNORING THIS! Any other point of view? Whats this am not seeing? Anyone?

Below 50/-, is what i can give.
Receive with simplicity everything that happens to you.” ― Rashi

Realtreaty
#5 Posted : Tuesday, April 01, 2014 10:20:52 PM
Rank: Elder


Joined: 8/16/2011
Posts: 2,297
dunkang wrote:
madebe wrote:
can anybody educate me about this stock. EPS 2.74, DPS 0.6

price 86/=

PER of 32.85 and Div Yield of 0.67% (current price is 90/-), in the Cement and mining industry. The directors seem also to be very mean and the stock price is unreasonably high to me. AM IGNORING THIS! Any other point of view? Whats this am not seeing? Anyone?

Below 50/-, is what i can give.

Dividend is independent of capital gain. Assume Barclays making a loss but paying 1sh as dividend at price of 16.90? The advantage of good capital gain is that you make good money any time depending on demand of a stock.
murchr
#6 Posted : Thursday, July 17, 2014 3:05:42 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
sparkly
#7 Posted : Thursday, July 17, 2014 9:06:58 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
dunkang wrote:
madebe wrote:
can anybody educate me about this stock. EPS 2.74, DPS 0.6

price 86/=

PER of 32.85 and Div Yield of 0.67% (current price is 90/-), in the Cement and mining industry. The directors seem also to be very mean and the stock price is unreasonably high to me. AM IGNORING THIS! Any other point of view? Whats this am not seeing? Anyone?

Below 50/-, is what i can give.


Additional crushing capacity expected to come online in Tanga TZ .
Life is short. Live passionately.
faa
#8 Posted : Tuesday, April 07, 2015 5:22:56 PM
Rank: Member


Joined: 5/8/2007
Posts: 709
It's not advisable to follow your brokers recommendation.

Make your own research and dont let your brokers recommendation influence you.

A good example is this share.FIB have been recommending it,for the last 1 year, but its share price movement speaks different
watesh
#9 Posted : Tuesday, April 07, 2015 6:16:38 PM
Rank: Veteran


Joined: 8/10/2014
Posts: 977
Location: Kenya
madebe wrote:
can anybody educate me about this stock. EPS 2.74, DPS 0.6

price 86/=

Pay all that for a cement company with an overproduction in the market and so many competitors....no way
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