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bamburi cement half year profit down 6%
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littledove
#1 Posted : Friday, August 26, 2016 9:29:18 AM
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Bamburi Cement net profit declined by six per cent for the six months of 2016 to Sh2.9 billion following lower cement demand from the housing construction sector and regional export market.

http://www.businessdailyafrica.com/Bamburi-Cement--profit-down-on-reduced-demand/539552-3357938-pd1t3v/index.html
There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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enyands
#2 Posted : Friday, August 26, 2016 9:48:26 AM
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littledove wrote:
Bamburi Cement net profit declined by six per cent for the six months of 2016 to Sh2.9 billion following lower cement demand from the housing construction sector and regional export market.

http://www.businessdailyafrica.com/Bamburi-Cement--profit-down-on-reduced-demand/539552-3357938-pd1t3v/index.html


Meaning construction has started to hit a plateau phase
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Boris Boyka
#3 Posted : Friday, August 26, 2016 12:08:14 PM
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Interim Dividend? @ pesa nane I can't find the results in their website yet.
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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kimanimsc
#4 Posted : Friday, August 26, 2016 12:17:35 PM
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6/-

http://www.rich.co.ke/rcdata/company.php?i=Mjg%3D

Boris Boyka wrote:
Interim Dividend? @ pesa nane I can't find the results in their website yet.
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Pesa Nane
#5 Posted : Friday, August 26, 2016 12:23:15 PM
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Boris Boyka wrote:
Interim Dividend? @ pesa nane I can't find the results in their website yet.


Apologies. Banks are hogging all the attention (furiously posting to deflect that smile .

Pesa Nane plans to be shilingi when he grows up.
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Pesa Nane
#6 Posted : Friday, August 26, 2016 12:37:31 PM
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Quote:
Highlights;
Turnover flat following slow growth in the individual home builder segment in Kenya
Reduced volumes into inland africa export markets
Infrastructure and contractor segments remained vibrant in Kenya, Uganda and Rwanda
Though competition is high, prudent cost management, mastery of plant and logistics processes, innovative customer solutions returned HY operating prifit of KES 4.1 Billion
PBT declines due to exchange losses
Pesa Nane plans to be shilingi when he grows up.
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Pesa Nane
#7 Posted : Friday, August 26, 2016 12:41:04 PM
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Quote:
Capacity Expansion Announcement

The Group has approved Phase 1 of a capacity expansion in both Kenya and Uganda, which will increase cement capacity by 1.7mt (million tons) at an approximate cost of KES 8.3 Billion. The group is also undertaking advanced studies on Phase 2 of this expansion project, aimed at solidifying its position as the least cost producer in the region the group operates in.
Pesa Nane plans to be shilingi when he grows up.
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Pesa Nane
#8 Posted : Friday, August 26, 2016 12:42:50 PM
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kimanimsc wrote:
6/-

http://www.rich.co.ke/rcdata/company.php?i=Mjg%3D

Boris Boyka wrote:
Interim Dividend? @ pesa nane I can't find the results in their website yet.


Payable 28 October 2016
Closure 23 September 2016
Pesa Nane plans to be shilingi when he grows up.
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Pesa Nane
#9 Posted : Friday, August 26, 2016 12:45:15 PM
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Pesa Nane plans to be shilingi when he grows up.
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VituVingiSana
#10 Posted : Friday, August 26, 2016 11:48:17 PM
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Everyone is expanding their capacity...

ARM has the TZ plant now online. Then there is the "Kitui" plant [in 2-5 years] if it can be financed.
Dangote
Pokot/Sanghi/Cemtech

Is there enough demand?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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alotoftalk
#11 Posted : Saturday, August 27, 2016 5:47:19 AM
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VituVingiSana wrote:
Everyone is expanding their capacity...

ARM has the TZ plant now online. Then there is the "Kitui" plant [in 2-5 years] if it can be financed.
Dangote
Pokot/Sanghi/Cemtech

Is there enough demand?


Going by the cement consumption per capita argument, there is demand. Kenya's and EAC's in general is still below that of most developed or rapidly developing countries (there is a nice chart on the ARM website related to this).

There maybe temporary oversupply but this will correct in a few years. Also look at the Sephaku and Afrisam in SA which were developed at a time where everyone was questioning if there is demand but which are posting good growth metrics proving the per capita consumption theory.
Investment philosophy development in progress...
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Boris Boyka
#12 Posted : Saturday, August 27, 2016 8:10:50 AM
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alotoftalk wrote:
VituVingiSana wrote:
Everyone is expanding their capacity...

ARM has the TZ plant now online. Then there is the "Kitui" plant [in 2-5 years] if it can be financed.
Dangote
Pokot/Sanghi/Cemtech

Is there enough demand?


Going by the cement consumption per capita argument, there is demand. Kenya's and EAC's in general is still below that of most developed or rapidly developing countries (there is a nice chart on the ARM website related to this).

There maybe temporary oversupply but this will correct in a few years. Also look at the Sephaku and Afrisam in SA which were developed at a time where everyone was questioning if there is demand but which are posting good growth metrics proving the per capita consumption theory.

True. @VVS i pass by a hardware every morning and I'll tell you they clear tonnes of cement in days. Several other hardwares are around and still sell the cement. If you're living in a closed apartment or filled up estate you'll think as you do. Somebody staying in outskirts of all Kenyan cities and towns will tell you new constructions are sprouting daily and they'll continue to do so for a while until housing demand is leveled. Just like people asked who would borrow loans at those high rates.
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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littledove
#13 Posted : Saturday, August 27, 2016 10:04:54 AM
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Pesa Nane wrote:
Quote:
Highlights;
Turnover flat following slow growth in the individual home builder segment in Kenya
Reduced volumes into inland africa export markets
Infrastructure and contractor segments remained vibrant in Kenya, Uganda and Rwanda
Though competition is high, prudent cost management, mastery of plant and logistics processes, innovative customer solutions returned HY operating prifit of KES 4.1 Billion
PBT declines due to exchange losses

They have benefited alot from sgr once the project is completed turnover will reduce
There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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MadDoc
#14 Posted : Saturday, August 27, 2016 10:22:47 AM
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Joined: 10/26/2015
Posts: 151
Boris Boyka wrote:
alotoftalk wrote:
VituVingiSana wrote:
Everyone is expanding their capacity...

ARM has the TZ plant now online. Then there is the "Kitui" plant [in 2-5 years] if it can be financed.
Dangote
Pokot/Sanghi/Cemtech

Is there enough demand?


Going by the cement consumption per capita argument, there is demand. Kenya's and EAC's in general is still below that of most developed or rapidly developing countries (there is a nice chart on the ARM website related to this).

There maybe temporary oversupply but this will correct in a few years. Also look at the Sephaku and Afrisam in SA which were developed at a time where everyone was questioning if there is demand but which are posting good growth metrics proving the per capita consumption theory.

True. @VVS i pass by a hardware every morning and I'll tell you they clear tonnes of cement in days. Several other hardwares are around and still sell the cement. If you're living in a closed apartment or filled up estate you'll think as you do. Somebody staying in outskirts of all Kenyan cities and towns will tell you new constructions are sprouting daily and they'll continue to do so for a while until housing demand is leveled. Just like people asked who would borrow loans at those high rates.

Is it safe to say that turnover in the near future would decrease? Seeing how Dangote entry cut cement prices by over 30% in TZ.
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Boris Boyka
#15 Posted : Saturday, August 27, 2016 10:29:54 AM
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Posts: 1,977
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MadDoc wrote:
Boris Boyka wrote:
alotoftalk wrote:
VituVingiSana wrote:
Everyone is expanding their capacity...

ARM has the TZ plant now online. Then there is the "Kitui" plant [in 2-5 years] if it can be financed.
Dangote
Pokot/Sanghi/Cemtech

Is there enough demand?


Going by the cement consumption per capita argument, there is demand. Kenya's and EAC's in general is still below that of most developed or rapidly developing countries (there is a nice chart on the ARM website related to this).

There maybe temporary oversupply but this will correct in a few years. Also look at the Sephaku and Afrisam in SA which were developed at a time where everyone was questioning if there is demand but which are posting good growth metrics proving the per capita consumption theory.

True. @VVS i pass by a hardware every morning and I'll tell you they clear tonnes of cement in days. Several other hardwares are around and still sell the cement. If you're living in a closed apartment or filled up estate you'll think as you do. Somebody staying in outskirts of all Kenyan cities and towns will tell you new constructions are sprouting daily and they'll continue to do so for a while until housing demand is leveled. Just like people asked who would borrow loans at those high rates.

Is it safe to say that turnover in the near future would decrease? Seeing how Dangote entry cut cement prices by over 30% in TZ.

Yes. Individual companies like Bamburi who for long enjoyed high turnover will see a decrease while new entrants will see an increase then plateau. In general the demand for cement increases in Kenya and the region. This was in response to @ VVS question on whether the increasing production by the firm's will get swallowed up.
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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sparkly
#16 Posted : Saturday, August 27, 2016 10:48:34 AM
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Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
MadDoc wrote:
Boris Boyka wrote:
alotoftalk wrote:
VituVingiSana wrote:
Everyone is expanding their capacity...

ARM has the TZ plant now online. Then there is the "Kitui" plant [in 2-5 years] if it can be financed.
Dangote
Pokot/Sanghi/Cemtech

Is there enough demand?


Going by the cement consumption per capita argument, there is demand. Kenya's and EAC's in general is still below that of most developed or rapidly developing countries (there is a nice chart on the ARM website related to this).

There maybe temporary oversupply but this will correct in a few years. Also look at the Sephaku and Afrisam in SA which were developed at a time where everyone was questioning if there is demand but which are posting good growth metrics proving the per capita consumption theory.

True. @VVS i pass by a hardware every morning and I'll tell you they clear tonnes of cement in days. Several other hardwares are around and still sell the cement. If you're living in a closed apartment or filled up estate you'll think as you do. Somebody staying in outskirts of all Kenyan cities and towns will tell you new constructions are sprouting daily and they'll continue to do so for a while until housing demand is leveled. Just like people asked who would borrow loans at those high rates.

Is it safe to say that turnover in the near future would decrease? Seeing how Dangote entry cut cement prices by over 30% in TZ.


These price wars will not end well. There will be a victor and victims.

Always the case when a duolistic/ triolistic industry races on margins. It will be very nasty for the victims. Happened in telecom before Airtel and Orange threw in the towel. EABL thrashed Castle. Local banks walked all over kaburu banks. Bidco out punched Unilever.

The loser will be saddled with high capital investment and low returns. Might even be acquired by the winner.

The winner will increase prices to recover loses from price wars.

For now the situation looks risky for ARM with their heavy debts but local firms have a way of outmanoeuvring the foreign multinationals.
Life is short. Live passionately.
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Pesa Nane
#17 Posted : Thursday, November 24, 2016 10:03:40 PM
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Pesa Nane plans to be shilingi when he grows up.
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