‎Analyst views on Saudi Cement’s Q2 2026 results

‎<p bis_skin_checked="1" data-olk-copy-source="MessageBody" dir="auto" ><img src="https://argaamplus.s3.amazonaws.com/101efa61-2a13-40fb-b3e3-094927c25f65.png" ></p> <hr> <p bis_skin_checked="1" data-olk-copy-source="MessageBody" dir="auto" ><span ><strong>Argaam </strong></span>reviews the opinions of four research houses on the financial results of <a href="https://www.argaam.com/en/tadawul/tasi/saudi-cement" target="_blank">Saudi Cement Co.</a> after its earnings rose to SAR 102.04 million in the <a href="https://www.argaam.com/en/financial-reports/company-report/56/2026/71" target="_blank">second quarter</a> of 2026.</p> <p bis_skin_checked="1" dir="auto" ></p> <p bis_skin_checked="1" dir="auto" >Three research firms assigned a “Buy” rating, while one gave “Neutral”. The ratings were based on the valuation criteria adopted by each of them.</p> <p bis_skin_checked="1" dir="auto" ></p> <p bis_skin_checked="1" dir="auto" >EFG-Hermes set the highest target price (TP) at SAR 41.7 a share, while Riyad Capital set the lowest TP at SAR 30. The average TP was SAR 36.33.</p> <p bis_skin_checked="1" dir="auto" ></p> <table align="center" border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr > <td colspan="7" > <p ><strong><span ><span >Research Firms’ TP for Saudi Cement After Q2 2026 Results (SAR)</span></span></strong></p> </td> </tr> <tr > <td rowspan="2" > <p ><strong><span ><span >Date</span></span></strong></p> </td> <td rowspan="2" > <p align="center" ><strong><span ><span >Research Firm</span></span></strong></p> </td> <td colspan="2" > <p align="center" ><strong><span ><span >Rating</span></span></strong></p> </td> <td colspan="2" > <p align="center" ><strong><span ><span >Price (SAR)</span></span></strong></p> </td> <td rowspan="2" > <p align="center" ><strong><span ><span >Change</span></span></strong></p> </td> </tr> <tr > <td > <p align="center" ><strong><span ><span >Previous</span></span></strong></p> </td> <td > <p align="center" ><strong><span ><span >Current</span></span></strong></p> </td> <td > <p align="center" ><strong><span ><span >Current*</span></span></strong></p> </td> <td > <p align="center" ><strong><span ><span >Target</span></span></strong></p> </td> </tr> <tr > <td > <p ><strong><span ><span >21/8/2026</span></span></strong></p> </td> <td > <p align="center" ><strong><span >AlphaMena</span></strong></p> </td> <td > <p align="center" ><span ><span >Buy</span></span></p> </td> <td > <p align="center" ><strong><span ><span >Buy</span></span></strong></p> </td> <td > <p align="center" ><span ><span >27.66</span></span></p> </td> <td > <p align="center" ><span ><span >38.7</span></span></p> </td> <td > <p align="center" ><span ><span >+39.9%</span></span></p> </td> </tr> <tr > <td > <p ><strong><span ><span >11/8/2026</span></span></strong></p> </td> <td > <p align="center" ><strong><span >Ubhar Capital</span></strong></p> </td> <td > <p align="center" ><span ><span >Hold</span></span></p> </td> <td > <p align="center" ><strong><span ><span >Buy</span></span></strong></p> </td> <td > <p align="center" ><span ><span >27.66</span></span></p> </td> <td > <p align="center" ><span ><span >34.9</span></span></p> </td> <td > <p align="center" ><span ><span >+26.2%</span></span></p> </td> </tr> <tr > <td > <p ><strong><span ><span >10/8/2026</span></span></strong></p> </td> <td > <p align="center" ><strong><span >EFG-Hermes</span></strong></p> </td> <td > <p align="center" ><span >Buy</span></p> </td> <td > <p align="center" ><strong><span ><span >Buy</span></span></strong></p> </td> <td > <p align="center" ><span ><span >27.66</span></span></p> </td> <td > <p align="center" ><strong><span ><span >4</span></span></strong><strong><span >1.7</span></strong></p> </td> <td > <p align="center" ><strong><span ><span >+42.5%</span></span></strong></p> </td> </tr> <tr > <td > <p ><strong><span ><span >8/09/2026</span></span></strong></p> </td> <td > <p align="center" ><strong><span >Riyad Capital</span></strong></p> </td> <td > <p align="center" ><span ><span >Neutral</span></span></p> </td> <td > <p align="center" ><strong><span ><span >Neutral</span></span></strong></p> </td> <td > <p align="center" ><span ><span >27.66</span></span></p> </td> <td > <p align="center" ><strong><span ><span >30</span></span></strong></p> </td> <td > <p align="center" ><strong><span ><span >+8.5%</span></span></strong></p> </td> </tr> <tr > <td > <p ><strong><span >20/9/2026</span></strong></p> </td> <td colspan="3" > <p align="center" ><strong><span ><span >Average TP</span></span></strong></p> </td> <td colspan="3" > <p align="center" ><strong><span ><span >SAR 36.33</span></span></strong></p> </td> </tr> </tbody> </table> <p ><em class="ckeCaption">*Closing price (Sept. 17)</em></p> <p ></p> <p >Ubhar Capital said Saudi Cement’s revenue in Q2 2026 was in line with its expectations, with the increase driven by higher domestic cement sales volumes, which offset the decline in average cement prices.</p> <p ></p> <p >The research firm said net profit rose 7% year on year (YoY) and 2% quarter on quarter (QoQ), supported by lower selling and distribution expenses and financing costs, despite higher general and administrative expenses and lower other income.</p> <p ></p> <p >The cement sector has entered an expansion cycle, with high inventory levels expected to put pressure on prices, Ubhar Capital said.</p> <p ></p> <p >While industry prices remain a key challenge, Saudi Cement’s logistics network, including road and rail infrastructure, provides greater flexibility to reallocate volumes across its operating regions, it added</p> <p ></p> <p><strong><span ><span >Forecasts vs Actual Results in Q2 2026 (SAR mln)</span></span></strong></p> <table border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr > <td > <p ><strong><span ><span >Company</span></span></strong></p> </td> <td > <p align="center" ><strong><span ><span >Q2 2026 (Projected)</span></span></strong></p> </td> <td > <p align="center" ><strong><span ><span >Q2 2026 (Actual)</span></span></strong></p> </td> </tr> <tr > <td > <p ><strong><span >Al Rajhi Capital</span></strong></p> </td> <td > <p align="center" ><span ><span >102</span></span></p> </td> <td rowspan="8" > <p align="center" ><strong><span ><span ><span > 102.04</span></span></span></strong></p> </td> </tr> <tr > <td > <p ><strong><span >AlJazira Capital</span></strong></p> </td> <td > <p align="center" ><span ><span >102.7</span></span></p> </td> </tr> <tr > <td > <p ><strong><span >Riyad Capital</span></strong></p> </td> <td > <p align="center" ><span ><span >100</span></span></p> </td> </tr> <tr > <td > <p ><strong><span >SNB Capital</span></strong></p> </td> <td > <p align="center" ><span ><span >99.6</span></span></p> </td> </tr> <tr > <td > <p ><strong><span >SICO Bank</span></strong></p> </td> <td > <p align="center" ><span ><span >106</span></span></p> </td> </tr> <tr > <td > <p ><strong><span >Value Capital</span></strong></p> </td> <td > <p align="center" ><span ><span >97.2</span></span></p> </td> </tr> <tr > <td > <p ><strong><span >United Securities</span></strong></p> </td> <td > <p align="center" ><span ><span >116</span></span></p> </td> </tr> <tr > <td > <p ><strong><span >Ubhar Capital</span></strong></p> </td> <td > <p align="center" ><span ><span >121.4</span></span></p> </td> </tr> </tbody> </table> <p ></p> <p >Riyad Capital said Saudi Cement’s Q2 sales were in line with its expectations, with domestic cement sales volumes rising 13% YoY and 12% QoQ, supported by stronger domestic demand and intensifying competition.</p> <p ></p> <p >Cement and clinker export volumes declined, broadly in line with the research firm’s expectations.</p> <p ></p> <p >It noted that the company's Q2 2026 net profit was in line with both market consensus and its own estimates. The YoY profit growth was backed by higher sales and lower cost of sales, while the decline in H1 2026 net profit was due to weaker sales despite the decline in costs.</p> <p ></p> <table align="center" border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr > <td colspan="3" > <p ><strong><span >Research Firms’ Projections for Saudi Cement's Profit in 2026</span></strong></p> </td> </tr> <tr > <td > <p ><strong><span ><span >Research Firm</span></span></strong></p> </td> <td > <p align="center" ><strong><span ><span >Forecast for 2026</span></span></strong></p> </td> <td > <p align="center" ><strong><span ><span >Actual Profit for 2025</span></span></strong></p> </td> </tr> <tr > <td > <p ><strong><span ><span >AlJazira Capital</span></span></strong></p> </td> <td > <p align="center" ><span ><span >422</span></span></p> </td> <td rowspan="7" > <p align="center" ><strong><span ><span ><span >363.68</span></span></span></strong></p> </td> </tr> <tr > <td > <p ><strong><span ><span >SNB Capital</span></span></strong></p> </td> <td > <p align="center" ><span ><span >379</span></span></p> </td> </tr> <tr > <td > <p ><strong><span ><span >AlphaMena</span></span></strong></p> </td> <td > <p align="center" ><span ><span >366</span></span></p> </td> </tr> <tr > <td > <p ><strong><span ><span >Yaqeen Capital</span></span></strong></p> </td> <td > <p align="center" ><span ><span >444</span></span></p> </td> </tr> <tr > <td > <p ><strong><span ><span >United Securities</span></span></strong></p> </td> <td > <p align="center" ><span ><span >383</span></span></p> </td> </tr> <tr > <td > <p ><strong><span ><span >SICO Bank</span></span></strong></p> </td> <td > <p align="center" ><span ><span >432</span></span></p> </td> </tr> <tr > <td > <p ><strong><span ><span >Ubhar Capital</span></span></strong></p> </td> <td > <p align="center" ><span ><span >425.9</span></span></p> </td> </tr> </tbody> </table> <div ></div> <p >Saudi Cement stock is trading at around SAR 27, <strong>as shown in the following table:</strong></p> <p ></p> <table align="center" border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr > <td colspan="2" > <p ><strong><span >Key Financial Indicators</span></strong></p> </td> </tr> <tr > <td > <p ><strong><span >Closing Price (Sept. 17)</span></strong></p> </td> <td > <p align="center" ><span ><span >SAR 27.66</span></span></p> </td> </tr> <tr > <td > <p ><strong><span ><span >52-Week High</span></span></strong></p> </td> <td > <p align="center" ><span >SAR 41.58</span></p> </td> </tr> <tr > <td > <p ><strong><span ><span >P/E Ratio (TTM)</span></span></strong></p> </td> <td > <p align="center" ><span ><span >11.64</span></span></p> </td> </tr> <tr > <td > <p ><strong><span ><span >P/B Ratio (x)</span></span></strong></p> </td> <td > <p align="center" ><span ><span >1.96</span></span></p> </td> </tr> <tr > <td > <p ><strong><span >Dividend Yield (last year) (%)</span></strong></p> </td> <td > <p align="center" ><span ><span >6.54</span></span></p> </td> </tr> </tbody> </table> <div ></div> <p >In June, Saudi Cement’s board of directors recommended paying cash dividend at 10% of capital, or SAR 1 a share, for H1 2026, data compiled with <strong >Argaam</strong>showed.</p>

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Argaam - Main News · Trade Publication

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21st September 2026

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