Steppe Cement Share Discussion Threads

[plasybryn] 23/5/2023 08:01

The full results and audited accounts denominated in USD are expected to be published in May 2023.

[mattjos] 16/5/2023 20:30

"The full results and audited accounts denominated in USD are expected to be published in May 2023."

&

"There are no foreign exchange restrictions on the Kazakh banking operations and the Company remains able to pay interest and dividends abroad."

Railway construction across Kaz is being stepped up to try and keep up with demand. Kaz railways is now building a new loading/unloading point in Xi'an.
Railways always big consumers of cement, particularly bridges and tunnels.
Same thing for energy projects & housing projects
Long term cement demand looks very robust in the country

[eggbaconandbubble] 02/5/2023 09:39

I'm certainly no economist - but the following table seems to suggest that the Kazak economy is fairly robust (Kazakhstan at no. 160 - 27% Debt to GDP)

I would welcome (constructive please!)comments.

[spawny100] 02/5/2023 09:12

Well done to those who added on recent dip. I wasn't brave enough to after last RNS but seems I was wrong.

[11_percent] 24/4/2023 14:42

Paying the full 39p to get them.

[1knocker] 22/4/2023 11:34

There is a personal messaging facility on ADVFN boards. Those who are interested in abusing each other rather than commenting about the company and its prospects should use it. More fun for them, less tedium for the rest of us.

[aleman] 22/4/2023 10:04

The move to paying only a final dividend was temporary due to Kazahkstan tax issues about paying dividends only from audited results and having to risk a reclaim of overpaid tax on any unaudited interim. The Malaysian tax issue about higher taxation on off-shore income under new legislation, which led to a reconsideration of how returns to shareholders might be achieved other than a dividend route that might draw higher tax, has been resolved after Malaysia granted some logical exceptions that were similar to ones under the previous legislation. The interim dividend should be reinstated at some point if and when the Kazahk issue is resolved. If an unaudited interim in advance could not be sorted, it could still be done by breaking an audited final dividend into two and paying a portion the following year.



The position of the Kazakhstan Tax Department is that dividends can only be declared from post-tax profit once the accounts are audited and the Annual General Meeting has approved the audited accounts. ...

...This policy on Interim Dividends will continue until the Board is convinced that payment of Interim Dividends can be made under the same conditions as the Final Dividend.

[gary1966] 22/4/2023 09:47

Assume we will return to the old timings as last year was a one off due to Malaysian tax issues. I expect dividend declaration in July with it paid at the end of July.

[zangdook] 22/4/2023 02:31

Still more than six months until the next dividend is likely to be declared.

[finctastic] 21/4/2023 22:15

By just stating their intentions regarding the dividend would lift the share price comfortably above where it was a month ago. Even if it were to be cut to 4p. It's still a very profitable and cash rich business. The dividend unknown is the biggest contributor to unsettling the impatient investors.

[king suarez] 15/4/2023 11:29

Xeno - are you just referring to the RNS release or is there something more in depth?

[xenomorph1] 15/4/2023 10:39

ok got it, yesterday there wasnt on their RNS

[xenomorph1] 15/4/2023 10:37

i will ask agian, is there a report of STCM q1 sales etc? Link? Thanks.

[eggbaconandbubble] 14/4/2023 14:08

It will be interesting to hear in the next few days if any listed shareholders have increased (maybe reduced)their holdings.

[mattjos] 14/4/2023 09:39

Weather does have an impact on cement consumption, specifically temperature.
Can't reliably pour concrete when temperature 40F or lower hence why Q1 always a poor quarter for Steppe & nothing anyone can do about it.
As per chart below, Q2 & Q3 are always where the Sales volumes pick up dramatically concident with the warmer weather

[mattjos] 14/4/2023 08:43

Assuming they are cautious and cut the divi (20%) back to 4p, that's still comfortably more than 10% yield.

[king suarez] 14/4/2023 08:29

"Based on the update one can only assume a dividend cut."

Bit early to call this imo. One weak quarter (and seasonally the lowest qtr of the year anyway) only (so far) - the company was sitting with a decent cash balance and generated c$20m cash flow p/a the last couple of yeas.

The 5p div costs around $13.5m at current exchange rate, so there is wiggle room. See how the volumes and pricing looks in the Q2/HY update and then we'll have a better idea. There is no longer significant debt to pay down and finance so I am optimistically hoping it can be sustained for now. They have previously cut transport costs by selling closer to 'home' so that may play a factor also if not exporting so much?

[wanobi] 14/4/2023 07:48

nice work Mj/KS, thanks for sharing your skills & research with us, Cheers Wan :-)

[danmart2] 14/4/2023 02:43

Based on the update one can only assume a dividend cut.

The question is how much?

We will have to wait to find out.

Regardless of your position, it’s rather impressive the share didn’t fall below 34p considering the update.

[king suarez] 13/4/2023 22:32

This chart broadly follows the one MJ posted for STCM, showing that volumes appear back to 2020 levels for the first quarter. 2021 and 2022 looking the exception to the norm?

[king suarez] 13/4/2023 22:29

Thanks MJ,

Vicat are smaller than Steppe in KZT then - €67m revenue for 2022 - they grew EBITDA 12.5% in 2022 with higher sales prices offsetting cost inflation and lower volumes.

They are scaling back capex in 2023 to get debt under control - at least Steppe don't have to worry about servicing a large debt anymore - one advantage.

"In 2023, the Group is targeting further significant sales growth, with its markets overall expected to display resilience and reflect the full benefit of the price hikes in selling prices introduced in 2022 and the fresh increases anticipated in 2023"

Sounds promising.. looks like they report Q1 2023 numbers on 3 May, so may be interesting to see what their comparative result is like for Kazakhstan operations?

Heidelberg have 4.1m tonne cement capacity, so around double that of Steppe? As you say, nothing country specific there - just a reference to GDP forecast growth for 2022.

[mattjos] 13/4/2023 20:21

KS, look at Vicat:



Unfortunately, Heidelberg don't break down their figures to the country level:

[king suarez] 13/4/2023 19:58

What report?

[xenomorph1] 13/4/2023 19:15

where can i see the report?

[wind dancer] 13/4/2023 18:33

Out at 43p when the cost warning was given by the company.
It would seem over optimistic to expect much if anything by way of divs after this RNS.
GLA