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STCM Steppe Cement Ltd

21.50
0.00 (0.00%)
Last Updated: 08:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Steppe Cement Ltd LSE:STCM London Ordinary Share MYA004433001 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 21.50 20.00 23.00 21.50 21.50 21.50 1,370 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Cement, Hydraulic 86.73M 17.78M 0.0812 2.65 47.09M
Steppe Cement Ltd is listed in the Cement, Hydraulic sector of the London Stock Exchange with ticker STCM. The last closing price for Steppe Cement was 21.50p. Over the last year, Steppe Cement shares have traded in a share price range of 20.00p to 45.00p.

Steppe Cement currently has 219,000,000 shares in issue. The market capitalisation of Steppe Cement is £47.09 million. Steppe Cement has a price to earnings ratio (PE ratio) of 2.65.

Steppe Cement Share Discussion Threads

Showing 1026 to 1049 of 6025 messages
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DateSubjectAuthorDiscuss
01/10/2018
06:01
Thanks Wilo
jailbird
01/10/2018
01:36
VTB Capital Target Price upgrade on positive trends
Steppe Cement remains a relatively cheap and attractive play on
dividends and deleveraging, in our view, with a favourable market
environment supporting our positive outlook for cash generation. The
company trades at over 70% discount to global peers on its 2018
EV/capacity of USD 36/t and 47-48% discounts on 2018-19F EV/EBITDA
of 3.5-3.8x, we estimate. Even though its 2017 profitability was lower
than we had forecast, we have increased our 2018 estimates to reflect
the current trends (but conservatively leave our medium term forecasts
largely unchanged). With these changes factored in, we are raising our
12-month Target Price 6% to GBp 33.00, which implies an ETR of 58%.
Buy reiterated.
Positive trends in prices and volumes. Based on the latest data from
Kazstat, ex-works cement prices in Kazakhstan increased 6% in May, both
YoY and MoM. We believe that this reflects positive demand trends (as the
high season is gaining momentum) along with export opportunities, which
allowed producers to start shifting their costs onto consumers. Our new
forecast assumes that Kazakhstan’s cement market will expand 6% YoY to
9.5mnt in 2018, while Steppe Cement’s output will increase 3% YoY to
1.75mnt (vs. 1.69mnt forecast previously). We also project Steppe Cement’s
average ex-works price for the year to be 13% YoY higher at USD 38/t (vs.
USD 37/t forecast previously). These changes largely underlie the upward
revisions of our 2018 forecasts. In particular, we lifted our 2018 revenue and
EBITDA projections 6% and 8%, respectively.
More cautious mid-term outlook. Meanwhile, we believe that the Kazakh
cement market will remain well supplied in the medium term, with the
capacity addition of 1mnt in Southern Kazakhstan (Shieli), which we now
factor in from 2019, potentially pressuring pricing in the biggest regional
cement market. In particular, we estimate that capacity utilisation in
Kazakhstan will decrease from 78% in 2017 to 74% in 2019-20, before
starting to grow again. This might preclude any strong price increases, in our
view. For this reason, our EBITDA forecasts for 2019-22F remain largely
unchanged. Nevertheless, we believe that Steppe Cement will be able to
generate sufficient cash flows in the medium term, which will lead to lower
leverage and attractive dividends, in our view.
Attractive dividends. Steppe Cement has recommended GBp 1/share for
the 2017 dividend, which implies a 5% yield. We project that the dividend will
double next year in absolute terms. In our view, a part of this amount could
potentially be distributed in the autumn as an interim dividend. We also
believe that Steppe Cement will increase dividend payments in absolute
terms, as it will continue to generate solid cash flows amid lower leverage.
Net debt stood at USD 17mn at YE17 (1.6x EBITDA) and we expect it to go
down to USD 6mn at YE18 (0.3x).
Valuation and risks. We derive our 12-month Target Price from a DCF
model (WACC 15.2%, TGR 2%). The key downside risks are related to FX
fluctuations, cement prices and competition, as well as the overall economic
environment and cement market trends.
Vladimir Bespalov,Equities Analyst
+7 495 663 46 51 // vladimir.bespalov@vtbcapital.com

wilo101
26/9/2018
12:04
Softly, softly catchee monkey. FY results even without any contracts post cement conference next month, should reinforce the progress to date.
azalea
26/9/2018
11:13
Even news is all positive , I am struggling to see what will light this up... there is hardly any volume on most days .Just not an exciting sector for PIsNot sure we will see any interested party on taking this over anytime soon. As long as there is a dividend again , I shall be happy enough.
jailbird
26/9/2018
09:25
took a few more while quiet
mattjos
21/9/2018
06:40
By 2021, the 300 two year old rolling stock should have paid for itself.
azalea
20/9/2018
21:52
You're not concerned that the dividend isn't even half covered?
zangdook
20/9/2018
19:16
Debt here secured on the rolling stock , which is something tangible and readily saleable so, am more relaxed about it.
mattjos
20/9/2018
17:32
Last time we saw that, a large shareholder had accumulated...maybe again?

Last Holding RNS Apollo Asia Fund Limited that it has acquired 8,649,054 ordinary shares in Steppe Cement at average price of GBP 0.2578

jailbird
20/9/2018
17:12
Some rather large delayed trades?
king suarez
20/9/2018
14:50
All debt could be repaid today if needs must, it is not an issue at all but with only 2 prior dividends in 2005 and 2015 shareholders need to see them getting monies hence the recent 2017 dividend and every year going forward
wilo101
20/9/2018
14:35
Mattjos

You recently posted on HGM that a combination of debt and dividend was a red flag for you - does that not concern you here? I know the debt is less, but then so is the whole scale.

zangdook
18/9/2018
18:16
Nice steady set of results. Debt continues to reduce & their action to focus on selling price & gross margin indicates management do not feel 'desperate' to sell product for cash.Reassuringly, completely off radar for 99.9% but, will absolutely feature in about 2 years time. Will keep averaging in whilst under 50p & attaching dividend makes that decision all the easier. Suggest we ensure the thread flatlines for next 2 years :-). ttfn.
mattjos
18/9/2018
11:43
A solid first half, with the company continuing to reap the rewards of its massive investment in highly efficient dry line production systems and rail wagons.
azalea
18/9/2018
10:08
Thanks wilo101 - I missed the RNS.

Yes, those results are looking very good. Cashflow from operations $4.9m for the 6 months compared to $0.2m in the prior comparative period. Another $1.7m of long term debt paid down - reducing interest costs further. When you consider that FY operating cashflow for 2017 was $12.2m, then evidently the 2nd half of the year should be even more cash generative and we could be looking at closer to $20m+ for 2018?

Any thoughts on what the spending of $2.4m on plant, property, equipment has been? I see most of this is listed as 'transfers' under machinery and equipment spend for the period - do you know what that means? I understood from the 2017 annual report that capital expenditure should be reducing for the near term future, but this already exceeds the capex spend for the FY 2017.

I know the company is/was spending on packing facilities for cement bagging - do you think the capex this half year is ongoing related to the increased production, or more 'one off' spending - we will find out in the FY 2018 report I guess.

KS

king suarez
18/9/2018
09:47
Looking good bu the period from 30 June to the end of October, mid November is the key to a very profitable financial year.
wilo101
18/9/2018
09:43
now posted:
Steppe Cement Ltd

Interim Results for the Half Year 30 June 2018

and General Market Update


1. Interim Results

Steppe Cement Ltd ("Steppe Cement" and "the Company") posted a consolidated profit after tax of USD0.2 million for the six months ended 30 June 2018.





6 months

ended

30 June 18


6 months

ended

30 June 17


% of change

Sales (Tonnes)


738,228


650,333


14%

Consolidated turnover KZT million


10,539


8,553


23%

Consolidated turnover (USD Million)


32.8


26.8


22%

Consolidated profit (loss) after tax (USD Million)


0.2


(0.3)




Profit (loss) per share (Cents)


0.1


(0.2)




Average exchange rate (USD/KZT)


326


319






· The Company continued its strategy of focusing on price rather than in volume until the summer.

· The average ex-factory price increased from 11,147 KZT /tonne to 11,560 KZT /tonne or 4% during the period.

· Steppe Cement's gross margin increased from 27% to 32% in USD terms mostly because of better pricing in markets further from the factory.

· Selling expenses increased as sales to the south and exports grew significantly.

· Administrative expenses were maintained relative to turnover and were increased compared to 2017 due to bonus payment.

· The Kazakh Tenge depreciated slightly in the first half by 2% compared to the first half of 2017. The company booked foreign exchange losses of USD 0.5 million in the first half of 2018 compared to a gain of USD 0.57 million in 1H2017.

· The company generated operating profit before working capital changes of USD 5.4 million in 1H 2018 against USD 4.9 million in 2017.

· The Kazakhstan economy grew at 4.1% in the first half 2018.

· Reported inflation has been 2.9% until the end of August 2018.


2. Production costs

· Cement production costs per tonne were maintained in KZT as inflation was offset by the higher volumes achieved.


3. Update on the Kazakh cement market

· The Kazakh cement market grew at 5% during the first half of the year. Steppe Cement expects a market of about 9 million tonnes for the full year 2018 similar to 2017.

· Steppe Cement increased its local market share from 14.5% in 1H2017 to 15.5% in 1H2018. We expect to achieve 17% for the full year. Exports represented 12% of the volumes in the 1H2018 from 10% last year.

· Imports into Kazakhstan have increased by 30% in 2018 to 0.34 million tonnes and they represent 8% of the market up from 6% last year.

· Exports from Kazakhstan have increased from 0.45 million tonnes to 0.92 million tonnes in the first half of 2018, mostly due to demand from Uzbekistan.

· Exports from Kazakhstan now represent 19% of local production up from 11% last year.

· Overall production of all factories in Kazakhstan has increased by 14% to 4.8 million tonnes for the 1H2018. This increase will most likely not be maintained in the second half.

· Currently 78% of production in the country is coming from dry lines, an increase of 4% compared to last year's level.

· Construction remains strong particularly in the west and south of the country.



4. Financing

The debt position of the company as of 30 June 2018 comprised:

· A capital loan of USD 4 million from Halyk bank at 6% p.a. interest due in 2019.

· A long-term USD 7 million loan from Halyk Bank for the purchase of the wagons and repayable monthly till November 2021 at 6.5% p.a. and secured with the pledge of the wagons.

· Loans of KZT1,688 million and KZT 580 million from Halyk Bank JSC subsidised by the government for capital investment at 6%.

· We have maintained KZT3.9 billion of available working capital lines from Halyk Bank, Altyn Bank and VTB Bank. The current rates are 6% p.a. in USD and 12% p.a. in KZT.
As of 30 June 2018 we had the equivalent of USD 2.7 million outstanding from these working capital loans.

· As of 31 August 2018, the first Halyk bank loan of USD 4 million had been repaid and the working capital lines reimbursed. The total bank debt net of cash amounted to USD11 million of which 64% is denominated in USD and the balance in KZT.

wilo101
18/9/2018
09:34
Most companies seem to be reporting their interims tomorrow (19th) so hopefully we get results then too.
king suarez
16/9/2018
08:50
wil101
Very interesting. The outcomes of the conference could herald a very positive game changer for STCM prospects.

azalea
15/9/2018
15:26
Yes, it should be the full unaudited financial results for the half year to 30 June. We know prices and production volume from the July market update, but we don't know costs, margin, cash flow and what/how capex has been spent.

Should hopefully provide some forward guidance for FY production, demand etc also?

king suarez
15/9/2018
14:22
Are the results not just those through the first half, 30 June, but presumably with a recent trading update?

There is an upcoming cement conference in Almaty, 29-31 October 2018, see:
Tel.: +7 (499) 977 4968 Fax: +7 (499) 977 4495
e-mail: valev@businesscem.msk.ru www.businesscem.ru

wilo101
14/9/2018
12:01
Monday results I expect
jailbird
14/9/2018
07:09
Thought it was you Good price on the recent dip
jailbird
13/9/2018
18:19
Interims expected this week?

The 2 small recent buys that have upped the price slightly were mine - apols if others wanted to top up below 25p!

king suarez
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