Steppe Cement Share Discussion Threads

[wilo101] 11/1/2019 09:49

a 23% increase in price and a 6% increase in volume is quite a good year, particularly as the company has to drive the price increases and bear the volume losses.Emerging market cement plants typically have around 20-25% gross margin.The problem has been the KZT to the US$ FX rate, not the price in KZT.A cement factory is, in effect, a US$ asset, and investors add capacity even when the payback will take 20-years.

The actual debt is far lower than stated above.

[king suarez] 11/1/2019 09:25

Last year the company generated $12.2m cash flow from operations - enough to pay off the remaining long-term debt in one year if they so decided.

This was on annual turnover of $66m. We have just had confirmation via the latest operational update that FY2018 annual turnover is going to be $80m+.

I would not personally say 'debt too high'.

[jailbird] 11/1/2019 09:10

So update not well received by some holder(s)

[leopoldalcox] 11/1/2019 00:06

Debt too high?I'm using the figures on stockopedia which may be a tad out of date.However, isn't the debt too high at the moment to be paying a dividend?Operating profit last year of 3.58m USD, and net debt of 17m USD, but they decided to pay out a dividend of 0.014 USD, which was covered 0.42 times.I do note that net debt has reduced from over 35m to 17m 2012- the latest annual report,But it just seems they started paying dividends to early for me, and they should have focused on paying down the debt more first.This is an intruiging growth story, so can anyone enlighten me on the strategy here?

[melody9999] 10/1/2019 17:07

why is there so much Chinese investment? Presumably becasue they are looking to export back to their home market - after all why would they be interested in satisfying the much smaller demand in Kazakhstan. So is this not a case of growing the market for Kz cement?

[celeritas] 10/1/2019 15:47

This just shows you what these plants cost to build, never mind waiting for the build then commissioning then establishing a mkt.

[azalea] 10/1/2019 11:18

Jailbird
Given the share price is at a low, what better time to buy when the update on FY results are proven to be positive. When there are too many manufactures producing the same product, then only the most efficient will survive. Consolidation amongst the less efficient will only work if they can compete on price.

O/T
OPG is attracting a lot more attention from new posters; some forecasting notable higher share price over the next 12 months, whether that proves to be the case; only time will tell.

O/T
MPL
A company long been criticised by one particular poster, suggesting fraudulent activity may be involved. Apart from the fact that there has been a very recent slight upturn in the share price following a massive fall in the past few years, I have no interest having sold out at 70- 71p. If you are annoyed by posters,you can always either stop reading their posts or filter them.

[jailbird] 10/1/2019 10:58

Hi Wilo

may explains those Russian Wagons story...maybe these new plants are acquiring them.

We maybe ok this year...but should we worry about over supply/market share from new these new plants or do we have enough demand to go around?

Too many plants drive prices down...but at a cost of building them!

[spittingbarrel] 10/1/2019 10:46

Well right or wrong I bought another 25k this morning.

[wilo101] 10/1/2019 10:44

yes, too many plants in Kz and one other still being built by the crazy Chinese who follow voodoo economics in Almaty Oblast, Koshe cement is also another example

[jailbird] 10/1/2019 10:24

"Edit: Between now and the FY results, I believe we could finally see an upward movement in the share price from its current stagnant.position."

hmmm..easy to forecast since this has fallen from 30p+

Just like do not become an OPG or SPL annoying contributor

[azalea] 10/1/2019 09:22

Excellent update, which should virtually guarantee a continuing if not increased dividend.Whopping 50% increase in exports. Increase in Mkt share despite lower market consumption, a plus for the company.

Edit: Between now and the FY results, I believe we could finally see an upward movement in the share price from its current stagnant.position.

[jailbird] 10/1/2019 09:16

I expect we will only hear about any potential dividends in the next RNS...this period's update is only operational update

Wilo - any idea?

[mattjos] 10/1/2019 09:09

company is doing its bit well enough. share price will react at some point as the figures for the year continue to show great progress

[zangdook] 10/1/2019 08:42

wilo

"building plants we do not need"

do you mean plants in Kazakhstan?

[melody9999] 10/1/2019 07:55

Good update. Compared with previous results;
Revenue % increase up to 32% from 25% at end of 3rd quarter aand 23% at HY - so very strong Q4
Market share up to 17.5% - 17% expected at HY
Currency will drag slightly as USD stengthens but this is outside the company's control and may go the other way in 2019.

[wilo101] 10/1/2019 07:53

As foreseen, and really much better than 2017, but unit prices at US$39 per tonne are still far, far too low, too many Chinese equipment suppliers and constructors, looking to steal money on such, and the related financing, building plants we do not need, and they do not care if are ever economic and profitable, as when it is built they have taken all they need.

[jailbird] 10/1/2019 07:32

Earlier update...All good as expected...big increase in exports


10 January 2019

Steppe Cement Ltd

Preliminary Update for the Year ended 31 December 2018

Steppe Cement Ltd ("Steppe Cement") recorded revenue for the year ended 31 December 2018 of 28,342 million Tenge ("KZT"), which was 32% higher than the KZT 21,443 million recorded for the corresponding year ended 31 December 2017. In 2018 cement sales volume was 1,720,629 tonnes, a 6% increase over the 1,630,230 tonnes for the previous year. The average price (ex - VAT) for delivered cement was KZT 16,480 per tonne in 2018, a 25% increase compared with KZT 13,153 per tonne in 2017. The average ex-factory price in 2018 stood at KZT 13,354 per tonne (23% above 2017) representing USD 39 per tonne based on 2018's average exchange rate of USD/KZT 345 vs 326 in 2017.



In 2018, the cement market consumption in Kazakhstan decreased by 4% at 8.6 million tonnes.

Steppe Cement's local market share increased to 17.5% while exports increased by 50% from 146,000 tonnes in 2017 to 220,000 tonnes in 2018. Overall, Kazakhstan imported 0.65 million tonnes of cement, the same as the previous year, and exported 2 million tonnes (vs 0.9 million in 2017).

The full results and audited accounts denominated in USD are expected to be published in April 2019.

[jailbird] 08/1/2019 12:49

Liquid on both sides now - that is good

[jailbird] 08/1/2019 12:40

Looks like another sell on the books in the background

[azalea] 08/1/2019 11:24

Opening buy of 25k @ 21p

[jailbird] 07/1/2019 17:43

I mean 155k ...only time you can pick up stock without paying a premium

[jailbird] 07/1/2019 17:34

So another 135k sold today has been picked up by a couple here

[azalea] 07/1/2019 16:20

Relatively liquid stock? What data do you have on holdings, to support that?

[mattjos] 07/1/2019 14:50

don't think that it's in any way relevant … relatively illiquid stock like this and any II will have to pay according to what is coming available in the size they want, from A N Other seller, as & when.
Trying to buy 10m shares in the open market is impossible without their racing the price up 300-400%

21p buy price is on a historical 4.76% yield. Current financial year is trading well ahead of prior year. This should be just about the lows in the price, given those metrics.

The RUB is now starting to gain ground against the USD so, I would expect KZT to start to do likewise.