Steppe Cement Share Discussion Threads

[azalea] 01/2/2019 11:20

I agree. Its just a case of being patient. This company is under the radar of most P.I., but come the results we should return to circa 28p, a level that existed last year and has dipped since for no obvious reason.

[azalea] 30/1/2019 12:26

Excellent news which reflects STCM 50% increase in exports to 146,000 tons; which should boost its dollar earnings.

[azalea] 28/1/2019 09:03

Looks like a 50k buy @ 21p last Friday posted after the mkt closed.

[melody9999] 23/1/2019 11:28

From Roland Head on Stocko. Can we see something similar here pls?!

China Resources Cement Holdings (HKG:1313)

Original coverage: 22 November 2017

This Hong Kong-listed Chinese firm appears to be China’s answer to FTSE 100 building materials group CRH. It has also been my biggest winner yet. The shares were sold from my virtual portfolio on Monday for a gain of 50%.

[azalea] 22/1/2019 16:30

A 35k buy @ 21.5p produces a small but encouraging rise in the offer price.

[azalea] 19/1/2019 08:57

wilo 1166
In essence, what is all that all about ?

[wilo101] 19/1/2019 07:35

hxxps://www.heidelbergcement.kz/en
hxxps://www.vicat.com/Vicat-Group/Introducing-the-Vicat-Group/Vicat-s-world-presence/Kazakhstan

and Koshe Cement are the problems

[celeritas] 18/1/2019 13:57

This year, 115,000 apartments will be built in Kazakhstan, Trend ... and Infrastructure Development Kairbek Uskenbayev said at a briefing

[jailbird] 16/1/2019 18:14

I think someone picked up 250k earlier.. cleared the seller overhang

[azalea] 16/1/2019 17:59

I believe, as we move closer to the FY results in April, more buyers will move in and push the share price up. If the results are strong as expected and accompanied by a div, we could see the 30p level breached.

[wilo101] 16/1/2019 16:00

Buy, buy and buy, its ludicrously under-valued

[jailbird] 16/1/2019 09:58

Added 14500 this morning Want to get these yesterday sub 19p but funds not cleared in time

[azalea] 16/1/2019 09:50

Indeed, pushed up by two more buyers coming in, minutes after me.

[king suarez] 16/1/2019 09:35

Well those 'modest' buys have pushed the price up! I think they were v well timed imo.

[azalea] 16/1/2019 09:25

In the belief that the share price has bottomed and prospects are very promising, with a quite feasible return to circa 28p, I have doubled my relatively modest holding this morning, buying at 20p.

[azalea] 15/1/2019 12:00

K.S.
I suspect that despite the strong update, a few P.I. are selling to get some cash to cover much bigger losses elsewhere. OPG took an 8% hit yesterday.

FY results in April accompanied by a fat dividend, should provide the share price with significant upward momentum. Given the Apollo Asia funds has built a stake of 10.9%(23.9m shares), adds to my confidence in holding for the medium term.

[king suarez] 15/1/2019 11:21

Surprised to see sells still going through - market cap now £40m. Bonkers.

[melody9999] 15/1/2019 00:12

10% divi - I'll have some of that!

[king suarez] 14/1/2019 17:54

Nice report. Anticipating quite a large dividend increase then?

[wilo101] 14/1/2019 16:48

Subject: Kazakhstan || Steppe Cement - 4Q18 trading update; positive end to the year

Operating Results
Steppe Cement
4Q18 trading update; positive end to the year
Steppe Cement's 4Q18 trading update points to a positive end to the year and implies upside risk to our projections. We continue to see Steppe Cement's current valuation and the next 12-month dividend as attractive, with our 12-month Target Price of GBp 33 implying an ETR of 71%, including a 10% dividend yield.
Strong end to the year. According to Steppe Cement, its 2018 cement sales increased 6% YoY to 1.7mnt, while average ex-works cement prices rose 23% YoY to KZT 13,354/t (or 16% YoY to USD 39/t, based on the average exchange rate for the year). The numbers imply that despite negative seasonality, Steppe Cement managed to increase its 4Q18 sales volumes 13% YoY, while achieving a strong price trend. In particular, we estimate that Steppe Cement's ex-works cement prices increased 60% YoY to KZT 15,270/t, or 45% YoY to USD 41/t in 4Q18. We note that Steppe Cement's 2018 volumes and ex-works prices came in slightly above our full-year forecasts.
Supportive export opportunities. According to Steppe Cement, the Kazakhstan cement market declined 4% to 8.6mnt in 2018. Meanwhile, we believe that strong export opportunities, primarily related to Uzbekistan, supported positive price environment. In particular, cement exports from Kazakhstan more than doubled to 2mnt in 2018, while Steppe Cement increased its exports by 50% YoY to 220,000t, according to the company. Longer transportation distances also resulted in stronger growth of delivered prices compared with ex-works prices. In particular, Steppe Cement's delivered prices increased 25% YoY to KZT 16,480/t (+18% to USD 48/t) in 2018, while the company's 2018 revenues rose 32% YoY to KZT 28bn or 24% to USD 82mn. This revenue number exceeds our estimate of USD 77mn. Meanwhile, we believe that upside risks to our profitability assumptions are lower, as higher delivered prices were also associated with higher transportation costs. For this reason we leave our projections unchanged.
Attractive valuation and dividend. We expect that Steppe Cement will distribute at least GBp 2 per share in the 2018 dividend, which implies a 10% yield at the current price. We also believe that the recent decline in Steppe Cement's share price has made its valuation even more attractive. In particular, our forecasts imply that Steppe Cement trades at an over 40% discount to global peers on its 2019 EV/EBITDA of 3.2x and at about 70% discount on EV/capacity of USD 30/t.

Steppe Cement (STCM LN, GBp)
Buy (21 Sep 2016, 12:09 UTC) // Previous: Hold (14 Jul 2016, 13:07 UTC)
Target price, 12mo: 33.00 // Price: 20.50 // Upside: 61% // DY: 10.2% // ETR, 12mo: 71%

Vladimir Bespalov, Equities Analyst
[phone] // [e-mail]

[celeritas] 11/1/2019 11:50

I'm expecting a big print between SEB the sellers and Apollo the buyers to clear the overhang. Apollo are being canny, any overhang clearance of nearly 11.4m shares will lower Apollo's avg paid price.

[jailbird] 11/1/2019 10:19

I guess we also have no news period until April now which can always bring inpatient sellers for an already low traded Co

[wilo101] 11/1/2019 10:17

Net debt is now only US$9n, but the company also has and continues to build and stock-pile of a large inventory of clinker, so that it can stand ready to grind and sell when the upturn comes in July onwards and lower payables in 2019 onwards.

[jailbird] 11/1/2019 10:12

Share appreciation has been driven by dividend expectations and last dividend ...It would be good if dividends are expected again soon , it is communicated in advance RNS come across very black and white with just figures , it is shame they do not communicate it differently I think this does no favour to potential investors