Riyad Capital Tweaks Southern Province Cement Co. Price Target After Q2 Net Profit Exceeds Expectations

06:15 AM EDT, 08/13/2026 (MT Newswires) -- Riyad Capital revised its price target on Southern Province Cement Co. (SASE:3050) following the release of the cement producer's second-quarter results, according to a Wednesday note. The three-month period saw the company log a 700% year-over-year surge in net profit to 24 million Saudi riyals, which exceeded Riyad Capital's estimate of a 2 million-riyal loss and the market consensus of a profit of 300,000 riyals. Revenue, meanwhile, rose 3% annually to 201 million riyals, which aligned with the research firm's 199 million-riyal estimate. "Y/Y growth was driven by higher volumes despite lower prices, while Q/Q decline resulted from marginally lower prices and volumes. Blended ASP declined to SAR 191/ton (-8% Y/Y, -0.4% Q/Q), in line with our SAR 190/ton estimate," analysts wrote. "The strong earnings growth was mainly driven by the significantly lower cost per ton. 1H2026 profits grew marginally to SAR 20 min, due to lower cost of sales, financing and Zakat expenses. We maintain our Neutral stance with a trimmed target price of SAR 19.00 per share."