Siam Cement positive earnings outlook, Thailand

Siam Cement positive earnings outlook, Thailand
24 April 2014

Siam Cement Plc is expected to post another strong quarterly performance, according to analysts at SCB Securities cited in reports by The Nation.

First quarter net profit is estimated at THB9.5bn (US$293.7m), up eight per cent YoY and 19 per cent QoQ. The growth is expected to be driven by a “wider chemical spreads, no repeat of last quarter's maintenance shutdown of its chemical and paper units, and seasonally higher sales volume for all business units.”

SCB expects Siam Cement’s building material units will demonstrate moderate growth YoY and QoQ (seasonality). “We estimate domestic cement sales volume growth at four per cent YoY with relatively stable cement selling prices from 4Q13 (flat QoQ but up seven per cent YoY).

Yesterday, Siam City Cement reported a double-digit rise in first quarter earnings and sales led by higher average selling prices and increased exports. However, it cautioned that its full year outlook is likely to be impacted by ongoing political tension and delays in government spending.

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