Saudi Fransi Capital (SFC) has given coverage to the Saudi cement equities through a comprehensive and detailed report. The report covers equities for seven cement companies.

Generally, the report describes the overall situation of the sector as good with stock prices reflecting their fair values. Meanwhile, the report noted the stocks of Hail Cement and Arab Cement as best choice within the sector with a "Buy" recommendation. It set the target price for Hail Cement at SR27.4, with expected price for Arab Cement at SR85.7.

SFC commended the cement sector for its high productivity and ability to distribute dividend to shareholders. However, the company noted the little room for growth available for the sector due to limited investment in expansions, and the difficulty in securing the fuel allocation as well as the selling price cap.

It also explained that the sector is trading at profitability ratios that are higher than Tadawul All Shares Index (TASI) and higher YTD growth.

The report covers the equities for Arab, Al-Qassim, Al-Yamamah, Yanbu, Hail, Najran and Saudi cement companies, and can be accessed on SFC's website.