- Net income for Siam Cement in the second quarter matched estimates, reporting 3.71 billion baht.
- This represents a 54% decrease year-over-year (y/y).
- The company’s revenue increased by 2.9% y/y to 128.20 billion baht.
- Earnings per share (EPS) fell to 3.09 baht from 6.74 baht y/y, though it slightly surpassed the estimate of 3.02 baht.
- The board approved an interim dividend of 2.50 baht per share.
- The significant drop in net income was primarily due to a one-time gain from the fair value adjustment of SCG’s investment in Q2/23, amounting to 2.87 billion baht, coupled with lower performance from SCG Chemicals due to Long Son Petrochemicals Complex expenses and lower chemical spreads.
- Consolidated revenue from sales increased 3% y/y to 128.2 billion baht in the second quarter, driven by incremental sales from SCG Chemicals and SCGP.
- Consolidated profit in the first half of 2024 declined by 75% to 6.1 billion baht.
- This drop was influenced by a one-time gain from fair value adjustment of investment totaling 14.8 billion baht, Long Son Petrochemicals expenses, and lower chemical spreads.
- The interim dividend payout will total 3 billion baht for the first half of the year.
- Analyst recommendations include 15 buys, 10 holds, and 2 sells.
A look at Siam Cement Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using the Smartkarma Smart Scores have evaluated The Siam Cement Public Company Limited, a diversified industrial firm. With a high Value score of 4 and a moderate Dividend score of 3, Siam Cement appears to be undervalued with potential for growth and income generation for investors. However, the company’s Growth score of 2 suggests a slower anticipated expansion compared to its industry peers. In terms of Resilience and Momentum, Siam Cement scores a 3, indicating a stable foundation to withstand market volatility but with average short-term price performance.
Looking ahead, investors should weigh the solid Value assessment against the more modest Growth outlook when considering Siam Cement for their long-term investment strategy. With favorable scores in Value and Resilience, the company showcases promising fundamentals, while factors like Growth and Momentum suggest a balanced approach to capitalizing on potential opportunities and managing risks in the ever-evolving market landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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