EPS figures calculated from Net Profit / 637,560,000 shares outstanding.
UCC share price as of open on 29 Oct 2008 was 3.80 dhs, so 2008 estimated PE is about 3.80 / 0.24 = 15.8, based on Q3 earnings, which is higher than the market average PE of about 10. 2008 PE estimate based on M9 earnings is 3.80 / 0.19 = 19.5, which is even more expensive. Not very encouraging for a company with slowing profit growth. Unless Union Cement has a cracking fourth quarter, it looks like they'll be down on annual profits by about 25%-30% compared to 2007 FY. And quite possibly even more depending on how hard they've been hit by the crash in share prices during October and November. Energy costs are also affecting their Gross Profit with cost of revenue more than doubling for the 9M period compared to 2007, although UCC still managed to see a 30% increase in Gross Profit for Q3 compared to the previous year.
Shareholder's Report included with financial statements but mostly just restates financial figures. Some excerpts below...
Union Cement Management Report (undated):
The decrease of the net profit is due to high cost of raw materials, heavy fuel oil and increase cost of power generation due to shortage of supply from FEWA and shortage of gas supply, which lead to use diesel & leasing power generators to cover the shortage of power supply, and decrease profit in share investment.
...
The company's all share investments have been invested in local market of United Arab Emirates.
The crisis of real estate mortgage has no any impact on the company business, and has not having any overseas fixed deposit in foreign banks outside UAE.
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2008 FY
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