EPS figures calculated from Net Profit / 484,000,000 shares outstanding.
RAKCC share price as of 25 Jan 2009 was 0.89 dhs, so 2008 estimated PE is about 0.89 / 0.32 = 2.8, based on Q4 earnings, and 2008 PE based on FY earnings is 0.89 / 0.17 = 5.4, which is about twice as much. RAK Cement could be one of the few companies to see profit growth in Q4. Profit for 2007 Q4 was very low though, but all the same, 2008 Q4 profit was still more than double 2008 Q3 profit (assuming I got my Q4 calculations correct). The preliminary statement did not give details of profit sources although RAK Cement did say they had record sales revenue for 2008.
Energy costs continue to affect RAK Cement with the BOD report noting that they still did not get connected to the electricity grid in 2008H2 (which they were expecting), but are hopeful this will happen in "the near future". Gas supplies were also inconsistent, resulting in the use of diesel oil for their energy needs. RAK Cement hope to be using alternative energy (they didn't say if that would be refried beans or hamsters in wheels) for their kiln from 2009 Q2.
The RAK Cement BOD meeting results said AGM would be sometime in February, proposed a cash dividend of 11%, and resloved to make a 20% investment in Reem Ready Mix Concrete at a cost of AED 40 million.
RAK Cement shares are 10% limit up at AED 0.97 in early trading this morning, with no sell offers in the queue. Trading level is fairly low as a result. Plenty of waiting buyers though. For comparison, the ADX is up 3.05% so far today.
ADX 25 January 2009 (am):
(RAKCC) Rak Al-Khaimah Cement Company discloses annual preliminary financial results for 2008
Meeting results not supplied but I think the details are:
Cash dividend 11% approved
Cash dividend amount AED 53.24m (current RAK CC share capital AED 484m)
Payout ratio about 67% (53m dividend / 80m profit)
Dividend yield was about 12.3% based on share price of AED 0.89 as of 25 January 2009 (date results released). Since then, share price is up 42% to AED 1.26 as of Thursday's close (19 February 2009) so dividend yield has dropped to about 8.7%.
Last trading day for dividend eligibility Wednesday 25 February 2009
Ex-dividend date Thursday 26 February 2009
Record date Sunday 01 March 2009
Payment date unknown _________________ UAE IPO list | posting guidelines
If you sell on the 25th then you won't be eligible for dividends. If you sell on the 26th, then you will be (that's assuming I've got my dates correct - there wasn't an English disclosure for me to confirm). More explanation in these topics ...
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