Market's view on Steppe Cement
Published on April 2024
- A stock watcher highlighted the impact of weather on Kazakhstan’s cement production, noting a 13.5% decrease in March compared to the previous year, which was anticipated from company updates. They also mentioned the potential for selling accumulated clinker stock later for cash.
- A discussion followed on the potential benefits for a company from a theoretical victory in Ukraine by Russia, considering the proximity and market dynamics. It was pointed out that while Ukraine’s reconstruction might not directly benefit the company due to distance, regional stability and reduced supply to other areas might be advantageous.
- Cement pricing and value were debated, with a specific focus on the selling price of clinker and its representation as a substantial cash equivalent in business operations.
- Concerns about the political landscape in Kazakhstan were dismissed by a stock watcher, who argued that there is little organized opposition to the current government, suggesting a stable investment environment.
- The approval of a capital restructuring was discussed, clarifying that it is not a dividend but rather a tax-related adjustment in the UK, decreasing the purchase price of shares for tax purposes.