On July 3, Iskitimcement reported its production in 1H 2008. The company said production had picked up by 19.6% y-o-y to 897,000 tons.
As before, Iskitimcement reported high production growth, despite its restricted production capacity. The company's mid-year performance tends to stands at around 45% of its full-year target. Unless 2008 is an exception from this tendency, we expect the company's output to amount to 2 million tons in the full year, up 10% on the company's official production capacity.
As before, we are upbeat about the company's efforts to make the most of its production potential. Even though cement prices declined this July, for the first time in several years, they remain at a high level, ensuring an EBITDA margin in the 45% to 50% range for cement makers. Out fair price for Iskitimcement is USD 5,000 per share, with an upside potential of 15%.
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