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Pesa Nane		#1 Posted : Friday, August 26, 2016 11:40:35 AM
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c		Pesa Nane plans to be shilingi when he grows up.
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Pesa Nane		#2 Posted : Friday, August 26, 2016 11:48:07 AM
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c		Quote: Take Aways Revenue 13% down Increased competition in Tz with new market entrant Tz prices 33% down due to competition EBITDA 17% down to KES 1.6Bn Higher energy costs Finance costs KES 1.5Bn up Net Loss KES 267 Million CDC made an equity investment of USD 140 million New capital to pay down debt and support group's expansion plans No interim div Pesa Nane plans to be shilingi when he grows up.
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Felipe		#3 Posted : Friday, August 26, 2016 12:11:00 PM
Rank: New-farer Joined: 11/2/2014 Posts: 38		Pesa Nane wrote: Quote: Take Aways Revenue 13% down Increased competition in Tz with new market entrant Tz prices 33% down due to competition EBITDA 17% down to KES 1.6Bn Higher energy costs Finance costs KES 1.5Bn up Net Loss KES 267 Million CDC made an equity investment of USD 140 million New capital to pay down debt and support group's expansion plans No interim div I'm optimistic about the future prospects of the cement industry in EA and in particular Tanzania Tanzania key infrastructure projects this financial year: * Shift of government seat to the designated capital of Dodoma: major infrastructure projects expected * $6.7bn standard gauge railway that will link Rwanda and Burundi * $10bn mega port at Bagamoyo * $4.0bn oil pipeline which is expected to transport Ugandan crude oil to the Tanga for export * Rehabilitation of the Central railway line and improvements in Dar es Salaam and Mtwara ports Competition has led to reduced prices but also imported cement from such countries as Pakistan are no more. Cement from local producers are dominating the market. Most hardware stores stock cement from Tanzania Portland Cement company, Rhino Cement and Dangote Cement. produced by Athi River Mining. TA = Price Action + Vol + S/R + Trend + Pattern.
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the deal		#4 Posted : Friday, August 26, 2016 6:36:24 PM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		Double digit drop in revenues...someone is eating their lunch...lets see if they can compete in a crowded area that is the East Africa Cement market...
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murchr		#5 Posted : Friday, August 26, 2016 7:20:08 PM
Rank: Elder Joined: 2/26/2012 Posts: 15,980		the deal wrote: Double digit drop in revenues...someone is eating their lunch...lets see if they can compete in a crowded area that is the East Africa Cement market... Welcome back, your absence was felt "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore .
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VituVingiSana		#6 Posted : Friday, August 26, 2016 10:39:05 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi		Is the construction industry/sector slowing down OR have the unlisted competitors increasing their sales (market share) compared to ARM and Bamburi? [No idea what's happening at EAPCC]. Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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VituVingiSana		#7 Posted : Friday, August 26, 2016 11:10:09 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi		Felipe wrote: Pesa Nane wrote: Quote: Take Aways Revenue 13% down Increased competition in Tz with new market entrant Tz prices 33% down due to competition EBITDA 17% down to KES 1.6Bn Higher energy costs Finance costs KES 1.5Bn up Net Loss KES 267 Million CDC made an equity investment of USD 140 million New capital to pay down debt and support group's expansion plans No interim div I'm optimistic about the future prospects of the cement industry in EA and in particular Tanzania Tanzania key infrastructure projects this financial year: * Shift of government seat to the designated capital of Dodoma: major infrastructure projects expected * $6.7bn standard gauge railway that will link Rwanda and Burundi * $10bn mega port at Bagamoyo * $4.0bn oil pipeline which is expected to transport Ugandan crude oil to the Tanga for export * Rehabilitation of the Central railway line and improvements in Dar es Salaam and Mtwara ports Competition has led to reduced prices but also imported cement from such countries as Pakistan are no more. Cement from local producers are dominating the market. Most hardware stores stock cement from Tanzania Portland Cement company, Rhino Cement and Dangote Cement. produced by Athi River Mining. Why have imports (eg Pakistan) stopped? What stops China [which is funding these projects] from supplying cement to replace the Pakistani suppliers? Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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Felipe		#8 Posted : Friday, August 26, 2016 11:53:24 PM
Rank: New-farer Joined: 11/2/2014 Posts: 38		VituVingiSana wrote: Felipe wrote: Pesa Nane wrote: Quote: Take Aways Revenue 13% down Increased competition in Tz with new market entrant Tz prices 33% down due to competition EBITDA 17% down to KES 1.6Bn Higher energy costs Finance costs KES 1.5Bn up Net Loss KES 267 Million CDC made an equity investment of USD 140 million New capital to pay down debt and support group's expansion plans No interim div I'm optimistic about the future prospects of the cement industry in EA and in particular Tanzania Tanzania key infrastructure projects this financial year: * Shift of government seat to the designated capital of Dodoma: major infrastructure projects expected * $6.7bn standard gauge railway that will link Rwanda and Burundi * $10bn mega port at Bagamoyo * $4.0bn oil pipeline which is expected to transport Ugandan crude oil to the Tanga for export * Rehabilitation of the Central railway line and improvements in Dar es Salaam and Mtwara ports Competition has led to reduced prices but also imported cement from such countries as Pakistan are no more. Cement from local producers are dominating the market. Most hardware stores stock cement from Tanzania Portland Cement company, Rhino Cement and Dangote Cement. produced by Athi River Mining. Why have imports (eg Pakistan) stopped? What stops China [which is funding these projects] from supplying cement to replace the Pakistani suppliers? Imports have stopped especially from the 2nd half of last year after local cement makers slashed prices up to Tsh 10,000 per 50kg due to intense competition: * It would not make economic sense to traders in such areas as Kariakor, Mwenge, Bunju within Dar city to stock imported cement as it would not sell because prices of locally made cement have been reduced. * local masons and building contractors use local cement because their prices were now more affordable and were good in quality. Note: It's the aspect of quality and prices which have automatically reduced or taken out cheap imports from Asian countries from the local market. TA = Price Action + Vol + S/R + Trend + Pattern.
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VituVingiSana		#9 Posted : Saturday, August 27, 2016 12:01:17 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi		Felipe wrote: VituVingiSana wrote: Felipe wrote: Pesa Nane wrote: Quote: Take Aways Revenue 13% down Increased competition in Tz with new market entrant Tz prices 33% down due to competition EBITDA 17% down to KES 1.6Bn Higher energy costs Finance costs KES 1.5Bn up Net Loss KES 267 Million CDC made an equity investment of USD 140 million New capital to pay down debt and support group's expansion plans No interim div I'm optimistic about the future prospects of the cement industry in EA and in particular Tanzania Tanzania key infrastructure projects this financial year: * Shift of government seat to the designated capital of Dodoma: major infrastructure projects expected * $6.7bn standard gauge railway that will link Rwanda and Burundi * $10bn mega port at Bagamoyo * $4.0bn oil pipeline which is expected to transport Ugandan crude oil to the Tanga for export * Rehabilitation of the Central railway line and improvements in Dar es Salaam and Mtwara ports Competition has led to reduced prices but also imported cement from such countries as Pakistan are no more. Cement from local producers are dominating the market. Most hardware stores stock cement from Tanzania Portland Cement company, Rhino Cement and Dangote Cement. produced by Athi River Mining. Why have imports (eg Pakistan) stopped? What stops China [which is funding these projects] from supplying cement to replace the Pakistani suppliers? Imports have stopped especially from the 2nd half of last year after local cement makers slashed prices up to Tsh 10,000 per 50kg due to intense competition: * It would not make economic sense to traders in such areas as Kariakor, Mwenge, Bunju within Dar city to stock imported cement as it would not sell because prices of locally made cement have been reduced. * local masons and building contractors use local cement because their prices were now more affordable and were good in quality. Note: It's the aspect of quality and prices which have automatically reduced or taken out cheap imports from Asian countries from the local market. Wouldn't the (much) lower prices for local cement substantially reduce the profitability of the cement firms? Are any of these firms selling cement at a loss? Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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alotoftalk		#10 Posted : Saturday, August 27, 2016 5:24:50 AM
Rank: Member Joined: 8/27/2015 Posts: 138 Location: Harare		Now that they have solved their capital structure issues (financing costs, forex) with the CDC investment. Hopefully now they'll get time to look at the operational challenges. Almost ~ KES 1 Billion hit on the top line with no new competitor in the market. To be fair to them looks like it's an industry issue as Bamburi has also taken a hit. Investment philosophy development in progress...
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