Al Jouf Cement Company [3091.SE] has renewed its export licence received a year ago from the Saudi Arabian Ministry of Commerce and Investment. The company noted that the licence will be valid for one year from the issuance date (until 15 Feb 2019). 
 
Although the news is positive and would support Al Jouf’s export plan to Jordan (the company recently signed two MoUs with Jordan-based firms), the oversupply scenario along with the weak demand metrics in Jordon, would limit the export potential, in our view. 

Sameer Kattiparambil
 
Al Jouf Cement: SAR10.40 as of 15 Feb. 2018, Rating: Sell, TP: SAR6.71/share, MCap: USD397mn, JOUF AB/3091.SE