Steppe Cement (LSE:STCM) delivered a solid performance in the first quarter, with sales volumes reaching 344,058 tonnes and revenue in tenge rising 50% year on year. The growth was driven by a 20% increase in average selling prices and a 27% rise in ex-factory prices. The company also expanded its market share in Kazakhstan to 16.0%, supported by a 2% increase in overall cement consumption and a decline in imports, which accounted for just 6.3% of the market.
Production of clinker remained largely stable during the period, but the company is continuing to advance its expansion plans. The project aims to increase total cement capacity to 2.5 million tonnes by summer 2027, with an estimated investment of US$35 million. Work is already underway, with additional personnel and contractors engaged on-site. The upgrade is expected to improve operational efficiency by reducing energy consumption per tonne while also lowering emissions, strengthening both cost competitiveness and environmental performance.
Looking ahead, Steppe Cement’s outlook is supported by strong cash flow generation, low leverage, and a favourable dividend profile, alongside ongoing strategic developments. However, valuation concerns remain due to a relatively high price-to-earnings ratio, and technical indicators suggest the shares may be in overbought territory, introducing potential near-term volatility.
More about Steppe Cement
Steppe Cement Ltd is a Kazakhstan-focused cement producer serving the domestic construction sector. The company manufactures cement and clinker, with demand influenced by infrastructure activity and seasonal trends, while also competing with imported products within the regional market.
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