The term "tadawul 1320" is among the most frequently discussed topics among those interested in Saudi stocks, especially when searching for leading cement companies in the Kingdom. In this context, Hail Cement Company, listed on the Saudi financial market (Tadawul) under the symbol 3001, stands out as one of the industrial companies that has witnessed significant developments in recent years. The cement sector plays a pivotal role in supporting construction and infrastructure projects, making the performance of cement companies and monitoring their developments a vital topic for anyone looking to understand the dynamics of the Saudi market. This article reviews all aspects related to Hail Cement stock, starting from financial and operational performance, through sector and competitor analysis, to recent developments such as acquisitions and delisting from the market. The article also addresses the most prominent questions raised by stakeholders regarding the future of the company and the stock, providing a neutral and objective understanding of the financial and administrative events that the company experienced in 2024–2025. This comprehensive guide has been prepared based on the latest data and official sources, adhering to the disclosure and neutrality rules established in the Saudi financial market, while constantly emphasizing the importance of consulting a licensed financial advisor before making any investment decision.
Overview of Hail Cement Company and Its Role in the Saudi Market
Hail Cement Company was established to meet the growing demand for cement in the Kingdom of Saudi Arabia, especially in the northern regions. Headquartered in Hail, it specializes in the production of Portland cement and related derivatives, which are essential materials in various construction and urban projects. The company is listed on the Saudi financial market (Tadawul) under the symbol 3001, allowing local and international investors to learn about one of the prominent players in the industrial goods sector.
The company relies on advanced production lines to ensure the quality of its products, primarily targeting the supply of construction and infrastructure projects in the Kingdom. Since its inception, Hail Cement has been keen on enhancing self-sufficiency in cement and reducing reliance on imports, in line with the Kingdom's Vision 2030 aimed at localizing essential industries.
From an investment perspective, the company's listing on Tadawul was part of a broader trend towards enhancing transparency in the cement sector and opening the door for fair financial evaluation and comparisons with competing companies. This has reflected in the increasing interest of financial analysts in studying the company's performance and development within the sector.
tadawul 1320: What Does the Symbol Mean in the Saudi Financial Market?
The symbol "tadawul 1320" often refers to a trading symbol used to search for companies in the cement sector, and some confuse it with symbols of other companies. In the case of Hail Cement Company, the official symbol is 3001. It is important to clarify that Tadawul uses unique numbers for each listed company, allowing investors quick access to the company's financial data, announcements, and relevant market news.
Digital symbols (like 3001 for Hail Cement) are part of the structured financial market framework, facilitating electronic stock search and trading. Therefore, when searching for "tadawul 1320" or similar symbols, it is always advisable to verify the official symbol of the targeted company through the official website of the Saudi financial market.
This procedure ensures the accuracy of available financial information and reduces the chances of confusion between companies, especially in sectors that include a large number of competitors like the cement sector.
Company Financial Performance Between 2023 and 2024
Hail Cement Company witnessed notable changes in its financial performance during 2023 and 2024. By the end of 2023, the company's net profit reached approximately 24.6 million Saudi Riyals, while the fourth quarter of the same year recorded only 3.2 million Riyals. In the first quarter of 2024, net profit declined to 15 million Riyals, a decrease of 19% compared to the same period last year.
These developments reflected on the company's financial indicators, as the profit margin remained relatively limited compared to larger companies in the sector. Consequently, the company's price-to-earnings (P/E) ratio became relatively high, which typically indicates a high market valuation relative to limited earnings.
Regarding distributions, the company announced in February 2024 a cash dividend of 3.5% for the fourth quarter of 2023, but no new distributions were announced for 2024 due to acquisition and delisting procedures. This development had a direct impact on investors' decisions, especially amid the company's shift in strategy towards merging with a larger entity.
Dividends and Recent Financial Policy
Hail Cement Company has followed a policy of periodic cash dividends in recent years, aiming to reward shareholders and enhance the stock's attractiveness in the market. On February 25, 2024, the company announced a cash dividend of 3.5% of the share value (0.35 Riyals per share) for the fourth quarter of 2023. These distributions reflect the company's commitment to allocating part of the profits to shareholders, even amid declining annual net profits.
However, no new distributions were announced in 2024 due to the acquisition by Qassim Cement Company and the resulting delisting procedures. This shift in financial policy reflects a change in management priorities, focusing on achieving the best deal for shareholders within the merger process, rather than continuing the traditional distribution policy.
It is important to note that the dividend distribution policy changes according to the company's and sector's conditions, and is often influenced by profit levels, cash flows, and expansion or acquisition plans.
Stock Price and Market Value Before Delisting
The last announced trading price for Hail Cement stock was approximately 11.60 Saudi Riyals per share before trading was suspended in June 2024. Based on this price, the company's market value was estimated at several hundred million Saudi Riyals, depending on the total number of outstanding shares.
The P/E ratio was relatively high due to the decline in annual profits compared to the market value. This situation is common among companies facing pressure on their net profits, reflecting the market's high valuation of future expectations or the company's position within its sector.
The suspension of trading on the stock was a direct result of the acquisition by Qassim Cement Company and the approval of the general assembly of shareholders for the deal. Thus, it became impossible to trade the stock separately, and most of the company's activities were gradually transferred to the acquiring entity.
Analysis of the Saudi Cement Sector and the Role of Competition
The cement sector is one of the vital sectors in the Saudi economy, due to its fundamental role in supporting infrastructure, housing, and industrial development projects. The sector includes a large number of major and medium-sized companies, most notably Qassim Cement Company, Al-Yamamah, Eastern Province, Yanbu, Madinah, and other important players.
Data from 2024 indicates that the sector's profits were relatively stable, with total profits of Saudi cement companies reaching about 2 billion Riyals during the first nine months of the year, with quarterly profits approaching 648 million Riyals in the third quarter. However, the sector experienced fluctuations in profits in the second quarter, declining by 11% from expectations.
Competition in the sector is intense between major companies that own large production lines and wide markets, and smaller companies like Hail Cement that rely on limited market shares. Factors such as energy prices, raw material costs, and local demand levels affect the profitability of all companies. In this context, some companies resort to mergers and acquisitions to strengthen their positions, as seen between Hail and Qassim.
Hail Cement's Position Among Major Competitors
Hail Cement occupies a mid-range position among Saudi cement companies in terms of production capacity and market share. Unlike companies like Qassim or Al-Yamamah, which dominate larger market shares, Hail Cement relies on meeting local demand in the northern region and some specialized infrastructure projects.
The sector in 2024 witnessed major deals that enhanced the positions of larger players, the most notable being Qassim Cement Company's acquisition of Hail Cement. This acquisition reflects a trend towards achieving economies of scale and distributing resources more efficiently. It also helps smaller companies face market challenges such as rising costs or seasonal demand declines.
It is important to note that competition in the cement sector is not limited to prices, but also includes product quality, commitment to environmental specifications, and the ability to meet the requirements of major projects.
Key Developments in 2024: Acquisition and Delisting
The year 2024 was marked by significant developments for Hail Cement Company. In June 2024, trading of the company's shares was suspended in preparation for the start of delisting procedures from the Tadawul market, following the approval of the general assembly for the acquisition offer made by Qassim Cement Company.
The deal involved exchanging Hail shareholders' shares for new shares in Qassim Company, in accordance with the procedures of the Saudi financial market. Most regulatory procedures were completed by the end of June 2024, with the company's activities gradually transitioning to the acquiring entity.
This decision came amid a decline in the company's quarterly profits, as the acquisition represented a strategic option to improve the financial performance of shareholders and provide new growth opportunities within a larger and more diversified group.
Impact of the Acquisition on Shareholders and the Company's Future
The acquisition of Hail Cement by Qassim Cement led to significant changes in ownership structure and market share distribution. Under the deal, Hail shareholders received equivalent shares in Qassim Cement, allowing them to benefit from the resources of a larger and financially more stable entity.
Practically, this means that former shareholders of Hail are now part of the shareholder base of Qassim, with the opportunity to benefit from dividends and better growth prospects in the long term. These deals also allow smaller companies to overcome challenges of high costs and seasonal demand fluctuations.
As for the future of the company, it has become directly linked to the performance of Qassim Cement and its expansion strategies, in addition to the expected changes in the sector as a whole in light of the ongoing massive infrastructure projects in the Kingdom.
Assessment of the Performance of the Cement Sector in Saudi Arabia During 2024–2025
The cement sector in Saudi Arabia is witnessing a balance between supply and demand, with ongoing major construction projects supporting local demand for cement. Data from 2024 indicates that the sector achieved total profits of 2 billion Riyals in the first nine months, despite a slight decline in profits during the second quarter.
The performance of cement companies is closely linked to energy prices, raw material costs, and the level of demand from government and private projects. Mergers and acquisitions also contribute to the restructuring of the sector, enhancing companies' ability to cope with fluctuations and improve operational efficiency.
From an environmental perspective, the sector faces challenges related to compliance with environmental standards and the development of sustainable production technologies, representing an opportunity for companies investing in innovation and development.
Prospects for the Cement Sector and Future Risks
The cement sector in Saudi Arabia is expected to remain pivotal in the coming years, supported by Vision 2030 initiatives and massive infrastructure projects such as the Red Sea Project and Qiddiya. However, the sector also faces challenges related to fluctuating demand, rising production costs, and changes in environmental regulations.
The ability of companies to survive and grow in this sector depends on their flexibility to adapt to changes, invest in efficiency improvements, and adopt acquisition or merger strategies when necessary. Additionally, the trend towards product diversification and the development of sustainable solutions will contribute to enhancing the competitiveness of Saudi companies regionally and internationally.
It is important for financial market followers to monitor sector developments periodically, especially with the increasing importance of quarterly reports and regulatory changes that may impact the performance of listed companies.
Importance of Consulting a Licensed Financial Advisor When Dealing with Cement Stocks
The Saudi financial market system and the Capital Market Authority emphasize the importance of consulting a licensed financial advisor before making any investment decision in cement company stocks or other sectors. This is due to the complexity of factors affecting stock prices, such as financial performance, regulatory changes, and sector trends.
A financial advisor helps assess risks and opportunities based on a comprehensive analysis of financial data and market developments, while considering the investor's personal goals and risk tolerance level.
Therefore, it is always advisable not to rely solely on news or general market analyses when making investment decisions, and to consult certified specialists to ensure capital protection and achieve desired financial goals.
Conclusion
In this comprehensive guide, we reviewed everything related to "tadawul 1320" and Hail Cement stock (3001), from financial performance and dividend distributions to acquisition and delisting developments, as well as the company's position in the Saudi cement sector and competition analysis. This study confirms that the cement sector is witnessing rapid developments and remains one of the pillars of the national economy in the Kingdom.
With Hail Cement officially transitioning to the ownership of Qassim Cement, the future of its shareholders is now linked to the expansion strategies and financial capabilities of the larger entity. Amid these changes, the importance of continuous monitoring of financial news and quarterly data emerges, along with the necessity of adhering to disclosure and transparency.
The SIGMIX platform keeps pace with the latest developments in the Saudi financial market and provides accurate analytical tools to assist those interested in tracking the performance of sectors and companies. We always remind the importance of consulting a licensed financial advisor before making any investment decision, to ensure decisions are based on scientific foundations and personal goals that suit the investor's acceptable risk level.
Frequently Asked Questions
The term "tadawul 1320" refers to a search symbol commonly used on Saudi financial market platforms to access cement sector companies or follow related company news. However, the official symbol for Hail Cement Company is 3001. It is always advisable to verify the accurate symbol through the official Tadawul website when searching or dealing with any stock to avoid confusion between companies.
Hail Cement Company achieved a net profit of 24.6 million Saudi Riyals in 2023, while it recorded 15 million Riyals in the first quarter of 2024, a decrease of 19% compared to the same period last year. These results are modest compared to larger companies in the sector, which reflected in the high P/E ratio of the stock.
Under the acquisition deal, Hail Cement shareholders received new shares in Qassim Cement instead of their previous shares. This allows them to benefit from the resources of a larger and financially more stable company, linking the future of their investments to the performance of Qassim and its strategies in the sector.
Hail Cement's stock was delisted after the general assembly approved the acquisition offer made by Qassim Cement Company. This led to the suspension of trading on the stock in June 2024 and the initiation of regulatory procedures for the official delisting from the market, a common procedure when two listed companies merge.
The Saudi cement sector achieved total profits of about 2 billion Riyals during the first nine months of 2024, with quarterly profits exceeding 648 million Riyals in the third quarter. However, the sector experienced a decline in profits during the second quarter due to seasonal pressures and changes in demand.
The company announced on February 25, 2024, a cash dividend of 3.5% (0.35 Riyals per share) for the fourth quarter of 2023. No new distributions were announced in 2024 due to acquisition and delisting procedures, making the end of 2023 distributions the most recent.
Hail Cement competes with several major companies in the Saudi cement sector, including Qassim Cement (the acquirer), Al-Yamamah, Eastern Province, Yanbu, Madinah, and Najran. The largest market shares are held by Qassim, Eastern Province, and Al-Yamamah.
Yes, the sector faces risks related to seasonal demand fluctuations, rising energy and raw material costs, as well as new environmental regulations. Additionally, strong competition from larger companies forces smaller companies to improve their efficiency or seek merger opportunities.
Consulting a licensed financial advisor is essential as the stock market is influenced by many factors such as financial performance, regulatory changes, and sector risks. The advisor helps assess these factors according to your personal goals and appropriate risk level, ensuring decisions are based on scientific foundations and accurate data analysis.
After Hail Cement's stock was delisted, news about the company can be followed by monitoring the results of Qassim Cement, as all activities and assets of Hail have transitioned to it. Additionally, the Tadawul platform and specialized financial sources provide regular updates on sector developments and results of listed companies.