Dangote Cement: The African Colossus
Adebayo Adebanjo
11 Apr 2022 · Company Report
Dangote Cement: The African Colossus
In this report, we discuss the investment case for Dangote Cement. Spanning 2021, DANGCEM recorded double-digit revenue growth for the second consecutive year (Group: +33.8% y/y) in both Nigeria and its rest of Africa (Pan-African) operations. This translated into EPS growth of 31.6%.
This performance was supported by increased demand from the housing sector and commercial construction despite volatility in the landing cost of cement and clinker, especially in its Pan-African operations. We believe opportunities still exist for volume growth in the forecast year 2022F due to strong demand, an evident infrastructure deficit and traction in commercial construction, especially in a pre-election year in Nigeria. We recommend Dangote Cement (DANGCEM) as a BUY with a Target Price (TP) of N328.65/s.
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