International Cement Group Ltd. 1H2025 Financial Analysis: Strong Momentum, Expanding Capacity

International Cement Group Ltd. (“ICG”) released its unaudited condensed interim financial statements for the six months ended 30 June 2025. The company, listed on the Singapore Exchange, operates cement and gypsum plasterboard plants in Kazakhstan and Tajikistan, and also maintains a non-core aluminium division in Singapore. Below, we dissect ICG’s latest performance, highlight key financial trends, and offer actionable insights for investors.

Key Financial Metrics and Highlights

• Revenue: Up 51% YoY to \$165.1 million, driven by higher selling prices and increased sales volumes, especially from new capacity.
• Gross Profit: \$59.3 million, up 74% YoY; margin improved from 31% to 36%.
• Net Profit: \$21.2 million, vs. \$4.0 million in 1H2024.
• EPS (Basic & Diluted): 0.26 cents (vs. 0.02 cents YoY).
• Operating Cash Flow: \$40.1 million (up from \$20.9 million YoY).
• Net Asset Value: \$0.043/share (Group).
• No interim dividend declared.

Quarter-on-Quarter and Year-on-Year Comparisons

Historical Performance Trends

• The company has demonstrated robust top-line growth over the past year, with significant improvement in both revenue and net profit. This growth is primarily attributable to higher selling prices, increased production volumes, and the commissioning of new capacity at the Korcem plant in Kazakhstan.
• Gross profit margin increased from 31% to 36% YoY, reflecting strong demand and pricing power in core markets.
• Operating cash flow doubled YoY, supporting reinvestment into further expansion.

Exceptional Items and Expenses

• An impairment loss of \$2.9 million was recognized for specific property, plant, and equipment, offsetting some of the gains from operations.
• Unrealised foreign exchange gains of \$4.7 million in 1H2025 versus a \$9.7 million loss in 1H2024 significantly boosted “Other Income” this period.
• Administrative expenses rose 18% YoY, mainly due to increased tax-related costs in Tajikistan and start-up costs for the new Korcem plant.

Dividends

• No interim dividend was declared for 1H2025, consistent with the previous interim period.
• Management states that earnings are being reinvested into further plant construction and expansion.

Events and Factors Affecting the Business

• Macroeconomic: The Central Asian market remains robust, supported by public infrastructure spending and urbanization. GDP growth for Tajikistan (6.7%) and Kazakhstan (4.9%) is projected for 2025.
• Foreign Exchange Risk: Significant liabilities are denominated in USD and CNY, while revenue is in KZT and TJS. Currency volatility has had a sizable impact on profitability and could affect future obligations.
• Expansion: The Korcem plant, commissioned in November 2024, added 1.5 million metric tonnes to annual capacity, solidifying ICG’s position as the largest dry process cement producer in Kazakhstan.
• Aluminium Division: The division continues to be scaled down and is deemed non-core, with a modest order book of \$3.1 million.
• No share buybacks, placements, or mandates were disclosed.
• No new fundraising, mergers, or divestments reported.

Related Party Transactions and Fund Flows

• Loans from major shareholders and non-controlling interests remain interest-free and are due in 2027. Repayments and fair value adjustments were made in 1H2025.
• No unusual related-party transactions or fund flows were reported.

Outlook and Management Commentary

The company’s outlook remains positive, underpinned by favorable market conditions, rising infrastructure investment, and expanded production capacity. However, currency volatility and rising costs are noted risks. No forecast or prospect statement was previously disclosed, and there are no signs of significant legal, regulatory, or natural disaster risks in the current reporting period.

Conclusion and Investment Recommendations

Overall Assessment: International Cement Group Ltd. has delivered a strong set of results for 1H2025, with revenue and profit both surging on the back of market demand and new capacity. Margins have improved, and cash flows are robust. The company is reinvesting earnings for further growth, and the market outlook remains favorable. Risks primarily relate to foreign exchange volatility and large USD/CNY-denominated liabilities.

• If you currently hold ICG stock: Consider maintaining your position, given the company’s strong financial momentum, expanding capacity, and positive sector outlook. Monitor forex risks and updates on future dividend policy.
• If you do not currently hold ICG stock: For investors seeking exposure to Central Asian cement markets, ICG offers growth potential and sector leadership. However, be mindful of FX risks and the absence of interim dividends; entry may be suitable for those with a medium- to long-term horizon.

Disclaimer: This analysis is based solely on public financial disclosures for the six months ended 30 June 2025 and does not constitute personalized investment advice. Investors should consider their own risk profile and consult a professional adviser before making investment decisions.

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