International Cement Group Ltd. AGM 2026: Key Highlights for Investors

Business Overview and Expansion

International Cement Group Ltd. (“ICG”), listed on the SGX Mainboard since March 2019, has rapidly expanded its footprint across Central Asia, with strategic operations in Kazakhstan and Tajikistan. The Group’s production capacity has grown to 5.5 million tonnes per year through its network of plants: Sharcem, Alacem, Korcem, Mohir (both grinding station and cement plant), and Mohir Gypsum Plasterboard Plant. The Korcem Cement Plant, opened in 2024, alone added 1.5 million tonnes of capacity, cementing ICG as the largest dry-process cement producer in Kazakhstan.

ICG’s mission is clear: “To create value for customers, opportunities for employees, and benefits for the business.” Its strategic locations near Dushanbe (Tajikistan) and Almaty (Kazakhstan) facilitate access to major markets and infrastructure projects. Notably, the Group has deep partnerships with governments, participating in critical projects such as the G4 City project in Kazakhstan.

Competitive Advantages

• Factories optimized within a 30km radius of markets and resources.
• Strong government partnerships and involvement in landmark infrastructure projects.
• Advanced production technology and local employee training programs, reinforcing ICG’s reputation as a leading regional employer.
• Recent capacity expansion positions ICG to meet regional cement demand for the next 2-3 years.

Financial and Operational Performance (FY2025)

ICG delivered outstanding financial results:

• Revenue: S\$378.8 million (up 47% year-on-year)
• Net profit: S\$75.2 million (a more than 29-fold increase)
• EBITDA: S\$122.3 million
• Net cash from operating activities: S\$104.6 million (up 62%)
• Net assets: S\$353.5 million
• Equity attributable to owners: S\$305.7 million
• NAV per share: 5.33 Singapore cents
• Earnings per share: 1.046 Singapore cents

The first full year of operation at the Korcem plant was a major contributor to growth. The Group also began exports to Kyrgyzstan, expanding its commercial reach. Additionally, the Sharcem plant, acquired in 2021 and operational from end-2023, delivered its first profitable year after resolving key operational issues.

Cash Flow Highlights

• Net cash from operating activities: S\$104.6 million
• Net cash used in investing activities: S\$66.7 million
• Net cash (used in)/from financing activities: (S\$30.9 million)
• Cash and cash equivalents: S\$12.3 million

Key Growth Drivers and Outlook

ICG is positioned to benefit from several major infrastructure projects in Kazakhstan and Tajikistan, which are expected to sustain robust cement demand:

• Kazakhstan:
  • G4 City project (near Almaty) – a major cosmopolitan hub housing over 2M people, to be completed by 2040
  • Nurly Zhol Infrastructure Program (2022-2029) – US\$9 billion investment in roads, railways, ports, and utilities
  • Big Almaty Ring Road (BARR) – 66km, six-lane ring road project
  • Belt and Road Initiative (BRI) – Centre-West and Centre-East corridor expansions
• Tajikistan:
  • Rogun Dam Project – one of the largest hydropower projects in the region, requiring substantial cement
  • Government-backed housing construction programs
  • Belt and Road Initiative – key road and railway projects

These infrastructure programs are highly price-sensitive and have the potential to significantly affect ICG’s share value given the expected boost in cement demand and the company’s strategic positioning.

Strategic Priorities

1. Operational Integration: Ensuring smooth ramp-up and integration of Korcem plant, which delivered strong sales in FY2025.
2. Market Expansion: Strengthening ties with distributors and pursuing new partnerships in Kazakhstan and Tajikistan. The Group is actively defending its market position through targeted distributor incentives and sales promotions.
3. Financial Discipline: Optimising cash flow and maintaining profitability. A notable focus is on reducing the US\$106 million debt owed to EPC contractors from plant construction, which is a key area for shareholders to monitor for potential impact on future earnings and dividends.

Shareholder Considerations and Price-Sensitive Information

• The massive increase in revenue and net profit, driven by new plant operations and market expansion, is likely to be viewed positively by investors.
• Strong cash generation and balance sheet improvements support reinvestment and debt reduction, which may enhance shareholder value.
• Exposure to large-scale infrastructure projects (such as G4 City and Rogun Dam) and participation in the Belt and Road Initiative could drive further growth and are highly price-sensitive.
• The reduction of US\$106 million debt is a crucial financial metric that could influence future dividend payouts and share price performance.

Conclusion

International Cement Group Ltd.’s aggressive expansion, operational excellence, and participation in major infrastructure projects across Central Asia position it for sustained growth. The Group’s robust financial performance, increasing production capacity, and strategic market presence highlight significant upside potential for investors. Shareholders should closely monitor developments in debt reduction, ongoing infrastructure projects, and continuing market expansion as these are likely to influence the company’s share value moving forward.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Investors should refer to official financial reports and consult with professional advisers before making investment decisions.

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