Malayan Cement

[winston]

vested

June 7, 2023

Maiden dividend expected in FY24F

Reiterate Add with a higher TP of RM5.08 based on DCF as we raise our FY23-25F EPS by 36-107% on higher blended ASP assumptions.

Earnings recovery has thus far been ASP and cost driven. We expect stronger volume growth in 2HCY23F.

We think strong FCF generation will result in maiden dividends in FY24F.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 463455E01C

[winston]

not vested

HLIB upgrades Malayan Cement to 'buy' with target price of RM4.80

By Lee Ming Hui

Core profit after tax and minority interest (Patami) of RM96.2 million for the first quarter of 2024 (1QFY2024), beating both HLIB's and consensus expectations.

MCement’s 1QFY2024 revenue of RM1.15 billion, which increased by 13.6% quarter-on-quarter (q-o-q) and 33.7% year-on-year (y-o-y), c

RM2 billion of debt sits at the company level.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/691222

[winston]

not vested

Solid start to the year

1QFY6/24 results were above our expectations, with strong volume growth of 14% qoq as ASPs remained stable.

Promising prospects ahead, once large infrastructure projects are rolled out.

Reiterate Add with unchanged TP of RM5.55, based on DCF.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 541E4228CE

[winston]

Gaining market share in Singapore

Reiterate Add; raise FY6/24F-FY6/26F EPS and lift TP to RM6.00.

Awaiting large Malaysia mega projects but exports to Singapore providing strong tailwinds, in our view

We do not see a near-term threat from CIMA sale, as MCement has dominant share

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 15BFD99345

[winston]

not vested

Malayan Cement Bhd
Poised to deliver strong earnings

We see a strong 3QFY6/24F and hence raise FY24F-26F EPS by 26-36%.

We view the aborted CIMA sale as positive for the industry and MCement.

Reiterate Add with higher DCF-derived TP of RM6.80.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 84723EF692

[winston]

not vested

Malayan Cement likely to report strong 3Q results, says CGS International

By Jason Ng

Malayan Cement is also the sole supplier of cement for the East Coast Railway Link (ECRL) project, where its grinding plant in Port Klang covers the ECRL route, CGS said.

Exports, particularly to Singapore, should remain strong in FY2024, it added.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/710228

[winston]

not vested

Malayan Cement expected to benefit from key infrastructure projects

Bloomberg data showed that all six institutional analysts covering MCement recommended 'buy', with a consensus target price of RM6.39. This translates into a 20.5% potential upside.

MIDF Research highlighted that MCement is poised to benefit from civil projects, such as the construction of the Penang Light Rail Transit (LRT) and the redevelopment of Kuala Lumpur Sentral, as well as private projects, including data centres, warehouses and semiconductor factories.

It said ongoing projects such as the likes of the East Coast Rail Link (ECRL), Rapid Transit System (RTS) and LRT 3 will also sustain demand for cement.

Meanwhile, CGS International pointed out that MCement had achieved a 40% cement market share in Singapore, and that demand for cement in Singapore is expected to grow, due to a slew of megaprojects, such as Changi Terminal 5, integrated resorts' expansion, the Tuas megaport and Mass Rapid Transit (MRT) projects.

MCement posted a 60% jump in 3QFY2024 net profit to RM101.24 million, from RM63.28 million a year ago, on an increase in revenue of 10.9% to RM1.10 billion from RM990.71 million.

Source: The Edge

[winston]

Malayan Cement Bhd
Strong quarter; 4 sen interim dividend

3QFY6/24 above expectations; interim dividend of 4 sen

With increased visibility of project rollouts in Malaysia and Singapore, we expect its volume growth to sustain in FY25F-FY26F

Reiterate Add and DCF-derived TP of RM6.80

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... E91153A9BD