Malayan Cement

Malayan Cement

Postby winston » Mon Feb 24, 2020 2:19 pm

not vested

Malayan Cement Berhad (LMC MK) : BUY
Mkt. Cap: US$739m I 3m Avg. Daily Val: US$0.07m
Last Traded Price ( 20 Feb 2020): RM3.62
Price Target 12-mth: RM4.40 (22% upside) (Prev RM3.95)

Lifted by better gross margin
Net loss continued to narrow with improved gross margin
Gross margin was supported by better cement prices and lower coal prices
Expect better quarters ahead, backed by improved demand and more cost savings
Sentiment has turned positive; maintain BUY with higher TP of RM4.40

Source: DBS

https://researchwise.dbsvresearch.com/R ... bgfikfcafi
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Re: Malayan Cement

Postby winston » Tue Apr 21, 2020 8:12 am

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Malayan Cement's post-merger turnaround to continue after MCO

KUALA LUMPUR: RHB research has initiated coverage on Malayan Cement Bhd with a buy rating as the manufacturer's turnaround story is expected to continue on pent-up demand from domestic construction projects and exports traction spilling over into 2021.

Ther research house said in a note that the cement producer's losses have narrowed on cost rationalisation and easing industry headwinds since YTL Cement Bhd's takever in May 2019, and this should continue after the movement control order is lifted.

"Recovering ASPs and decline in key input costs should drive a sharp earnings rebound in 2H20, outpacing the broader economy on back-loaded volume demand supporting utilisation rates," it said.

In addition, RHB expects the upcoming 12th Malaysian Plan to provide longer-term volume visibility, with potential upsides due to pent-up demand from previously delayed infrastructure project roll-outs.

"Malaysia’s 2019 cement consumption of 424kg/capita trails its long-term average of 632kg, suggesting a potential ‘rubber-band’ mean reversion down the line as macroeconomic conditionsimprove post-pandemic and spur a broad recovery in building materials demand.

"We note that public development expenditure increased during the 2008-2009 global financial crisis despite reporting a wider fiscal deficit," it said.

RHB has a target price of RM3 for the stock, which offers a 33% upside from its last traded price of RM2.25 on Friday.

Source: The Star

https://www.thestar.com.my/business/bus ... -after-mco
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Re: Malayan Cement

Postby winston » Tue Feb 16, 2021 3:52 pm

vested

Dec 31, 2020

AmInvest’s top pick for the sector is Malayan Cement (‘Buy’ with a fair value of RM3.36).

“At its current share price, the market is effectively valuing Malayan Cement at a 30% discount to its replacement cost (based on the replacement cost for clinker capacity of US$120 per tonne).

“We believe this is unjustified given that it is turning around with rational competition among players after the recent industry consolidation.

We believe our valuation for Malayan Cement, based on a 10% discount to replacement cost, is more appropriate,” said Yap.

Source: Malaysia Reserve
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Re: Malayan Cement

Postby winston » Fri Feb 19, 2021 8:05 am

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Malayan Cement staging breakout above resistance level, says RHB Retail Research

by Surin Murugiah

KUALA LUMPUR (Feb 19): RHB Retail Research said Malayan Cement Bhd is staging a breakout above the resistance level of RM2.30.

In a trading stocks note today, the research house said due to the surge in trading volume, the bullish momentum is gaining strength and this may propel the stock towards the next resistance level of RM2.43, followed by RM2.60.

“Meanwhile, a downward breach of the RM2.13 support would negate this expectation,” it said.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... l-research
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Re: Malayan Cement

Postby winston » Sun Feb 21, 2021 5:33 pm

vested

Dec 24, 2020

Compelling Valuations; Stay BUY
Buy (Maintained)
Target Price (Return): MYR3.75 (50.6%)
Price: MYR2.49
Market Cap: USD521m
Avg Daily Turnover (MYR/USD) 0.51m/0.12m

Keep BUY and MYR3.75 TP, 51% upside.

Malayan Cement’s FY21F (Jun) turnaround trajectory remains on track despite the recent Conditional Movement Control Order (CMCO) reinstatement, with 1QFY21 hitting breakeven at PBT level, led by the cement segment.

A cement demand recovery heading into 2021, accommodative cost environment, and further benefits accrued from ongoing integration with parent YTL Cement should
continue to underpin sequential earnings recovery going forward.

Source: RHB

https://research.rhbtradesmart.com/view ... e2942f5a46
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Re: Malayan Cement

Postby winston » Tue Feb 23, 2021 2:38 pm

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Nov 27, 2021

Better performance due to cost efficiencies

1QFY6/21 results were above expectations with core net profit of RM0.7m.

Operational efficiencies were the main driver, ahead of demand recovery.

Hold with a higher TP RM 2.50; positives from Budget 2021 appear to be in the price.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 9DBF410133
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Re: Malayan Cement

Postby winston » Fri Apr 16, 2021 8:28 am

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Malayan Cement to raise RM227m via private placement to repay debts and fund working capital

by Arjuna Chandran Shankar

The exercise involves the issuance of 85 million new shares, or 10% of its share capital of 849.7 million shares, to third party investors.

Based on an indicative price of RM2.67 apiece, gross proceeds from the placement will be RM226.95 million, it said.

The group said RM53.95 million of the proceeds will be used for working capital requirements, including for trade payables, operating expenses and administrative expenses.

Another RM170 million will be used to settle some of the group's debts. As of June 30, 2020, Malayan Cement's bank borrowings stand at RM929.6 million.

Malayan Cement said the partial repayment of its bank borrowings is expected to resulted in a pre-tax interest saving of RM4.1 million per annum.

Total borrowings, meanwhile, would decline to RM759.62 million from RM929.62 million, leading to its gearing ratio falling to 0.3 times from 0.41 times, the group said.

Malayan Cement said its share capital would increase to 934.7 million shares from 849.7 million shares currently, upon completion of the private placement, which is expected by the fourth quarter of the current financial year ending June 30,2021.


Source: theedgemarkets.com


https://www.theedgemarkets.com/article/ ... ng-capital
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Re: Malayan Cement

Postby winston » Mon Apr 19, 2021 9:18 am

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Placement deal to raise RM227m

Malayan Cement has proposed a placement deal that will raise up to RM227m. The deal will also resolve the group’s public shareholding spread.

We estimate a net 2.4% dilution to FY6/22F EPS and 7% dilution to our
revised TP due to the larger share base.

Reiterate Hold rating with a higher TP of RM3.26 (1.21x CY21F P/BV).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 5088E488DD
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Re: Malayan Cement

Postby winston » Thu May 13, 2021 8:01 am

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Malayan Cement to take over YTL Cement's cement and ready-mixed concrete biz in RM5.16b deal

by Tan Siew Mung

KUALA LUMPUR (May 12): YTL Cement Bhd, a subsidiary of YTL Corp Bhd, today inked an agreement to sell its entire cement and ready-mixed concrete operations in Malaysia to its 76.98%-owned subsidiary Malayan Cement Bhd, for RM5.16 billion in a cash and stock deal.

Of the total consideration, which YTL Cement said is still subject to adjustments at the point of completion, RM2 billion will be settled in cash. Malayan Cement will then issue 375.5 million new shares to YTL Cement to satisfy RM1.41 billion, and issue 466.7 million new irredeemable convertible preference shares (ICPS) for the remaining RM1.75 billion.

The new Malayan Cement shares and ICPS will be issued at RM3.75 per share/ICPS, which was also the price per share that YTL Cement paid for the acquisition of its 76.98% equity interest in Malayan Cement in 2019, which was premised on the potential synergies that would arise from the integration of businesses between the two groups.

YTL Cement’s shareholding in Malayan Cement is expected to increase to approximately 78.58%.


Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... 516b-asset
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Re: Malayan Cement

Postby winston » Mon May 17, 2021 8:40 am

Speeding up path to profitability

MCement has announced acquisition of 12 subsidiaries owned by YTL Cement
for a purchase price of RM5.2bn to be satisfied via cash, issuance of shares and
ICPS.

Target completion by 3QCY21.

We are long term positive as this would facilitate further extraction of cost synergies.

MCement’ FY22f EPS could be lifted by 16%. Maintain forecasts.

Upgrade to BUY with higher TP of RM3.60 after raising our target P/B multiple to 1.3x based on c.20% discount to 10 year P/B average.

We turn positive on the stock especially since the injection of profitable assets should put MCement on a faster track to profitability.

Downside risks: higher interest rate, political fluidity, prolonged Covid-19 and
coal prices.

Source: HLIB
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