Malayan Cement

[winston]

not vested

Improving dynamics; upgrade to BUY.

We gather that rebates for cement has been reduced resulting in higher cement prices.

We believe YTL Cement’s acquisition of Malayan Cement (MCB) has improved industry dynamics that have been pressured by intense price competition and sluggish demand over the past few years.

YTL Cement and MCB have a combined market share of c.60%, leading to cost synergies and better pricing power.

In addition, we expect cement demand to recover with the revival of several major infrastructure projects.

We factor in:
1) higher cement prices of RM215/MT (from RM200/MT) for FY21;
2) better cost synergies between YTL Cement and MCB; and
3) improved utilisation rates on the back of stronger demand next year.

We upgrade our call on MCB to BUY with a TP of RM3.95.

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... LMC_MK.xml

[winston]

YTL Corp, Malayan Cement up on proposed RM5.16b deal

by Sulhi Khalid

Following this proposed deal, Hong Leong Investment Bank (HLIB) Research has upgraded its call on Malayan Cement to “buy” with a target price of RM3.60 from RM3.04 previously.

AmInvestment Bank maintained its “buy” call on Malayan Cement with a target price of RM3.36.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/568088

[winston]

not vested

Holding steady despite market disruptions

FY6/21 results were above expectations; driven by stronger EBITDA margins.

Cement market recovery remains uncertain amid the delay in mega jobs;
conclusion to the YTL Cement deal is a key positive in the short-term.

Add retained with a lower TP; catalyst is the completion of the cement M&A.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... C05BE205A3

[winston]

not vested

1Q results

Revenue: -22%
Loss per Share: -2.44
NAV: 4.32

https://www.bursamalaysia.com/market_in ... id=3212621

[winston]

vested

Triple whammy disruptions in 1QFY22

1QFY22 results were broadly in line despite core losses; we expect a strong qoq earnings turnaround due to the ramp up in manufacturing activities.

ASPs faced stiff competition in 1Q22F; MRT 3 project could revive demand.

Add retained with lower TPcof RM 3.26, supported by attractive CY22F P/BV of 0.91x.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 88D06843A2

[winston]

vested

2Q Results

Revenue: +135%
EPS: RM 55m
NAV: RM 4.37

https://www.bursamalaysia.com/market_in ... id=3236212

[winston]

vested

STRATEGY:

ACCUMULATE (TECHNICAL)

The overall outlook for the stock has turned more favourable as the stock bounced off the 50-day EMA line after staging a gap up that culminated into a breakout above the
“Ichimoku Cloud”.

Yesterday’s breakout has completed a classic 1,2,3 continuation pattern, which has effectively kicked-started a new up leg.

We expect the stock to trade higher ahead.

Source: Maybank

[winston]

not vested

Malayan Cement FY24 earnings expected to rise

PETALING JAYA: The kick-off of major construction and property projects will spur demand for cement, benefitting players like Malayan Cement Bhd (MCement), according to RHB Research.

Thus, the research firm has lifted its financial year 2024 (FY24) forecast earnings for the cement maker by 15.7% on optimism of the recent developments in regards to infrastructure and property projects.

The research house added the stock’s current valuation of 0.6 times price-to-book value is cheap when compared with the average of 0.9 times regional peers’ command.

It noted bulk cement prices continue to remain elevated, growing 1.8% month-on-month and 14.1% year-on-year to RM375.80 per tonne as of June.

Year-to-date average selling prices continue to hover around RM380 per tonne, while the three-year average of bulk cement prices for calendar year 2019-2021 is around RM216.80.

As the largest cement brand in Malaysia with 65% market share, RHB Research said MCement deserved a “buy call” as it will benefit directly from the revival of major construction and property projects.

Source: The Star

https://www.thestar.com.my/business/bus ... ed-to-rise

[winston]

not vested

Malayan Cement a key beneficiary of HSR and MRT3, says CGS-CIMB

By Surin Murugiah

Cement industry's prospects will look brighter post the fourth quarter of calendar year 2023 once there is clarity on the MRT3, Bayan Lepas Light Rail Transit and HSR, which have a combined value of circa RM90 billion.

Assuming cement accounts for 5% of total construction cost, we estimate this could result in additional demand of RM4.5 billion over the next five to six years.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/678673

[winston]

not vested

Malayan Cement more than doubles earnings in 4Q; declares six sen interim dividend

By Isabelle Francis

Malayan Cement Bhd doubled its net profit to RM79.55 million or 6.07 sen per share in the fourth quarter ended June 30, 2023, from RM34.13 million or 2.61 sen per share a year ago as higher revenue more than offset the increase in electricity and maintenance costs.

Revenue rose 25% to RM1.01 billion from RM804.76 million on improvement of both volume and selling price of domestic cement as well as higher selling price of ready-mixed concrete.

EPS is 0.12 implying PE 32 @ 4.85

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/680029