Hume Cement Industries

[winston]

vested

1Q Results:-

Revenue: -26% yoy
Losses: RM 11.3m
NAV: 0.71

https://www.bursamalaysia.com/market_in ... id=3211237

[winston]

vested

2Q Results

Revenue: +25%
EPS: 2189%
NAV: 0.72

https://www.bursamalaysia.com/market_in ... id=3238193

[winston]

not vested

Hume Cement Industries (HUME) – BUY

Strong earnings and margins ahead. We expect Hume to record stronger earnings in
2024, supported by stronger demand and more construction activities on the back of
improved foreign labour intake.

We expect prices to remain elevated at >RM350/mt in FY24. With coal prices having retreated recently and ASPs remaining elevated, cement players should see better margins ahead.

Better utilisation rate with uptick in construction activities. The industry is expected
to grow this year with utilisation rates normalising as construction activities rebound with
the acceleration of infrastructure projects and some affordable housing projects. This will
lead to stronger demand and stable prices, which act as the primary drivers of improvements in the earnings outlook. Long-term prospects still rest on key projects including MRT3, Pan Borneo Highway, ECRL, RTS and PSR.

Maintain BUY with a target price of RM2.54 based on 15x FY24F PE, lower than the
industry’s 2011-13 average 19x PE, prior to earnings disappointment in 2017 to reflect the
positive outlook for the industry on the back of economic recovery.

SHARE PRICE CATALYST

Rising cement but falling coal prices. Hume is poised to benefit from rising cement
prices and falling coal costs (accounting for 52% of its COGS at floating basis).

We favour Hume for its strong clinker capacity, and it is operating at a robust 75% utilisation rate compared with the industry average of 60%.

In FY24, we anticipate improved results driven by:
a) increased construction activity,
b) higher cement prices,
c) lower coal prices due to global decarbonisation, and
d) effective cost-cutting measures.

Source: UOBKH

[winston]

vested

4Q Results
Revenue: +23%
EPS: +718%

FY
Revenue: +39%
Profits: RM 60m
PE: 22
Net Assets Per Share: 0.84

https://www.bursamalaysia.com/market_in ... id=3379209

[winston]

vested

2Q Results:-

Revenue: +26% RM 322m
Profits: RM 59m
Net Assets: 0.85

https://www.bursamalaysia.com/market_in ... id=3422637

[winston]

not vested

Hume Cement net profit jumps to RM61.06mil in 3Q

Net profit more than doubled to RM61.06mil in the third quarter (3Q) ended March 31, 2024, from RM27.01mil a year earlier.

The cement and concrete maker’s revenue also increased to RM310.40mil from RM289mil previously.

“The increase in revenue and profit was mainly due to a lower manufacturing cost, coupled with higher cement average selling price (ASP) and sales volume” .

Source: The Star

https://www.thestar.com.my/business/bus ... 6mil-in-3q

[winston]

Hume Industries (HUME MK)
9MFY24: Results Within Expectations; Cement Prices Stabilise At High Level

9MFY24 core net profit came in strong at RM61.1m (+3% qoq, +131.3% yoy) due to lower coal costs, higher cement ASP and higher volume sales.

Hume is positioned to achieve commendable earnings in FY24, driven by rising cement prices and reduced input costs, particularly for coal.

We expect the rollout of key mega infrastructure projects to further lift cement prices.

Upgrade to BUY with a higher target price of RM3.67.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

Key Mega Infrastructure Projects Set To Skyrocket Cement Demand In 2025

Hume is positioned to achieve commendable earnings in FY25, driven by increasing
cement prices and higher output volume.

We expect the rollout of key mega infrastructure projects such as MRT3 and Penang LRT, which have a total cost of RM50b-60b, to further boost cement prices.

Upgrade FY26 earnings by 13% mainly to account for higher cement prices and increased output volume.

Maintain BUY with a higher target price of RM5.40.

Source: UOBKH'
'
https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

4Q Results

Revenue: +1%; RM 266m
EPS: -19%; RM 42m; 0.065
Net Asset RM 0.81

https://www.bursamalaysia.com/market_in ... id=3475865

[winston]

not vested

Hume Cement Industries (HUME MK)

Bright Cement Outlook Amid Slower Mega Project Rollout

Despite the slower-than-expected rollout of mega infrastructure projects by the government, Hume is poised to achieve commendable earnings in FY25, driven by smaller infrastructure projects such as the Penang LRT and stable demand from the private sector.

We downgrade FY25/26 earnings by 12%/14% respectively, primarily to account for lower cement prices and reduced output volume.

Maintain BUY with a lower target price of RM5.10.

Source: UOBKH

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