Malayan Cement

[winston]

Malayan Cement Berhad - Healthy Start to FY25
Date: 2024-11-27
Firm: MIDF
Price Target: 6.81

KEY INVESTMENT HIGHLIGHTS

1QFY25 core net profit rose +53.8% yoy to RM144.5m; slightly ahead of expectations

Cement operating profit grew +12.5%yoy;

Aggregates and concrete operating profit surged 5.8x

FY25 demand to continue being driven by private sector with industrial projects such as warehouses and DCs

Maintain BUY with an upgraded TP of RM6.81

Source: MIDF

https://klse.i3investor.com/web/priceta ... arch/73516

[winston]

not vested

1Q Results

Revenue: +2%; RM 1.17b
EPS: +42%; 10.22; RM 139m
Net Asset 4.82

https://www.bursamalaysia.com/market_in ... id=3502864

[winston]

not vested

Malayan Cement kicks off FY2025 with record profit in 1Q

By Anis Hazim

Net profit rise 45% to a record high of RM139.44 million for the first quarter ended Sept 30, 2024 (1QFY2025) against RM96.10 million a year earlier,

Higher sales volume for domestic cement and ready-mixed concrete.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/735512

[winston]

not vested

Still in a sweet spot with cost tailwinds

Key discussion highlight: visibility of cement demand still strong, with growth in RMC sales from 35 bespoke products that yield high margins.

Economic moat for exports; strong FCFs offer dividend upside potential.

Reiterate Add, raising FY25-27F EPS and lifting TP to RM7.10.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... C0931A37F5

[winston]

not vested

Setting itself apart from the competition

A visit to its CDL reaffirms our view on MCement’s innovation expertise.

Its valuation of 12x CY26F P/E, at 36-42% discounts to large cap contractors, is unjustified given its economic moat and dominant production market share.

We reiterate our Add call, raise EPS and lift TP to RM9.00.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... 0AF8706860

[winston]

not vested

3794 MCEMEN (BUY)
Record high print

MCement’s 1QFY26 core PATAMI of RM201.7m came in above our and consensus expectations at 41%/31% of full year forecasts;

The positive deviation was driven by higher-than-expected sales volumes and improved operating margins from a leaner cost structure.

Going forward, earnings should benefit from accommodative coal prices and reduced electricity costs under the RP4 AFA framework, while pricing power mitigates logistics cost pressures.

We raise earnings forecasts by 28-44%. Maintain BUY rating with a higher TP of RM7.55.

Source: HLIB

[winston]

not vested

Malayan Cement Bhd

Malayan Cement Bhd (KL:MCEMENT), a subsidiary of YTL Corp Bhd (KL:YTL), is a strong proxy to the construction sector as it commands about 65% of cement production capacity in Peninsular Malaysia.

CGS International notes that the group’s strategy of not raising cement prices could allow it to further strengthen its market share, given its fully integrated operations.

Notably, Malayan Cement’s ready-mixed concrete division is capable of producing 35 customised products, positioning it well to support the rollout of data centres and industrial property developments, and differentiating it from its competitors.

Over the past four quarters, the group has consistently delivered a net profit margin of at least 15%.

In 1QFY2026, its net profit surged 43.84% year on year to a record RM200.57 million.

Malayan Cement has also seen increased exports to Singapore, which has a robust construction pipeline.

Management highlighted the Johor-Singapore Special Economic Zone as a key catalyst, alongside the group’s ability to capitalise on export opportunities via its Langkawi plant.

Source: The Edge