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Author: savemalaysia   |   Latest post: Tue, 24 Nov 2020, 12:59 PM


Local construction projects, decent exports until 2021 expected to support Malayan Cement

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KUALA LUMPUR, April 20 — Malayan Cement Bhd’s forward volumes are expected to be supported by post movement control order (MCO) pent-up demand from the steady pipeline of in-progress domestic construction projects and decent exports traction spilling over into 2021, RHB Investment Bank Bhd said.

It said Malayan Cement’s key earnings would also be underpinned by significant synergistic benefits to be reaped from its ongoing business integration with YTL Cement.

“The latter has been in a class of its own, with a consummate historical track record of unbroken profitability owing to its superior execution and operational efficiency relative to domestic peers,” the research house said in a note today.

It anticipated the upcoming 12th Malaysia Plan to provide longer-term volume visibility — potentially skewed towards the upside owing to pent-up demand from previously delayed infrastructure project roll-outs.

“Going into 2021, demand visibility remains well supported by large-scale public project implementations including ECRL, MRT2, LRT3, Bandar Malaysia and the Johor-SG RTS shifting into higher gear”.

However, its key risks include a relapse in a price war and prolonged Covid-19 situation undermining its cash flow.

RHB Investment set a “buy” call on the company with a target price of RM3.00.

At 9.35am, shares of Malayan Cement rose 4.44 per cent to RM2.35. — Bernama



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Roy 8 with MCO lockdown and its possible further extension, the coming QRs results would not be good.
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