Highlights

THE INVESTMENT APPROACH OF CALVIN TAN

Author: calvintaneng   |   Latest post: Thu, 29 Oct 2020, 11:54 PM

 

ECRL (EAST COAST RAIL LINK) LAFARGE WILL BE TOP BENEFICIARY FOR CEMENT & AGGREGATE, Calvin Tan Research

Author:   |    Publish date:


Hi guys,

So far so good. Top Beneficiaries of ECRL Are PRESTAR, TALAMT, AZRB, T7 GLOBAL, MASTEEL & LAFARGE CEMENT

 

This evening Calvin will highlight the Salient Factors of LAFARGE

 

And these are the Top Reasons to be bullish

 

1) BY ITS VERY NATURE CEMENT IS A FRAGILE PRODUCT. ONCE EXPOSED TO WATER OR MOISTER CEMENT WILL HARDEN. That is why you hear of Steel Dumping but not Cement Dumping?

Steel can be shipped on the high seas of the world BUT Not Cement BECAUSE Cement can harden on transhipment in the open sea

And being bulky at 50 kg bag for Rm15 to Rm18 per bag - the transport cost is too prohibitive

THAT IS WHY THE CEMENT FACTORY LOCATED NEAREST ECRL WILL BENEFIT THE MOST - IN TIME, COST & PRACTICALITY

LAFARGE CEMENT IS LOCATED IN RAWANG - 10 MINUTES FROM SERENDAH WHICH ECRL IS PASSING

 

 

2) LAFARGE ALREADY SIGNED A RM270 MILLIONS CEMENT SUPPLY CONTRACT WITH ECRL CONTRACTORS BEFORE IT WAS CANCELLED. SO FOR PRACTICAL & PRAGMATIC REASON LAFARGE CONTRACT WILL BE RESTORED AGAIN

See

 

CONTRIBUTING TOWARDS BUILDING MALAYSIA (FROM LAFARGE YEAR 2017 AR REPORT)

Lafarge Malaysia has been a part of the nation’s progress and growth for 65 years contributing to the construction of homes, buildings and infrastructure. Thanks to the number of large infrastructure investments in the country, we have had the opportunity to contribute our expertise and products to these projects, reinforcing our reputation as the preferred supplier for complex projects.

We have been privileged to play a role in landmark projects such as the Petronas’ Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang, Johor. RAPID gave us the opportunity to deliver the quality, the logistics solutions and the health and safety standards required by high value complex projects. Petronas has awarded Lafarge Malaysia numerous Focused Recognition Awards throughout the project as acknowledgement of us meeting their needs and for our good Health & Safety performance at RAPID. We are also the concrete supplier of choice for power plant constructions having supplied to many power plant projects such as Jimah East Power Plant, Manjung 4 & 5, Tanjung Bin and the initial Jimah facility.

As far as high-rise building is concerned, we are involved in the construction of Merdeka PNB 118 mega tower. This project requires stringent conditions and tremendous coordination involving multiple parties. We have recently secured the supply to packages for both the 24.4km SUKE and 20.1km DASH three-lane, dual-carriageway, elevated expressways, and most recently the East Coast Rail Link (ECRL) project.

 

THE ABOVE WAS EXTRACTED FROM LAFARGE YEAR 2017 ANNUAL REPORT

 

3) NOW LAFARGE IS NOT JUST DEALING IN CEMENT ALONE - LAFARGE IS ALSO STRONG IN STONE CHIP OR AGGREGATES AS WELL. LAFARGE HAS 6 QUARRIES FOR AGGREGATES

 

AND RAILWAY TRACKS NEED LOTS AND LOTS OF AGGREGATES

 

SEE

 

Image result for photos of aggregates for railway

 

RAILWAY TRACKS RESTING ON STONE AGGREGATES TO KEEP THEM IN PLACE (ABOVE)

 

BELOW ARE STONE AGGREGATES

Image result for photos of aggregates for railway

 

AND THESE ARE NOT CHEAP ANYMORE (AND LAFARGE HAS CORNERED THE MARKET)

LAFARGE GOING TO MAKE TONNES OF MONIES SELLING AGGREGATES FOR ALL THE 688 KILOMETER OF ECRL TRACKS

 

3) CEMENT MIXER TRUCK ONCE LEAVING THE CEMENT PLANT MUST UNLOAD ITS CONTENT WITHIN ONE HOUR LIMIT DUE TO STRINGENT QUALITY CONTROL

 

I used to buy Cement mixed with aggregates from Daiman for my contruction job in Iskandar

I got a fried who also sell Cement by delivery through Cement Mixer at a lower cost

So I tried to place an order from his Cement Plant in Kota Tinggi

He told me he is not able to supply me as I was in JB CBD

It is too far away from Kota Tinggi

Just a delay it might exceed One Hour Limit & his cement will be wasted.

The Cement Truck must deliver and unload all its content within ONE HOUR LIMIT. And also clean the rotating Cement Drum or else the residue cement will harden & spoil the Drum

See

 

Image result for lafarge cement mixer truck photo

 

ONLY LAFARGE CEMENT MIXER TRUCK IS NEAREST ECRL. FOR TASEK & YTL CEMENT THEIR PLANTS ARE IN PERAK 

(JUST ONE STATE TOO FAR)

 

SO LAFARGE WILL CAPTURE THE LION SHARE FOR BOTH CEMENT AND AGGREGATE SUPPLY OF THE ECRL

 

NOW BEFORE ECRL WAS CANCELLED LAFARGE WAS TRADED ABOVE RM4.00

AFTER IT WAS CANCELLED LAFARGE SHARE PRICE EVEN CRASHED BELOW RM2.00

 

IN COMING DAYS WHEN ECRL IS RESTORED EXPECT LAFARGE TO RISE BACK ABOVE RM4.00 FIRST

 

THEN SEE IF THERE ARE SOME MORE OTHER BIG INFRAR PROJECTS

 

BEST REGARDS

 

Calvin Tan Research

Singapore

 

 

Please buy or sell after doing your own due diligence.

 

 

 

 

 

 

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Labels: MCEMENT

Related Stocks

Chart Stock Name Last Change Volume 
MCEMENT 1.82 -0.01 (0.55%) 368,900 

  Patrick hahahaha likes this.
 
calvintaneng https://www.youtube.com/watch?v=Opfx_ivS7EI
27/03/2019 9:20 PM
calvintaneng Patrick TheBull likes this.

VERY GOOD

TheBULL LIKES THIS!!
28/03/2019 9:48 AM
Patrick hahahaha Lol hahaha!

Thanks for promoting this counter, this counter indeed a hidden gem. I call it a "hidden gem" because not many really understand or study about the cement industry.

I did accumulate Lafarge at RM 2.20 per share on Monday and plan to continue holding it. Let us see how high next week its share price will fly.
28/03/2019 11:04 AM
adamsmith i thought YTLcement have a plant in pahang
29/03/2019 11:41 AM
calvintaneng Yes I think so
Ytl got hanjoon cement on perak
In any case ytl cement no longer listed plus no sell aggregates?
29/03/2019 11:54 AM
calvintaneng WAHAHA!!

ANOTHER CHUN CHUN 100% JACKPOT

BUY CALL IN MARCH 27TH 2019

TODAY JUNE 14TH 2019

IN LESS THAN 3 SHORT MONTHS LAFARGE TOUCHED RM4.50 FOR A CHUN CHUN 100% GAIN!

HIP HIP HOORAY!!

KLSE: LAFMSIA (3794) LAFARGE MALAYSIA BHD MAIN : Industrial Products
Last Price Today's Change Day's Range Trading Volume
4.33 -0.01 (0.23%) 4.21 - 4.57 955,500
14/06/2019 1:37 PM


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