June 22, 2010

LMCEMNT - Lafarge Malayan Cement not a Buy yet

Stock Name: LMCEMNT
Company Name: LAFARGE MALAYAN CEMENT BHD
Research House: MAYBANK

KUALA LUMPUR: Maybank Investment Bank Research says Lafarge Malayan Cement is not on its Buy list.

It said on Tuesday, June 22 the share price remains firm (+6% year-to-date) despite poor 1Q10 results.

"Although Lafarge has the potential for a capital repayment, we think it may be too early to buy the stock," it said.

The research house said the factors were: (i) domestic cement demand has yet to show clear rebound, and demand optimism has had false starts in the past; (ii) capital repayment might materialise only in 2011.

"We maintain our Hold rating and TP of RM6.40 (12x 2011 PER)," it said.


No comments:

Post a Comment