Stock Name: YTLCMT
Company Name: YTL CEMENT BHD
Research House: ECMLIBRA
ECM Libra has increased its target price for YTL Cement to RM4.20 from RM3.98 previously, maintaining a "hold" call for the cement producer.
Recently, the group had offered to acquire the remaining 35.16 per cent stake not already owned by it for RM200 million in Perak-Hanjoong Simen Sdn Bhd.
"The acquisition would allow YTL Cement to integrate in full, Perak-Hanjoong's operations and recognise a larger portion of its profits," ECM Libra said in a research note today.
It said, the cement industry is likely to see better demand next year, as building activity picks up from large infrastructure contracts like the new low cost carrier terminal and the light rail transit extension project.
With two plants in Padang Rengas, Perak and a production capacity of 3 million metric tonnes per annum for clinker, and 3.4 million metric tonnes annually for cement, Perak-Hanjoong is the second largest cement producer in the country.
It also has a cement depot and packing plant near Batu Caves, Selangor with an annual capacity of 600,000 metric tonnes. - Bernama
Company Name: YTL CEMENT BHD
Research House: ECMLIBRA
ECM Libra has increased its target price for YTL Cement to RM4.20 from RM3.98 previously, maintaining a "hold" call for the cement producer.
Recently, the group had offered to acquire the remaining 35.16 per cent stake not already owned by it for RM200 million in Perak-Hanjoong Simen Sdn Bhd.
"The acquisition would allow YTL Cement to integrate in full, Perak-Hanjoong's operations and recognise a larger portion of its profits," ECM Libra said in a research note today.
It said, the cement industry is likely to see better demand next year, as building activity picks up from large infrastructure contracts like the new low cost carrier terminal and the light rail transit extension project.
With two plants in Padang Rengas, Perak and a production capacity of 3 million metric tonnes per annum for clinker, and 3.4 million metric tonnes annually for cement, Perak-Hanjoong is the second largest cement producer in the country.
It also has a cement depot and packing plant near Batu Caves, Selangor with an annual capacity of 600,000 metric tonnes. - Bernama
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