February 23, 2012

ECM: Lafarge Malayan Cement (4QFY11 Results): Beat expectations (Upgrade to BUY, TP: RM7.97)




Upgrade toBUY, TP: RM7.97 

Lafarge'sFY11 result was commendable, beating both house and consensus full yearestimates, mainly due to increased orders for cement, aggregate and concreteproducts coupled with better plant efficiency. A 10 sen interim single-tierdividend was declared for 4QFY11. We upgrade our FY12-FY13 EPS estimates tofactor in potential margin expansion from cement demand pick-up as execution ofdomestic infrastructure construction projects gathers momentum, especially theSungai Buloh ' Kajang MRT civil works to be implemented from 2QFY12onwards. After YTL Cement is delisted by end-Feb 2012, we expect investors toswitch to Lafarge, as an indirect play on domestic construction.

No comments:

Post a Comment