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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.
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