Malaysia’s YTL Cement expects its net profit to double this fiscal year after it raised its stake in Perak Hanjoong Simen Sdn Bhd to 64.8% from 32.1%, YTL’s managing director said.
"We should double that (last year’s net profit)," Francis Yeoh said at a press conference, when asked how Perak-Hanjoong would enhance YTL’s performance.
In the year ended June 2004, YTL Cement’s net profit jumped 26% to MYR84.6m. In contrast, Perak-Hanjoong reported a post-tax loss of MYR53.2m in 2003, the latest available full-year data.
Yeoh said YTL Cement’s higher profit would be driven by strong demand and improved efficiencies.
YTL Cement is paying MYR109.7m in cash to government-backed asset management company Pengurusan Danaharta Nasional Bhd. to raise its stake in Perak-Hanjoong.
Perak-Hanjoong is the second-biggest maker of cement and cement products in Malaysia with a 16% share of the market.