YTL Cement net profit to double on Perak stake rise, Malaysia

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.