Lafarge Malayan Cement leads on analyst revisions

Lafarge Malayan Cement leads on analyst revisions
Published: 10 October 2012


Lafarge Malayan Cement leads on analyst revisions among 12 companies in the Malaysian materials sector tracked by at least three analysts, data from Thomson Reuters StarMine shows.

The company has an Analyst Revision Model (ARM) score of 94, the highest in the sector. It also has above-average Value Momentum (Val-Mo) and Earnings Quality (EQ) scores of 75 and 81 respectively. A high Smartholdings (SH) score of 80 suggests a potential increase in institutional ownership.

The company's forward 12 month P/BV and P/EPS ratios beat that of its peers by 133 percent and 93 per cent respectively.

The stock is trading at a four per cent premium to its instrinsic value of 9.50 ringgit.

Of the 11 analysts tracking the stock, seven give it a 'strong buy' or 'buy' rating, three recommend a 'hold' while one recommends a 'sell'.

The shares of the company have risen over 40 per cent year-to-date, while the broader index gained 8.66 percent in the same period, as of Tuesday's close.

In September, Lafarge Malayan Cement  said it expects the robust cement consumption seen in the first half of the year to continue in the second half. The company expects the healthy demand scenario to be driven by the implementation of large infrastructure projects such as the new LCCT terminal and coal power plants.

Group utilisation rates remain high at 85-90 per cent, enabling management to cut back on cement exports in favour of serving the domestic market.  Higher Malaysian sales helped Lafarge’s 1H core earnings per share rise 18 per cent YoY.