YTL Cement Bhd’s recent sale of shares in Malayan Cement Bhd has been viewed positively by analysts, who say the move will help improve the company’s public shareholding spread. Malayan Cement confirmed that YTL Cement has disposed of 82.4 million shares, representing a 5.95 per cent stake, following market speculation over a possible secondary placement of up to 100 million shares.
CIMB Securities Sdn Bhd described the transaction as a constructive step towards maintaining a comfortable buffer above Bursa Malaysia’s minimum public shareholding requirement of 25 per cent. The research firm reiterated its “Buy” recommendation on Malayan Cement and raised its target price to CMY8.30 (US$2.7) from CMY7.50 (US$1.87).
CIMB Securities also upgraded its earnings forecasts for the group by four to six per cent for FY26 and FY27. The revisions reflect expectations of sustained industry pricing, easing coal costs and Malayan Cement’s extensive supply chain capabilities.
Looking ahead, the firm expects the group to benefit from increased infrastructure activity linked to the phased rollout of the 13th Malaysia Plan, as well as projects ahead of the Johor and Malacca state elections. Key developments include the proposed CMY7bn Johor Elevated Autonomous Rapid Transit System, alongside potential future transport projects such as RTS Link 2 and the Kuala Lumpur–Singapore high-speed rail.
Additional demand is also expected to spill over from Singapore, driven by major projects including the SGD13bn (US$10.1bn) Changi Terminal 5 expansion and the SGD10bn (US$7.8bn) Marina Bay Sands upgrade. Overall, CIMB Securities forecasts cement demand growth of between 3.8 per cent and 4.6 per cent from FY26 to FY28.
