Malayan Cement Bhd's profit margins are expected to recover from the second quarter of FY2027 as lower coal prices begin to feed through to production costs, according to Malaysia's RHB Investment Bank (RHB Research).
Newcastle coal prices have fallen by 15 per cent over the past four weeks to US$129/t following progress in US-Iran peace talks. However, the research house said the near-term benefit will be limited because Malayan Cement secured its coal inventory for the first quarter of FY2027 at around US$90/t, 38 per cent higher than in 3QFY25-26.
RHB Research expects margins to improve from 2QFY27 if coal prices continue to ease during the second half of 2026. It noted that the company's EBITDA margin increased quarter-on-quarter to 35.3 per cent in 3QFY26 from 32.9 per cent in the previous quarter and maintained a positive outlook on the stock, citing its attractive valuation.
