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KUALA LUMPUR (Jan 28): Affin Hwang Capital Research has upgraded Malayan Cement Bhd to “Buy” at RM3.30 with a higher target price of RM4.10 (from RM3.40) and said it Malayan Cement's core net loss to shrink in FY20E before turning profitable in FY21E onwards, mainly due to better revenue and profit margins on the back of sustainable cement price improvements.
In a note today, the research house said selling prices have increased faster than expected post the consolidation in the sector and are expected to hold up, which is positive for the industry.
“Separately, we foresee an imminent restructuring with the injection of YTL Cement's assets to enhance group efficiency.
“The outcome would likely be positive in our view, enhancing EPS while creating an entity with about 58% market share in the cement industry,” it said.
