LAFMSIA (3794) : HLIB Research maintains Buy on Lafarge Malaysia, target price RM10.72
KUALA LUMPUR (Dec 24): Hong Leong IB Research (HLIB) has maintained its “Buy” rating on Lafarge Malaysia Bhd with an unchanged target price of RM10.72 after the company said that it had on Dec 18 been awarded a contract to supply concrete for the RAPID Project and other Petreonas related projects at Pengerang, Johor - Package 21D, for the total estimated provisional contract value of RM254 million for five years.
In a note Wednesday, HLIB said in regards to the contract award by RAPID, it views the contract award as positive news and in line with HLIB’s positive outlook on the company.
“We reckon that the above acquisition by Lafarge Malaysia is beneficial as acquiring a relatively new cement mill and equipment from the related party would generate cost savings compared to buying a new mill by a different party.
“We reiterate a Buy call with the target price of RM10.72 based on 22.5x 2016 EPS of 47.7 sen,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Dec 24): Hong Leong IB Research (HLIB) has maintained its “Buy” rating on Lafarge Malaysia Bhd with an unchanged target price of RM10.72 after the company said that it had on Dec 18 been awarded a contract to supply concrete for the RAPID Project and other Petreonas related projects at Pengerang, Johor - Package 21D, for the total estimated provisional contract value of RM254 million for five years.
In a note Wednesday, HLIB said in regards to the contract award by RAPID, it views the contract award as positive news and in line with HLIB’s positive outlook on the company.
“We reckon that the above acquisition by Lafarge Malaysia is beneficial as acquiring a relatively new cement mill and equipment from the related party would generate cost savings compared to buying a new mill by a different party.
“We reiterate a Buy call with the target price of RM10.72 based on 22.5x 2016 EPS of 47.7 sen,” it said.
http://www.theedgemarkets.com
