Friday 29 Mar 2024
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KUALA LUMPUR (May 23): CIMB Investment Bank Bhd said cement manufacturer Lafarge Malaysia Bhd's first quarter revenue drop was symptomatic of an industry still besieged by intense price war and weak demand.

CIMB analyst Sharizan Rosely wrote in a report today that CIMB maintained its "Reduce" call on Lafarge shares, with a lower target price at RM3.63, versus RM4.85 previously. At Bursa Malaysia, Lafarge shares reduced losses at RM3.73 at 10:38am, after slumping as much as 18 sen to RM3.72.

CIMB's note today follows Lafarge's first quarter results announcement yesterday.

Yesterday, Lafarge said net loss widened to RM68.73 million in the first quarter ended March 31, 2018 (1QFY18) from a net loss of RM48.93 milllion a year earlier. Revenue fell to RM546.83 million, from RM561.85 million.

Today, Sharizan said: "Lafarge registered a core net loss of RM63.8m in 1Q18, against our full-year net profit projection of RM40.5m. Price war worsened, while demand continued to be weak. We keep our FY18-20F EPS, pending more details from Lafarge's results' briefing this Friday."

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