Posted by hng33 > 2 months ago | Report Abuse

MCEMENT major input cost fot manufactue cement is coal.

Import coal price is in USD. Selling finished priduct, cement is in RM.

USD have weaken by 9% since Jun from RM 4.72 to RM 4.33 now. The lower feedcost via currency weakness alone will boost Mcement profit significantly as cement selling price remain elevated unchanged.

Upcoming MRT3, Penang LRT, Johor BRT, HSR, booming Data center and China +1 semiconductor industry all will increase cement demand forward.

Posted by hng33 > 2 months ago | Report Abuse

If check MCEMENT latest Q result, it cost of sale have decrease significantly, boosting it's Pretax profit margin to 40% from 30%. However, net profit increase only smaller due to one off impairment RM 131m. Stripping out the impairment, MCEMENT EPS in actual can deliver 16sen instead of 8sen.

Next coming Q result will be very interesting, if revenue sustain at current level, profit margin will further increase from current 40% to up to 45% due to significant 9% weaken USD cost currency on import cost coal. Next EPS could range 18sen-20sen

Posted by UlaSawa > 2 months ago | Report Abuse

this one wont go up. It will follow ytl trend.

Posted by UlaSawa > 2 months ago | Report Abuse

sell fast before it start crash again

Posted by hng33 > 2 months ago | Report Abuse

added more Mcement at 4.70-4.77

Posted by ggleow > 2 months ago | Report Abuse

any stock link to ytl dont touch.

can limit down

Posted by sdgrte45eerw > 2 months ago | Report Abuse

https://klse.i3investor.com/web/blog/detail/dragon328/2024-05-23-story-h-161458128-YTL_YTL_Power_The_Best_Performing_Stocks_May_Again_Double_Up_in_AI_Driv https://hillclimb-racing.com
For leisure reading, you might want to explore and get acquainted with the parent company, YTL.

Posted by hng33 > 2 months ago | Report Abuse

Mcement debt level have trim down significantly due to strong cash flow generated RM 1.2 billion yearly. Mcement balance sheet will like turn net cash position in 1-2 year time. Higher dividend is expected

Posted by dragon328 > 2 months ago | Report Abuse

@hng33, you really had a good spot here again after winning big in PBA. Indeed a sifu in stock picking!

MCement latest Q4 result shows that its debt level has reduced by RM600 million in a year, due to its super strong cash flows of RM930 million in FY2024.

Q4 net profit would have been much higher if not for an impairment of RM137m recognised in the quarter for plant and machinery at Rawang plant. Pretax profit would have been at RM281 million without the impairment and net profit about RM215 million or EPS of 16.2 sen.

Posted by dragon328 > 2 months ago | Report Abuse

Without the impairment, EPS would have been 16 sen a quarter, annualised to 64 sen for FY2025. At a conservative PER of 10x, MCement should be worth at least RM6.00.

Based on its operating cashflows of RM930 million a year, MCement would be valued at RM13.3 billion at 7% FCF yield, or RM9.90 per share as what I had initially projected back in 2022.

Posted by dragon328 > 2 months ago | Report Abuse

As YTL owns some 73% stake in MCement, the surging profits at MCement will help to propel YTL earnings up in next few years and to push YTL share price to double up also by 2028.

Posted by hng33 > 2 months ago | Report Abuse

Dragon328
Yes, if without ome off impairments incur in Q4, it EPS will be 16sen.

Based on current strength in
RM against import feedstock, coal at USD cost and stabilise ongoing coal selling price, Mcement is expect deliver even better next Q profit forward.

Posted by hng33 > 2 months ago | Report Abuse

Upcoming MRT3, Penang LRT, JB BRT, HSR and more exposure in SARAWAK market aftet secure state gov import permit to expand cement market share to west Malaysia, Mcement also now is direct proxy to SARAWAK construction activities and may through SARAWAK also penetrate to kalimatam, new Nusatara capital

Posted by hng33 > 2 months ago | Report Abuse

Dragon
If compared between YTL and Mcement, i still prefer Mcement for its direct exposure instead of conglomerate which often need to trade at discount level.

Posted by hng33 > 2 months ago | Report Abuse

Market also have will give premium valuation to Mcement given fact that it is largest cement marker in Malaysia, control more than 60% whcih if including new market in SARAWAK, Mecemnt market share should even higher.

Posted by hng33 > 2 months ago | Report Abuse

Dragon
For direct utilities exposures - YTLP and PBA

For cement and building materials exposures - Mcement

For hospitality - YTLREITS

After stripping out above gem, YTL construction profit margin is too slim either external or internal work

Posted by dragon328 > 2 months ago | Report Abuse

Yes I agree with your arguments above.

But YTL is still cheap as a construction stock, if not seen as a conglomerate. YTL will be the key beneficial for the upcoming mega projects like MRT3 and HSR as one of the front runners to win the projects as a contractor.

Posted by hng33 > 2 months ago | Report Abuse

locked profit, sold at 5.38-5.40

Posted by cwc1981 > 1 week ago | Report Abuse

Wow the whole group result already overdue. Why never release? Usually mcement and YTL Reit release ahead of corp and power. Now all also quiet......

Posted by cwc1981 > 1 week ago | Report Abuse

Wait till Friday?

Posted by beginner888 > 1 week ago | Report Abuse

Good QR !

Posted by cwc1981 > 1 week ago | Report Abuse

Don't be too excited. All these ECRL, Johor link and etc project going to complete. With no new mega projects like MRT3, HSR and etc coming quarters earning will be gloomy

Posted by beginner888 > 1 week ago | Report Abuse

Highest topline and bottomline in the last 12 quarters, with borrowings also reduced substantially. Good QR~

Posted by dragon328 > 1 week ago | Report Abuse

Excellent quarterly results from Mcement with profits jumping up some 47% year-on-year due to continued improvements in operational efficiencies and lower production costs. Despite a slightly lower topline, earnings jumped up substantially to a new high with gross margin improved by 5% to a new high of 34.5%.

Continued plant improvements like waste heat recycling and higher plant efficiency will last a long way for the company to keep scaling new highs in quarters to come.

Posted by beginner888 > 1 week ago | Report Abuse

@dragon328, I notice that the topline/revenue for September 2024 (1.17bio) is slightly higher compared to both September 2023 (1.15bio) and June 2024 (1.04bio) :)

Posted by troy88 > 6 days ago | Report Abuse

wow, great QR. Well done to YTL cement business

Posted by dragon328 > 6 days ago | Report Abuse

https://klse.i3investor.com/web/blog/detail/dragon328/2024-11-27-story-h475503050-YTL_YTL_Power_Q1_FY2025_Resilience_is_the_Key

My update report for your leisure read

Posted by dragon328 > 6 days ago | Report Abuse

@beginner888, yes the topline increased by 2% y-on-y but you should look at the double digit gain in gross margin, amazing!

Posted by beginner888 > 2 days ago | Report Abuse

@dragon328, ya, the margin is indeed amazing!

@cwc1981, ya, the lack of a catalyst could be the reason behind the share price drop from RM5.85 to the current level following the Budget 2025 announcement