STOCK FOCUS OF THE DAY
Lafarge Malaysia : Initiatives to boost performance Hold
We maintain our forecasts, HOLD call and FV of RM3.55 for Lafarge Malaysia (LM) following an analyst briefing last Friday. Our FV is based on 24x FY18F EPS, which is at a 20% discount to its 5-year historical average PE. LM has outlined various strategic initiatives to boost its performance from 2HFY17 and beyond, after suffering two consecutive quarterly losses in 1Q and 2Q FY17. These include cost optimisation, disposing of non-core assets and widening its reach to the high-margin retail segment.
We maintain our sales volume growth assumptions of -3%, 1% and 3%, and our ASP/tonne assumptions of RM245/tonne, RM255/tonne and RM265/tonne in FY17-19F. Based on our FY18F forecasts, every 5% change in sales volume growth rate or RM10 change in ASP/tone will alter our earnings by 35% and 34% respectively.
Others :
UMW Oil & Gas Corporation : Ex-rights date on 25 Sep Hold
QUICK TAKE
Plantation Sector : News flow for week 4 – 8 September Neutral
STOCK ON RADAR
LB Aluminium, Samchem Holdings, Leader Steel Holdings, Johore Tin
NEWS HIGHLIGHTS
Tourism Industry : Tourist arrivals remain flat despite weak ringgit
FGV : Zakaria likely to make comeback to FGV
Transportation & Logistics Sector : Tough second quarter for Malaysia Airlines
Hai-O : Set for further growth
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