Lafarge Malayan Cement: Maintain Hold - Solid Results But All In The Price

• Results within expectations. 2Q12 net profit of MYR82m (+27% QoQ, +6% YoY) lifted 1H12 net profit to MYR147m (+14% YoY). Though 1H12 made up 40-41% of our and the market's full-year forecasts, we expect a stronger 2H12 on the recent hike in gross ASP (+6%) and falling coal costs (-21% YTD).
• We maintain our HOLD rating and TP of MYR8.60 (17x FY13 PER). Valuations are fair with a forward PER of 18x, but net dividend yield of 4.2% is still worth holding on for.

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Source: Maybank Research - 29 August 2012