26 February 2007
THE recovery in domestic average selling price of cement can lead to resurgence in profits for Lafarge Malayan Cement. The ceiling price for cement has been raised by 10% from RM198 per tonne as at end-2006. CIMB Research, despite maintaining a "neutral" call on Lafarge, has raised a new target price for the cement stock at RM1.72 within the next 12 months. The brokerage said the average selling price is expected to stay firm at RM207 this year, given the steady local demand as a result from the Ninth Malaysia Plan projects. It has also upgraded Lafarge earnings for 2007-2008 by 4% to 10%.