MCEM

Malayan Cement BerhadKLSE:MCEMENT Stock Report

Market Cap

RM2.8b

7D

0%

1Y

63.9%

Updated

17 Sep, 2021

Data

Company Financials +
MCEMENT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance3/6
Financial Health3/6
Dividends0/6

MCEMENT Overview

Malayan Cement Berhad, an investment holding company, produces, manufactures, and trades in cement, clinker, ready-mix concrete, and other building materials and related products primarily in Malaysia and Singapore.

Price History & Performance

Summary of all time highs, changes and price drops for Malayan Cement Berhad
Historical stock prices
Current Share PriceRM2.95
52 Week HighRM1.77
52 Week LowRM3.30
Beta0.94
1 Month Change4.98%
3 Month Change-0.67%
1 Year Change63.89%
3 Year Change3.87%
5 Year Change-64.29%
Change since IPO-71.19%

Recent News & Updates

Sep 15
Malayan Cement Berhad (KLSE:MCEMENT) Strong Profits May Be Masking Some Underlying Issues

Malayan Cement Berhad (KLSE:MCEMENT) Strong Profits May Be Masking Some Underlying Issues

The recent earnings posted by Malayan Cement Berhad ( KLSE:MCEMENT ) were solid, but the stock didn't move as much as...

May 18
Is Malayan Cement Berhad (KLSE:MCEMENT) Trading At A 45% Discount?

Is Malayan Cement Berhad (KLSE:MCEMENT) Trading At A 45% Discount?

In this article we are going to estimate the intrinsic value of Malayan Cement Berhad ( KLSE:MCEMENT ) by taking the...

Mar 25
Loss-Making Malayan Cement Berhad (KLSE:MCEMENT) Set To Breakeven

Loss-Making Malayan Cement Berhad (KLSE:MCEMENT) Set To Breakeven

Malayan Cement Berhad ( KLSE:MCEMENT ) is possibly approaching a major achievement in its business, so we would like to...

Feb 01
If You Had Bought Malayan Cement Berhad's (KLSE:MCEMENT) Shares Five Years Ago You Would Be Down 77%

If You Had Bought Malayan Cement Berhad's (KLSE:MCEMENT) Shares Five Years Ago You Would Be Down 77%

While it may not be enough for some shareholders, we think it is good to see the Malayan Cement Berhad ( KLSE:MCEMENT...

Shareholder Returns

MCEMENTMY Basic MaterialsMY Market
7D0%-2.7%-1.0%
1Y63.9%32.7%5.9%

Return vs Industry: MCEMENT exceeded the MY Basic Materials industry which returned 37.2% over the past year.

Return vs Market: MCEMENT exceeded the MY Market which returned 6.1% over the past year.

Price Volatility

Is MCEMENT's price volatile compared to industry and market?
MCEMENT volatility
MCEMENT Beta0.94
Industry Beta1.05
Market Beta1

Stable Share Price: MCEMENT is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MCEMENT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1950n/aMichael Yeohhttps://ytlcement.my

Malayan Cement Berhad, an investment holding company, produces, manufactures, and trades in cement, clinker, ready-mix concrete, and other building materials and related products primarily in Malaysia and Singapore. The company operates through Cement, and Aggregates and Concrete segments. In addition, it trades in and imports cement, other building materials, and aggregates and related products; ships bulk cements and charters vessels; manages and operates a jetty; and quarries and trades in granite and quarry products.

Malayan Cement Berhad Fundamentals Summary

How do Malayan Cement Berhad's earnings and revenue compare to its market cap?
MCEMENT fundamental statistics
Market CapRM2.76b
Earnings (TTM)RM7.31m
Revenue (TTM)RM1.37b

377.2x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MCEMENT income statement (TTM)
RevenueRM1.37b
Cost of RevenueRM1.21b
Gross ProfitRM160.40m
ExpensesRM153.09m
EarningsRM7.31m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0085
Gross Margin11.71%
Net Profit Margin0.53%
Debt/Equity Ratio28.4%

How did MCEMENT perform over the long term?

See historical performance and comparison

Valuation

Is Malayan Cement Berhad undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MCEMENT (MYR2.95) is trading below our estimate of fair value (MYR8.31)

Significantly Below Fair Value: MCEMENT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MCEMENT is poor value based on its PE Ratio (377.2x) compared to the MY Basic Materials industry average (27.6x).

PE vs Market: MCEMENT is poor value based on its PE Ratio (377.2x) compared to the MY market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: MCEMENT is poor value based on its PEG Ratio (15.7x)


Price to Book Ratio

PB vs Industry: MCEMENT's PB Ratio (1.1x) is in line with the MY Basic Materials industry average.


Future Growth

How is Malayan Cement Berhad forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCEMENT's forecast earnings growth (24% per year) is above the savings rate (3.6%).

Earnings vs Market: MCEMENT's earnings (24% per year) are forecast to grow faster than the MY market (10.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MCEMENT's revenue (16.8% per year) is forecast to grow faster than the MY market (6.2% per year).

High Growth Revenue: MCEMENT's revenue (16.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCEMENT's Return on Equity is forecast to be low in 3 years time (1%).


Past Performance

How has Malayan Cement Berhad performed over the past 5 years?

-30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCEMENT has high quality earnings.

Growing Profit Margin: MCEMENT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MCEMENT has become profitable over the past 5 years, growing earnings by -30.4% per year.

Accelerating Growth: MCEMENT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MCEMENT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Basic Materials industry (28.1%).


Return on Equity

High ROE: MCEMENT's Return on Equity (0.3%) is considered low.


Financial Health

How is Malayan Cement Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: MCEMENT's short term assets (MYR711.6M) exceed its short term liabilities (MYR667.5M).

Long Term Liabilities: MCEMENT's short term assets (MYR711.6M) exceed its long term liabilities (MYR687.5M).


Debt to Equity History and Analysis

Debt Level: MCEMENT's debt to equity ratio (28.4%) is considered satisfactory.

Reducing Debt: MCEMENT's debt to equity ratio has increased from 12.1% to 28.4% over the past 5 years.

Debt Coverage: MCEMENT's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: MCEMENT's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet


Dividend

What is Malayan Cement Berhad current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MCEMENT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MCEMENT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MCEMENT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MCEMENT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MCEMENT is not paying a notable dividend for the MY market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MCEMENT's dividend in 3 years as they are not forecast to pay a notable one for the MY market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Michael Yeoh (60 yo)

2.33yrs

Tenure

Mr. Sri Yeoh Sock Siong, also known as Michael, serves as a Director of YTL Industries Berhad. Mr. Sri Michael Yeoh Sock Siong has been Managing Director at Malayan Cement Berhad (formerly known as Lafarge...


Leadership Team

Experienced Management: MCEMENT's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: MCEMENT's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10%.


Top Shareholders

Company Information

Malayan Cement Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Malayan Cement Berhad
  • Ticker: MCEMENT
  • Exchange: KLSE
  • Founded: 1950
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: RM2.757b
  • Shares outstanding: 934.70m
  • Website: https://ytlcement.my

Location

  • Malayan Cement Berhad
  • Menara YTL
  • 33rd Floor
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 55100
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/17 15:33
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.