Various research houses maintained their BUY calls on Malayan Cement Bhd after its FY26 results met or exceeded expectations, with target prices ranging from RM8.20 to RM9.53. Analysts said strong ready-mixed concrete (RMC) demand and cost discipline supported the year’s earnings, although higher coal prices could weigh on margins in FY27.
Malayan Cement’s FY26 core earnings rose around 34% to about RM900 million, while 4QFY26 core profit reached around RM213 million to RM223 million. RHB Research said the results were within its estimates, while MBSB Research noted that earnings beat both its forecast and consensus. CIMB Securities also said FY26 core earnings surged 36% year-on-year.
The RMC and aggregates business remained the key growth driver, with MBSB noting a 38% year-on-year increase in 4QFY26 revenue. Strong demand for high-grade and bespoke concrete products helped offset pressure from rising fuel and coal costs.
However, analysts expect FY27 to be more challenging as coal prices rise. RHB noted that Malayan Cement has secured coal at US$80 to US$90 per tonne for the coming months, compared with US$65 to US$70 previously. HLIB expects coal costs to rise further before easing later in FY27.
Still, analysts believe construction demand remains robust, supported by industrial projects, data centres and major infrastructure developments. CIMB also highlighted Malayan Cement’s stronger balance sheet and potential demand from YTL Power’s expanding data centre footprint in Johor as further positives.
As of 10 am, the stock price slipped 0.75% to RM6.66.
