MCEMENT 3794 Share Price

The Group’s profit before tax for the financial year ended 30 June 2024 increased to RM647.5 million from RM253.1 million in the preceding financial year mainly in tandem with the higher revenue coupled with a moderation in coal prices. The higher profit before tax is notwithstanding an impairment loss recognized on plant and machinery at Rawang amounting to RM137.1 million. Cement demand is expected to continue to be primarily driven by civil and non-residential ventures including infrastructure, logistics facilities, data centers and factories. Malaysia’s long term need for housing and infrastructure due to its young population and high urbanization rate will also help sustain cement demand. Whilst wider economic volatility may persist in light of inflationary pressures and geopolitical uncertainties, the Group will continue with its pursuit of efficiencies in operations, logistics, and distribution.

The Group revenue of RM858.9 million recorded for the current quarter increased marginally compared to RM804.8 million in the preceding quarter which was affected by the festive holidays. Although revenue was higher, the Group profit before tax has reduced to RM4.1 million for the current quarter compared to RM55.6 million in the preceding quarter. This was mainly attributed to a decline in margins as excess capacity continued to have a downward pressure on domestic cement selling price.

The Group recorded a lower profit before tax of RM26.5 million in the current financial quarter as compared to RM79.3 million in the preceding quarter due to increase in energy cost caused by higher coal and electricity prices and the lower revenue recorded.

Although revenue was lower, the Group managed to turnaround to achieve profit before taxation of RM8.2 million this year compared to a loss before taxation of RM316.5 million in the preceding 18-month financial period ended 30 June 2020. The much-improved results are mainly attributed to the better performance in the Cement segment. MCB’s acquisition from YTL Cement of 10 companies and their respective subsidiaries involved in cement and ready-mixed concrete businesses in Malaysia is expected to bolster profitability and value enhancement, increasing the size of MCB’s cement and ready-mixed concrete businesses

The Group’s revenue in the current quarter was higher than the preceding quarter mainly due to an increase in cement and clinker domestic sales as well as exports. With the better revenue, the Group turned around in the current quarter to record a profit before tax of RM4 million compared to a loss before tax of RM6.398 million in the preceding quarter.

The Group recorded a revenue of RM126.039 million in the current quarter as compared to RM357.913 million in the preceding quarter ended 31 March 2020. The Group recorded a loss before tax of RM79.717 million in the current quarter as compared to loss before tax of RM38.616 million in the preceding quarter. The loss before tax was mainly due to the decline in revenue following the various stage of the MCO implemented by the Government.

In Financial Year End 2019, the directors’ remuneration was 4.55 million. It was slightly low compared to average in listed companies, considering the employees’ remuneration of 192.3 million and auditor’s remuneration of 646 thousands