Lafarge Malaysia Bhd’s (Lafarge) earnings are expected to bounce back in FY17 and FY18 on the back of local cement sales growth as well as contributions from its collaboration with the federal government, according to analysis by AmInvestment Bank Bhd quoted in The Borneo Post.
Following a disappointing FY16, the investment bank anticipates that Lafarge’s earnings are expected to rise by 44 per cent and 68 per cent in FY17 and FY18, respectively.
“Lafarge’s local cement sales is to grow by five per cent in both FY17F and FY18F, driven by demand from infrastructure and large-scale property projects,” it detailled in a report yesterday.
The research firm believed the group’s quarterly local cement sales – as well as profitability – have hit rock bottom in the 3QFY16.
