MIDCAP-Lafarge Malayan Cement leads Malaysian materials sector on analyst revisions

Lafarge Malayan Cement leads on analyst revisions among 12 companies in the Malaysian materials sector tracked by at least three analysts, data from Thomson Reuters StarMine shows.

The company has an Analyst Revision Model (ARM) score of 94, the highest in the sector. It also has above-average Value Momentum (Val-Mo) and Earnings Quality (EQ) scores of 75 and 81 respectively. A high Smartholdings (SH) score of 80 suggests a potential increase in institutional ownership.

The cement and concrete company's forward 12 month P/BV and P/EPS ratios beat that of its peers by 133 percent and 93 percent respectively.

The stock is trading at a 4 percent premium to its instrinsic value of 9.50 ringgit.

Of the 11 analysts tracking the stock, seven give it a 'strong buy' or 'buy' rating, three recommend a 'hold' while one recommends a 'sell'.

The shares of the company have risen over 40 percent year-to-date, while the broader index gained 8.66 percent in the same period, as of Tuesday's close.

On the other end of the spectrum, Ta Ann Holdings and Ann Joo Resources lag the sector on analyst revisions with ARM scores of 2 and 8 respectively.


On Aug. 28, the company said its second-quarter net margin rose 6.3 percent year-on-year to 82 million ringgit in June 2012 while revenues increased over 4 percent to 697 million ringgit during the same period.

StarMine's Analyst Revision Model ranks stocks based on analysts' revision of earnings and revenue estimates and changes in their ratings and usually gives additional weight to analysts who have been more accurate in the past.

StarMine's Val-Mo model provides a 1-100 percentile ranking of stocks and rates stocks based on a combination of two value and two momentum metrics.

The Earnings Quality model is a percentile (1-100) ranking of stocks based on sustainability of earnings, with 100 representing the highest rank.

The StarMine SmartHoldings model is a global stock selection model that ranks stocks based on the expected future increase, or decrease, in institutional ownership.

(Reporting By Reshma Apte; Editing by Sunil Nair)