01 May 2012
Tasek Corp to benefit from Malaysian Government's mega projects but expects slower demand from private sector - CEO Thing Sii Tien @ Yao Sik Tien
(TASEK closing stock price yesterday (30.4.2012) was RM 8.67)
Tasek Corp Bhd, the fourth largest cement company in the country, sees lower cement demand from private sector jobs this year but expects the decline to be compensated by government projects.
For the past few years, demand from the private sector, which includes property developers, has been the main growth driver for Tasek Corp.
However, the company is seeing slowing signs of demand for cement from the private sector lately.
"So, mega projects from the government will definitely help the company and the industry, to compensate the decline from the private sector," said group chief executive officer Ting Sii Tien @ Yao Sik Tien.
Analysts are expecting demand to increase when the construction of the RM30 billion Mass Rapid Transit (MRT) project takes off this year. Other government projects that will help boost demand include the Iskandar development region in Johor, the Northern Corridor Economic Region, and also the East Coast Economic Region.
"Overall, we expect the indus-try to be generally stable this year."
Tasek Corp posted a 2.4 per cent growth in revenue at RM566.19 million for the full year ended December 31 2011.
Its full-year net profit was 33 per cent lower at RM103.16 million, compared with RM154.19 million in 2010. The higher profit in 2010 was mainly due to exceptional gains as a result of disposal of plantation and other properties.
For the first quarter ended March 31 2012, the company posted a net profit of RM24.89 million and a revenue of RM150.63 million, an improvement compared with the RM23.4 million net profit and RM126.39 million revenue during the same quarter a year ago.
"Overall, we remain cautiously optimistic for the remaining of the year," he said.
Tasek Corp is currently the fourth largest cement company in Malaysia with a market share of 10 per cent. It is behind Lafarge Malayan Cement Bhd (40 per cent), YTL Cement Bhd (29 per cent) and Cement Industries of Malaysia Bhd (17 per cent).