“We continue to hold the view that dividend payout will likely be generous, given its strong balance sheet (with net cash of RM275.2mil or 32.4 sen per share as at Sep 30, 2015) and ability in generating strong cash flow,” HLIB said.
The research house said so far this year, Lafarge’s share price underperformed both the KLCI and KLCON by 0.5% points and 4.8% points respectively, mainly due to concerns on excess capacity, which had in turn led to intense price competition, hence weaker earnings outlook.
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