OSK Starts YTL Cement With Trading Buy

OSK Investment starts YTL Cement with Trading Buy, DCF-based fair value of MYR6.30; analyst says company has proven itself to be one of strongest cement players in industry in terms of earnings margins, operational efficiency. "Considering that prospects are improving for the cement industry in Malaysia with the revival of the construction sector and the automatic pricing mechanism coming into play, we see that YTL Cement is without doubt, going to perform in term of earnings," says analyst Arhnue Tan. But imputing heavy dilutive effect from ICULS, says group has already reached its peak pricing with FY07 PE hovering at 26.9X level. Tips accumulating at lower levels. YTL Cement down 4.1% at MYR5.80