In a note today, the examination house said that the organization's quarterly income made up just 10% of its entire year figures. In the meantime, Lafarge's net obligation has enlarged to RM136mil from RM30mil in the final quarter of a year ago (4Q15) because of its continuous extension and lower working capital.
"Moreover, Lafarge has likewise lost its exclusive claim as a high return play with its first between time profit diminished to just three sen for every offer, or a 63% year-on-year lessening. Annualising it shows a profit yield of 1.4% for 2016," it said.
For its first quarter finished March 31, Lafarge's net benefit tumbled to RM20.65mil from RM73.69mil a year prior.
Its income for the quarter added up to RM669.78mil, contrasted with RM696.09mil a year prior.
As indicated by Maybank IB, regardless of the solidification of Holcim Malaysia's income and lower coal costs, Lafarge's 1QFY16 profit were poor because of lower income emerging from more focused normal offering costs (ASPs), a decrease in pretax edges because of rivalry and higher expenses.
Among the higher costs confronted by Lafarge incorporate irregular expenses from its reconciliation with the Holcim Group, subordinate misfortunes, and other account costs.
Going ahead, the exploration house figures that the organization's profit will enhance in the coming quarters without the erratic joining costs in 1QFY16.
"Be that as it may, the profit recuperation will be moderate considering the sharp rivalry. We evaluate that the limit in Peninsular Malaysia could grow 15% in 2016, exceeding potential interest development of around 5%," it said.
Maybank IB is looking after its "offer" rating at Lafarge's stock with a cost focus of RM7.