KUALA LUMPUR (Nov 19): Lafarge Malaysia Bhd fell 17 sen or 1.7% after the cement manufacturer reported a 54% drop in third quarter net profit from a year earlier.
Lafarge changed hands at RM9.97 with 271,100 shares traded as at 10.45am. Earlier, the stock hit an intraday low of RM9.90.
Lafarge's quarterly filing with Bursa yesterday showed net profit fell to RM54.81 million in the quarter ended September 30, 2014 from RM120.22 a year ago.
Revenue shrank to RM664.63 million from RM728.01 million.
It attributed the earnings decline to lower revenue and higher operating cost arising from higher electricity tariff and removal of fuel subsidy.
Lafarge's cumulative nine-month (9MFY14) net profit fell to RM206.06 million from RM255.97 millio a year earlier.
The 9MFY14 numbers came in below market estimates.
Hong Leong Investment Bank Bhd wrote in a note today, Lafarge's 9MFY14 net profit accounted for 57.9% and 52.5% of Hong Leong's and consensus full-year forecast respectively.
Hong Leong said it had maintained its target price for Lafarge shares at RM9.74 with an unchanged "hold" call.
"We will review our forecast pending an analyst briefing on 21 November," Hong Leong said.