KUALA LUMPUR (May 28): Malayan Cement Bhd’s (KL:MCEMENT) net profit rose 34.93% year-on-year in the third quarter, driven by stronger demand for its ready-mixed concrete and dry mix products.

YTL Cement Bhd owns a controlling 59.254% interest in the company.

Net profit came in at RM246.7 million in the third quarter ended March 31, 2026 (3QFY2026), up from RM182.84 million a year ago, its Thursday’s bourse filing showed.

The group also attributed the stronger quarterly earnings to rigorous cost management and operational efficiency measures, including increased adoption of renewable energy and waste heat recovery plants, optimisation of advanced technological systems, as well as lower operational and maintenance costs. The group did not declare any dividend for the quarter under review.

Quarterly revenue increased 11.74% to RM1.22 billion in 3QFY2026 from RM1.1 billion previously, supported by higher sales in the ready-mixed concrete and drymix divisions amid increased demand for high-grade, bespoke ready-mixed concrete products.

For the nine-month period (9MFY2026), its net profit rose 34.18% to RM680.25 million from RM506.97 million a year ago, as revenue increased 8.26% to RM3.7 billion from RM3.42 billion.

On prospects, Malayan Cement said cement demand is expected to remain satisfactory over the medium to long term, supported by sustained industrial and commercial construction activity, as well as infrastructure initiatives such as the Johor-Singapore Special Economic Zone (JS-SEZ).

However, the group flagged that a prolonged conflict in the Middle East could drive up energy prices, construction material costs and freight charges, potentially slowing construction activities and having a knock-on effect on cement demand.

“Fuel and freight costs are key inputs in cement production and distribution, and volatility may exert upward pressure on cement product cost,” it explained.

Malayan Cement's share price has fallen from its recent peak of RM8.69 in late February to a low of RM5.96 on March 30. The stock closed down 1.43% or 10 sen at RM6.89 on Thursday, giving it a market capitalisation of RM9.61 billion. 

Year to date, the stock has fallen 10%.